June 05--An internal memo sent Tuesday to Los Angeles Mayor Antonio Villaraigosa and city council members recommends handing over management of the city's Convention Center to Anschutz Entertainment Group.

Budget chief Miguel Santana sent the one-paragraph memo, which advises picking AEG over competitor SMG, a West Conshohocken, Pennsylvania-based event operator.

City officials want to save money by having a private operator take on the convention center. Both AEG and SMG submitted proposals after Villaraigosa announced plans last year to privatize management of the center, which is viewed as a drag on the city's finances.

In his memo, Santana said an outside panel weighed in on the selection of AEG. He also writes the "AEG proposal presents an enhanced, cost-effective, and unique experience for all Convention Center visitors."

Late Tuesday, Santana declined to comment on who served on the panel, or on the memo.

The city council is expected to weigh in at the end of the month on Santana's recommendation.

AEG, owned by Denver billionaire Phil Anschutz, built the Staples Center and LA Live complex near the convention center. The company also worked closely with city officials on a plan for a football stadium and new convention center wing, plans that are now uncertain given the inability to lure a National Football League team to Los Angeles.

AEG initially refused to turn

over financial documents to the city, but acquiesced after advised they would be dropped from the convention center bidding process.

In a statement, AEG president and CEO Dan Beckerman said the company was "thrilled" at the recommendation and is "committed to dedicating the time and resources needed to bring the biggest and most important conventions to Los Angeles."

SMG Senior Vice President Gregg Caren didn't immediately return a phone call.

The city's employee unions have spoke out against the privatization of city-owned facilities like the convention center and the L.A. Zoo.

[email protected]

@dakotacdsmith on Twitter

___

(c)2013 the Daily News (Los Angeles)

Visit the Daily News (Los Angeles) at www.dailynews.com

Distributed by MCT Information Services NYSE:LTD,