The document provides an update on the proposed Phase III expansion of the San Diego Convention Center. It summarizes the recommendation of a 2009 citizen task force to proceed with the expansion. An analysis projected the expansion would generate over 650,000 new hotel room nights and $121 million in new hotel sales annually. The proposed expansion would add 1.27 million square feet and cost $711 million. The current design includes over 70,000 square feet of accessible public space, including gardens, lawns, and views of the waterfront and bay. Financing would come from new revenues including a port lease and taxes, with a maximum project cost of $550 million.

1. SAN DIEGO CONVENTION CENTER PHASE III EXPANSION Project Update July, 2011 1

2. Visit www.visitsandiego.com& Click on Expansion News

3. 21 Years of Success 2

4. 2009 Mayor’s Citizen Task Force Community Participation Lodging Business Labor Taxpayers Environmental Recommendation Expansion should proceed 4

5. 5

6. AECOM Analysis of Proposed Expansion Data compiled from meeting and event executives 25 primary events 246,861 attendees for 3.86 nights at $185 ADR 657,000 potential new room nights $121,081,000 in new hotel room sales revenue 6

7. Additional Annual Economic Benefits from Expansion 7

8. Size MattersProgram and Revenue Sensitivity 8

9. Port Lease 9

10. Due Diligence “Test Fit” 150’ tall, 1,266,719 SF and $711,000,000 10

11. Design Team Selection 11

12. 12 Breakthrough Conceptual Design

13. Breakthrough Conceptual Design 13

14. Architectural Studies 14

15. Architectural Studies 15

16. Architectural Studies 16

17. Fall 2010 Design 17

18. Spring 2011 Design 18

19. Summer 2011 Design 19

20. Public Realm—AccessSummer 2011 Design 20

21. Public Realm—Protect View CorridorsSummer 2011 Design 21

22. existing

23. 23 Spring 2011

24. 24 Summer 2011

25. 25

26. 26

27. Accessible Public Realm Space 27

28. Current Design

32. Current Design 32

33. Current Design 33

34. Current Design 34

35. Constructing Cost EstimatingConclusion All required program elements can be constructed for $500 million including reasonable and appropriate design/construction contingency With $50 million fund reserved for unanticipated site conditions and entitlement issues, total project costs and total amount of bond proceeds needed to fund the project is $550 million Project’s all-in, maximum cost exposure--$550 million 35

36. FinancingNew Revenues Generated by Expansion Revenue sources proposed but not yet approved Port Lease Revenue and City TOT from Expansion Hotel Centre City Project Area tax increment Self-assessment by beneficiaries in assessment district or CFD structure Lodging Industry Downtown food/beverage/retail sales City-wide taxicab “flag drop” 36

37. Proposed Hotel Room Sales Assessments 37

38. Expansion Schedule 38

39. public space design

40. access to waterfront

41. access – vehicular

42. access - rooftop

43. access – public access

44. view corridors PARK ESPLANADE

45. park boulevard

46. park blvd | convention center way

47. park blvd | convention center way

48. 3 1 2 wind palms benches coming together public art

49. public art

50. activated waterfront 70 feet wide, mix of uses and amenities

51. needs assessment 2009 Critical open space needs: + Multi-purpose urban parks serving downtown residents + Multi-purpose space for people to gather + Connectivity of parks and waterfront

52. needs assessment 2009 Activity needs that can be provided on rooftop public space: + multi-purpose open space + playgrounds/tot lots + picnic areas + outdoor seating areas + natural areas + waterfront access + outdoor amphitheater + concessions/food in parks + interactive fountains/water play + outdoor game tables + restrooms + signage/wayfinding + educational classes . . . . . . . . . . . . .

53. design inspiration

54. views and scale of the bay

55. a sense of nature

56. sustainable places

57. garden traditions | a sense of nature

58. skyline and urban features

59. public realm accessible spaces the perch the meander/coastal garden the great lawn the gathering place the ascent the grand staircase visible green roof esplanade 7. 1. 2. 3. 4. 7. 6. 5. 8.

60. the perch

61. the meander/coastal garden

62. the great lawn

63. the gathering place

64. the ascent

65. the grand stair

66. visible green roof

67. olympic sculpture garden-seattle

68. olympic sculpture garden-seattle

69. olympic sculpture garden-seattle

70. high line park- new york

71. high line park- new york

72. high line park- new york

73. high line park- new york

74. high line park- new york

75. high line park- new york

76. high line park- new york

77. high line park- new york

78. high line park- new york

79. high line park- new york

80. high line park- new york

81. public realm accessible spaces the perch the meander/coastal garden the great lawn the gathering place the ascent the grand staircase visible green roof esplanade 7. 1. 2. 3. 4. 7. 6. 5. 8.

82. Visit www.visitsandiego.com& Click on Expansion News Visit www.portofsandiego.org& Click on San Diego Convention Center