(06-13-2017 08:10 PM)Stugray2 Wrote:  

(06-13-2017 07:23 PM)Renandpat Wrote:  

(06-13-2017 02:37 PM)Stugray2 Wrote:  

(06-13-2017 10:16 AM)MplsBison Wrote:  Good grief ... does that not mean that whole deal could just be a ploy by FSI to get great land at a really cheap price, then "somehow" (wink wink) not land the MLS franchise, not have to build the stadium, and just build more retail and market-rate housing where the stadium would have gone???


Kill this deal!

Finally, you understand what is actually going on.

This is why I think there is zero chance a MLS franchise is coming to San Diego. Why would FS1 want to pay $200M to MLS? It's an unnecessary fee for the development of a Condo City on public land worth $1.5B they don't have to pay for.

A third party appraised the Qualcomm site at $82M.
http://www.cbs8.com/story/35648253/under...site-worth

Plus, there's still the cost of demolishing the stadium and making a portion of the site above the water table.

That estimate is based on current zoning. FSI is Ok with that because it's still way under market value.

But change the zoning to commercial or residential and that number skyrockets. 1/4 acre is worth at a minimum $500K in San Diego (that is for single detached houses selling under $1M), thus 191 acres would come to $382M at a minimum for residential. If it is closer to La Jolla values then you are talking $800M at a minimum for the land. Commercial is worth even more.

No question if you open it to bidding that $82M + $29M set aside would treble at a minimum.

This.

Land value in California is based on zoning. In most of the rest of the country it's relatively easy to change the zoning if the market will support it, but in CA it's practically impossible. Only someone with the connections to sign a megadeal directly with City Council can upgrade the zoning.

This is what happens when you give government all the power. Instead of the free market deciding value (and bankrupting those who overpay), you have politicians deciding who gets rich. So the wealthy and connected get even wealthier, with no risk of a young upstart overtaking them based on merit.