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Analysis of the Chula Vista’s Bayfront Plan & Gaylord Project Finds Plan “Fatally Flawed”
Download Study p>San Diego-TaxpayersAdvocate.org today released an analysis of the Chula Vista Bayfront Master Plan (CVBMP) which found that while promising to generate “…millions of dollars of new revenues for the Port of San Diego, the City of Chula Vista and Chula Vista’s redevelopment agency, the requirement of almost $300 million in up-front infrastructure costs make it fatally flawed.” The study found that the City’s “…financial problems will likely preclude it from participating in up-front infrastructure financing. Any attempt to do so could have drastic and fatal consequences for the City if Chula Vista.”
“It’s sad and unfortunate that Chula Vista’s redevelopment agency is so anemic and that the City’s fiscal condition is so desperate that it precludes these agencies from playing a significant role in assisting in financing the up-front infrastructure needed to make the bayfront plan work,” said Scott Barnett, president of TaxpayersAdvocate.org, a private non-partisan watchdog group. Gaylord Entertainment Complex Adds to Risk—Could Cost City of San Diego Over $2million Annually
In addition, the report found that the newest element to the plan, the proposed Gaylord Entertainment Complex, “while exciting in its long-term potential, actually increases the short term risk by adding an expensive new public obligation (the $130 million convention center) which adds to the already crushing public infrastructure requirements of the plan.” The study also reported on the impact of Gaylord on the San Diego Convention Center and the City of San Diego, finding it could cost San Diego over $2 million a year in hotel tax revenues. Chula Vista’s Financial Problems Predicted Last Year
This report is a follow up the October 24, 2006 study by TaxpayersAdvocate.org, Chula Vista—The Looming Fiscal Crisis which laid out serious, self-inflicted fiscal problems facing the City of Chula Vista. That study included only a cursory review of the City’s redevelopment agency and bayfront plan. This reports key findings follow. For the entire study and more information see: www.taxpayersadvocate.org Key Findings The Chula Vista Bayfront Master Plan (CVBMP) is fatally flawed. Insufficient revenues are available to fund required up front infrastructure, critical to private development and the success of the plan. - The Port of San Diego has insufficient resources to fund all of the needed infrastructure
- The City of Chula Vista’s Redevelopment agency has no ability to assist in infrastructure financing
- “Lag time” for new revenues from development adds to financing challenges
- The Gaylord Convention Center adds to the financial burden and risk of the Bayfront Plan
The Gaylord Entertainment Complex will have a negative fiscal impact on the San Diego Convention Center & the City of San Diego. The Gaylord Center could: - Compete with 21-27 conventions annually” representing 35 - 47 percent of the total number of conventions held at the SDCC
- Cost SDCC six to 11 smaller events annually
- Reduce room tax revenue to the city of San Diego by as much as $2.3 million annually
The City of Chula Vista, facing fiscal meltdown, cannot prudently assist in infrastructure financing These contributing factors include: - City has structural deficit
- City’s debt burden growing--$143 million increase in past five years
- Major housing downturn reduces revenues for paying off existing debt
- Recent credit downgrading by Standard and Poors
- Pension debt tripled over two years
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