Committee directs more analysis on using convention-center hotel variable rent for housing and resilience programs

The committee discussed whether the variable (percentage) portion of rent from the planned convention-center headquarters hotel could be earmarked to fund private-property flood adaptation and affordable housing. Members did not adopt a final allocation but asked staff to return with additional legal and financial analysis, including the feasibility of securitizing the revenue stream to support larger up-front investments.

City staff and the project liaison explained that the lease guarantees a fixed minimum rent and a variable, revenue-linked rent. Taissa (city liaison) told the committee a one-third allocation of the variable rent would be roughly $700,000 per year under the developer’s pro forma; she said the administration recommended capping the earmark for affordable housing at $700,000. She stated, “we recommend capping it at $700,000.”

Members and staff discussed two implementation paths: (1) a pay-as-you-go program that accumulates annual receipts for incremental housing or resilience projects, and (2) issuing revenue bonds backed by the future stream to generate a larger sum up-front for property acquisition or construction. Staff described legal and tax constraints that may affect bonding and public-purpose design, and committee members asked the city attorney and bond counsel to evaluate options.

The committee agreed to continue the item to the next meeting so staff can return with bond-counsel guidance, legal constraints and a menu of feasible uses. Members said they favored focusing proceeds on increasing housing supply or resilience measures rather than purchasing existing private housing stock without clear public-purpose controls.