If you’re under the impression that San Diego has only dealt with one real estate transaction involving a long-term lease and millions of dollars in unforeseen renovation costs, I’m sorry I brought the bad news.
As Andrew Kitts reports, the city signed a long-term lease for real estate in Kearney Mesa in 2017, but still cannot use the space.… The idea was for the city to have a site where it could repair city fire engines. The preparation of the facility was supposed to cost $ 6.5 million.
Stop me if this sounds familiar, but “however, once the city took control of the property, officials learned that building needs were greater than they had anticipated, and the cost of construction had skyrocketed,” Kitts said. “Last week, a city council committee gave the green light for renovations, which will now cost about $ 15 million. The entire Council is expected to vote on spending next month. “
In addition to renovation costs, by the time the building is ready, the city will have spent nearly $ 6 million on rent alone.
Current problems with the object, which Kitts first revealed last yearwere recalled in a recent city audit that also undermined the city’s acquisition of 101 Ash St.
“The report says the city needs to start appraising properties it plans to lease out before renting out, especially if major renovations are required before the city can move in,” Kitts writes.
Wastewater Treatment Solutions Slow Implementation Despite $ 300 Million Increase
Even the slightest rain, like in San Diego on Monday, is often enough to close some local beaches due to sewage flowing through the Tijuana River.
More than 18 months ago, members of Congress and other local leaders honored the EPA’s $ 300 million award to help overcome the cross-border sanitation crisis. Our Border Report author Gustavo Solis recalls the announcement as a big victory race that politicians greeted at a press conference. However, there has been little meaningful action since then., Reports Solis. The EPA has yet to announce the projects it plans to fund with the money.
“Once the EPA has identified the projects, there will be a ‘fairly comprehensive environmental review’. In other words, don’t expect any major work in the Tijuana Valley anytime soon, ”writes Solis.
We will keep a close eye on this list of projects. As reported by VOSD, many projects that can solve this problem are located in Mexico – but this is not where American officials want to see money spent…
In other news
The Morning Report was written by Sara Libby and edited by Andrew Kitts.
New troubled real estate transaction costs rise Link to source New troubled real estate transaction costs rise