Chargers release stadium economic study - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

Chargers release stadium economic study

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SAN DIEGO (CBS 8) - The downtown convention center and stadium created by Measure C will have a "major positive impact" on San Diego’s convention and hotel industry, with more than $750 million in new hotel room revenue over the first 10 years of operation, according to a new independent economic study released by the Chargers Wednesday.

The study was conducted by Hunden Strategic Partners, a real estate consulting and advisory firm over the past four months.

The Chargers are putting their plans before voters in November as Measure C, which sets out a financial and land-use framework for the project.

It needs 66 percent approval to pass because it would increase San Diego's hotel room tax.
   
The city of San Diego's Tourism Marketing District, the financial consultant Public Resources Advisory Group and the San Diego County Taxpayers Association each issued reports contending that the Chargers' plan for paying for construction and operations of the facility doesn't add up.
   
Those reports were balanced somewhat by a fiscal analysis from the city's Independent Budget Analyst's office, which suggested that an increase in the city's hotel room tax would likely raise enough money to pay for the public contribution to the estimated $1.8 billion project, but only if the team's estimates hold up.
   
But like the taxpayers' group, the IBA cautioned that the city's general fund -- which pays for basic services like public safety and libraries -- would be put at risk if revenue projections are overly optimistic. The IBA issued its fiscal analysis of Measure C on Monday.
   
According to the Chargers, the team's consultants determined demand, and projected impacts and benefits associated with the project, including greater attendance, more room nights and higher hotel rates.

The Chargers, who've wanted a new stadium for about 15 years, have proposed to build the facility in the East Village near Petco Park. The team and National Football League would contribute $650 million and the public would add the rest by raising the hotel room tax to 16.5 percent -- from the current 10.5 percent plus 2 percent tourism marketing fee.
   
The Chargers have agreed to play in the new facility for 30 years if Measure C passes. If it doesn't, the team has an option to join the Rams as the second tenant of a future stadium in Inglewood in Los Angeles County.

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