The San Diego Unified School District approved leasing school land to an apartment developer in Scripps Ranch to gain funds. NBC 7’s Steven Luke takes a look at the deal.
As San Diego Unified School District moves ahead with a land deal, leasing school property to an apartment developer, NBC 7 has learned there are four other district-owned properties being considered for similar projects.
Trustees approved a development deal Tuesday taking the Scripps Mesa Conference Center on Spring Canyon Road and leasing it to an outside company to build a 246-unit apartment complex.
The district-owned land at the corner of Scripps Poway Parkway and Spring Canyon in Scripps Ranch cost the district more than $100,000 a year.
A charter school currently occupies the land but a new deal with Monarch Development would generate more than $400,000 a year in revenue, district officials said.
And that’s not the only parcel being considered for such a project.
Four other properties have the potential to become Monarch developments.
They include:
- Fremont/Ballard Center at 2375 Congress Street
- Transportation Services Center at 4710 Cardin Street
- Barnard Asian Pacific Language Academy at 2445 Fogg Street
- Revere Center at 6735 Gifford Way
In Scripps Ranch, the district said it stands to gain $40 million over the lifetime of the deal.
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"At the end of the ground lease the entire property will revert to the school district so you own all of the physical improvements and that's not factored into the $40 million of benefits that we've proposed," said Development Consultant Jennifer Lesar.
Opponents say the district is selling itself short in their first venture into real estate development - they say Monarch will make a billion dollars based on projections of rent and rent increases while paying the district $400,000 a year.
“It doesn't account for inflation,” said opponent Emily Dresslar. “And $400,000 is going to look very different than $400,000 in 66 years and this deal is not tied to inflation."
Dresslar helped lead the ill-fated opposition charge inside the district's board meeting Tuesday.
She calls it a red flag that only one company, Monarch, submitted a bid for the rights to develop the Scripps Ranch property.
"There needed to be competition and we have public officials and this doesn't look good when you have one bid and that one bidder stands to make a billion dollars," she said.
