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Appeals Court Affirms San Diego’s Measure C, Paving Way for Convention Center Financing

The decision allows the city to begin arranging financing for convention center upgrades.

Overview

  • The Fourth District Court of Appeal upheld Measure C as a citizens’ initiative that needed only a simple majority, validating its 65.25% approval in 2020.
  • City officials project roughly $82 million in fiscal year 2026 and about $1.04 billion over the first decade from the higher transient-occupancy tax.
  • The tax rates, raised in May, now stand at 13.75% near the convention center, 12.75% in mid-range areas and 11.75% farther away, applying to stays under 30 days.
  • The City Council is slated to adopt a clarifying ordinance to realign timelines delayed by litigation and to implement financing, including potential bond issuance.
  • A settlement with Fifth Avenue Landing prevents physical expansion until after 2026, and opponents from CTAN are weighing a possible petition to the California Supreme Court.