In August 2020, the town’s former actual property chief resigned her submit as the town’s woes surrounding a downtown high-rise grew to become a dumpster fireplace.
Cybele Thompson, who has been largely silent since leaving Metropolis Corridor, testified beneath oath earlier this month that she stays pleased with her work on the 101 Ash St. lease as soon as projected to save lots of the town tens of millions — however that she’s satisfied the town “minimize corners” on renovations there.
Our Lisa Halverstadt obtained a draft transcript of Thompson’s deposition carried out by an lawyer representing the town’s 101 Ash landlord and broke down a variety of bombshells from the town’s former actual property director.
- Thompson mentioned former Mayor Kevin Faulconer directed metropolis officers to pursue a extra pricey lease-to-own deal to accumulate 101 Ash out of issues in regards to the optics of a take care of political supporter and lightning rod Doug Manchester, a declare the previous mayor’s lawyer denies.
- Thompson left Metropolis Corridor with copies of lots of of metropolis paperwork out of concern she’d be scapegoated for her work on 101 Ash and Civic Middle Plaza, the deal that preceded it.
In regards to the Metropolis’s 101 Ash lawsuits … Thompson’s deposition was tied to the town lawsuits seeking to void the 101 Ash and Civic Center Plaza leases following the bombshell that the town landlord Cisterra Growth paid the city’s “volunteer” real estate adviser $9.4 million for his work on the 2 offers.
The Metropolis Council obtained a closed-door replace on these two lawsuits and a 3rd introduced by a taxpayer on Tuesday. That dialogue appeared to run means over schedule. The Metropolis Council’s scheduled 2 p.m. assembly began greater than 90 minutes late.
However insiders who had been speculating over whether or not the town was poised to proceed with a settlement with its landlord and lenders behind the offers must maintain speculating. There have been no public updates on Tuesday.
One Extra 101 Ash Revelation … The Union-Tribune broke the news Tuesday that Cisterra obtained an October 2016 appraisal valuing 101 Ash at $94 million — greater than the sooner $67 million deposition it offered to the town months earlier than the Metropolis Council vote. The bigger estimate was primarily based on the idea that the town had pledged month-to-month lease funds for 20 years and was used to help a $92 million upfront mortgage the town’s landlord wanted to make the deal occur.
Former Metropolis Lawyer Mike Aguirre, who’s difficult the town’s 101 Ash lease on behalf of taxpayer John Gordon, argued that the group representing lenders behind the deal offered the lease to buyers primarily based on a premise that runs afoul of the state Structure. The state Structure bars municipalities from taking over debt with no profit within the yr that debt was incurred. Town has occupied 101 Ash for only a few weeks because it obtained the keys to the constructing in January 2017. It stopped paying lease in September 2020.
Curiously, Cisterra did share a dealer’s opinion of worth with the town earlier than the Ash deal was permitted valuing the property at $83.1 million to $85.7 million primarily based on a 20-year lease with completely different lease assumptions. The separate $67 million overview additionally ordered by Cisterra targeted on the constructing worth assuming the town would totally occupy 101 Ash with a special lease construction.
Nationwide Metropolis Councilwoman Calls It Quits
Nationwide Metropolis Councilwoman Mona Rios spent a dozen years representing the town the place 4 generations of her household lived. However now it’s time to name it quits, she told Voice of San Diego’s MacKenzie Elmer.
Her departure from the Metropolis Council means she received’t be operating for one of many newly-formed districts in Nationwide Metropolis, the place council members ran at-large till this yr.
However Rios additionally leaves an enormous emptiness as vice-chair of the San Diego County Water Authority Board of Administrators, not too long ago stuffed by way of an appointment course of — or lack thereof — that left a foul style in some director’s mouths. Rios is the second feminine vice-chair to go away mid-term in two years, leaving three White males on the helm of a physique making the largest, and costliest, selections about water within the area.
San Diego Transferring Forward With Homekey App
Town and county are set to hunt roughly $12 million in state homeless housing funds after key votes this week.
County supervisors on Tuesday voted to submit a joint city-county utility for state Mission Homekey funds to again a 40-unit supportive housing challenge in El Cerrito and to pledge $11 million in county money to help capital, companies and working prices for the ability.
Metropolis housing commissioners additionally unanimously supported the appliance at a particular assembly Monday.
Future Housing Fee and Metropolis Council votes are anticipated later this yr if the town and county are awarded state cash.
The votes on the appliance got here simply days earlier than the state’s Could 2 deadline for the newest crush of Mission Homekey funds meant to bolster statewide efforts to deal with homeless Californians. The appliance got here collectively months after the area missed an initial deadline for roughly $61 million reserved for the San Diego area.
Inexpensive housing builders previously told Voice that the state initiative’s required fast building turnaround and market modifications for the reason that program’s 2020 debut stymied potential tasks. A Housing Fee govt mentioned throughout Monday’s assembly that Mayor Todd Gloria’s workplace and metropolis housing officers at the moment are discussing these deadline challenges with the state in hopes of getting extra choices in this system’s subsequent funding spherical, which is predicted to kick off this summer time.
In Different Information
- The Board of Supervisors unanimously approved a temporary shelter policy to deal with asylum-seekers who arrive on the U.S.-Mexico border asking for humanitarian safety. (Metropolis Information Service)
- The median lease for a one-bedroom unit in San Diego increased 32.8 percent for the reason that begin of the coronavirus pandemic, in line with actual property firm Zumper. (ABC 10)
- In keeping with information launched by the California Public Utilities Fee, greater than 1 / 4 of SDG&E clients are behind on their utility payments. (Union-Tribune)
This Morning Report was written by Lisa Halverstadt, MacKenzie Elmer and Megan Wooden.