Taxing Day For Staples Center
“We messed up,” Los Angeles Chief Deputy Assessor Gary Townsend told the paper.
The city transferred acreage near Staples Center over to a subsidiary of venue owner Anschutz Entertainment Group in 1999 as an incentive to get the facility built. The bill for property tax, though, was never sent.
The property was valued at $36 million, according to the paper, and has been reassessed at $41 million, but AEG won’t have to pay interest or penalties on the larger amount. Also, there is a four-year statute of limitations on back taxes, but Townsend said AEG waived that right.
The company that owns the property, AEG’s L.A. Arena Land Co., said it will pay the full amount when the bill arrives. The money is expected to be divided equally among the county, the city of Los Angeles and schools, the paper said.
The 26-acre site in question may be used for a $1 billion hotel and sports-entertainment complex. The city and AEG are in the final rounds of negotiations.