San Diego hires a real estate company to evaluate the offers for the sports arena site

San Diego employees will rely on the expertise in affordable housing and sports facilities from the international real estate investment and real estate management company Jones Lange LaSalle, as they take a closer look at the proposals of three development teams fight for renting and processing of the city property at 3220, 3240 Sportna Arena Blvd., 3250 and 3500

On Tuesday, the San Diego City Council unanimously approved a one-year consulting agreement for $ 250,000 with JLL. The company, which was selected through a competitive bidding process, will start work immediately and will start checking the financial assumptions in the bids submitted by Midway Rising, HomeTownSD and Midway Village +.

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The contract may be extended on an annual basis for a maximum of five years. JLL is expected to help the city select a winning team to rebuild San Diego’s 48-acre sports arena in the Midway area. He will also help negotiate the long-term lease of the land and the conditions for the development of the site.

“JLL will really immerse themselves in the economy proposed by each team, review their (financial models) and see if they see any problems,” Penny Mouse, who heads the city’s real estate department, told the Union-Tribune. “The JLL team includes experts in the affordable housing industry as well as the sports industry. So they will be able to focus on these two key components at a level that city staff would not otherwise be able to.”

The San Diego Sports Arena site has been on the market since February 2020. In its second attempt to unload the site, the city follows the California Surplus Land Act book, which requires municipalities to make affordable housing a priority when selling or leasing surplus land. land.

Last month, the City Council narrowed the field for applicants for the site by raising the three teams offering the most affordable units – or up to 2,000 units set aside for families that make up 80 percent of the district’s average income. The groups also present units with market prices and brand new sports arenas of various sizes, along with parks and a combination of commercial purposes. The decision on the shortlist was based on the advice of Mayor Todd Gloria and Mouse and came despite objections from community members who advocated evaluating all five teams.

Now the city, with the help of JLL, will work to determine if the other development teams can produce what they promised.

“It’s really about financial viability. Is it likely that the projects will come together as proposed? ”Said Matt Do, who is the San Diego-based executive vice president of public institutions at JLL.

The company, he said, will bring together a core team of four out of five people to help the city, but will also bring in experts from across the country to consult if necessary.

“We have a special practice for affordable housing, which specializes in taking and financing affordable housing. “Affordable housing is often one of the most challenging uses of development,” Do said.

JLL is a frequent counselor in the city of San Diego. The company was also hired to help sell the Mission Valley City Stadium at San Diego State University and to help evaluate the sale of the Tailgate Park plot to a development team led by the San Diego Padres. JLL also represents the port of San Diego in negotiations with developer 1HWY1 for its Seaport San Diego project.

The $ 250,000 annual contract, which does not exceed $ 20,000, which is about $ 20,830 per month, buys the city approximately 656 hours of expertise, according to a JLL proposal. Prices for the company range from $ 140 to $ 495 per hour, depending on the seniority of the team members.

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