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Los Angeles is planning a modernization and expansion of its convention center and it is considering whether to enter into a P3 contract or publish a traditional procurement. 

The Government already launched a Request for Information (RFI) on April 19, whose purpose is to evaluate the market's interest in the Los Angeles Convention Center Expansion and Modernization Project procured through a Design-Build-Finance-Operate-Maintain model. Responses to the RFI are due May 6, 5 PM (local hour).

The plan would involve the development of an integrated urban development project that would include a convention center, hospitality, and mixed-use district on the existing Los Angeles Convention Center (LACC) campus.

Last summer the city hired a team composed of HMC Architects and Populous to develop a design project to upgrade the convention center.

Additionaly, Arup was hired to study the potential of the PPP model to carry out the new project. The company raised several risk factors associated with the previous plant to upgrade the convention center. 

The study recommended that, if the city selects the PPP approach, the developer should receive availability payments to build, operate and maintain the facilities for at least 30 years but responsibility for all marketing and sales activities should remain with the city Department of Convention and Tourism Development. The DBFOM method was considered a cost-effective alternative to avoid the city issuing US$470 million in debt for a traditional procurement.

The city also is considering reconfiguring the convention center master plan to make up to 14 acres of the 54-acre convention center site available for mixed-use development. The financing study, which also discussed this mixed-use development, indicated that it would be feasible to cover both projects in a single procurement process.

The mixed-use project would consist of condominiums, apartments and retail. It could attract more than US$2 billion in real estate investment, which would result in net revenues for the city of up to US$250 million.

See the Request for Information (RFI):

http://www.labavn.org/index.cfm?fuseaction=contract.opportunity_view&recordid=26909