San Diego

The Centre City Development Corp., the agency in charge of downtown San Diego redevelopment, approved the sale of $6.3 million in tax allocation bonds Friday for use in buying property for future residential projects.

The proposed bond sale, which will be handled by Paine Webber Inc., will be the third such sale involving residential development in the Marina Redevelopment Project, which faces the waterfront.

The proposed bonds will have a 20-year term with an interest rate of not more than 10% during the first four years. After the four years, the CCDC can re-set the interest rate at the then-current market rate.

CCDC officials said they were moving ahead with the bond sale, even though the agency has yet to identify specific properties it wants to buy, because there is a chance that tax reform legislation now pending in Congress could remove the tax-exempt status of the bonds.

“There is still more housing we want built down there,” said Gerald Trimble, executive vice president for CCDC. “This will allow us to buy more land for more housing.”

The two earlier bond sales involving the Marina Redevelopment Project, where the Park Row and Marina Park housing developments are located, totaled about $12.5 million.