Last fall, the State of California gave the green light to a planned expansion of the San Diego Convention Center. Last week, however, a state appeals court turned the green light red by ruling the expansion's financing plan -- a hotel surcharge added to guests' room rates -- unconstitutional.
"On Friday, Aug. 1, the financing plan for the Phase III Expansion of the San Diego Convention Center was ruled invalid by a state appeals court," the San Diego Convention Center Corp. reported in a press release. "Despite the setback, Mayor Kevin Faulconer, the business community and hospitality industry remain committed to the expansion of the convention center."
Work on the expansion project was scheduled to break ground in late 2014. Now, however, the city must put the issue to a vote.
"While we understand the City would like to expand the convention center, we are duty bound to uphold the provisions of the California Constitution and the City Charter that require that the City's registered voters approve the special tax at issue in this case," the court wrote in its decision.
It's unclear whether the city will seek a vote on its current plan or seek alternative financing. Either way, it says it remains committed to the project, which will include 225,000 square feet of new exhibit space -- creating the largest contiguous exhibit hall on the West Coast -- as well as an 80,000-square-foot ballroom, a five-acre rooftop park and a 500-room addition to the Hilton San Diego Bayfront Hotel.
"While we are disappointed, our last expansion faced similar legal hurdles and we were ultimately successful in our effort," said Carol Wallace, president and CEO of the San Diego Convention Center Corp.
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