SDCTA Releases Principles Necessary but not Sufficient for Support of the TOT Increase (2017)

SDCTA states the following principles are important and should be taken into account as Mayor Faulconer's transient occupancy tax increase proposal is developed. SDCTA also states that these conditions are necessary, but may not be sufficient for any future support; other principles may need iteration as the proposal develops. 1. Ensure Performance Audits and Oversight 2. Require Cross-Governmental Coordination of Homeless Services 3. Create Protections for Taxpayers in the Case of Economic Recession 4. Prevent Waste in the Case of Larger Economic Growth than Anticipated 5. Share Investment Costs with the Port of San Diego 6. Include Language in the Initiative Requiring Legal Rights to Land Additionally, SDCTA recognizes that in order to potentially share costs, the City would need to engage in dialogue with the Port of San Diego. The Port of San Diego is in a complicated legal position with respect to their obligations to Fifth Avenue Landing, LLC, (FAL) on the exercise of "good faith" on FAL's hotel option, which FAL is legally allowed to propose. The City of San Diego defaulted on its payment for the leasehold interest on the land where the Convention Center expansion would be built, and as such, no longer has legal rights with respect to that land. The Port of San Diego, if it engages with the City of San Diego on use of land to which it has no rights, risks creating legal exposure for itself without a release from FAL. Therefore, the mayor needs to exercise leadership and persuade FAL to release the Port of San Diego of potential damages with respect to "good faith."

Download the report here.

SDCTA