In the past few months the issue of transferring the convention center phase II expansion bond debt payments to the Centre CityDevelopment Corporation (CCDC) has been raised. The convention center has a direct impact on CCDC’s planning area. A clear nexus exists between the continued improvement and expansion of the convention center and the well being of the project area. Events held at the convention center bring millions of dollars in revenue to the downtown area. Continued payments on these bonds are a direct benefit to this project area, as the continued influx of visitors and an increased number of events at the convention center will result in greater revenues flowing into downtown, which will assist in the elimination of remaining blighting conditions. Further, given the city’s current and projected budget deficit, the use of tax increment funds generated by the downtown area is the most reasonable means of financing the remaining debt service.
Therefore, we propose transferring the payment of the convention center debt service to CCDC. This action would increase revenue to the city to help fund many services that are impacted by the current budget deficit. We are requesting that this proposal be docketed at the upcoming special meeting of the Redevelopment Agency so that Council may direct staff to prepare all necessary documents regarding such action. Concurrently, we are requesting that the City Attorney prepare the necessary documents, including a legal analysis, that would allow the City Council and Redevelopment Agency to transfer this bond debt to CCDC. Given the uncertain situation regarding the future of redevelopment in California, there is a great need for us to bring this matter before the Redevelopment Agency and CityCouncil quickly.
Thank you for your immediate attention to this matter.