101 Ash Street Explained

101 Ash Street
Alternate Names:Sempra Building (former)
Location:101 Ash Street
San Diego, California
Coordinates:32.7194°N -117.1634°W
Completion Date:1967
Building Type:Commercial offices
Roof:288feet
Floor Count:21
Floor Area:447732square feet
Owner:City of San Diego
References:[1] [2]

101 Ash Street is an unoccupied office building in the downtown core of San Diego, California. The steel and concrete structure was built in 1967 on a rectangular 180feet x 70feet footprint. The building is 21 stories with two additional underground levels for a basement-to-roof height of 315feet and a square footage of 447732square feet, including the 240-car garage.[1]

The building was occupied by San Diego Gas & Electric (SDGE) from 1968 to 1998, and then by SDGE parent Sempra Energy from 1998 to 2015.[3]

In 2016, Mayor Kevin Faulconer announced a $128 million lease-to-own deal under which the city would acquire the building as-is from owner Cisterra Development and at the end of the 20-year lease own the building free-and-clear.[4] After the deal closed in January 2017, asbestos was discovered, complicating needed renovation work and delaying the move of workers into the building. In August 2018, the San Diego City Council approved a Faulconer administration plan to invest an additional $30 million into the site for renovations. Hundreds of city workers were moved into the building in December 2019; however, by January 2020, the mayor announced an evacuation of the building for safety reasons following asbestos violations by county regulators.[5] [6]

In September 2020, the city suspended monthly lease payments due to a lawsuit brought by a resident seeking to nullify the original contract and recover taxpayer losses.[7] In July 2022, the City Council approved a settlement with Cisterra Development, agreeing to pay the developer $86 million for the property while receiving back a refund of $7.5 million from the original lease-to-own payments. San Diego City Attorney Mara Elliott, who approved the initial deal, had urged the council to reject the proposal.[2] The city recouped an additional $9.4 million in March 2023 after suing Jason Hughes, the real estate broker on the original deal. Hughes also pled guilty to a misdemeanor criminal charge of conflict-of-interest.[8] [9]

In August 2023, La Jolla developer Reven Capital proposed converting the building into affordable housing as a part of the city's request for proposals on future development for the site and surrounding publicly owned land.[10] [11]

See also

Notes and References

  1. 2020-07-28 . 101 Ash Street Building Condition Assessment. City of San Diego (prepared by Kitchell) . 2024-05-06.
  2. Web site: San Diego City Council Approves Settlement on 101 Ash Street, Civic Center Plaza Deals . 2022-07-26 . NBC 7 . NBC 7 San Diego . 2024-05-06.
  3. Review of 101 Ash Street Lease-to-Own Proposal . 2016-10-12 . City of San Diego . City of San Diego (Office Of The Independent Budget Analyst Report) . 16-34 . 2024-05-06.
  4. 2016-10-13 . Lease of the Property and Improvements located at 101 Ash Street, San Diego, CA 92101 (the former Sempra Building - APNs 533-424-11-00 and 533-424-14-00) . City of San Diego (Report to the City Council) . 2024-05-06.
  5. Web site: Anatomy of the Deal: What happened on Ash Street . 2021-07-05 . The San Diego Union-Tribune . The San Diego Union-Tribune . 2024-05-06.
  6. Web site: City Moved Workers Into Ash Street Building With Asbestos Violations . 2020-01-13 . NBC 7 . NBC 7 San Diego . 2024-05-06.
  7. Web site: Months after legal settlement, Ash Street deal continues to cost San Diego taxpayers, vex city officials . 2023-03-19 . The San Diego Union-Tribune . The San Diego Union-Tribune . 2024-05-06.
  8. Web site: San Diego settles over 101 Ash deal; DA files criminal charges . 2023-03-22 . KPBS . KPBS . 2024-05-06.
  9. Web site: Mayor Gloria Reveals $9.4M Settlement with Broker Jason Hughes Over 101 Ash Street . 2023-03-21 . Times of San Diego . Times of San Diego . 2024-05-06.
  10. Web site: Real estate firm pitches affordable housing at scandal-ridden 101 Ash building . 2023-08-24 . KPBS . KPBS . 2024-05-06.
  11. Web site: San Diego high-rise joins office-to-apartment conversion trend . 2023-09-07 . Axios San Diego . Axios . 2024-05-06.