San Diego City Council unanimously approved the next step of San Diego State University’s purchase of the Mission Valley stadium site, the city released Monday.
City Council voted to direct the City Attorney Mara Elliot to begin writing up a Purchase and Sale Agreement for SDSU’s purchase of the 135-acre lot.
Elliot and the Independent Budget Analyst for the city have expressed concern on the timeline and certain legalities of the project.
Specifically, the council voted 9-0 on the following action:
- Request that the City Attorney draft and format the Purchase and Sale Agreement (PSA), addressing all legal concerns, including those outlined in the City Attorney Report.
- Request the City Attorney submit the draft PSA to City Staff for an objective analysis of policy including concerns raided in the IBA Report, operational and financial impacts;
- Request that an update be brought forward to the City Council in mid-December, and
- Request City Staff docket the draft PSA for City council consideration at the first meeting possible in January.
“The PSA will be drafted based on recent analysis by the Independent Budget Analyst and the City Attorney’s office that ensures taxpayers are given a fair deal and the city’s general fund is protected,” the city said.[[565128342,C]]
Prior the vote, councilmembers heard from almost two dozen SDSU supporters, including former SDSU basketball coach Steve Fisher.
“Terrific outcome. We got a unanimous vote and it was clear, all the members of the council want this moving forward and that’s great,” Fred Pierce with the group Friends of SDSU said.
As for the final price, the City of San Diego and SDSU have not yet agreed on a final amount as of Monday. The city claimed there were inadequate traffic mitigation measures in SDSU’s plan, citing negative effects for residents in the area.
The stadium sits in Councilmember Sherman’s District 7 who said, “I believe we are extremely close in reaching a deal. However, serious traffic mitigation flaws in the draft EIR (Economic Impact Report) must be corrected before an agreement is signed.”
On Oct. 28, SDSU sent a $86.2 million proposed purchase price, not including an additional $1.5 million to offset a portion of the land’s appreciation since 2017.
Real estate economist Gary London with London Moeder Advisors believed SDSU’s updated offer of roughly $87.7 million was a little “light,” but in the ballpark of acceptability.
“I think we’re within the range of $10 or $20 or $30 million of what the true value may be depending on which direction you go,” London said.
The city also voted to have that PSA presented by the City Attorney “at the first meeting possible in January.”
The university is hoping to break ground on the new site by April 2020. They plan to build a new stadium, expand the university, and add thousands of housing units.
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Source: NBC San Diego