San Diego City Council delays vote on 101 Ash Street settlement after backlash
SAN DIEGO (KUSI) – Last week, San Diego Mayor Todd Gloria a potential settlement with Cisterra Development and lender CGA over the 101 Ash Street and Civic Center Plaza real estate deals that would transfer ownership of the properties to the city.
Gloria’s proposed settlement — besides transferring ownership of the former Sempra Energy headquarters at 101 Ash St. and the Civic Center Plaza, housing more than 800 city employees — would refund the city $7.4 million in profits Cisterra made in its lease-to-own deal on the 101 Ash property, while allowing the company to keep its $6.2 million in profits from a similar deal with Civic Center Plaza.
Mayor Gloria said his aim was to “reach a lawful, fair settlement that limits the city’s liability and is in the best interest of taxpayers.”
As a San Diego City Councilmember in 2016, Mayor Todd Gloria supported the deal, but now says he continues to “feel deceived by the information provided to use at that time.”
But City Attorney, Democrat Mara Elliott quickly urged the city council to reject the settlement. Elliot’s office said Gloria’s proposed settlement, “presents several significant disadvantages to the city and does not adequately protect the city’s legal and financial interests.”
Attorney Maria Severson has been a strong critic of the Gloria’s proposed settlement, telling KUSI News that it would put taxpayers on the hook for millions and millions of dollars. Severson’s interview explaining why the settlement is not a good deal for taxpayers is below.
The San Diego City Council was set to vote on the settlement on Monday, June 27th, but Mayor Gloria announced the vote would be postponed earlier that day.
KUSI’s Hunter Sowards explains how strong opposition to Gloria’s proposed settlement forced him to postpone the vote.