Money-saving Civic Center proposal would direct more funds to police, fire, libraries and street repair

San Diego taxpayers will reap millions in immediate and long-term savings if the city redevelops the Civic Center instead of continuing to lease expensive downtown office space and making costly band-aid repairs to the existing City Administration Building, according to Mayor Jerry Sanders.

Under the agreement Sanders announced today, the redeveloped Civic Center would save taxpayers $24 million in the first decade and they would save $232 million over 50 years.

"For me, this is a business decision," said Sanders. "I can not justify throwing away millions of dollars on rent, as well as repairs to a building on its last legs, when there is a less expensive alternative. The savings we achieve will be used for police, fire, parks, branch libraries and street resurfacing."

Under the agreement, Gerding-Edlen Development would construct a 19-story building immediately next to City Hall, where Golden Hall currently stands. The new facility would consolidate city employees who work downtown into one building, negating the need to spend $13 million per year for leased downtown office space and to make a projected $37 million in major structural repairs to the dilapidated Civic Center over the next 10 years.

"We know the building has to be replaced - it’s not a question of ‘if,’ but ‘when,’" Sanders said. "To waste $37 million to make it inhabitable for 10 more years is simply irresponsible, especially when there’s an option that actually saves taxpayer money."

The city began negotiating with Gerding Edlen after the firm won a public competition. At the outset, Sanders set forth the criteria that would need to be met to win his support. First and foremost, the mayor said, the project must save taxpayer dollars beginning in the first year of occupancy. It also must have a positive impact on the city’s general fund; the developer must shoulder financial risk, including cost over-runs and financial delays; and the building must reflect the state-of-the-art in environmentally friendly, energy-efficient construction.

In bringing the agreement forward, Sanders says his requirements have been met.

Council President Pro Tem Kevin Faulconer, whose district includes downtown, said the agreement also meets criteria City Council set for consideration of Civic Center redevelopment.

"The City Council established a number of strict parameters for this project, including ending the City’s reliance on leased office space and saving taxpayer dollars from Day 1," City Council President Pro Tem Kevin Faulconer said. "According to this proposal, all of the Council’s objectives would be met if a new Civic Center is built. That’s welcome news, and I appreciate the hard bargaining that occurred, and the work that the Mayor and his team invested."

According to the agreement, the cost of the new Civic Center will not exceed $293.5 million. It will feature a one-stop shop on the first level, providing citizens with direct access to city services, and an expanded City Council chambers on the second level. The new chambers will have a seating capacity of 400, an increase of 43 percent from the existing chambers. The project will also feature a 1.25-acre public plaza. The existing Civic Theatre would remain as is.

In addition to the taxpayer savings, the project would generate 2,300 construction jobs – 70 percent of which would be designated for San Diego residents. Sanders said he hopes the project will also help spur further redevelopment in downtown’s northern section.

The city will hold a series of public informational meetings where residents can learn more about the project:

• June 28, 6 p.m. – Joe and Vi Jacobs Center, 404 Euclid Avenue
• June 30, 6 p.m. – Serra Mesa-Kearny Mesa Branch Library, 9005 Aero Drive
• July 7, 6 p.m. – Rancho Penasquitos Branch Library, 13330 Salmon River Road
• July 8, 6 p.m. – Nobel Recreation Center, 8810 Judicial Drive

Sanders will present the proposal to the City Council’s Rules Committee next Wednesday and to the full Council at its July 12 meeting, where he will ask the Council to place it on the November ballot.

If approved by voters, construction would begin in January 2012, with completion expected in 2014.