San Diego Convention Center to expand?





SAN DIEGO (KUSI) – KUSI has learned the city and Port of San Diego have signed an agreement with developer 5th Avenue Landing to acquire a parcel of land next to the Convention Center.

This opens the way for the long-stalled expansion on the Convention Center if it gets voter approval in November.

Many have viewed this move as unconstitutional because the financing was a hotelier-approved room tax.

The court ruled a tax increase has to be approved by the voters.

Since then, 5th Avenue Landing went forward with plans to build two hotels, two acres of public plazas, a promenade and a rooftop garden plaza.

An expansion could not occur without that 5-acre parcel. As the city moved to regain control of the land, 5th Avenue sued the city, saying it was interfering with its lease contract, which ends six years from now.

A series of negotiations followed and Tuesday, KUSI learned a deal had been signed.

Mayor Kevin Faulconer released the following statement regarding Fifth Avenue Landing:

The City continues to be in confidential mediation with the Port and Fifth Avenue Landing, LLC. A settlement would be subject to approval by the City Council in a public hearing prior to becoming final.

That deal, we’re told, will cost taxpayers upwards of $30 million.

With this deal done, one more big hurdle remains: getting it on the ballot and convincing the voters to approve the “Yes for a Better San Diego” initiative.

To sweeten this for the voters, the initiative includes funds for the homeless.

“Once this initiative is passed, in the first five years, the initiative will dedicate about $150 million for homelessness,” said Joe Terzi, president and CEO of the San Diego Tourism Authority.

However, the city says this remains in confidential mediation with the Port and 5th Avenue Landing. A settlement would be subject to approval by the council in a public hearing prior to becoming final.

“In addition to the other benefits we heard about today, this measure has the potential to provide for much-needed housing programs for those experiencing homelessness,” said Deacon Jim of Father Joe’s Villages.

The initiative is in the signature gathering phase for the November ballot.

Expansion will generate 7,000 jobs and $40 million of economic impact annually.

Richard Disbrow heads the Union of Workers at the Convention Center. He said it will double the number of jobs at the Convention Center.

“This citizens’ initiative is a once in a lifetime opportunity to spur job growth in one of our city’s most important industries,” he said.

The big hoteliers are funding the signature drive and are paying a premium to get this on the ballot.

But even the smaller hotels will benefit by the overflow of visitors for large conventions, which hadn’t come here for lack of space.

For Elvin Lai, owner of a small hotel in Pacific Beach, it’s about jobs and the economy.

“The ‘Yes for a better San Diego!’ initiative will infuse more than $40 into our local economy,” Lai said. “We are supporting it, we hope every San Diegan will get out and vote, this is a great opportunity to produce economic benefits for San Diego.”

The other incentive for voters is that the tax increase will not fall on them. It will be paid by the visitors to San Diego and the visitor industry is generating record numbers.