Reform 9.1.2: Convention Center

Commit to exploring all legal avenues to transferring remaining debt service for the Convention Center from the General Fund to the Redevelopment Agency.

Other Information:

While CCDC was not directly involved in the Convention Center, the case can easily be made that this asset generates property tax revenues by supporting existing and proposed hotels in the CCDC project area. Despite legal hurdles, the possibility has been raised that expanding the Convention Center may provide a means to consolidate outstanding debt on the facility and transfer it to CCDC. The City currently contributes approximately $9.2 million toward the debt service for the Phase 2 Convention Center expansion of the Convention Center. The Unified Port of San Diego currently contributes $4.5 million annually, for a total debt service payment of $13.7 million per year that will not be retired until April of 2028. However, the Port’s contribution is scheduled to expire, and the entire debt service burden will be the responsibility of the City beginning in FY 2015. As a result, the successful outcome of this decision could provide major General Fund benefit of at least $9.2 million annually, and up to $13.7 million annually beginning in FY 2015.

Indicator(s):

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