Not a skyscraper story, but development related. I've seen some posts regarding the bureaucracy and how it makes building housing more difficult.
Here's a story that may interest some of you.
We just canceled a purchase on a project in Imperial Beach on SR-75.
Beautiful mixed-use by one of San Diego's leading architectural firms. 49 for sale units - 5600sf retail. Mix of 2/2.5 - 1/1.5 and lofts. Large units; very affordably priced with the 2bd units pro forma'd at $450k.
Project meets all local zoning regulations and in fact, the city loves it and had suggested a quick approval process of about 4 months remaining to permits (architects have been working with City over a year on this).
At present, site is vacant having been demo'ed in 2010 by owner. Here's where it gets interesting...
Site for 30 years was a flop-house motel that charged by the hour. Owner let it fall into disrepair and closed it in 2006 (last TOT records we could find). After it was closed, it became a haven for the homeless who moved in en masse. They absolutely trashed the place, eventually even using the inoperable toilets as fire places and stoves.
It was an absolute disaster for nearly four years. The city was constantly citing the owner and the Sherriff's Department was out there daily, often many times a day as the site deteriorated and became a magnet for everything ill associated with urban blight.
In response, owner bulldozed it in 2010, graded the land and the site has been empty since.
This project was everything the town wanted and needed.
Then the Coastal Commission became involved... Mind you, we had of course kept the CC informed of our plans the entire time. Staff had mentioned that there was a minor issue with the previous use, but that it shouldn't be critical and certainly not lethal. While the site is just outside of the Coastal Zone and the Commission has no legal jurisdiction, what is DOES have is the power to appeal the city's approval.
In our last meeting with the City, staff informed us that the Coastal Commission was no longer being so agreeable. Apparently, because the site used to be a motel, it had fulfilled one of the Commission's high priorities, that being low cost beach access. Never mind that the site is not on nor near any beach. It is on the inland side on SR-75, near a donut shop.
Remember, this was the proverbial flea-bag, Crack Ho Inn, but because housing near the coast is not a Commission priority, and "low-cost access" is, they found that by developing this badly needed housing in Imperial Beach, we were actually damaging the ability for low-income people to enjoy the coast.
Sooooo... if we wanted to proceed with their blessing, we were going to have to convert 24 of the for-sale units (same as number of rooms in old motel) into a low-cost hotel. They wouldn't even be satisfied with paying the in-lieu fee of about $30k/unit since most developers had chosen that route for other sites before and because of the restrictions on use if you tap that funding source (like any agreement is for... PERPETUITY), they had plenty of "in-lieu" money in the bank and didn't want to add anymore. Didn't matter really as that kind of hit killed the deal anyway, but it wasn't even an option.
This last-minute demand killed the deal. Absolutely.
Remember, the Coastal Commission didn't actually have any jurisdiction over the site. The city had the final say and very much wanted the project to move forward. But the Commission can appeal. And they told us, discretely, that after their review during the City's comment period, they most certainly WOULD appeal and that they would drag out the process for at least two more years.
Money can't wait two additional years...
So we canceled our PSA and the project is officially dead.
Your tax dollars at work!