Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
Watch Live

KPBS Midday Edition

Emails Reveal More About City's Ash Street Lease Deal

101 Ash Street in Downtown San Diego. Aug. 21, 2020.
Shalina Chatlani
/
KPBS
101 Ash Street in Downtown San Diego. Aug. 21, 2020.
The city of San Diego's lease-to-own agreement for the 101 Ash St. high-rise has been called the worst real estate deal in the city's history. Emails reviewed by The San Diego Union-Tribune investigative reporter Jeff McDonald fill in some holes in this complex story.

It was supposed to be a win-win.

San Diego would acquire a downtown high-rise being vacated by Sempra Energy, spend a minimal amount to clean it up, and quickly move some 800 city employees into badly-needed new quarters very near city hall.

But that's not what happened.

Advertisement

101 Ash St. turned out to have huge problems (asbestos, plumbing, wiring); the city's lease-to-purchase agreement cost millions; employees were evacuated weeks after moving in; at least four people, including the real estate assets manager who originally said the purchase was a bad idea, lost their jobs; and the city is out $60 million and counting with nothing to show for it.

RELATED: NBC7 Admits Story On 101 Ash Street Was Based On Forged Document

The building's owner, Sandor Shapery; minority owner, Doug Manchester; a volunteer real estate broker, Jason Hughes; a dealmaker, Cisterra Development; San Diego Mayor Kevin Faulconer and the city council all figure in the saga, but there is much that remains unknown.

The San Diego Union-Tribune Watchdog reporter Jeff McDonald's latest story helps fill in some of the gaps. He joined Midday Edition on Tuesday.

Fact-based local news is essential

KPBS keeps you informed with local stories you need to know about — with no paywall. Our news is free for everyone because people like you help fund it.

Without federal funding, community support is our lifeline.
Make a gift to protect the future of KPBS.