Lawsuit continues to thwart San Diego’s sale of Tailgate Park to Padres development team

San Diego’s planned sale of Tailgate Park to a development team led by the San Diego Padres remains stalled due to a lawsuit filed by Project for Open Government, a government watchdog group. The lawsuit, which alleges violations of city and state laws, has been ongoing for over 3.5 years despite a trial court ruling in favor of the city and developers in June. Project for Open Government is appealing that decision, keeping the associated redevelopment plan – East Village Quarter, which includes 1,800 residential units, retail space, a park, and parking – on hold.

The core of the dispute revolves around allegations that the city undervalued the property and failed to adequately consider affordable housing requirements under California’s Surplus Land Act. The city maintains the $35.1 million sale price accurately reflects the cost of replacing the parking spaces lost with the development. The judge agreed with the city that the project was exempt from the stricter affordable housing requirements due to a grandfathering clause.

Experts note that the current real estate market may have shifted, potentially making the delay beneficial. While the location remains desirable, the downtown market is currently oversupplied with apartments. The delay also postpones the city and local taxing agencies, including the San Diego Unified School District, from receiving proceeds from the sale.

(Source：The San Diego Union-tribune)