San Diego’s City Council this week authorized the first phase of a five-year, nearly $120 million plan to address urgent repairs at the city’s aging convention center.
Years of Underfunding Lead to Critical Repairs
For years, the San Diego Convention Center Corporation lacked sufficient funds for upkeep, and the city budget provided only minimal support. This situation began to change with the 2020 passage of Measure C, a ballot initiative that increased the city’s hotel room tax to fund a convention center expansion, as well as programs addressing homelessness and street repairs.
With the legal challenges to Measure C now resolved, the city anticipates $45.4 million in hotel tax funds dedicated to the convention center by the end of the current fiscal year. The council has allocated $21.4 million this year for deferred maintenance, including $7.5 million for a new roof on the western portion of the center, which opened in 1989, and more than $9.5 million for the first phase of a central plant overhaul.
Expansion Plans Complicated by Costs and Leasehold
While Measure C initially aimed to fund a substantial expansion of the convention center, that goal is now less certain. Rising construction costs and the need to prioritize repairs are diverting funds. The city’s ability to move forward with an expansion is currently limited by a lease agreement with Fifth Avenue Landing, which controls a key waterfront parcel needed for the project. That lease does not expire until mid-2027.
Hotelier Robert Gleason, chair of the San Diego County Lodging Association, emphasized that voters were promised an expanded center when they approved Measure C. He urged the council to ensure funds are used as intended – for homelessness programs and, for the expansion and modernization of the convention center.
What’s Next?
The City Council will likely continue to allocate funds from Measure C to address the convention center’s most pressing repair needs over the next five years. , as the expiration of the Fifth Avenue Landing lease approaches, the city will begin to develop more concrete plans for a potential expansion. However, the timing and scope of any expansion will likely depend on future budget allocations and economic conditions. This proves also possible that the city will continue to prioritize repairs, potentially scaling back or delaying expansion plans indefinitely.
Frequently Asked Questions
What is Measure C?
Measure C is a 2020 ballot measure that increased the city of San Diego’s transient occupancy tax, or hotel room tax, to fund upgrades to the San Diego Convention Center, as well as programs addressing homelessness and street repairs.
How much will the convention center repairs cost over the next five years?
Over the next five years, more than $118 million will need to be spent on repairs to the convention center.
What is preventing the city from expanding the convention center?
Higher construction costs and the city’s lack of control over a key waterfront parcel currently leased to Fifth Avenue Landing are hampering expansion plans.
As San Diego moves forward with these critical repairs, how will the city balance the immediate needs of its convention center with the long-term vision of a modernized and expanded facility?
