County board uncertain about covering expense
Morgan Hill- County Supervisors Tuesday voted down the extra funding needed to build a 7,000-seat concert hall at the Santa Clara County Fairgrounds.
In a motion that failed 3-2, the board shied away from covering an extra $15 million in projected costs, uncertain how that money could be recovered while facing a $200 million budget deficit for fiscal year 2008.
The highly publicized project, originally favored by the Board in August 2004, was the subject of a failed lawsuit brought by the City of San Jose that resulted in a two-year planning delay and the estimated $15-million rise in building costs. San Jose claimed the proposed theater would weaken its investment in the HP Pavilion, a larger venue that is home to the city’s professional hockey team a number of live music concerts.
A judge ruled the county had the right to build the concert hall.
Supervisors Blanca Alvarado and Don Gage were alone in supporting more funding for the theater project, each arguing it would alleviate widely perceived blight at the fairgrounds located on Tully Road in San Jose.
“I am as cognizant of the dire financial situation the county is in as well as (anyone),” Alvarado said. “But I also know now is the best time to take charge of our future, to look at ways we could utilize our own county resources so we could generate revenues.”
Gage said deficits shouldn’t deter long-term planning.
The argument didn’t sway the other board members, who said they were uncomfortable with incurring more debt to fund the project.
Supervisor Liz Kniss said she is uncomfortable with relying on financial projections that could change. She suggested studying other year-round uses for the fairgrounds property while using money from San Jose to improve the land.
