News Summary
The San Diego City Council has unanimously approved a 60-year lease with 101 Ash Venture LP to redevelop the vacant 101 Ash Street building into 247 affordable housing units. The initiative includes retail space and a childcare center, addressing community needs. City officials emphasize the financial burden of the vacant building on taxpayers, while concerns persist regarding asbestos safety and project viability. Construction is planned to start in Spring 2026, pending funding approvals.
San Diego – The San Diego City Council has unanimously approved a significant redevelopment initiative by signing a 60-year lease with 101 Ash Venture LP to transform the vacant 101 Ash Street building into affordable housing. The green light for the project aims to convert the 21-story former office structure into 247 income- and rent-restricted housing units and three unrestricted manager’s units.
The redevelopment will also feature 25,000 square feet of retail space and a 4,000-square-foot childcare center, contributing to community infrastructure. The affordable housing units are designated for families earning between 30% and 80% of the Area Median Income (AMI), ensuring that rent will be capped at 30% of a household’s income.
City officials have expressed urgency regarding the project, citing that the existing building, vacant since 2015, is costing taxpayers approximately $2.5 million annually to maintain. Councilman Stephen Whitburn has underscored the importance of repurposing the building, which has become a financial burden to the city.
As part of the development plan, there will be 240 on-site parking spaces. The total estimated cost of construction and renovations is projected at $267.6 million. Major expenditures include $45.6 million for acquiring the building, $40.7 million allocated for asbestos abatement and demolition costs, and $67 million for the rehabilitation of the existing structure.
During a 24-month escrow period, the city will continue to pay $2.55 million each year to maintain the building. After this period, the responsibilities for security, maintenance, and operations will shift to the developers.
Over the duration of the lease, the city anticipates receiving a total of $90 million from the developers while not contributing any initial cash from city funds. The development group plans to secure funding through several channels, including $87.8 million from federal low-income housing tax credits, $63.4 million through a supportive permanent loan, and an additional $36.1 million from federal historic tax credits.
Construction on the project is slated to commence in Spring 2026, although it is contingent upon receiving the necessary funding approvals. The original 101 Ash Street building was constructed in 1967 and served as the headquarters for San Diego Gas & Electric until its closure in 2015. The space has remained unoccupied since its evacuation in 2020 due to safety issues stemming from asbestos contamination discovered during remodel efforts.
Concerns from the community have emerged regarding the safety of the building and the history of asbestos it carries. Some public speakers have advocated for the demolition of the structure rather than its repurposing. In response, the Independent Budget Analyst has indicated that the costs for demolition versus retrofitting the building are approximately equal, suggesting that both would amount to around $40 million.
Furthermore, critics of the redevelopment project have raised questions about its economic viability, particularly with regard to the high construction costs compared to available luxury residential options nearby. City officials, however, have expressed confidence in the financing structure and the project’s potential for delivering affordable housing to those in need.
At the end of the lease term, the city will retain ownership of the building and will have the flexibility to determine future plans that best address community needs. The redevelopment project has also faced scrutiny related to possible conflicts of interest, particularly involving Kelly Moden, the president of the developing firm and chair of the San Diego Planning Commission. The Ethics Commission concluded there was no conflict, as the project did not come before the Planning Commission.
Overall, the redevelopment is viewed as a pivotal opportunity to convert a historically troubled asset into much-needed affordable housing for families in San Diego.
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Additional Resources
- NBC San Diego
- Wikipedia: Affordable Housing
- San Diego Union-Tribune
- Google Search: 101 Ash Street San Diego
- CBS 8
- Encyclopedia Britannica: Housing
- Fox 5 San Diego
- Google News: San Diego Affordable Housing
- Times of San Diego
