The preliminary description of the proposal indicated that the hotel/conference center would take only non-commercial business. An example could be a campus-sponsored research conference and participants in such events. The non-commercial limitation allows for tax-exempt financing but limits the potential use of the hotel/conference center. It thus raises issues of whether resulting revenue can cover costs. Commercial use that would violate federal tax code requirements could create problems for UCLA and, indeed, the entire UC system. An interesting question, therefore, is what the business plan will define as a legitimate use of the facility. UCLA is not going to default on its financial obligations so if revenue turns out to be below cost, one way or another the campus will have to make up the difference.
We continue to wait for the business plan but note that time is marching on: