There has been a football drought in Los Angeles for far too long. Teams have tempted us with promises over the years with no walk to back up the talk. But of course, when the rain finally comes, it pours. A couple months ago we were going to have 3 football teams come to LA at once! But after all the dust has settled we finally have our team. The prodigal sons return home. Welcome back Los Angeles Rams!
The stakes are big, the money is bigger. The freeways are going explode. It may be time to invest in that hyperloop transport system or that donkey ride business because the freeways are going to be more clogged than the arteries of a championship hotdog eater and we need anything we can get. But jokes aside what I want to explore is the actual financial impact on the city.
So where is the stadium going to be? Inglewood, just a short bike ride East of LAX Airport. The stadium will be under construction until it’s completion in 2019. The Crenshaw rail line will open the same year 1 mile away from the stadium.
Chris Meany, a development manager with Hollywood Park Land the owner of the land the stadium will be built on, said the project will conservatively generate “tens of millions of dollars in annual revenue” for the city. That will come from a ticket tax, sales-tax revenue from the project’s retail operations, property taxes and a hotel occupancy tax.
“The entire project will create a total of 40,000 jobs counting construction and ongoing operations,” he said. “It will cost $1.86 billion to build the stadium. But the whole project is closer to $3 billion.”
The plan not only includes the stadium but also an enormous mixed-use development that will include housing, office space, retail, a hotel, a 6,000 seat performing arts theatre and a lake altogether covering approximately 300 acres.
An economic impact evaluation completed by the city last year estimated that the Rams’ move would help generate over a billion dollars a year for the local economy.
Raphael Bostic, interim director of the USC Lusk Center for Real Estate, said the project could well boost surrounding property values, both commercial and residential.
“I think there is potential for that,” he said. “But it really depends on how the project performs. If it translates into a vibrant destination place, it would not only benefit the city, it would also become a regional draw like Old Pasadena.”
Homes in close proximity to NFL stadiums tend to have higher than average home values overall, however, all stadiums built within the last 10 years have failed to raise home values.
It seems that the local big winners will be commercial real estate in the short term and in the long term: hotels, short term rentals, restaurants, and tourist spots. We could see a boost in Real Estate in the area if the new jobs created are able to translate into new homeowners.