Civic Center Plaza landlord files unlawful detainer case against city of San Diego

A lawyer for the landowner at Civic Center Plaza filed an illegal detainee proceeding against the city of San Diego on Tuesday, raising interests in an intensifying dispute over a pair of lease purchase agreements signed by the parties a few years ago.

Illegal detainees are a legitimate way for landlords to expel tenants. It is often used when rent or lease fees have not been paid.

This legal operation was done by city lawyer Mara Elliott with a 2015 Civic Center Plaza contract and 101 Ash St. It will take place a month after announcing that it is trying to revoke a similar agreement on vacant skyscrapers in. The city leased its assets in 2017.

Almost two weeks after Wilmington Trust, the lender of these properties, issued a payment or termination notice to the city at Civic Center Plaza, the building that houses the city’s law firm.

“The lease agreement requires the tenant to pay the basic and additional rent on the first day of each month,” said the illegal detainee. “As of July 2021, if the tenant did not pay the base rent of $ 313,118 and did not pay the additional rent within 5 business days of the first business day of the month, it will be the” default “. “

Illegal detainees have excluded, at least for now, some of the Civic Center Plaza, which operates as a charter school.

“At this time, lenders are not trying to suspend the operation of King Chavez Community High School, which occupies an adjacent building that forms part of the site,” Filing said.

The City Prosecutor’s Office said on Tuesday that the submission was nothing more than a “gamemanship” and called it “a distraction that keeps us away from the resolution.”

“Sandie Guns should be disappointed that Wilmington Trust is playing the victim rather than dealing with the mistakes made to taxpayers,” spokeswoman Hillary Nemchik said in an email. rice field.

“We will do everything we can to ensure that public affairs are not interrupted throughout the proceedings,” she said.

The city leased a skyscraper just north of Town Hall in 1991 and signed a 23-year contract. The public square between the two facilities has since been hosting countless protests, celebrations and public demonstrations.

The city first sued Wilmington Trust and other parties related to real estate on Ash Street, one block north last fall.

The complaint gave the judge a $ 535,000 / month lease payment, not to recover the tens of millions of dollars the city had already paid for leasing and repairing buildings that became unusable due to asbestos and other issues. He asked to verify the decision of former Mayor Kevin Faulconer to suspend.

Defendants filed a mutual complaint earlier this year, and both claims are pending in the San Diego Superior Court.

But at the end of last month, Elliott announced that it would amend its first proceeding to invalidate Ash Street’s lease and Civic Center Plaza contract. It was Hughes and the former mayor who described his consulting as a volunteer effort.

Hughes’ payments to Hughes are over $ 5 million for transactions at Civic Center Plaza and over $ 4.4 million for work on the skyscrapers of Ash Street, according to Elliott, and both leases need to be revoked intolerable. It represents a conflict of interest. Hughes was added to the city proceedings as a co-defendant.

A strategic change by a city lawyer took place the day after the San Diego Union-Tribune reported that Hughes had been paid $ 9.4 million for his work on both assets.

Hughes claimed that city officials, especially Fallconner, knew he was trying to get paid for his work.

“Jason’s sole role was to help develop the structure of the transaction,” said Michael Atanasio, a lawyer representing Hughes. “He had nothing to do with Fallconner’s decision to proceed with the deal.”

Faulconer, a candidate for Governor of California in the September recall elections against Governor Gavin Newsom, has not publicly detailed his role in the Ash Street deal or his relationship with Hughes.

Rather, he issued a statement in support of Elliott’s efforts to regain the lost taxpayer dollars. Two former aides also issued a statement on behalf of Faulconer, saying the former mayor of San Diego was unaware that Hughes had raised millions of dollars to serve his city.

$ 9.4 million was paid to Hughes by Cisterra Development, a San Diego company that acted as an intermediary in both the 2017 Ash Street transaction and the 2015 Civic Center Plaza lease transaction.

Cisterra, a subsidiary co-defendant in the city’s proceedings against Wilmington Trust, also said senior San Diego officials knew they were expecting Hughes to be paid, but did not provide written evidence. ..

In both cases, Cisterra represented the owner of the original building and closed the deal for those sellers to deliver the property to Cisterra before the company immediately delivered the property to the city.

At that time, the Fallconner administration focused on securing and expanding downtown real estate locations, where city-owned real estate had deteriorated and some existing leases were due to expire.

Civic Center Plaza, which has been leased by the city for decades, was acquired by the city under a 20-year owner-lease agreement that costs $ 82.8 million.

The building was valued at $ 45.2 million before the Fallconner administration asked the city council to approve the lease in 2015, according to an audit released by the City Audit Office last week.

Members of the council had four days to evaluate the proposal, the audit found, adding that the mayor’s senior aide withheld important facts from the council.

“The city consulted about the acquisition using a non-contracted real estate advisor (Hughes), but collected disclosures about the advisor’s financial interests and contracted the city to act in the city’s best interests. We didn’t make sure they were tied, “said the auditor.

“The staff report does not disclose the costs embedded in the ownership lease, such as the seller’s 10% rate of return.”

Audits also found a serious flaw in the city’s handling of the Ash Street Office Tower and three other properties that the city rented or purchased under the Fallconner administration.

The response of city managers agreed with many of the 10 audit recommendations. However, Mayor Todd Gloria rejected the proposal to adopt a checklist program aimed at paying close attention before the city authorities recommended approval of the purchase or lease to Congress.

The City Law Firm holds at least three law firms to represent the city on issues related to ash street leasing. Elliott has not yet released a copy of the company’s legal invoice required under the California Public Records Act.

Civic Center Plaza landlord files unlawful detainer case against city of San Diego Source link Civic Center Plaza landlord files unlawful detainer case against city of San Diego

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