INGLEWOOD (2UG) – The Inglewood Finance Department anticipates spending roughly $7.6 million dollars annually on ongoing maintenance and operations costs for the Inglewood Transit Connector (ITC).
The May 23 staff report details the “Inglewood Transit Connector Joint Powers Authority (ITCJPA) would contribute $7.6 million during the operations period to support ongoing costs of operating and maintaining the Inglewood Transit Connector”.
The funding also includes allocating $3.75 million “in each of the two years prior to planned construction completion to establish a project reserve for unexpected obligations”.
The city of Inglewood declared a fiscal emergency in August 2021 which triggered a special election months later.
The city marketed Measure H & I which were designed to bring in additional revenue through increased Transient Occupancy Taxes (TOT) which taxpayers overwhelmingly approved and a tiered Real Estate Transfer Tax which voters rejected. The latter was expected to generate an additional $4.5 million in annual revenue that would have gone toward the ITC project.
Steve Ballmer committed $10,000 to the special campaign coffers of the City to urge voters to pass both tax measures which would have alleviated the City pressuring the venue owners to chip in on the ongoing maintenance and operations costs of the ITC that will be primarily used to reach the Kia Forum, SoFi Stadium and the Intuit Dome.
The staff report details the city (taxpayers) will front payments to the ITCJPA and the city would be refunded annually “to the extent that payments are not needed by the ITCJPA to cover the costs”.
The costs for the ongoing maintenance and operations of the ITC is projected to be $30 million annually. The ITCJPA anticipates getting revenue from a combination of sources to go towards these costs. Fare box, concessions and advertising revenue, and possible grants for low carbon emissions transit operations.
“The City is also engaging the owners of the venues within the Inglewood Sports and Entertainment District to develop an equitable strategy among the venues and the City to fully cover the difference between the ITCJPA revenue and overall anticipated costs”.
Should an agreement not come to fruition Inglewood taxpayers will be on the hook to pay for the shortfall.
The city council will take up the matter during the May 23 city council meeting where they are expected to unanimously approve the funding request.
Read the staff report here.