Chula Vista and the Port of San Diego are preparing to refinance the $383 million in bonds issued to subsidize the Gaylord Pacific Resort and Convention Center. When the project was approved in 2018, officials estimated the total debt service would be about $870 million, including interest.
Rising cost estimates
Deputy City Manager Sarah Schoen warned that current economic conditions – including a softening travel market and persistently high interest rates – will likely push the long‑term cost above the original forecast. She did not give a precise figure, only noting that the debt service will be “higher than what was estimated in 2018.”
Revenue shortfall this year
According to the latest city and port budget documents, the Gaylord and two nearby properties generated roughly $25 million in tax revenue this fiscal year, while the bond payments required about $29 million. The $3 million gap will be covered by reserve funds set aside when the bonds were originally issued.
Optimism from officials
Port real‑estate director Adam Meyer remains confident that the resort will eventually generate enough cash flow to not only cover the bond payments but also improve the city’s and port’s bottom lines. He expects interest rates on the refinanced debt to be lower now that the hotel is fully operational, reducing the perceived risk.
Mayor John McCann and Port Commissioner Ann Moore have repeatedly highlighted the Gaylord as a “game‑changing” investment for the Chula Vista Bayfront, projecting significant economic impact and future positive cash flow for the community.
Next steps
The city and port have hired two firms to conduct an updated economic feasibility study before the refinancing is finalized. The study, along with bond‑rating agency assessments, will determine the final interest rate and overall cost to taxpayers.
Until those analyses are complete, officials caution that the exact long‑term cost remains uncertain, but they stress that the project remains a cornerstone of the city’s waterfront development plan.
Original reporting: Voice of San Diego — read the source article.
