San Diego Convention Center $119M Upgrade: How Pacific Beach Contractors Can Compete for 3,000+ Union Construction Jobs in 2026
After years of infrastructure failures disrupting Comic-Con and major events, Mayor Todd Gloria announces a five-year, $119 million Measure C investment to upgrade the San Diego Convention Center at 111 W Harbor Drive, creating more than 3,000 union construction jobs starting in 2026. The project addresses a $400 million repair backlog with priority focus on critical electrical infrastructure and HVAC system replacements—a major opportunity for Pacific Beach contractors with union labor partnerships and municipal project experience.
Service Areas: Pacific Beach Builder serves contractors throughout Pacific Beach, La Jolla, Mission Beach, Bird Rock, and Tourmaline Surfing Park seeking municipal project opportunities. Our location at 1088 Garnet Ave in Pacific Beach provides convenient access to downtown Convention Center projects—just 8 miles south via I-5, approximately 15 minutes without traffic.
San Diego's Convention Center needs help. After years of aging infrastructure causing disruptions at Comic-Con and other major events, Mayor Todd Gloria announced a five-year, $119 million Measure C investment to upgrade the facility at 111 W Harbor Drive. The project will create more than 3,000 union construction jobs starting in 2026, with a focus on critical electrical infrastructure and HVAC system replacements.
This represents a major opportunity for contractors throughout Pacific Beach, La Jolla, Mission Beach, Bird Rock, and Tourmaline Surfing Park looking to expand into municipal work. For Pacific Beach and La Jolla contractors, the Convention Center is located approximately 8-9 miles south on I-5, making crew logistics manageable while accessing downtown municipal work. Bird Rock firms are within 10 miles (about 20 minutes), and Mission Beach contractors enjoy similar proximity at 7 miles. The Convention Center faces a $400 million repair backlog, with $200 million needed over the next five years. Just before Comic-Con 2023, a key chiller failed, requiring a frantic nationwide search for a replacement that cost over $200,000 in five days. Water leaks regularly plague the facility, with rainwater pouring onto crowded exhibit floors during conventions.
The single most expensive near-term project is replacement of the central plant housing the facility's entire cooling and heating system, with a price tag of $66 million. Initial improvements include updates to electrical infrastructure and heating and air systems. For contractors with union labor partnerships and municipal project experience, this is a chance to secure multi-year work on one of San Diego's most critical public facilities.
Local Expertise Matters: Contractors from coastal neighborhoods like Pacific Beach, Mission Beach, and Tourmaline Surfing Park bring valuable experience with marine environment construction challenges—knowledge that translates well to the Convention Center's waterfront location. Firms with expertise in La Jolla's historic preservation and Bird Rock's coastal building codes demonstrate the attention to detail valued on high-profile municipal projects. Pacific Beach area contractors often collaborate on larger municipal projects through Associated General Contractors (AGC) San Diego networking events, creating partnerships that strengthen bid competitiveness.
What is the San Diego Convention Center upgrade project?
The Convention Center upgrade is a five-year, $119 million infrastructure investment funded by Measure C hotel tax revenue. After a five-year legal battle, litigation over Measure C formally ended in November 2025, clearing the path for improvements. The City expects to generate approximately $82 million in fiscal year 2026 from the hotel tax, with $45.4 million set aside for convention center expenditures.
The project addresses a $400 million repair backlog at the 2.6 million square foot facility. Priority repairs include replacing the central plant for $66 million, upgrading failing electrical systems, and modernizing HVAC infrastructure. The aging systems have caused multiple failures during high-profile events, threatening Comic-Con operations and flooding exhibit halls during medical conferences.
Renovations are expected to begin in 2026, though city officials' hands are tied through December 31, 2026, due to a settlement agreement with Fifth Avenue Landing. By January 2027, the city can start working on expansion planning while continuing critical infrastructure repairs. This creates a phased opportunity for contractors, with immediate repair work starting in 2026 and expansion work following in 2027 and beyond.
How Pacific Beach, La Jolla, and Mission Beach Contractors Can Access Convention Center Union Jobs
Contractors throughout Pacific Beach, La Jolla, Mission Beach, Bird Rock, and the Tourmaline Surfing Park area can access this work through several pathways. The City of San Diego requires contractors on public works projects to be prequalified through the Purchasing Division. For smaller contractors, the Small Local Business Enterprise (SLBE) program offers restricted bidding, bid discounts, and preference points when bidding on City contracts.
To become prequalified as a prime contractor, SLBE-certified emerging or small local businesses can bid up to $1,000,000 or their single-project bond limit (whichever is less) by submitting a current financial statement prepared by an independent accountant, bond letter, and three references. Non-SLBE contractors must meet higher thresholds.
The San Diego Convention Center uses PlanetBids for procurement, and vendors can register for opportunities at visitsandiego.com/procurement. The City's vendor portal also lists bid opportunities at sandiego.gov/purchasing/bids-contracts. For contractors not yet ready for prime contracts, subcontracting with larger firms is a proven pathway. Attend pre-bid meetings, network with established prime contractors, and demonstrate union labor capabilities to position yourself for subcontracting opportunities on electrical and HVAC phases of the project.
What are the union labor requirements for this project?
The City Council approved a project labor agreement in January 2024 that applies to every city project over $1 million, including the Convention Center upgrades. This agreement requires all prime contractors and subcontractors to pay benefit contributions for all union referrals and core employees to appropriate union trust funds.
For electrical work, contractors must work with IBEW Local 569, which represents over 3,700 electrical workers in San Diego and Imperial Counties. The union has jurisdiction over installation, operation, maintenance, and repair of all electrical wiring and equipment in construction projects. IBEW 569's Inside Agreement 2024-2028 governs wages and working conditions.
HVAC contractors must partner with Sheet Metal Workers Local 206 (SMART), which represents skilled sheet metal and HVAC workers throughout San Diego and Imperial Counties. The union works through agreements with the San Diego Chapter of the Sheet Metal and Air Conditioning Contractors National Association (SMACNA). Apprentices start at $25.60/hour with an additional $13.66 in benefits, for a total wage package of $39.26/hour.
Core employees must be either journeypeople or apprentices who appeared on your active payroll for at least 90 of the last 180 working days prior to designation. They must possess any state or federal license required and be able to safely perform basic trade functions.
What bonding and insurance do I need for municipal contracts?
San Diego municipal construction projects require comprehensive bonding and insurance. The California Contractors State License Board requires a $25,000 license bond attached to every active contractor's license as a baseline.
For bids of $25,000 and more, contractors must obtain a Bidders' Guarantee of Good Faith Bond. If awarded a contract, you'll need performance and payment bonds. The City requires contractors on public improvement contracts to submit a performance bond in the full contract amount. All required bonds must be submitted to Purchasing within 10 days of provisional award and must be original and notarized.
Insurance requirements include Commercial General Liability, Workers' Compensation, and Automobile Liability insurance generally in the amount of $1,000,000. Proof of insurance must be submitted to the Purchasing Division within 10 days of provisional award. Insurance companies must be authorized to do business in California and rated A-, VI or better by the A.M. Best Key Rating Guide. The City of San Diego must be named as additional insured on Commercial General Liability and Automobile Liability coverage.
Contractors must submit a current bond letter addressed to "The City of San Diego" as part of prequalification applications. Work with a bonding agent experienced in municipal projects to ensure your financial statements and bonding capacity meet city requirements.
What are San Diego prevailing wage rates for electrical and HVAC work?
All workers on the Convention Center project must be paid prevailing wages determined by the California Department of Industrial Relations (DIR). San Diego County uses the "SDI" determination code for prevailing wage rates. General determinations are issued twice yearly (February 22 and August 22) and take effect 10 days later.
Prevailing wage includes both base hourly rates and fringe benefits for health and welfare, pension, vacation and holiday pay, and other employer payments. The DIR publishes specific rates for each craft classification, including Inside Wireman (electrician), HVAC mechanic, and related specialties.
To find current rates for your trade, visit the DIR's prevailing wage determination website at dir.ca.gov/oprl/DPreWageDetermination.htm and search for San Diego County (SDI) determinations. You can also contact the Office of the Director Research Unit at (415) 703-4774 for assistance. For context, skilled trades in San Diego typically see prevailing wage packages substantially higher than private sector rates due to comprehensive fringe benefits.
The City of San Diego's Labor Standards Enforcement Division monitors prevailing wage compliance at sandiego.gov/compliance/labor-standards-enforcement/prevailing-wage-program. Maintain certified payroll records and ensure all workers receive proper prevailing wage payments to avoid penalties and contract disputes.
Project Timeline and Proximity Advantages for La Jolla and Pacific Beach Area Contractors
The Convention Center renovation timeline is constrained by the Fifth Avenue Landing settlement through December 31, 2026. Renovations are expected to begin in 2026, with the city able to pursue expansion planning by January 2027. This creates a phased rollout for contractors.
Geographic Advantages: Contractors based in Pacific Beach, La Jolla, Mission Beach, and Bird Rock benefit from strategic proximity to the Convention Center downtown location. The 8-10 mile distance allows efficient resource deployment, quick response to project needs, and cost-effective crew transportation. La Jolla contractors are approximately 12 miles (20-25 minutes via I-5 south), while Pacific Beach and Mission Beach firms enjoy even closer access at 7-8 miles (15-20 minutes). This proximity enables daily crew deployment without requiring temporary on-site housing, reducing overhead costs and improving bid competitiveness on multi-year municipal contracts.
Immediate priorities include the $66 million central plant replacement and critical electrical and HVAC upgrades to prevent failures during major events like Comic-Con, which generates over $160 million in regional economic impact annually. The facility cannot afford disruptions during peak convention seasons.
The City posts bid opportunities through the vendor portal at sandiego.gov/purchasing/bids-contracts and the Convention Center's PlanetBids platform at visitsandiego.com/procurement. Check the City's Forecast of Projects to be Awarded in Fiscal Year 2026 at sandiego.gov/cip/reports/forecastofprojectstobeawarded for upcoming opportunities.
Given the $119 million five-year investment timeline and the need for $200 million in repairs over the next five years, expect multiple bid packages released throughout 2026 and 2027. Early preparation is critical. Register on vendor portals now, attend pre-bid conferences, and establish union relationships before bids are released.
How can small contractors get involved as subcontractors?
Subcontracting is the most accessible pathway for small Pacific Beach contractors to access Convention Center work. The City of San Diego, San Diego County, and the San Diego County Water Authority all maintain programs to maximize small business participation.
The San Diego County Water Authority's Small Contractor Outreach and Opportunities Program (SCOOP) is designed to maximize participation of diverse, qualified small contractors, consultants, and material suppliers. While SCOOP focuses on Water Authority projects, the same principles apply to Convention Center work: establish relationships with prime contractors, demonstrate specialized capabilities, and maintain proper licensing and insurance.
Start by identifying prime contractors with Convention Center experience. Review past City of San Diego public works awards to see which firms have successfully completed municipal projects. Attend Associated General Contractors (AGC) San Diego meetings and industry networking events to connect with prime contractors seeking electrical and HVAC subcontractors. Local contractor communities in Pacific Beach, La Jolla, and Mission Beach neighborhoods regularly collaborate on municipal projects, with many firms building long-term relationships through regional construction industry associations and community business organizations.
Demonstrate your union labor capabilities. Contact IBEW Local 569's training center at 4675 Viewridge Avenue, San Diego (858-569-6633) or Sheet Metal Workers Local 206 at 4594 Mission Gorge Place to explore apprenticeship sponsorship and union affiliation. Prime contractors value subcontractors with established union relationships.
Register on City and County vendor portals even if you plan to subcontract. Many prime contractors search these databases when assembling bid teams. Prepare a capabilities statement highlighting your specialized skills in electrical or HVAC work, past projects, bonding capacity, and union partnerships.
Frequently Asked Questions
What is the San Diego Convention Center upgrade project?
The Convention Center upgrade is a five-year, $119 million infrastructure investment funded by Measure C hotel tax revenue. After a five-year legal battle, litigation over Measure C formally ended in November 2025, clearing the path for improvements. The City expects to generate approximately $82 million in fiscal year 2026 from the hotel tax, with $45.4 million set aside for convention center expenditures. The project addresses a $400 million repair backlog at the 2.6 million square foot facility. Priority repairs include replacing the central plant for $66 million, upgrading failing electrical systems, and modernizing HVAC infrastructure. The aging systems have caused multiple failures during high-profile events, threatening Comic-Con operations and flooding exhibit halls during medical conferences. Renovations are expected to begin in 2026, though city officials' hands are tied through December 31, 2026, due to a settlement agreement with Fifth Avenue Landing. By January 2027, the city can start working on expansion planning while continuing critical infrastructure repairs. This creates a phased opportunity for contractors, with immediate repair work starting in 2026 and expansion work following in 2027 and beyond.
How can Pacific Beach contractors bid on Convention Center work?
Pacific Beach contractors can access this work through several pathways. The City of San Diego requires contractors on public works projects to be prequalified through the Purchasing Division. For smaller contractors, the Small Local Business Enterprise (SLBE) program offers restricted bidding, bid discounts, and preference points when bidding on City contracts. To become prequalified as a prime contractor, SLBE-certified emerging or small local businesses can bid up to $1,000,000 or their single-project bond limit (whichever is less) by submitting a current financial statement prepared by an independent accountant, bond letter, and three references. Non-SLBE contractors must meet higher thresholds. The San Diego Convention Center uses PlanetBids for procurement, and vendors can register for opportunities at visitsandiego.com/procurement. The City's vendor portal also lists bid opportunities at sandiego.gov/purchasing/bids-contracts. For contractors not yet ready for prime contracts, subcontracting with larger firms is a proven pathway. Attend pre-bid meetings, network with established prime contractors, and demonstrate union labor capabilities to position yourself for subcontracting opportunities on electrical and HVAC phases of the project.
What are the union labor requirements for this project?
The City Council approved a project labor agreement in January 2024 that applies to every city project over $1 million, including the Convention Center upgrades. This agreement requires all prime contractors and subcontractors to pay benefit contributions for all union referrals and core employees to appropriate union trust funds. For electrical work, contractors must work with IBEW Local 569, which represents over 3,700 electrical workers in San Diego and Imperial Counties. The union has jurisdiction over installation, operation, maintenance, and repair of all electrical wiring and equipment in construction projects. IBEW 569's Inside Agreement 2024-2028 governs wages and working conditions. HVAC contractors must partner with Sheet Metal Workers Local 206 (SMART), which represents skilled sheet metal and HVAC workers throughout San Diego and Imperial Counties. The union works through agreements with the San Diego Chapter of the Sheet Metal and Air Conditioning Contractors National Association (SMACNA). Apprentices start at $25.60/hour with an additional $13.66 in benefits, for a total wage package of $39.26/hour. Core employees must be either journeypeople or apprentices who appeared on your active payroll for at least 90 of the last 180 working days prior to designation. They must possess any state or federal license required and be able to safely perform basic trade functions.
What bonding and insurance do I need for municipal contracts?
San Diego municipal construction projects require comprehensive bonding and insurance. The California Contractors State License Board requires a $25,000 license bond attached to every active contractor's license as a baseline. For bids of $25,000 and more, contractors must obtain a Bidders' Guarantee of Good Faith Bond. If awarded a contract, you'll need performance and payment bonds. The City requires contractors on public improvement contracts to submit a performance bond in the full contract amount. All required bonds must be submitted to Purchasing within 10 days of provisional award and must be original and notarized. Insurance requirements include Commercial General Liability, Workers' Compensation, and Automobile Liability insurance generally in the amount of $1,000,000. Proof of insurance must be submitted to the Purchasing Division within 10 days of provisional award. Insurance companies must be authorized to do business in California and rated A-, VI or better by the A.M. Best Key Rating Guide. The City of San Diego must be named as additional insured on Commercial General Liability and Automobile Liability coverage. Contractors must submit a current bond letter addressed to 'The City of San Diego' as part of prequalification applications. Work with a bonding agent experienced in municipal projects to ensure your financial statements and bonding capacity meet city requirements.
What are San Diego prevailing wage rates for electrical and HVAC work?
All workers on the Convention Center project must be paid prevailing wages determined by the California Department of Industrial Relations (DIR). San Diego County uses the 'SDI' determination code for prevailing wage rates. General determinations are issued twice yearly (February 22 and August 22) and take effect 10 days later. Prevailing wage includes both base hourly rates and fringe benefits for health and welfare, pension, vacation and holiday pay, and other employer payments. The DIR publishes specific rates for each craft classification, including Inside Wireman (electrician), HVAC mechanic, and related specialties. To find current rates for your trade, visit the DIR's prevailing wage determination website at dir.ca.gov/oprl/DPreWageDetermination.htm and search for San Diego County (SDI) determinations. You can also contact the Office of the Director Research Unit at (415) 703-4774 for assistance. For context, skilled trades in San Diego typically see prevailing wage packages substantially higher than private sector rates due to comprehensive fringe benefits. The City of San Diego's Labor Standards Enforcement Division monitors prevailing wage compliance at sandiego.gov/compliance/labor-standards-enforcement/prevailing-wage-program. Maintain certified payroll records and ensure all workers receive proper prevailing wage payments to avoid penalties and contract disputes.
When do bids open and what's the project timeline?
The Convention Center renovation timeline is constrained by the Fifth Avenue Landing settlement through December 31, 2026. Renovations are expected to begin in 2026, with the city able to pursue expansion planning by January 2027. This creates a phased rollout for contractors. Immediate priorities include the $66 million central plant replacement and critical electrical and HVAC upgrades to prevent failures during major events like Comic-Con, which generates over $160 million in regional economic impact annually. The facility cannot afford disruptions during peak convention seasons. The City posts bid opportunities through the vendor portal at sandiego.gov/purchasing/bids-contracts and the Convention Center's PlanetBids platform at visitsandiego.com/procurement. Check the City's Forecast of Projects to be Awarded in Fiscal Year 2026 at sandiego.gov/cip/reports/forecastofprojectstobeawarded for upcoming opportunities. Given the $119 million five-year investment timeline and the need for $200 million in repairs over the next five years, expect multiple bid packages released throughout 2026 and 2027. Early preparation is critical. Register on vendor portals now, attend pre-bid conferences, and establish union relationships before bids are released.
How can small contractors get involved as subcontractors?
Subcontracting is the most accessible pathway for small Pacific Beach contractors to access Convention Center work. The City of San Diego, San Diego County, and the San Diego County Water Authority all maintain programs to maximize small business participation. The San Diego County Water Authority's Small Contractor Outreach and Opportunities Program (SCOOP) is designed to maximize participation of diverse, qualified small contractors, consultants, and material suppliers. While SCOOP focuses on Water Authority projects, the same principles apply to Convention Center work: establish relationships with prime contractors, demonstrate specialized capabilities, and maintain proper licensing and insurance. Start by identifying prime contractors with Convention Center experience. Review past City of San Diego public works awards to see which firms have successfully completed municipal projects. Attend Associated General Contractors (AGC) San Diego meetings and industry networking events to connect with prime contractors seeking electrical and HVAC subcontractors. Demonstrate your union labor capabilities. Contact IBEW Local 569's training center at 4675 Viewridge Avenue, San Diego (858-569-6633) or Sheet Metal Workers Local 206 at 4594 Mission Gorge Place to explore apprenticeship sponsorship and union affiliation. Prime contractors value subcontractors with established union relationships. Register on City and County vendor portals even if you plan to subcontract. Many prime contractors search these databases when assembling bid teams. Prepare a capabilities statement highlighting your specialized skills in electrical or HVAC work, past projects, bonding capacity, and union partnerships.
Sources & References
All information verified from official sources as of January 2026.
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- ▪ Comic-Con 2023 chiller failure cost $200,000 in five days - CMW (research source)
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- ▪ City of San Diego contractor insurance requirements - City of San Diego (official source)
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- ▪ Sheet Metal Workers Local 206 HVAC training - SMART Local 206 (official source)
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- ▪ San Diego County Water Authority SCOOP program - SDCWA (official source)
Municipal Construction Expertise for Pacific Beach Contractors
Pacific Beach Builder specializes in municipal project bidding, union labor partnerships, prevailing wage compliance, and City of San Diego public works contracting. Our team has successfully completed multiple municipal infrastructure projects and can guide your firm through prequalification, bonding, insurance requirements, and union affiliation processes. We understand the unique construction expertise of contractors throughout our service areas—from Pacific Beach's coastal building experience to La Jolla's historic preservation work, Mission Beach's waterfront projects to Bird Rock's specialized residential construction, and Tourmaline Surfing Park area's community-focused development.
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