(The Center Square) — The San Diego City Council will consider Monday whether to convert a 21-story downtown office building into affordable housing after cost estimates jumped almost $30 million.
The project is now expected to cost $267.6 million.
In addition, taxpayers have questions about the fact that one of the development companies is owned by the city’s acting planning commission chair.
The transaction documents for the 101 Ash St. proposal were released Monday. They included the 60-year Ground Lease Disposition Agreement, updated budget numbers and two property appraisals that arrive at different conclusions.
The collection of documents have raised questions regarding the financial stability and ethicality of the project.
The housing development project was previously pitched to San Diego’s Land Use and Housing Committee on July 2 as costing $250 million, with the development team asking for $82,541,000 in low-income housing tax credits and $32,173,00 in historic tax credits to help fund the project. The committee approved of the project, sending the proposal for approval by the city council later in the month.
The housing development project has since grown to cost $267.6 million. The development team is asking for $87,838,000 in low-income housing tax credits and $36,142,00 in historic tax credits to help fund the project, according to the project’s Economic Opportunity Report.
The total per-unit cost for the project is now close to $1.1 million per unit, an increase from its previous $1 million per unit cost.
Taxpayers are skeptical of the amount of tax credits the developers are asking for, especially since they’re now seeking a higher amount.
The San Diego Office of the Independent Budget Analyst had already marked the developers’ request for $32.2 million in historical tax credits as a “risk,” according to the Summary of IBA Comments for the Land Use and Housing Committee ‘s July 2 meeting. It was sent to The Center Square.
People are also questioning the city’s choice to work with developer Create Dev LLC, which is solely owned by Acting San Diego Planning Commission Chair Kelly Moden.
All members of the Planning Commission are appointed by Mayor Todd Gloria and approved by the city council. Members serve four-year terms until a successor is appointed. The chair and vice chair of the commission are appointed by the mayor and serve until a successor is appointed.
Moden was appointed to the commission in 2020 and reappointed in 2024. Moden was appointed to serve as vice chair in 2022 and is now serving as the acting chair.
