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Fallout From Failed Convention Center Expansion Measure Could Cost San Diego Millions

San Diego Mayor Kevin Faulconer, the San Diego Convention Center and Port of ...

Credit: KPBS

Above: San Diego Mayor Kevin Faulconer, the San Diego Convention Center and Port of San Diego Commissioners Chairman Rafael Castellanos shown in this undated photo collage.

It’s been almost a week since a city-backed plan to fund a convention center expansion fell apart. The resulting fallout could end up costing the city of San Diego millions of dollars.

RELATED: Convention Center Expansion Initiative Fails Fast-Track To 2018 Ballot

In June the council approved a $5 million payment to secure land near the existing convention center. That payment was contingent on a citizens initiative passing this November, but it failed to qualify for the ballot. Then last week a similar proposal from Mayor Kevin Faulconer also was not going on the ballot.

So is the city still on the hook for that $5 million down payment? Here’s what we know.

The Port of San Diego would make the down payment on behalf of the city to leasehold owners Fifth Avenue Landing. According to a port spokeswoman, that payment has not been made yet.

The Board of Port Commissioners discussed the deal Tuesday in closed session with legal counsel.

"In light of the developments last week we need to understand what’s next for the port going forward," said Port of San Diego Spokeswoman Tanya Castaneda. "The port will be talking with the city of San Diego and Fifth Avenue Landing about the next steps."

An important piece of this deal was the city transferring $5 million to the port for the down payment. City documents stipulate that payment was due within 60 days of signing the purchase agreement.

It’s been 63 days since the City Council approved the purchase details — but it is unclear when the purchase agreement was signed.

RELATED: City Council Rejects Putting Convention Center Expansion Initiative On November Ballot

A signed copy of the agreement will be filed with the city clerk. But the clerk's office said they do not have a signed copy yet.

The San Diego City Attorney’s office said it is working with the mayor to discuss future steps. KPBS has reached out to the mayor’s office but has not heard back.

In June the council approved a $5 million payment to secure land near the existing convention center — but that payment was contingent on a citizens initiative passing this November, but it failed to qualify for the ballot.

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