VISTA – Projects financed by a half-cent increase in sales tax are millions of dollars over initial cost estimates, but Vista officials insist the increases fall within the parameters of the bond measure floated to pay for them.
At this week's City Council meeting the cost for a new stagehouse for the city-owned Moonlight Amphitheatre was pegged at $11.49 million. That's more than double the $5 million forecast in November 2006 when voters passed Proposition L, raising the sales tax to finance several community projects.
City Manager Rita Geldert told the council during its Tuesday night meeting that the estimate was based on 15-year-old information.
She said $3 million of the increase was needed so the structure would comply with the federal Americans with Disability Act.
Despite the overrun, the City Council was not pointing fingers.
Councilman Steve Gronke seemed to sum up the position of the council: “I like it a lot, and I think the city is ready for it.”
The amphitheater renovation could be finished by June 2009.
Another project seeing a spike is a new civic center that was initially estimated at $40 million. The latest prediction is $55.27 million.
Two fire stations are the first projects built with Proposition L funding and appear to be coming in below their $14 million budget targets – $6.72 million for South Melrose Drive Fire Station No. 5 and $5.56 million for Wildwood Fire Station No. 6 on East Vista Way.
When staffing, design and equipment are added to the $12.28 million cost of the stations, the price tag climbs to about $20.2 million.
The price tag for a sports park, originally estimated at $15 million, is harder to pin down since the 16-acre park is being developed in tandem with a housing development apparently on hold.
When Proposition L was approved in 2006, the city expected the half-cent tax hike to bring in revenue of about $6 million a year that would be used to pay off revenue bonds. That figure has been revised to $5.5 million annually.
Robin Putnam, Vista community projects director, said the situation is manageable. The city has allocated $101 million for the projects, including $94 million in revenue bond financing.
“We were very conservative in our sales tax growth estimates, and we still think we have plenty of money to make the debt service payment on the bonds,” she said. “There is amazing progress made on all the projects that the community really wanted.”
In other business, the City Council approved a 40-year lease for Sonic Burger on less than an acre along South Santa Fe Avenue between Main Street and Broadway that the city will buy for $2.2 million.
In a nod to the 1950s, D&M Investment Partners, Inc., will build a Sonic franchise featuring car hops on roller skates. The city stands to make an estimated $129,000 a year in rent and 12.5 percent of any sales more than $2.5 million a year.
The most significant decisions handed down by the City Council, ones that could set the tone for developing Vista, were the approvals of two residential/commercial projects.
The first calls for 83,276 square feet of four-story shops, offices and townhomes in the 900 block of Vista Village Drive.
The second project is a public/private venture at the intersection of Vista Village Drive and South Santa Fe Avenue for 27,000 square feet of retail shops, a restaurant and 90 condos.
“The actions taken by the City Council represent the actualization of the council's priorities to revitalize the downtown and the Santa Fe Corridor,” redevelopment director Bill Rawlings said. “It is exciting to see the City Council goals reach fruition.”
Rick Rogers: (760) 476-8212; rick.rogers@uniontrib.com
