Tuesday, the 29th of July, witnessed another vote by the San Diego City Council. This vote — a unanimous one — crystalized the city handing over, as Jennifer Van Grove at the UT, described as “its asbestos-plagued office tower at 101 Ash St.” for a 60-year lease to the development team headed by none other than Kelly Moden, the chair of the City’s Planning Commission. She heads MRK Partners and Create Dev LLC.
Moden gushed, “Today’s council approval gives us the green light to transform a city-owned liability into a legacy. We are honored to have the trust and confidence of the San Diego City Council as we turn our attention to meeting September’s state and federal affordable housing deadlines, which will keep our timeline and financing moving forward.”
The project presumably raises ethical concerns because of Moden’s involvement.
Michael Aguirre and Maria Severson, partners at Aguirre & Severson LLP who have sued the city over its past dealings with the building, threatened additional litigation. They alleged violations related to public noticing requirements and argued that Moden’s financial participation in the deal is illegal.
Moden stands to collect a portion of the $32.7 million developer fee. The fee is calculated using a state formula for the low-income housing tax credit program, which allows the developer to take home 15% of the eligible basis. Eligible basis is the total amount of project costs eligible for generating tax credits. The development team will pocket nearly $3.8 million up front and collect the rest when the project is refinanced.
“The chairperson of the city Planning Commission is perpetrating a fraud on the people of San Diego … . She has a prohibited financial interest,” Aguirre said. “I’m going to have to go back into court, because this is a fraud.”
San Diego’s Ethics Commission said last year that there is no conflict of interest because the project did not go before the Planning Commission.
There’s been many red flags raised over this deal by the Rag and other local media, including the editorial board of the UT itself in mid-July.
From January 2025: Company Led by Head of San Diego Planning Commission Selected for Redo of 101 Ash Street
Paul Krueger wrote this in early July: Warning Signs Envelope City Plan to Turn 101 Ash Street into Low-Income Housing; and Lisa Mortensen wrote this, More Red Flags.
Also, in mid-July there was this: Law Suit Filed to Disclose Records Hidden from Public on 101 Ash Street Before City Council Moves on Albatross.
Alas, many commenters and writers have complained that this is just ‘business as usual’ for San Diego.
Where is Cory Briggs?
He’s not going against the city and county anymore as far as I’’ve seen lately. No one will go up against this RICO enterprise, even when handed a playbook of volumes of evidence beyond a reasonable doubt. This enterprise is now full blown and doing whatever they want, no public input. No ethical standard. No transparency.
If allowed to be reconstructed, it will be a legacy alright. An overpriced money pit from day one, at the expense of the tax payers and an ongoing money pit for decades to come. Yep, that will be his legacy all right….., and the unconscious mayor swallowed the hook of his appointed Moden to the Planning Commission. No question in most everyone’s mind, it’s a conflict of interest for her to be on the developer end of the scam. A millions of dollars side hustle.
It’s a whole lot cheaper to use some of the City’s vacant/excess land and put in manufactured homes, not trailer houses, and create subdivisions. A brand new 3 bdrm., 2 bath manufactured home, approx. 1500 sq. ft., is less than $150K at Ideal Mfg. Homes in El Cajon.
The mayor and council want affordable housing, no matter how much it costs San Diego residents.
Change the name to asbestos towers.
The media has refused to cover the news or the truth for so long now, that it’s an unspoken agreement. These folks will do whatever they want , at any cost, in our face, and there won’t be a single consequence for any of it. Local media barely tosses softballs, and of course only in the direction they are told. The new establishment will do what they want, spend what they want, earn what they want, lie about anything they want, and the only people we can report to are their friends who are also in on it.. this is a RICO Enterprise and it will remain as long as those with voices allow it to. This is not a democracy. It’s not even a decent group of human beings. This is thug life. Straight up.
The worst of the “legacy” will come in 60 years when the city is handed a 120 year old building, and all the kitchens and bathrooms in the 250 residential units are 60 years old and need remodeling. We’ll be dead then, including all the people who voted this to happen. In the meantime, I’ll pop the popcorn and watch the show.
Slight correction:
Kelly Moden only heads Creative Dev. She has partnered with MRK Partners.
Other than that, I absolutely agree with everything written here. What a nightmare of corruption.