New Developer Sought : Plans for $36-Million City Plaza Scrapped

Citing the twin problems of a developer defaulting on his agreement and the possibility of toxic wastes on the site, San Diego redevelopment officials announced Tuesday that the $36-million City Plaza planned for downtown will not be built.

However, Gerald M. Trimble, executive vice president of Centre City Development Corp., said the redevelopment agency still expects that “another developer will be selected” to build on the parcel of prime real estate, next to Horton Plaza.

Trimble made the announcement about City Plaza after a closed session of the San Diego City Council, during which council members voted to terminate a development agreement with Southwest Estate Group. The CCDC board voted April 4 to terminate the agreement.

“The developer has not met certain deadlines and is in default of its agreement,” Trimble said at a press conference. “The preliminary construction drawings for City Plaza were due Feb. 1, and the developer has apparently not begun the development and design process.”

City Plaza was to be on a 60,000-square-foot block bounded by 1st Avenue and Market, Front and G streets. Construction was to begin this spring.

Trimble said Tuesday the current tenant, Super Plating Works, 106 W. Market St., may have been dumping potentially toxic wastes there for years. CCDC is working with the county Health Department to determine the nature and extent of the problem, he said.

“We don’t really know how serious it is at this time, however, we will do everything necessary to remedy the situation,” he said.

“We’ll probably be cleaning up the site during the next year.”

Though it isn’t known what kinds of chemicals may have been dumped, Trimble said he is confident that developers won’t be dissuaded from submitting proposals.

“It’s hard for me to imagine a block that’s riper for development than this one,” he said. He said finding a new developer may take six months.

Trimble said CCDC will move to repurchase the property from Southwest Estate Group and relocate tenants.

CCDC, along with the City Council, will conduct a hearing April 29 to investigate whether to acquire Southwest Estate Group’s private holding on the block--about 15,000 square feet--through condemnation proceedings, Trimble said.

A secretary at Super Plating Works said Tuesday that officials at the company were advised by their attorney not to comment on the possible toxic waste problem.

A spokesman for Southwest Estate Group said the company will issue a statement later this week.

Trimble said CCDC is looking for a proposal similar to the residential, retail and commercial development that would have been City Plaza.

Trimble explained that since the project, which was scheduled for completion in 1987, is now canceled and the site may remain empty for at least two years, the city loses both time and about $500,000 in tax increment money.

The City Plaza site is in the Marina Redevelopment Project, which is being redeveloped as a residential neighborhood with some hotel, commercial and retail uses.