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CCDC News: Ernst & Young Selected to Conduct Civic Center Complex Peer Review

ERNST & YOUNG SELECTED TO CONDUCT

CIVIC CENTER COMPLEX PEER REVIEW

Consultant to review financial analysis prepared by

Jones Lang La Salle

SAN DIEGO— A selection panel has chosen the international accounting and advisory firm of Ernst & Young to reevaluate all eight alternatives identified in the initial Jones Lang LaSalle (JLL) financial analysis for more cost-effectively and efficiently providing workspace for the City of San Diego’s 3,000 downtown workers. The Transaction Real Estate Practice within Ernst & Young will lead the review and will be conducted by specialists from the firm’s New York, Phoenix and San Diego offices. Ernst & Young was selected based on its strong track record of advising government clients on public-private partnerships, lease analysis, and complex real estate decisions. Such clients include the District of Columbia, City of San Francisco and the U.S. General Services Administration.

Ernst & Young was selected through a competitive Request for Proposals issued by the Centre City Development Corporation (CCDC) on behalf of the City of San Diego. The selection panel was comprised of: Greg Stein, Board member San Diego Taxpayers Association; Carl DeMaio, Councilmember-elect, District 5; Mary Lewis, Chief Financial Officer, City of San Diego; Kim Kilkenny, Treasurer, CCDC Board; and Barbara Kaiser, CCDC Vice President of Real Estate Operations. The contract will be disclosed to the CCDC Board at its Nov. 19 regular meeting.

The initial JLL analysis forecast City costs for the next 15 and 50 years and evaluated numerous possibilities including renovating City-owned buildings, purchasing buildings that are currently leased and the possible redevelopment of the Civic Center site to include a new City Hall. JLL has agreed to reimburse CCDC for certain costs towards conducting the peer review.  

The selected consultant will be tasked with reviewing the initial analysis including: verifying that best practices were employed; comparing financial assumptions with verified market data; and analyzing the detailed financial projections included in the two finalist developer proposals from Hines and Gerding Edlen competing for the possible redevelopment of the Civic Center Complex (including construction of a new City Hall). Although Hines withdrew from the competition following JLL’s initial financial evaluation, both proposals will be reviewed to ensure each developer’s proposal was evaluated fairly and without bias. The primary objective remains determining the most cost-effective alternative for the City.

The review and analysis is anticipated to take approximately eight weeks. Prior to conducting the review, a public meeting will be convened enabling the selected consultant to receive community input regarding the relevant issues to consider during the course of their work.

About Centre City Development Corporation (CCDC)
CCDC is the public, nonprofit corporation created by the City of San Diego in 1975 to staff, plan and implement downtown's redevelopment on behalf of the City's Redevelopment Agency. CCDC offices are located at Wells Fargo Plaza, 401 B Street, Suite 400, in downtown San Diego.

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