It seems every week another twist is added to the story of 101 Ash Street. Here’s how the story began.
The city acquired the building in a lease-to-own agreement valued at $72 million in the Fall of 2016. At the time the building was represented in public meetings as being in excellent condition and available for immediate occupancy with minimal work. More than two years later the City found itself paying $18,000 per day for a building that was still not occupied. Worse, the building turned out to be in dramatically poorer condition than thought.
The costs began to increase with reports of defects in air conditioning systems, plumbing and more highly publicized asbestos removal that eventually led to shutting down efforts to occupy the building. In late 2019, some city workers finally moved into 101 Ash Street. But a month later, the building was ordered to close by the county as a result of the asbestos.
The failure has prompted a more critical look at the 2016 transaction. There was no opposition to the deal expressed at City Council hearings in 2016. However, since that time controversy over the transaction has focused on three suspect elements: 1) the building was acquired at a price at least $16 million over its appraised value, 2) the lease contains unusual “indemnity” language in which liabilities for “unknown” hazards and defects normally borne by the Lessor or Seller were transferred to the City, and 3) public testimony and documents fail to identify the true owners of the building at the time.
Here’s some articles worth checking out:
Following the Money on San Diego's 101 Ash Street
What went wrong in the purchase of 101 Ash St.
SD City’s Story on 101 Ash St Deal Is Crumbling Like the Building Itself
With no good options, angry council demands more information on Ash Street
City Workers ‘Temporarily Relocated' from Ash Street Building With Asbestos Violations
Following the Money on 101 Ash Street and How Public Plays Second Fiddle to Special Interests
