Harbor Square Developer Gets a Break

The developer of a proposed complex of offices, shops, restaurants and a hotel on county-owned harbor-front land will not have to pay $50,000 it owes the county for an option to build on the property, San Diego County supervisors decided Tuesday.

Harbor Square Associates was granted a moratorium on its $25,000 lease payments for April and May, and probably won’t be asked to pay the money unless the City Council ultimately approves the project.

Tuesday’s action came over the objections of county Supervisor Susan Golding, who contends that the Harbor Square developer should be made to pay for its option to build a money-making project on the public’s land.

“The question we have before us is whether or not we should enforce a contract,” Golding said during debate over the issue. “What (Chief Administrative Officer Clifford) Graves is saying is we should not enforce the contract. I cannot accept that. I think it’s bad fiscal policy, (and) I think it’s a gift of public funds.”

But Golding was outnumbered by her colleagues, who said the developer was not at fault for delays in the progress of Harbor Square, which would be built on the two parking lots flanking the County Administration Center.

Supervisor George Bailey said Harbor Square Associates had been left “hanging in limbo” by the City Council’s action March 26 neither approving nor denying the project. Instead, the council told the developer to design a project that would satisfy both the Board of Supervisors and the City Council.

Supervisor Leon Williams said nothing would be gained by declaring Harbor Square Associates in default and canceling the contract. “If we terminate the contract, that means we will never receive the money,” Williams said.

The board did vote to require the developer to pay a $25,000 lease payment that was due in March, before the City Council turned down the plans for Harbor Square.

Richard Robinson, director of special projects for the county, said the developer deserved the concession after spending $2.5 million trying to put the project together.

“There comes a point in time when you have to start acting like a partner,” Robinson said of the county’s obligation.

Harbor Square spokesmen were unavailable for comment Tuesday.