Supervisors back Moscone expansion ordinances subject to hotel-district approval

The Budget & Finance Committee voted to apply the underlying fiscal-feasibility resolution and two ordinances authorizing up to $507,880,000 in certificates of participation to fund the proposed Moscone Convention Center expansion, but amended each measure to make approval contingent on the subsequent creation and approval of a Moscone Expansion District and its hotel assessments.

Supporters including John Noguchi, the city—s director of convention facilities, and Joe D—Alessandro, president and CEO of the San Francisco Travel Association, told supervisors the expansion is needed to retain large conventions and protect tourism revenue. "The Moscone Convention Center is one of the most popular convention centers in the United States...it's at capacity," D—Alessandro said, arguing that lost bookings cost the city revenue and jobs.

The project team outlined scope and timing: adding contiguous exhibit and meeting space, new ballroom and support areas, and streetscape improvements; design documents were estimated to be complete by summer 2014, with construction starting in early 2015 and completion in late 2015. Presenters described a total project budget of about $500 million, with approximately $388 million for preconstruction, demolition and construction and roughly $112 million in soft costs.

Analysts offered competing fiscal views. Ted Egan of the Controller—s Office said the expansion would produce substantial short- and long-term local economic activity—estimating roughly $180 million in annual new visitor spending and thousands of jobs over the construction and operating periods—but cautioned about city repayment risk. The Budget and Legislative Analyst concluded the project is not fiscally feasible without the hotel assessment revenues tied to creation of the Moscone Expansion District and recommended amending approvals to be "subject to" that formation.

Supervisors and public commenters discussed neighborhood impacts and job access. Several hotel industry and labor representatives urged approval, saying the expansion will sustain tourism-related employment; supervisors asked staff to strengthen neighborhood outreach and local hiring plans. Chair Mark Farrell and other supervisors said they would include language making committee actions conditional on district formation and ballot or hotel-ballot results.

The committee—s action clears the ordinances to move forward for Board consideration with the added contingency that district formation and assessments must be approved before COP issuance proceeds. Next procedural steps include a Committee of the Whole vote to consider district formation and the start of entitlement and CEQA review; commercial paper and COP issuance are scheduled in later years if conditions are met.