Props 13 and 218 necessitate convoluted scheme to effectively privatize public assets
The privatization of public resources took another step toward reality yesterday, although in this particular case it may not be a terrible thing. In a tentative ruling, Judge Ronald Prager determined that the unusual taxation method being used to finance the $520 million expansion of the San Diego Convention Center is perfectly legal, giving the project the green light.
The San Diego hotel interests and the City Council decided that they wanted the expansion project to happen, and they didn’t think they could get the 2/3 vote of the public in order to raise the TOT (a logic that might also be applied to the TMD, but more on that in another post). Instead, they used a provision in Prop 218 that allows local property owners to choose to tax themselves without a public vote.
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