Alleged corruption from Mayor Todd Gloria over 101 Ash Street building

SAN DIEGO (KUSI) – Former San Diego City Attorney Mike Aguirre says a bad deal for taxpayers may get even worse.

Back in July, San Diego City Council voted 6-3 in favor of Democrat Mayor Todd Gloria’s proposed 101 Ash Street settlement.

The settlement transferred ownership of the properties to the City of San Diego for around $132 million — $86 million for 101 Ash and $46 million for CCP — and refunds the city $7.5 million in profits Cisterra made in its lease-to-own deal with the city on the 101 Ash property. The deal allows Cisterra to keep its $6.2 million in profits from a similar deal with Civic Center Plaza. That refund will come in two payments this fiscal year.

Councilwoman Vivian Moreno derided the city paying more than $80 million for a building that she said — factoring in true valuation and remediation costs — is worth next to nothing.

“This is not a settlement, this is a capitulation — an admission of defeat,” Moreno said. “Long after this council and mayor are gone, San Diego taxpayers will be paying for this decision.”

Under the settlement, the city is responsible for all remediation fees to get the building habitable but would be entitled to all insurance or third-party reimbursement related to previously botched remediation of 101 Ash under the settlement and would “be able to determine the best course of action to garner the most value from building.”

San Diego City Attorney Mara Elliott also urged city council to reject the settlement, warning that it presented several disadvantage to the city’s legal and financial interests.

Nonetheless, Mayor Todd Gloria’s plan passed.

Former City Attorney Mike Aguirre has been against the settlement since it was first proposed, and is now warning his fears are becoming true. Aguirre explained to KUSI’s Dan Plante the City of San Diego is now planning to spend tens of millions more taxpayer dollars over the next three decades on a building that is not even being used.

Aguirre explained that behind closed doors, the San Diego City Council has agreed to spend over $100 million additional over the next 30 years, “so they can pay off their political supporters.” Continuing, “the people that own this building, that got the $91 million in cash from the city, they are big supporters of Mayor Gloria. They are part of the foundation of his economic support for running for election, and he’s basically paying him off.”

The 101 Ash Street building was appraised at $67 million, and the City of San Diego already paid $91 million for it. Aguirre said after they bought it, “they discovered it needed over $115 million worth of repairs,” meaning it has a negative value of $47 million.

The building has been empty since 2016, and there are no plans to use it anytime soon.

Aguirre slammed Mayor Todd Gloria, saying “it’s corruption, and we need to hear from law enforcement. The individuals involved need to have a thorough criminal investigation, because that’s what this is.”

RELATED STORY: San Diego City Council votes 6-3 in favor of Mayor Todd Gloria’s 101 Ash Street settlement