ON POINT - September 2011
Trouble Finding Your Way at NTC Promenade? Tell Us What You Think!
The NTC Promenade Arts & Cultural District at Liberty Station can be a challenging place for first time visitors. The newly renovated Navy buildings all look the same. They are all painted the historic NTC tan. And because we are a National Historic District, we have limitations on signs and banners. What can we do to help people more easily find our dance studios, galleries, restaurants and retail? We’ve received a Neighborhood Reinvestment Grant from the County of San Diego at the recommendation of Supervisor Greg Cox to help solve wayfinding challenges. What landmarks do you look for? How do you find your way around? Share your recommendations with us by sending an email to [email protected].
NTC Foundation Successfully Appeals County Property Tax Bills
The NTC Foundation, which oversees the NTC Promenade Arts & Culture District, has successfully appealed County of San Diego Property Tax bills, which will result in up to 60% lower assessments to the Foundation and to NTC Promenade tenants and provide for a partial refund to the City of San Diego, which had paid previous taxes owed.
Background
Why are we getting bills? Isn’t the NTC Foundation a not-for-profit?
In 2005-06, the NTC Foundation turned to federal Historic Tax Credits and New Market Tax Credits to provide $12 million of the $26 million needed to renovate our first 6 buildings. To take advantage of these federal credits, the ground leases for these first 6 buildings were assigned to a for-profit, wholly-owned subsidiary of NTC Foundation. By using these credits (and not bank financing), we were able to keep rental rates affordable to the stellar roster of Resident Groups who became our original tenants. In 2009, a parallel for-profit financing structure was used to take advantage of Historic Tax Credits for our seventh building, Barracks 19. At the time these financings were completed, responses from inquiries to the County were that these properties were City-owned and exempt of property taxes.
In May 2010, in response to a general welfare exemption filed by NTC Foundation in August 2009 for Building 202, the Foundation began receiving a deluge of property tax bills dating back to 2006. The County’s position was that the for-profit entities holding the ground leases, although wholly-owned by NTC Foundation, triggered property tax liability for all seven completed buildings.
Concurrently with the receipt of each property tax bill, the Foundation filed an appeal, challenging the valuation of each building for each tax year. The Assessor’s valuations did not account for the constraints placed on each property: rehabilitation costs were high because each building had to meet historic preservation requirements; each building had a significant amount of unusable space; and significant land use restrictions are imposed on each building by the California Coastal Commission and City of San Diego.
Many discussions with the County Assessor occurred throughout 2010 about the presumed exemption of these City-owned buildings, particularly those spaces leased to non-profit tenants. Nevertheless, by early 2011 it was clear property tax exemption would not be provided by the County. The Foundation then requested that the property tax liabilities be paid—on a one-time basis—by the City (which the Redevelopment Agency agreed to do in February) and, going forward beginning April 1, by those Resident Groups whose leases require the payment of a pro-rata share of assessed property taxes. The Foundation also pays property taxes on its event and meeting space, a portion of all common area, and any vacant space.
While property tax exemption for our non-profit tenants will not be possible until the federal tax credit compliance periods are completed (and ground leases reassigned to NTC Foundation rather than a for-profit, wholly-owned subsidiary), the valuation appeals filed by NTC Foundation have now been considered by the County Assessor. In late June we were notified of reassessments which more appropriately represent the value of each property. Recently, the County’s Assessment Appeals Board approved these new valuations for the years 2006-2010/2011 which reduce property tax liability by an average of 60%, providing lower tax bills for the Foundation and our tenants, and partial property tax refunds for the City.
Keeping Our Tenants Successful
It was clear to us that an increase in Additional Rent to our Resident Groups to cover the property taxes going forward could jeopardize their tenancy at NTC Promenade. The NTC Foundation staff has been working with each Resident Group on a case-by-case basis to make sure that we can address concerns, and assure that all are able to remain in residence at NTC Promenade.
Holiday Planning Rolls Along
It may be a tough economy, but it is definitely not the time to skip celebrating the job your employees have done to keep business rolling. Now there’s no need to host an extravagant blow out. But, on the other hand, it is also not the time to have an in-office pot luck. A tasteful middle-of-the-road party is just the ticket. And for all of you that have held off deciding whether to throw the annual holiday party – time’s a wasting.
The Venues of NTC Promenade is just the place – and we can even offer you a philanthropic twist. Not only are the venues a wonderfully historic and beautifully renovated option for your entertaining, but they are also nonprofit. The bonus is that your rental fees go to further our mission and renovate more buildings in what was once the Naval Training Center.
And here’s another holiday tip: don’t limit your scheduling options to the month of December. Stay away from the stress and chaos of scheduling yet another holiday commitment. Expand the possibilities into a “thankful” November or a “fresh start” January.
To learn more about what The Venues of NTC Promenade can do to solve your entertaining woes (including free parking), call one of our expert Venue Sales Managers at 619-573-9260. Don’t leave planning until it’s too late!
To The Point ...
Sept 1 – 24 San Diego Watercolor Society "Fast & Furious | Experimental"
The San Diego Watercolor Society (SDWS) presents “Fast & Furious | Experimental”. Approximately 95 paintings created by national and international artists are on display and for sale. Gallery hours are Wednesday through Sunday, 10 a.m. to 4 p.m. Admission is free. The SDWS gallery is located at 2825 Dewey Road, San Diego, 92106. For more information call 619-876-4550 or www.sdws.org.
Sept 6-13-20-27 The North Chapel Open House
The North Chapel at Liberty Station monthly open houses, Tuesdays from 11 a.m. to 1 p.m. Located at 2881 Roosevelt Dr., San Diego, 92106. For more information, please visit http://www.thenorthchapel.com.
Sept 11 Greatest Show on Turf
Sponsored by the San Diego Automotive Museum, the Greatest Show on Turf 2011 comes to NTC Promenade at Liberty Station. There will be 3 special trophies presented plus the top 25 picks. Free to attend. From 9 a.m. to 2 p.m. Located at 2624 Historic Decatur Road, San Diego, 92106. Register online at www.sdautomuseum.org or call Faye Levy at 619-398-0307 or email [email protected].
Sept 24 Summer Movie Mania
Come see Toy Story 3 behind the Courtyard Marriott and Hilton Homewood Suites. Free to attend. Located at 2592 Laning Road, San Diego, 92106. For more information contact Erin Dial at [email protected]. Event starts at dusk.
Sept 24 San Diego County Beer Fair
The San Diego County Beer Fair will have beer and food sampling with a focus on craft and specialty beers from San Diego. There will be a heavy focus on learning all about the newest trends, styles and techniques being used at the brewhouses. There will be nontraditional fair entertainment, live music and interactive games for all adults young at heart. Tickets are available for “Meet the Brewers”, an early entry session from 12 p.m. to 1:30 p.m., and General Admission from 1 p.m. to 4 p.m. Located at 2624 Cushing Road, San Diego, CA 92106. For tickets and more information, contact Tyson Crawford at 909-434-5155 or http://www.sdbeerfair.com.
Sept 24 – 25 Sleepless San Diego
Be part of the 5th Annual Sleepless San Diego at Liberty Station. Along with over 1,000 others, spend a night under the stars to raise awareness of and support for San Diego's 10,000 homeless men, women, and children. Rock out with recording artist Phil Wickham and other great musical guests! Saturday 12 p.m. to Sunday 9 a.m. 2850 Dewey Road, San Diego, CA 92106. To register for the day event, to sponsor a sleeper, or to sleep over go to http://sleeplesssandiego.kintera.org/faf/home/default.asp?ievent=481983 for more information.
Be sure to check the NTC Promenade online calendar for all the happenings scheduled.
Please consider making a gift to the NTC Foundation to help us translate the community’s vision for NTC Promenade into a new Arts and Cultural District that will increase the quality of life for all San Diegans. Donate now!
For information about lease space in the NTC Promenade, contact Leasing Specialist Sean Giffin at [email protected] or 619-573-9304.