REJECT SECRET ASH STREET SETTLEMENTS

It should never be forgotten that then-mayor Kevin Faulconer’s 2016 push to have the city of San Diego enter into a $128 million, 20-year lease-to-own deal with Cisterra Development for a 19-story office tower at 101 Ash Street didn’t include the due diligence that a buyer of a $300,000 condo would undertake. Or that the tower had so many major problems — only starting with asbestos contamination — that it was unusable. Public outrage over the deal led Faulconer to end monthly lease payments of $535,000 in 2020 and to multiple related lawsuits. What the hell happened is still an open question. This week, the City Council will meet in closed session to discuss two of the lawsuits brought by City Attorney Mara Elliott amid speculation that settlements may be in the works. Elliott alleges that Cisterra, its lender and real estate broker Jason Hughes — whom the city described as a voluntary advisor on the Ash Street deal and another city acquisition of a Cisterra property — conspired to dupe the city by not revealing that Hughes received $9.4 million in fees for his role in the transactions.

But before the City Council approves any settlement, its nine members and Mayor Todd Gloria need to ensure the interests of San Diegans are as protected as possible. The city’s record of incompetence on real-estate deals dates back decades.

And both Gloria’s and Elliott’s judgment are in question. In 2016, as a council member, Gloria made the motion to approve the Ash Street deal. Despite knowing City Hall’s history of poor decisions on such purchases, he accepted the Faulconer administration’s contention the building was in great shape and only needed a $10,000 power wash before being used. The estimate of how much it would cost to occupy the tower was only off by $115 million.

As for Elliott, her office signed off on the Ash Street deal soon after she became city attorney in December 2016 — her name is scrawled over the scratched-out name of former City Attorney Jan Goldsmith’s on the “as-is” lease — but she has insisted she bares no blame for the disastrous transaction. City Auditor Andy Hanau issued a report in July faulting Faulconer, the City Council and the City Attorney’s Office for their roles in it, but Elliott criticized the audit as incomplete. Hanau pointed out that Elliott refused to participate in fact-finding. On other occasions, she’s said it’s standard procedure for her office to defer to mayors on the wisdom of real estate deals. How does that make any sense given the city’s abysmal real estate record?

So while San Diegans can hope that Elliott is poised to unveil fantastic settlements that mostly make taxpayers whole — and that get City Hall out of the deals marred by Hughes’ alleged conflict of interest — no one should accept at face value anyone’s characterization of the settlements. They must be vetted to the max — by independent parties without a stake in painting a tidy picture. And they should also be made public. Keeping them secret would be a cherry on top of possible corruption.

It’s still not too late for an outside investigation before the past and present mayor and the city attorney who won’t even admit she had anything to do with this dumpster fire douse it forever by way of a secret City Council settlement. What the hell happened? San Diegans deserve to know and should only accept as truth what they can see themselves.