The Morning Report
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San Diego’s independent budget analyst, Andrea Tevlin, is recommending the city move toward an exclusive negotiating agreement with a Portland-based developer looking to rebuild the City Hall complex.
In a report issued today, Tevlin suggests the City Council discuss parameters for a negotiating agreement with city staffers before such an agreement would come to a vote. Among the requirements, Tevlin said, the city shouldn’t reimburse developer Gerding Edlen’s negotiating costs and should provide financial specifications, such as requiring a certain amount of savings.
Whether or not the project legally requires a public vote, as Councilman Carl DeMaio has called for, Tevlin says a ballot measure may be desirable:
It is of the utmost importance that the financial viability of this project holds up to public scrutiny ensuring a transparent process.
Tevlin’s report recommends the council ask for more research on certain aspects of the proposal, including the proposed financing. The developer has proposed a financing method that the city hasn’t used before, according to the report. The IBA report notes that a 2006 report from the Washington state treasurer described these types of bond offerings as having higher financing and issuance costs.