Subsidy Tracker Individual Entry

Company: 
AEG Group/KB Home
Parent Company: 
Anschutz Company
Subsidy Source: 
local
Location: 
California
City: 
Los Angeles
Project Description: 

hotel development near convention center

Year: 
2005
Major Industry of Parent: 
diversified
Specific Industry of Parent: 
diversified
Subsidy Value: 
$290,000,000
Program Name: 
multiple
Awarding Agency: 
multiple
Type of Subsidy: 
MEGADEAL
Source of Data: 

The value and the breakdown of the subsidy package were taken from: Patrick McGreevy, "City OKs subsidies for downtown hotel," Los Angeles Times, October 1, 2005.

Notes: 

The subsidy package was originally assembled by the city of Los Angeles for Wolff Urban Management Inc. and Apollo Real Estate Advisors. In 2006 KB Homes and AEG Group, controlled by billionaire Philip Anschutz, took over the project (see Annette Haddad, "KB Home, Anschutz to take over planned hotel," Los Angeles Times, January 13, 2006). The city agreed to rebate up to $270 million in hotel bed taxes over 25 years to the developers. In addition, subsidy package included $16 million in a below-market-rate loan from the city for infrastructure improvements around the hotel and a $4 million fee waiver. Overlaps with main Subsidy Tracker data: none.

Source Notes: 
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