San Diego Municipal Code Div. 27 San Diego Convention Center Facilities District

Procedural Ordinance (“San Diego Convention Center Facilities District Procedural Ordinance” added 11-2 2011 by O-20106 N.S.)

The purpose and intent of this Division is to establish a procedure for financing certain public convention center facilities and maintenance through the establishment of convention center facilities districts, the levy and collection of special taxes within such districts and, for convention center facilities, the issuance of bonds secured by such special taxes. (“Purpose and intent“ added 11-2-2011 by O-20106 N.S.; effective 12-2-2011.)

Proceedings for the formation of a convention center facilities district or districts for the purposes set forth in section 61.2701 may be conducted pursuant to this Division whether or not provided in any state law. (“Special tax proceedings” added 11-2-2011 by O-20106 N.S.; effective 12-2-2011.)

(a) This Division is not, in any way, exclusive.

(b) The procedures provided in this Division are alternative to any other
procedure provided in the San Diego Municipal Code or under state law.

(c) The resolution of intention in any proceedings under any state law or other
provision of the San Diego Municipal Code may provide that such provisions
are supplemented by this Division.
(“Non-exclusivity“ added 11-2-2011 by O-20106 N.S.; effective 12-2-2011.)

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This Division is to be liberally construed. (“Construction“ added 11-2-2011 by O-20106 N.S.; effective 12-2-2011.)

Each word that is defined in this Division appears in the text of this Division in italicized letters. Terms defined in the Act but not defined in this Division have the meaning given them in the Act. For the purpose of this Division, the following definitions shall apply:

Act means the Mello-Roos Community Facilities Act of 1982 (Chapter 2,5, commencing with section 53311 of Part I, Division 2, Title 5 of the California Government Code), as amended from time to time.

Convention center facility means any building, improvement to real property, equipment or personal property (in each case having an expected useful life of five years or longer) that is publicly-owned and comprises any portion of the existing San Diego Convention Center and any contiguous expansion, construction, reconstruction, rehabilitation, replacement, or upgrade thereto.

Hotel has the same meaning in San Diego Municipal Code section 35.0102.

Landowner means the owner of the real property upon which a Hotel is located, except that if the fee owner of the real property is a government entity, Landowner means the lessee of the government entity.

Occupancy has the same meaning in San Diego Municipal Code section 35.0102 after excluding any reference therein to Recreational Vehicle Parks and Campgrounds.

Operator has the same meaning in San Diego Municipal Code section 35.0102.

Rent has the same meaning in San Diego Municipal Code section 35.0102 after excluding any reference therein to Recreational Vehicle Parks and Campgrounds.

Transient has the same meaning as in section 35.0102. (“Definitions“ added 11-2-2011 by O-20106 N.S.; effective 12-2-2011.)

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of the Streets and Highways Code

(a) Except as otherwise provided in this Division, the Act and those sections of
the California Streets and Highways Code and any amendments thereto,
referred to in the Act, are incorporated in and made a part of this Division.

(b) Except as otherwise provided by this Division, the mode and manner for
making improvements, for levying and collecting special taxes and for issuing
bonds shall be as prescribed in the Act. In any conflict between the provisions
of the Act or the referenced portions of the California Streets and Highways
Code and this Division, the provisions of this Division shall prevail.

(c) Notwithstanding subdivision (a), the provisions of sections 53312.7, 53312.8,
53313.6, 53313.7, 53313.9, 53325.6 (and the reference to 53325.6 contained
in section 53331), 53329 and 53329.5 of the Act are not incorporated into this
Division and shall have no application to proceedings conducted pursuant to
this Division.

(d) Notwithstanding the provisions of section 53313.51 of the Act, whenever the
City is a party to construction contracts, the City may use its public works
contracting procedures even if they do not involve or require the identification
of “discrete portions or phases” of the facilities to be constructed.

(e) For purposes of this Division the words "not to exceed three consecutive
years" are deleted from section 53314.3 of the Act.

(f) For purposes of this Division the words "not exceeding five years" and
"within five years after such disbursement” are deleted from section 53314.5
of the Act.

(g) For purposes of this Division, the word "revolving" is removed from section
53314.6 of the Act each time it appears.

(h) For purposes of this Division, subdivisions (a)(1) and (a)(2) are removed from
section 53314.9 of the Act.

(i) For purposes of this Division, property not currently being used as a Hotel, or
not designated in a City land use plan for Hotel use, or not the subject of a
pending application filed with the City for Hotel use, shall be deemed exempt
from the special tax for purposes of sections 53324, 53332, and all other
similar provisions of the Act and for purposes of section 3114.5 and all other
similar provisions of the California Streets and Highways Code.

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(j) For purposes of this Division, the provisions of section 53359.5(b)(13) of the
Act shall apply only to special taxes levied on the property tax rolls pursuant
to San Diego Municipal Code section 61.2714. For all other special taxes,
instead of the information required by section 53359.5(b)(13), the City shall
include in the report the same information with respect to the special taxes
that it normally collects and reports regarding the City’s Transient Occupancy
Taxes.

(k) Notwithstanding San Diego Municipal Code section 61.2391, in connection
with the issuance of bonds pursuant to this Division, the City Council may
determine and may declare in the resolution authorizing the issuance of the
bonds that the City shall advance available penalty and interest charges on
delinquent special taxes in a convention center facilities district to pay district
obligations. Notwithstanding San Diego Municipal Code section 61.2392, the
City in its sole discretion may determine whether funds in the Special
Assessment District Delinquency Fund as defined in section 61.2392 may be
expended on behalf of a convention center facilities district formed under this
Division.
(“Incorporation of the Mello-Roos Community Facilities Act of 1982 and portions of
the Streets and Highways Code“ added 11-2-2011 by O-20106 N.S.; effective
12-2-2011.)

(a) A special tax imposed pursuant to this Division may finance the acquisition, construction, reconstruction, replacement, rehabilitation, upgrade and maintenance of any convention center facility.

(b) Revenues from any special tax imposed under this Division may be spent on
the following: debt service; lease payments; cost of issuance of securities
issued for the purpose of financing or refinancing convention center facilities;
replenishment or funding of reserve funds established in connection with the
issuance of debt (as defined in the Act), administrative costs of the district;
prepayment of such securities; direct costs of acquisition, planning,
engineering, design, site preparation, and construction of convention center
facilities; ongoing capital repairs and maintenance of convention center
facilities; and all incidental and administrative costs authorized by the Act.
(“Authorized expenditures“ added 11-2-2011 by O-20106 N.S.; effective 12-2-2011.)

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All hearings called for under the Act shall be required by this Division, except that they may be continued from time to time without further notice, but shall be completed within two years of the original hearing date. For purposes of this Division, the mailing notices as provided in sections 53322.4 and 53346 and any other similar provisions of the Act shall be made to Landowners and Operators of properties that would not be exempt from the special tax if the proposed special tax were being currently levied as proposed. (“Hearing, continuances“ added 11-2-2011 by O-20106 N.S.; effective 12-2-2011.)

All protest procedures set forth in the Act shall apply to this Division, except that registered voters as such, shall have no protest rights under any circumstances. Landowner protests shall be weighted base on number of votes possessed under San Diego Municipal Code section 61.2710(c) instead of area of land. (“Written protests“ added 11-2-2011 by O-20106 N.S.; effective 12-2-2011.)

All election procedures set forth in the Act shall apply to this Division, with the following exceptions:

(a) The qualified electors shall in all cases be the Landowners.

(b) The City Clerk shall in all cases be the elections official.

(c) Votes shall not be allocated on the basis of acreage of real property, but
instead shall be allocated to each Landowner on the basis of one vote for each
dollar of special tax that would have been the obligation of that parcel (as
determined by the City Council) if the proposed special tax had been in place
for the 12-month period ending at the end of the month which is three months
prior to the month in which the resolution calling the special, mailed-ballot
election is adopted by the City Council. If a Hotel did not operate during that
entire 12-month period, or operated at less than normal capacity for any
reason, the number of votes to be allocated to the Landowner of that parcel
shall be determined by the City Council based on estimates presented to the
City Council utilizing data from other Hotels deemed by the City Council to
be most similar in size and quality and location to the Hotel in question. The
City Council's decision regarding the number of votes to be allocated to Hotel
properties shall be final. Ch. Art. Div.
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(d) The Landowners entitled to vote shall be those meeting the definition of
Landowner as of the close of the public hearing unless the City Clerk is
informed, by reliable evidence as determined by the City Clerk, of a change in
ownership after that time and prior to the election. In that event, the City
Clerk shall, at the request of the new Landowner submitted to the City Clerk
with such evidence no later than 24 hours before the deadline for returning
ballots, prepare a new ballot and deliver it to the new Landowner. The City
Clerk shall also, in that event, accept and include in the canvass of the election
the ballot submitted by the new Landowner rather than the ballot prepared for
the former Landowner.

(e) Since the Landowner-voters are entitled to a secret ballot, and since ballots
are required to contain the names of each Landowner and the number of votes
each Landowner is entitled to cast, and since the number of votes assigned to
each Hotel may be considered to contain proprietary commercial information,
the City Clerk shall protect the confidentiality of the ballots. No persons, other
than the staff and consultants of the City who require access for the purposes
of counting and canvassing the ballots, may have access to the ballots at any
time, unless by order of a court of competent jurisdiction.
(“Special tax levy; election; voter qualifications; ballots” added 11-2-2011
by O-20106 N.S.; effective 12-2-2011.)

(a) For purposes of this Division, and to conform to the language of the form of notice of special tax lien already contained in section 3114.5 of the California Streets and Highways Code, the County Recorder shall index the notice of special tax liens to the names of the property owners within the convention center facilities district whose properties are not exempt from the special tax.

(b) Whenever a parcel of property within a convention center facilities district
formed pursuant to this Division begins to be used as a Hotel, either for the
first time or after a period of time when it was not so used, that property shall
thereupon become subject to the special tax. The City Clerk shall prepare an
amended notice of special tax lien, or an amendment to the notice of special
tax lien, that applies to and describes the new Hotel property in accordance
with the California Streets and Highways Code. The City Clerk shall arrange
for the recording of the document with the county recorder as provided in the
California Streets and Highways Code.
(“Notice of Special Tax Lien“ added 11-2-2011 by O-20106 N.S.; effective
12-2-2011.)

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Any special tax imposed pursuant to this Division shall be levied on the property for use of the property as a Hotel (or, as the case may be, levied on the leasehold interest of a publicly-owned Hotel parcel). The special tax shall not, in any year, be levied on the residential use of the property for that year. Hotel use is not residential use. (“Application of special tax“ added 11-2-2011 by O-20106 N.S.; effective 12-2-2011.)

All special taxes imposed pursuant to this Division shall be due and remitted with the Operator's payment of the transient occupancy tax as set forth in Chapter 3, Article 5, Division 1 of the San Diego Municipal Code. In the event that the Landowner is not the Operator, the Landowner is responsible for remitting or causing the Operator to remit the special taxes imposed pursuant to this Division with the Operator's payment of the transient occupancy tax. Unlike Chapter 3, Article 5, Division 1 of the San Diego Municipal Code, however, the special tax is not imposed on the Transient, but is imposed on the real property containing the Hotel or, as the case may be, on the leasehold interest containing the Hotel if the parcel or parcels containing the Hotel are publicly owned. The Operator may, but is not required to, add the special tax to, and collect it with, the Rent. The provisions of San Diego Municipal Code sections 35.0111, subdivisions (f), (g) and (h) of sections 35.0112 , 35.0114, 35.0115, 35.0116, 35.0117, 35.0118, 35.0121, 35.0122, 35.0127, the first sentence of 35.0136, 35.0137 and 35.0138 shall apply to any special tax levied pursuant to this Division. The special tax levied pursuant to this division is distinct from the City's transient occupancy tax and may be enforced, in the event of non-payment, as provided in the Act. (“Special tax collected with transient occupancy tax“ added 11-2-2011 by O-20106 N.S.; effective 12-2-2011.)

Any special taxes delinquent as of July 1 of any fiscal year, together with any penalties and interest accrued as of that date, may, at the option of the City Council, be placed on the secured property tax roll for the property incurring the special tax obligation in the that fiscal year, where it shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. (“Optional collection of delinquent special taxes on secured property tax roll“ added 11-2-2011 by O-20106 N.S.; effective 12-2-2011.)

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Notwithstanding section 53364.2 of the Act, any savings achieved through the issuance of refunding bonds may be used in any manner that is consistent with the purposes for which the special tax was imposed. (“Refunding bonds, use of savings” added 11-2-2011 by O-20106 N.S.; effective 12-2-2011.)

The provisions of section 53312.7 of the Act, concerning the adoption of local goals and policies, shall be permissive and not mandatory in connection with any proceedings taken, special tax levied or bonds issued pursuant to this Division. (“Goals and policies“ added 11-2-2011 by O-20106 N.S.; effective 12-2-2011.)

Any proceedings taken, special tax levied or bonds issued pursuant to this Division shall not be held invalid for failure to comply with the provisions of this Division provided such failure is not a constitutional defect. (“Compliance with Division“ added 11-2-2011 by O-20106 N.S.; effective 12-2-2011.)

In the event of any conflict between the provisions of this Division or other provisions of the San Diego Municipal Code and the provisions of the Act, this Division shall govern. (“Conflict of law“ added 11-2-2011 by O-20106 N.S.; effective 12-2-2011.)

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