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$$ for Shores Remain a Priority
August 2008 | by Wayne Dernetz

 

The Campaign For Del Mar Shores Committee Chair Joe Sullivan says his Committee is working hard to raise an additional $3.5 million in contributions still needed to pay off the debt on the Del Mar Shores site. That debt is in the form of a promissory note approved by the City of Del Mar which, along with $5 million in contributions raised thus far by the Committee, was needed to close escrow last May and complete the purchase of the 5.3 acre site from the Del Mar Unified School District.

Under a memorandum agreement with the City, the Committee promised to raise the full $8.5 million purchase price for the site by May, 2009. “We are highly confident we will raise all of the funds,” said Joe Sullivan. “The City's decision [to approve the promissory note and to complete the purchase] has removed all the uncertainty,” he added. Yet the Committee must still complete its fund raising effort to pay off the City's debt.

Under terms of the promissory note, the City must make the first of seven monthly payments of $500,000 plus interest by November, 2008. “We have not included these payments in our current budget,” said City Manager Karen Brust. “The City Council hopes the Committee will complete the fund raising effort by May, 2009,” she added. If needed, the City expects to use interim, short-term commercial loans to make the monthly payments until the note is fully retired.

The City Council has not yet approved a contingency plan if the Committee's fund-raising efforts fall short. “We want to allow the fund raisers the full amount of time [under the agreement] to be successful,” said the City Manager. “If there's a short fall in May, then we'll look at other options,” she added. Though no official consideration has yet been given, several possibilities have been mentioned including selling off the portion of the site occupied by the school district offices, using that portion of the property for City administrative facilities, or asking voters to approve a benefit assessment or a special tax to finance the remaining debt over a longer term. But if the Committee does not raise all of the $3.5 million, the City will be left with the remaining debt obligation and, as yet, no plan for repayment. Contributions to the Del Mar Shores Committee can be made online at the Committee's website, www.delmarshores.org .

 

   
 

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