Court to Determine Fate of San Diego Convention Center Expansion

A hearing is slated for Friday that could determine the fate of the planned $250 million expansion of the San Diego convention center, according to the UT San Diego newspaper.

Superior Court Judge Ronald Prager is expected to rule soon the legality of a hotel tax that would fund the 740,000-square-foot expansion.

The court ruling is the last hurdle in moving forward with the project.

The surcharge, already approved by the city's hotel owners in a mail ballot election, would range from 1% to 3% of room rates, depending on proximity to the city's downtown.

The city filed its own lawsuit to validate whether the hotel tax is legal, but two other lawsuits were filed as well, challenging the legality of the room surcharge. At issue is who legally is permitted to vote on whether such a tax can be enacted.

Opponents argue that the tax is illegal because under the California Constitution, the special tax approved by the hoteliers requires a public citywide vote.

A special city attorney hired to argue the case said in court documents that the special convention center district formed to finance the expansion is a legal means for raising tax revenues voted upon by those hotel properties that will be paying the tax. The city had hoped to open an expanded center by 2017, but if a final ruling on the tax question is appealed, construction would have to be delayed until there is legal certainty on the tax question. Approval of the project by the California Coastal Commission is also required.

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