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The money monitors in the city’s Independent Budget Analyst’s Office initially had concerns with the NTC Foundation’s request for additional funding to cover a shortfall. Especially since the foundation already came to the city once this year with an emergency, more than $1 million in unexpected property tax bills.
But the analysts now support city redevelopment staff’s recommendation that the city turn nearly $700,000 — money the foundation convinced the county assessor to refund to the city — back over to the foundation.
“We now view these issues as two unrelated, though unfortunate, set of circumstances,” the analysts said in a report issued today.
Here’s the kicker, one of the most dire statements we’ve ever seen in one of these IBA reports.
If this nearly $1 million gap isn’t covered soon, the whole project falls apart:
If all funding sources are not in place by October 1, the Foundation will fail to secure the New Markets Tax Credits, which will cause the entire $20 million financing package to unravel and jeopardize the Phase II development plan.
The IBA said recommendation is tied to a couple of other things:
• The money in question was collected as a result of the redevelopment of the former Naval Training Center in Point Loma and must be reinvested there anyway.
• NTC Foundation staff told the IBA that they’re collecting as many private donations as they can and can’t raise any more to cover the gap. “The downturn of the economy has severely impacted the Foundation’s ability to secure major donations,” the report states.
I’m Kelly Bennett, the arts editor for VOSD. You can reach me directly at firstname.lastname@example.org or 619.325.0531.
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