A hotel tax hike the Chargers "want to pitch to voters" would help finance a $1.8B downtown stadium and convention center, along with other city needs, according to a front-page piece by McSwain & Weisberg of the SAN DIEGO UNION-TRIBUNE. The plan "would raise the city’s tax on hotel stays" to 16.5% from 12.5%. Some hotel owners worry that the higher rate "could deter visitors, while others note comparable taxes" in cities such as Anaheim and S.F. The proposed tax hike would support $1.15B "in publicly issued bonds," with $350M for the city’s contribution to a football stadium near Petco Park, $600M for an adjoining convention center and $200M to buy land. The remaining $650M in funding would come from the Chargers and the NFL. The team would contribute $350M, "presumably raising some of that money" by selling PSLs and stadium naming rights. The NFL "would kick in" $300M, made up of a $200M loan and $100M grant. Publication of the proposed ballot initiative "triggers a 21-day waiting period, after which the team can begin gathering signatures to qualify the initiative for the November ballot." Chargers advisers "described the financing plan as conservative, with 'shock absorbers' designed to assure bond investors of repayment during economic downturns." It also provides $25M a year "to operate and maintain the complex," plus $4M "for future upgrades or major repairs." The team would contribute $15M "for stadium operations and maintenance." The Chargers also "would agree to lease the stadium for 30 years, starting when construction was finished, in addition to not relocating for 30 years." The complex "would be owned and operated by the city," with the team "keeping only game-day and NFL-associated revenue" (SAN DIEGO UNION-TRIBUNE, 3/30). In San Diego, Ben Higgins cited a source as saying that the Chargers "believe they can open" the downtown stadium by '22 (10NEWS.com, 3/29).
PROCEED WITH CAUTION: In San Diego, Kevin Acee writes, "Whether the Chargers' proposed terms are palatable to you might very well depend on whether it is acceptable to you that the Chargers leave town or imperative that they stay." The Chargers and NFL assuming 65% of the construction costs, plus potential overruns, "is exceedingly fair," but there are "enough red flags that a responsible citizen needs to take a portion of the next seven months to gather information before exposing San Diego to this risk" (SAN DIEGO UNION-TRIBUNE, 3/30).
