San Diego City Council will meet Monday to discuss the Mission Valley Stadium site sale almost a year after voters initially approved a measure directing the city to sell 135 acres to San Diego State University (SDSU) at a fair and equitable price.
But with such a unique piece of property, the word “fair” could be subjective in the minds of San Diego taxpayers.
Commercial Real Estate Economist Gary London with London Moeder Advisors believes the updated offer of roughly $87.7 million by SDSU is a little "light," but in the ballpark of acceptability.
“I think we’re within the range of $10 or $20 or $30 million of what the true value may be depending on which direction you go,” London said.
In a letter to SDSU President Adela de la Torre, San Diego Mayor Kevin Faulconer called the proposal a significant step forward for both sides to reach a deal.
“The main principles outlined in the updated offer you sent this afternoon are ones I support,” Faulconer said. “I am pleased to forward this proposal to City Council President Gómez.”
The current offer is more than four-and-a-half times smaller per acre than a land estimate given by a notable group formed under Faulconer’s leadership four years ago.
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The Citizens Stadium Advisory Group, formed in 2015, estimated the land was worth $3 million per acre at the time, which is far less than the $650,000 per acre being offered by SDSU.
“Is it a sweetheart deal? It’s going to be a sweetheart deal,” London said. “Essentially the numbers they’re negotiating over are under what I think they could get if it wasn’t San Diego State. If it was private developer they’d get more money.”
London said if taxpayers believe they'll benefit from the expanded footprint of an educational system over time, then the price of the land pales in comparison to the long term economic impact for San Diego.
On the flip side, SDSU plans to develop 80 percent of the 135 acres in conjunction with private developers, which could easily justify a larger payment for the land, should the city play hard ball, London explained.
SDSU West and the City of San Diego hired an independent appraiser earlier in 2019 to assess the value of the stadium site. SDSU's current offer is in line with that appraisal.
