San Diegans for Open Gov. v. Pub. Facilities Financing etc.
Annotate this CaseIn order to fund construction of an underground parking garage and other improvements in Balboa Park, the City of San Diego entered into a “lease revenue bond” transaction. This type of transaction was approved by the California Supreme Court in Rider v. City of San Diego, 18 Cal.4th 1035 (1998) and by the Court of Appeal court in San Diegans for Open Government v. City of San Diego, 242 Cal.App.4th 416 (2015) (SanDOG). After these cases, San Diego voters approved several amendments to the San Diego City Charter regarding bond issuance. Plaintiff San Diegans for Open Government (SanDOG) challenged the Balboa Park lease revenue bond transaction based on these amendments. In SanDOG’s view, one newly-amended provision restricted the ability of the City to use the Financing Authority to issue bonds without voter approval. The trial court disagreed, and the Court of Appeal affirmed the court’s judgment on this issue. "The provision in question reflects a limitation on City-issued bonds; it does not cover bonds issued by the Financing Authority. Moreover, even if the provision were not limited to City-issued bonds, it would not cover the lease revenue bonds contemplated here. The additional challenge asserted by SanDOG (regarding a cooperation agreement) was moot; accordingly, that portion of the judgment was reversed and remanded for the trial court to dismiss the challenge as moot.
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