Downtown Condo Plan Progresses Under Fire
A 36-story, 1930s-style tower of luxury condominiums will be the latest addition to downtown’s growing community of residential high-rises--if the project isn’t blocked by a threatened multimillion-dollar lawsuit from an angry neighbor.
The Centre City Development Corp. (CCDC) board of directors narrowly agreed Friday to begin negotiations with the partnership of Koll Co. and Davidson Communities Inc. to build a 500-foot skyscraper at the southwest corner of Broadway and State Street, despite concerns about the building’s bulk.
Called The Huntington, it will be the newest player in the high-stakes game of pricey developments aimed at luring well-to-do residents to downtown. The least expensive condominiums in the $91-million building will go for $350,000, while penthouse units will sell for $1 million.
Also contributing to the trend toward providing downtown high-rise havens for the wealthy are the Meridian condominiums on Front Street and One Harbor Drive, a proposed project near the new convention center.
A Slim Victory
The CCDC decision was a slim victory for the Koll Co., which was up against proposals by two other developers with similar plans for the site. The board voted, 4 to 3, for approval, but only after several minutes of indecision by board member Tom Carter.
Carter wanted to see cash up front from the developers before voting for any of the three projects, but was finally persuaded by CCDC Executive Vice President Pam Hamilton that it was premature to require a non-refundable fee from the developers.
The Koll project was also supported by CCDC President John G. Davies, Philip Blair and Janay P. Kruger. Those voting against it were Gil R. Ontai, Patrick Kruer and Henri S. Lagatella.
The developers of the two losing projects appeared stunned by the turn of events, which followed a lengthy debate by the board of directors.
Two members had expressed strong support for a 30-story apartment building proposed by a partnership of A. J. Lirot and Trammell Crow Co. The project, called 900 State Street, was designed to provide housing for downtown’s working professionals, and included a child-care center. Ontai called it “a superior project.”
‘Making a Bad Judgment’
The Koll project, however, was blasted as “too high and out of scale” by Kruer, who added: “I personally think we’re making a bad judgment here today.”
Davies, a supporter of the Koll project, delivered a lukewarm endorsement. “It would be nicer if the whole building were shorter, but I can understand why it cannot be,” Davies said, pointing out that, in order to command top prices for the condominiums, it would have to be a “landmark building,” tall enough to guarantee views from the top floors.
Mark Putnam, a spokesman for Lirot, said after the meeting: “We’re disappointed, but the fight’s not over yet.”
The other losing proposal--for a 16-story all-suites hotel--was put forth by downtown property owner Sandor Shapery, who was not nearly as upset by the loss of the hotel project as by the prospect of a 500-foot tower overshadowing his Emerald-Shapery Center, now under construction across the street.
Shapery maintained that construction of the high-rise would not only make Broadway into a “dark alley” and a “wind tunnel,” but also effectively obliterate the view from his new office and hotel complex, which he said was built specifically to take advantage of the spectacular scenery.
‘Depredation of Legal Rights’
Approval of the Koll project would amount to “total depredation of my legal rights,” amounting to at least $50 million in damages, Shapery told the board members before the vote was taken.
Shapery backed off after the meeting, saying it was too early to file a lawsuit. “One has to first exhaust all of their legal remedies, and we still have a long way to go,” he said.
“All I’m asking for is to see the redevelopment agency follow its own rules and regulations,” Shapery said. CCDC had indulged in “spot zoning,” he said, by allowing The Huntington to proceed with a higher floor-area ratio than was set forth in the original requirements for a project on the site. “They feel they can establish their own rules to maximize their return. . . . They certainly wouldn’t allow a private property owner to do that.”
Biff Porter, vice president of development for Koll, described The Huntington as “an exciting project for San Diego, which yields high economic gain.” Porter said he thought any lawsuit against the project would be frivolous, adding that Koll will put up $50,000 in matching funds to defend against a suit.
After the meeting, Porter said: “We’re ready to go ahead in 30 to 45 days, and we’re ready to put down money as soon as we have a deal.”
Originally, the Koll building was to be 38 stories high, but was scaled back by two floors.
