Measure J commission recommends council allocate part of convention‑center debt to Measure J

The Measure J Oversight Commission voted 6‑0 on June 18 to recommend the City Council allocate a portion of convention‑center debt service costs to the Measure J fund as part of a phased, $135 million modernization plan.

Chris, the city presenter, told commissioners the project is being modeled in phases and will be funded by a mix of city bonds, Measure J, and a newly formed Tourism Improvement District. “We we we know that we have $135 million and not a penny more,” Chris said, describing the project budget and the first‑phase scope of renovations that includes ballrooms, meeting rooms and a revamped kitchen.

Why this matters: the commission’s recommendation moves a key financing question to City Council and affects how Measure J — the voter‑approved sales‑tax fund — will absorb near‑term debt service. Chris said the TID, approved by council May 27, will cover roughly 3,000 hotels and short‑term rentals and begin self‑assessing 1% of gross revenue starting Dec. 1; the TID is expected to produce roughly $4.1 million annually when fully ramped.

What was presented: Chris outlined three project phases — design, a first phase of targeted renovations (budgeted at about $42.5 million), and later an expansion and urban‑connectivity work — and said estimated line‑items include design (just under $10 million) and phased construction additions that together total about $135 million. He described the funding split as the city absorbing roughly 71% of the total and the TID covering the balance. The city plans a 30‑year bond for its share; modeling assumes capitalized interest during construction and that Measure J will pick up a larger share of debt service in the early years before the general fund begins to contribute more heavily in the 2033–2035 window.

Commissioner questions and timing: commissioners pressed staff on oversight for the TID, the role of an owner’s representative (staff said an owners rep will be recommended to council on June 24), the timing of bond issuance (staff said authorization is targeted for late August or early September with issuance timed near construction starts to meet tax‑exempt spending rules), and rate risk in the bond market. Staff emphasized the model is fluid and that the numbers shown were close but subject to change as final cost estimates are completed.

Vote and next steps: after discussion a motion to recommend that council approve allocating a portion of convention‑center debt service to Measure J passed on a roll‑call vote (Commissioners Davis, Isaac, Newbie, Travis, Vice Chair Kravitz and Chair Sipkins voting yes). The commission’s recommendation will be forwarded to the City Council for consideration; staff said the council will later authorize debt issuance in phases when final numbers are available.

The commission will review refined cost estimates and the owners‑rep recommendation at future hearings before council authorization is sought.