San Diego City Council negotiates with SDSU on Mission Valley site
SAN DIEGO (KUSI) – In two weeks San Diego City Council is expected to approve 500,000 dollars for a consultant to assist the city in its negotiations for transferring the Mission Valley Site to San Diego State University.
The mayor is now charged with negotiating a price that is fair and equitable to the city, and the taxpayers.
The ultimate value, according to London Moeder real estate advisors, will depend upon how much density will be developed on the site that generates revenue. The more density, the higher the value of the property. Gary London offered this range of value which is considerably higher than the appraised value of two years ago. “The range of value is going to be somewhere I would guess between 120 million and 200 million, depending on what land uses are chosen and the intensity of those uses,” says London.
Before we get to the negotiations, the city council has to approve the contract for the outside consultants. The city and the CSU Board of Trustees have to enter into a memorandum of agreement, regarding cooperation, and to extend limiting information protecting confidentiality during the talks.
In addition to the consultant, the city has a nine member team of negotiators. Notable names include Chief Operating Officer Kris Michell, and Planning Director Mike Hansen.
SDSU says its plan has overarching impact to the region. London says, “They will use that argument to drive the cost down. The city will use the argument of we are here for the taxpayers and so we need to get the best value for the property.”
So which side has the leverage entering the negotiations? London responds, “Standing here today, San Diego State has the leverage because they got an overwhelming voter approval to take down the land. So when you’re negotiating with one entity, it’s not a competition for the land, the entity that knows it’s going to have the use of the land absolutely has the negotiating leverage.”
One other concern for London is the city’s consultant. “My concern there is that the value of the property is rooted in what can be developed, requiring specialized expertise, and it remains to be seen. Whether the city has created a team that has that expertise.”