Report: San Diego could save a ton of money if it relocates City Hall

San Diego stands to benefit substantially should it vacate City Hall and make its central downtown real estate available for redevelopment, according to a new report financed by a philanthropic organization with a vested interest in the area’s renaissance.

Tuesday, San Diego’s Prebys Foundation and the Downtown San Diego Partnership released a report that identifies the long-term, regional economic impact associated with a Civic Center that is remade with 4 million square feet of new development. The study also estimates the cost savings associated with the city’s lease or purchase of a new City Hall.

The report — prepared by urban planning firm U3 Advisors and titled, “San Diego Civic Center Revitalization: Quantifying Transformative Economic Impact” — determined that the annual impact of a fully redeveloped Civic Center to the local economy would be $428 million. The sum reflects direct spending at the site alongside money that ripples through the community because of the creation of 941 permanent jobs and the addition of 4,500 new downtown residents.

The economic impact was calculated using the U.S. Department of Commerce, Bureau of Economic Analysis’ regional input-output model, and is based on a development program that calls for 2.1 million square feet for residential use (or 2,375 apartments), 252,000 square feet for hote...