How is the cost of the Chavez Property recovered?
The Certificates of Obligation that will be used to purchase the Chavez site will be called-in (paid off) when the Convention Center Hotel Project Bonds are issued. The entire Chavez site will then become an asset of the project. If, at a later date, it is determined that some portion of the site that is not needed for the hotel project, the unneeded portion will be considered for lease and/or sale for other development purposes. Because any such portion leased or sold will be an asset of the hotel project, it is expected that any proceeds of such a lease or sale will be used for debt service for the hotel bonds, rather than being available to the City’s general account.
