Just a week after Comic-Con International, San Diego's bid to keep the huge annual trade show in town was dealt a severe setback Friday when a state appellate court struck down the mechanism being ...

SAN DIEGO (CNS) - Just a week after Comic-Con International, San Diego's bid to keep the huge annual trade show in town was dealt a severe setback Friday when a state appellate court struck down the mechanism being used to fund a $520 million expansion of the convention center.

The justices ruled that a levy on hotel property owners that they themselves approved violates the state constitution and the City Charter, which call for a public vote and a two-thirds majority for a special tax to take effect. The money raised by the levy was going to pay for most, but not all, of the construction costs.

City officials had contended the vote was only required by the people who own the land on which lodging facilities sit, since it only affects them.

"The convention center expansion is critically important for our regional economy," Mayor Kevin Faulconer said. "It would create thousands of good jobs and ensure that we continue to attract large conventions like Comic-Con. We will be working with the City Attorney's Office to review all options in moving forward."

About 130,000 people attended this year's Comic-Con, which concluded Sunday. Organizers of the annual event have been courted by other cities hoping to lure it away through the prospect of larger facilities.

The show filled the convention center, and events also were held at nearby hotels.

The addition of 740,000 square feet would give San Diego's convention center the largest amount of contiguous floor space on the West Coast. Tourism officials contend that having the floor space all together is a top priority for trade show planners.

However, the appellate ruling likely means the expansion won't happen anytime soon. Comic-Con is only committed to San Diego through 2016.

Appellate Justices Cynthia Aaron, Judith McConnell and Terry O'Rourke said they understood the city's desire to make the convention center bigger, but were duty-bound to uphold the constitution and charter.

They returned the case to Superior Court Judge Ronald Prager, who issued an initial ruling upholding the funding plan.

Former mayor Jerry Sanders, now president and chief executive officer of the San Diego Regional Chamber of Commerce, call the appeals court's ruling "a great loss for our city."

"It is unfortunate that this project will now be delayed even further, increasing the strain on our city's ability to attract convention business that bolsters the economy and creates thousands of jobs for San Diegans," Sanders said.