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Committee forwards certificates‑of‑participation financing for Hall of Justice projects and related acquisitions
Summary
Budget & Finance recommended multiple COP issuances (up to $94.6M and $62M) and appropriations to fund acquisitions and tenant improvements related to the Hall of Justice rehabilitation, and asked for contingency oversight on holding‑cell construction.
The Budget & Finance Committee on Sept. 18 approved forwarding several financing measures to the full Board that would authorize certificates of participation (COPs) to finance acquisitions and tenant improvements associated with the Hall of Justice (HOJ) modernization and related projects.
Office of Public Finance staff said the two proposed authorizations would cover up to $94.6 million (to finance certain property acquisitions and repay commercial paper) and up to $62 million (to fund tenant improvements and holding‑cell construction). Combined project costs for the HOJ package total approximately $131 million under the city’s 10‑year capital plan. Office of Public Finance staff explained that the city expects to structure COPs in a lease‑back format and indicated collateral for the COPs may include the Laguna Honda campus.
Real estate staff described acquisitions supporting the HOJ project: 1828 Egbert (a reinforced‑concrete building of roughly 127,000 sq ft that would house police evidence/property functions) was cited with a purchase price of $67.3 million (with timing that may include a brief leaseback to allow self‑storage tenants to vacate). The McDonald’s site (parcels at 814/820 Bryant and 470 Sixth Street) was described as a straightforward purchase with a purchase price of $11.6 million and a not‑to‑exceed authorization of $16 million to include transaction and site‑prep costs.
Budget Analyst review supported the actions while flagging contingency sizing on holding‑cell construction; BLA recommended placing $3,000,000 of the contingency on the Budget & Finance Committee reserve and returning to committee for any use of that reserve. Committee members also raised concerns about reports that HSOC (Healthy Streets Operations Center) personnel were occupying space at the Hall of Justice while the city is planning to vacate the West Wing; staff and police facilities representatives agreed to verify and report back on any unauthorized occupancy.
The committee moved items 11, 12, 13 and 15 to the full Board with positive recommendations and advanced item 14 as amended with the contingency reserve condition.
