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Council authorizes $21.4M in Measure C revenue for Convention Center modernization, delegates CIP authority and brings projects under PLA
Summary
Council approved a staff recommendation to transfer about $21.4 million from Convention Center TOT revenues to a new CIP line for modernization (roof, central plant and related repairs), authorized delegation mechanics, and designated these projects as covered under the city's project labor agreement.
The City Council on Feb. 23 approved actions to begin a multi‑year modernization effort for the San Diego Convention Center, authorizing a FY26 itemized Convention Center revenue budget and a $21.4 million transfer to a new capital improvement project (CIP) line for urgent repairs.
Elif Chittin, director of the Engineering and Capital Projects Department, and Dominic Dass, interim deputy director, told the council the requested $21.4 million represents roughly 21.4% of the convention center's projected $45.6 million in TOT‑derived revenue for the year and will prioritize life‑safety and operational systems such as roof replacement and a central chilled‑water plant overhaul.
“Historic funding has focused on operations and debt service, leaving insufficient funding for long‑term capital renewals,” Chittin said, citing a 2022 property condition assessment that identified roughly $244 million in 2022 capital needs (about $453 million adjusted for inflation).
The council authorized the chief financial officer to create the new CIP line and transfer the cash; staff clarified the action uses on‑hand funds and is not a bond issuance. Council members and staff also discussed the legal timeline around a settlement agreement that had constrained public discussion of convention center expansion; senior deputy city attorney Kevin Reich said expansion discussions are freed for public action starting next calendar year when settlement prohibitions end.
The council also approved a third addendum to the management agreement with the San Diego Convention Center Corporation to allow specific CIP projects to be delegated to the corporation via individual delegation agreements, subject to city oversight. The addendum clarifies prevailing wage requirements, bonding and insurance, establishes a delegation process, and designates the projects as covered under the city's existing project labor agreement (PLA). The city's PLA compliance office will monitor implementation, staff said.
Labor representatives and the San Diego County Lodging Association spoke during public comment: the Building and Construction Trades Council urged prompt approval and PLA coverage, while the lodging association asked that Measure C funds be used consistent with voter intent (homelessness programs, streets, and convention center expansion/modernization) and requested continued oversight.
Councilmember Whitburn moved to approve the staff recommendation; Councilmember Campbell seconded. The motion passed on the roll call as recorded by the clerk.
Staff said subsequent steps include project‑level delegation agreements, procurement under prevailing‑wage and bonding rules, and ongoing PLA compliance monitoring. The council also discussed ensuring Measure C funds are applied in ways consistent with voter expectations during upcoming budget conversations.
