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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 .
© 2007-08
Del Mar Community
Alliance, Inc. All
rights reserved. |
