The Next San Diego Real Estate Scandal?
An interesing article today in the San Diego Union Tribune about long-term leases granted to local San Diego developers and businessmen whose terms are outdated. Of course, the city of San Diego generates millions of dollars each year from these leases, but it begs the question of wether or not privatizing and/or outsourcing of the leasing responsibilities would not generate a heck of a lot more money each year.
San Diego’s Real Estate Assets Department has a jumbled inventory of leases. It relies on paper files, hanging maps and old software to manage land deals. Behind the story The path to a lease Records of city leases in bits, pieces A variety of tenants Leasing is not a revenue tool for many cities When it comes to wheeling and dealing in real estate, San Diego is among the most deeply invested city governments in the country. It has signed more than 700 deals for properties from the shores of Mission Bay to the rolling hills of the San Pasqual Valley. And it’s not just taxpayers who have benefited from the bounty. During the past half-century, hoteliers, farmers and a slew of others have seen big returns from their leases of public property. Local politicians have benefited as well, pocketing hundreds of thousands of dollars in campaign contributions from leaseholders and their lobbyists. The city’s land deals generate tens of millions of dollars a year in revenue, but many deals expired long ago and continue on old terms. Others are locked in for years at low rates – or no rent at all. - more available