If you really want a headache …

… enlarge this chart. It was part of a 2015 PowerPoint presentation by a Stockton city official trying to explain the multiplex deal to the Council.

As part of the deal, the city promised to build certain things in the Coy Garage and Hotel Stockton. But thanks to the recession (and it’s own fiscal improdence) it ran out of money. So it borrowed from the developers — to whom they had loaned $3 million.

“They owed us and we owed them,” said Anthony Barkett, a co-owner of Stockton City Center LLC. “So there were offsetting payments.”

Except the city loan to the multiplex was interest free and contingent on a certain profit level at the multiplex. The multiplex’s loan to the city was at the prime rate plus 2 percent and there was no escape clause for the city.

It was convoluted, which is why the Council cleaned up the deal in 2015. Today the multiplex stands as the one major capital redevelopment project — as opposed to the ballpark, arena and marina — that makes the city money.

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    Michael Fitzgerald

    Mike Fitzgerald is The Record’s award-winning metro columnist. His column runs in the paper three times a week. Born in San Francisco, he was raised in Stockton. His column covers diverse beats including, sometimes, the offbeat. Read Full
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