Lawyers for San Diego taxpayer John Gordon says the case should have been presented to a jury
for a building that could not be safely occupied. He alleged that the lease violated the state constitution because taxpayers were not receiving any benefit from their investment.on the building. By then, however, San Diego had already paid some $24 million toward the total acquisition cost.against Cisterra and CGA Capital. But those cases did not seek to cancel the lease. Instead, Elliott asked a judge to affirm the city’s suspension of payments until the building could be safely occupied.
“From the beginning, the public and the members of the then-City Council, including myself, were deceived,” said Gloria, who had made the initial motion to approve the Ash Street lease when he served on the council in 2016. in new bonds to pay for the Ash Street and Civic Center Plaza leases. It will cost taxpayers some $7.4 million a year for the next three decades to pay off that $200 million-plus debt.to maintain the vacant Ash Street building.
But the Gordon lawyers said the state constitution requires more than that. They said local governments must collect a specific benefit during each year they spend money on a capital project — and abate the lease if not. “Lessee agrees that its obligation to pay all rent and other sums payable under this lease are absolute and unconditional and shall not be subject to any abatement … for any reason whatsoever,” said the memo from the Richards, Watson & Gershon law firm.
The 4th District filing cites a host of specific questions of fact that the Gordon lawyers said should be decided by a jury.
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