by Michael C. Lowe | July 03, 2013
The Los Angeles City Council has voted to allow Anschutz Entertainment Group to run the city's convention center, the first time in its 42 years of operation that it will be managed by a private company, according to the Los Angeles Times. The vote came amid concerns from local hoteliers that AEG would have an unfair advantage in filling its hotel rooms while booking conventions (it owns the JW Marriott and Ritz-Carlton hotel complex near the convention center). However, according to AEG officials, hotel bookings would primarily be handled by the Los Angeles Tourism & Convention Board, a nonprofit organization that operates separately from AEG. In June, Pennsylvania-based SMG challenged the pending appointment of AEG, claiming the company didn't have enough experience to run the facility. That challenge was dismissed by the city council. The management company will be paid $250,000 as an annual management fee and can qualify for another $250,000 if it meets certain performance measures.