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January 24, 2011
City Council and Mayor Sanders
City of San Diego
202 C Street
San Diego, California 92101
Subject: Multi-Purpose NFL Chargers Stadium/Convention Center Phase III Expansion/Cistern
On Un-Reclaimed Tidelands. Proposed Ballot Language for the November 8, 2011 Election.
Final Report of the Citizens’ Revenue Review and Economic Competitiveness Commission.
Item 201 of the City Council Meeting of Monday, January 24, 2011 at 6:00 pm.
http://dockets.sandiego.gov/sirepub/cache/2/y5q2dx554etbhr55bbsk3a2i/29385401222011074116740.PDF
Dear City of San Diego:
The following is our proposed ballot language for the November 8, 2011 election for a new multi- purpose National Football League (NFL) Chargers Stadium/Convention Center Phase III
Expansion, founded on a water-proof Cistern Structural Foundation design to collect, capture, and
clean urban storm water runoff in downtown San Diego, California. The proposed location for the
multi-purpose NFL Charger Stadium/Convention Center/Cistern Structural Foundation
(NFLCS/CC/CSF) is on the water on un-reclaimed California Public Trust Tidelands in San Diego
Bay north of the Tenth Avenue Marine Terminal (TAMT), and south of Embarcadero Marina Park
South. Our proposal for a multi-purpose complex is called the “La Playa Plan.” The proposed
project is in San Diego Bay within the United States Bulkhead line, which is the western boundary
for the City of San Diego, CCDC, and Port of San Diego development jurisdictions (See Figure 1).
"Advisory Vote Only. Shall the City of San Diego create a Joint Powers Authority (JPA) with
the rest of the County of San Diego region to discuss financing options for obtaining public
funding to build a new multi-purpose NFL Chargers Stadium/Convention Center Phase III
Expansion/Cistern Structural Foundation (NFLCS/CC/CSF) capable of hosting a NFL Super
Bowl; with the JPA, Convention Center, Sports Arena Stadium Operators - AEG Management
SD LLC, and the NFL Chargers financially responsible for the yearly debt service payment for
the cost of the Stadium/Convention Center Phase III complex and operating costs, and limiting
City of San Diego CCDC Redevelopment Agency funds to paying the yearly debt service for the
costs of the underlying water-proof structural foundation as a Cistern to collect, capture, and
clean urban storm water runoff ? ”
The Revenue Review and Economic Competitiveness report “Starting a New Path for Success”
dated December 1, 2010 recommends new ideas for Environmental Services such as of storm
water capture plans and storm water abatement.
The La Playa Plan. January 24, 2011. Page 1
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Top Competitiveness Priorities includes: “Significantly improving storm water runoff programs
to protect and improve water quality in bays and at beaches to achieve or exceed State and
Federal water quality standards and goals. Encourage the City’s eight members of the County
Water Authority to vigorously support regional water supply solutions including desalination,
storage and indirect potable reuse... In July 2010, the State Water Quality Control Board
(RWQCB) adopted a list of 1,700 waters failing to meet federal “Fishable, Swimmable,
Drinkable” standards – 15 percent are in San Diego County. The largest source of this
pollution is urban runoff: grease, oils, copper, pesticides/herbicides, pet waste, and litter.” The
report states that annually the City of San Diego subsidizes Storm Water Fees using $31.2
million from the General Fund.
“Depending on what environmental mandates the City must ultimately meet from Federal and
State regulators, future costs may become more than $50 million per year.”
The report also discusses the Economic Impact of Tourism and the San Diego Convention Center
(SDCC) including: “Visitors spend about $7.3 billion per year in the City of San Diego, roughly
11 percent of the economy and private sector employment, producing about $3 billion in
household income for 164,000 San Diegans... The San Diego Convention Center [SDCC] drives
more than $1.2 billion in annual economic impact for the region, principally within City Limits.
A 2009 blue ribbon panel recommends SDCC should be expanded by perhaps one million square
feet, adding up to 250,000 square feet of exhibition halls adjacent to existing space...”
As part of our original La Playa Plan proposal to solve several Economic Competitiveness issues
for the San Diego Region at the same time, we, La Playa Heritage would act as the Project
Manager/Civil Engineer for the JPA during Planning and Construction for the multi-purpose NFL
Charger Stadium/Convention Center/Cistern Structural Foundation (NFLCS/CC/CSF) complex.
Taxable Building America Bonds (BABs) are part of the Federal Recovery Act of 2009, and are
a new financial tool for state and local governments which allows a new direct federal payment
subsidy of 35 percent of the debt interest payment on public projects, and gives state and local
governments access to the convention corporate debt markets. The San Diego Housing
Commission (SDHC) has been using BABs in 2010 with great results and very low interest rates.
As a result of this federal subsidy payment, state and local governments have lower net
borrowing costs and are able to reach more sources of borrowing than with more traditional tax- exempt or tax credit bonds. Federal BABs could provide millions of dollars per year to pay 35
percent of the debt service interest payments on construction of a new multi-purpose
Stadium/Convention Center/Cistern Foundation. In 2012, the BABs may not exist because the
Federal Stimulus funding may run out. Or BABs interest and debt service paid by the Federal
government may be reduce from the existing 35 percent, to 28 percent or lower. Private
businesses, like the NFL, San Diego Chargers, and Anschutz Entertainment Group (AEG); are
not eligible for Federal funding through BABs unless an agreement can be reached between the
Government Agencies through a Public-Private Partnership (3P).
The La Playa Plan. January 24, 2011. Page 2