Taxpayers Association CEO Urges Delay on Kettner & Vine Lease Agreement

SAN DIEGO, CA (July 22, 2024)

Haney Hong, president & CEO of the San Diego County Taxpayers Association (SDCTA), released the following statement today after reviewing the Independent Budget Analyst and City Attorney reports on the Kettner and Vine lease agreement over the weekend:

“We at the Taxpayers Association call for a delay in the consideration of the lease agreement for the Kettner & Vine property.  

“The analysis conducted by Independent Budget Analyst Charles Modica and City Attorney Mara W. Elliott has brought up a number of concerns.  Perhaps most alarming is that the City Attorney had very little time to review to ensure taxpayer interests are protected.

“The San Diego City Council should not consider this Lease proposal until the following questions, among others, which reflect the concerns of many San Diegans, are adequately addressed:

  • What assessments were made to deem the lease cost reasonable?

  • Why did the City choose to proceed with the lease for the Kettner and Vine site based on an unsolicited approach from an individual, rather than issuing a Request for Proposals (RFP) to explore more competitive options?

  • What is the justification for allocating such significant funds to a project that does not align with the Community Action Plan?

  • How will the City ensure that the 1,000 beds at the Kettner and Vine site are truly net new additions to the shelter capacity, given the planned relocations and potential overlap with existing beds? Are there existing plans that outline this potential relocation versus new bed dilemma?

  • What is the rationale for committing to a 30-year Lease term without any extension options, and how does this align with the City's long-term strategic goals for the Property, especially considering the lack of flexibility for alternative uses of the Property?

“Delaying and going back to the drawing board is an opportunity for the City of San Diego to show taxpayers it is learning from its past real estate blunders.  But the fact that we’re here nonetheless shows the city has a long way to go to earn taxpayers’ trust with their dollars.”

SDCTA