(Photo: Board Chair Fred Maas (L) leads a CCDC meeting in San Diego on Sept. 10, 2008. Alison St John/KPBS )
San Diego’s downtown development corporation decided today to scrap a $400 million project in downtown, because of former President Nancy Graham’s undisclosed conflict of interest. KPBS reporter Alison St John has more.
The Center City Development Corporation accepted a recommendation to scrap a major hotel/ condominium project planned at 7 th and Market St. An outside attorney advised that Graham’s conflicts of interest tainted the deal. She received $3 million from the developer from earlier transactions in Florida.
CCDC board chair, Fred Maas, says he is not waiting for the results of a city audit of the corporation to take action on projects affected by the conflicts of interest.
Maas: We’re taking this very seriously and we understand the ramifications, but when you are on a mission to restore the integrity of the organization, we understand there will be some casualties in all of this.
However Maas says, because of the weak state of the economy right now, there is time to negotiate a deal for the site and move ahead when the market improves.
A city audit of the CCDC as a whole is not due to be completed till next April.
Alison St John ,KPBS News.