SDCTA Supports Proposed Convention Center Expansion Project with Conditions

Numerous analyses have stated the proposed Convention Center Expansion Project would generate additional transient occupancy tax revenues that would be more than sufficient to cover the costs associated with constructing the project. What is unclear though is the legality of the proposed taxing structure of the hotels within the City, which would provide a bulk of the financing associated with the Expansion Project. The City Attorney is scheduled to submit a validation action to determine if the financing plan is legal and can move forward. As well, the legality of extending the life of the Tourism Market District is in question, and with that, a potential cap on the City's proposed $3.5 million payment towards construction. If these two factors are determined to be legal and move forward, the City's $3.5 million investment towards construction of the Expansion Project would result in a significant return on investment, as demonstrated by the numerous studies that have been produced thus far. If these two plans fall through, the City should not continue unless the exposure is capped at an amount that would result in a positive return in TOT revenues.

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Rosey Williams