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Judge Rules in Favor of Convention Center Tax Vote

Superior Court Judge Gonzalo denied the injunction request from the county’s hospitality and tourism workers union to block the vote on a special tax to fund the San Diego Convention Center expansion. The ruling issued on February 29, indicated that Unite Here Local 30 acted prematurely, and duplicated the city’s own plans.

“This lawsuit was unnecessary,” said City Attorney Jan Goldsmith. “If the tax is approved, the City will initiate validation proceedings and everyone, [including Unite Here] will have the right to be heard on the law in favor and against. That’s what the validation process is designed to do. It saves time and expense of multiple lawsuits and results in a judgment that is reliable.”

In January, the city council approved the creation of the Convention Center Facilities District (CCFD), an entity that would levy a tax on most of the city’s hotel properties. Current estimates predict that the revenue derived from the tax would generate $30 million annually for the convention center’s expansion costs.

The concerns over CCFD’s legality are that state law requires all taxes be approved by a two-thirds vote of the qualified electorate, and this tax would not be submitted to all voters, only to hotel property owners affected by it.

In an update on February 1, Goldsmith explained that the plan is not illegal, but rather it tests the law’s boundaries, and is something that has only been tried once by the city of San Jose. He added legitimate arguments existed on both sides, and that even lawyers within the city attorney’s office differed on opinions.

If hotel owners approve the tax, a validation proceeding will take place before any taxes are collected. Goldsmith admitted that the validation process may be expensive, but going forward with the financing plan is the policymakers’ call.

Deputy City Attorney Walter Chung, who defended the application for an injunction, elaborated on why delaying the validation proceedings is necessary. “It will be a better use of the City’s resources to allow the vote to happen. If the measure fails, then this lawsuit is moot,” Chung said.

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Superior Court Judge Gonzalo denied the injunction request from the county’s hospitality and tourism workers union to block the vote on a special tax to fund the San Diego Convention Center expansion. The ruling issued on February 29, indicated that Unite Here Local 30 acted prematurely, and duplicated the city’s own plans.

“This lawsuit was unnecessary,” said City Attorney Jan Goldsmith. “If the tax is approved, the City will initiate validation proceedings and everyone, [including Unite Here] will have the right to be heard on the law in favor and against. That’s what the validation process is designed to do. It saves time and expense of multiple lawsuits and results in a judgment that is reliable.”

In January, the city council approved the creation of the Convention Center Facilities District (CCFD), an entity that would levy a tax on most of the city’s hotel properties. Current estimates predict that the revenue derived from the tax would generate $30 million annually for the convention center’s expansion costs.

The concerns over CCFD’s legality are that state law requires all taxes be approved by a two-thirds vote of the qualified electorate, and this tax would not be submitted to all voters, only to hotel property owners affected by it.

In an update on February 1, Goldsmith explained that the plan is not illegal, but rather it tests the law’s boundaries, and is something that has only been tried once by the city of San Jose. He added legitimate arguments existed on both sides, and that even lawyers within the city attorney’s office differed on opinions.

If hotel owners approve the tax, a validation proceeding will take place before any taxes are collected. Goldsmith admitted that the validation process may be expensive, but going forward with the financing plan is the policymakers’ call.

Deputy City Attorney Walter Chung, who defended the application for an injunction, elaborated on why delaying the validation proceedings is necessary. “It will be a better use of the City’s resources to allow the vote to happen. If the measure fails, then this lawsuit is moot,” Chung said.

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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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