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Split San Diego council agrees to pay almost $2 million to settle Ash Street claims


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The ill-fated decision to sign a lease-to-own deal for the former Sempra Energy headquarters at 101 Ash St. continues to cost the city of San Diego big chunks of public funding.
At the recommendation of Mayor Todd Gloria, the San Diego City Council voted Tuesday to pay more than $1.8 million to settle legal claims filed by two companies hired to help renovate the vacant 19-story high rise.
The decision came on a 6-3 vote, with Councilmembers Sean Elo-Rivera, Vivian Moreno and Monica Montgomery Steppe opposed.
“The public deserves a city government they can trust,” Elo-Rivera said just before the vote. “That trust can only be regained with radical transparency. I cannot in good faith support (the settlements) absent an independent investigation. … I’m a no.” ....

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City of San Diego is prosecuting and defending lawsuits about Ash Street property


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The lease-to-own deal for the former Sempra Energy building downtown has cost the city tens of millions of dollars so far and has yet to provide any benefit to the public. It also has pushed San Diego city officials and their lawyers into the awkward position of defending one lawsuit over the botched agreement while prosecuting another.
City officials were accused of wasting public funds in a lawsuit filed last August by resident John Gordon, who claims the contract calling for the city to pay $128 million over 20 years for the downtown office tower is illegal.
Former Mayor Kevin Faulconer and his staff initially said the city would save $44 million by acquiring the mid-century high rise at 101 Ash Street as additional work space and consolidating up to 1,100 city employees from other leased office space into the building. ....

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