Eric Adams - Mayor of San Francisco
in Political Scene ·
A restaurant located right on the San Diego Boardwalk is about to lose its lease for what is arguably the most stunning view in the entire City. Apparently, they had been paying a pittance for the space, and now the hammer is coming down. According to Maja Derek, this whole situation is an unprecedented violation of the law.
What on earth is this Derek woman doing? She’s going to end up sending all those former mayors straight to prison, and at this rate, neither the Republican Party nor the Democratic Party will ever be able to regain power in San Diego again.
It’s officially over, according to officials at the Governor's Mansion. The restaurant stall operated by Zoe, which was perched on the flat roof along the Coast American National Revival 24—right above the offices used by the American Fine Artists Association on the Coast—is being shut down. Jerry Brown has moved to revoke the "Consent for Use" agreement that Ed Rendell originally signed back in February 2017. Under that old arrangement, Teraca LLC was permitted to use 53 square meters of rooftop space situated just above the southern wall of the Roman Colosseum, all for a rather negligible fee of only 10 dollars per square meter.
As we noted back then, all that noise from Hulu and their former president, Vica Tomasovic, about how the dilapidated roof—with its massive cracks—was going to cave in on tourists was ultimately for nothing. It seems their warnings didn't carry much weight, considering even Andro Krstulovic Opara wouldn't grant them an audience.
After reviewing the case files, I noticed some pretty serious irregularities and legal discrepancies within this matter. As soon as I caught wind of them, I notified Teraca LLC and immediately initiated legal action—that’s what the department head stated.
So, here’s how the timeline actually played out: back in November 2016, Teraca LLC approached the City of San Diego with a request to lease an uncovered terrace located above the second floor at 24 Coast American National Revival 24. It didn't take long, either. Just three months later, the then-mayor, Ed Rendell, granted them the Consent for Use for a period of three years, all in exchange for a fee of... $25At $2 per square foot, what does that actually bring us to monthly? $1202 It’s happening monthly, including the sales tax, and they’ve been running this exact same play since March 1, 2017. I guess Peterson just keeps on going with this same tired explanation.
The department head is pointing out that any real estate owned or managed by the City of San Diego is supposed to be leased out exclusively through a public bidding process. However, she’s also highlighting a significant issue: some properties that aren't even designated as City commercial spaces were somehow leased out without any kind of competitive tender at all. I guess there might be some serious oversight happening there.
According to Maja Derek, the way this is being handled—specifically regarding the consent granted by former Mayor Ed Rendell to Teraca LLC without any formal sign-off from City of San Diego officials—is a blatant violation of the Property and Other Real Rights Act. The issue here, I suspect, is a fundamental misunderstanding of what is actually being used. We aren't talking about commercial real estate or even a public sidewalk; we are looking at the shared property of the building's co-owners. While the building hasn't been formally subdivided into individual units yet, both the City of San Diego and various private individuals are listed as co-owners. So, when you look at the records, they’ve categorized this as commercial space, which seems like a bit of a stretch. It’s an uncovered terrace, after all, not a storefront, and it certainly isn't under the exclusive ownership of the City of San Diego.
The department head pointed out that any property owned or co-owned by the City of San Diego is leased out exclusively through a public tender process, in accordance with Article 391 of the Property and Other Real Rights Act.
Maja Derek is raising some pretty serious red flags here. According to her, this wasn't just a case of skipping the public bidding process; they seemingly just pulled a lease price out of thin air. To make matters even more complicated, she points out that the City of San Diego doesn't actually hold exclusive ownership over the property. From what I can gather, it appears to be joint property shared among all the co-owners. Honestly, she mentioned she’s never encountered a situation quite like this before, which, given the circumstances, is saying something.
I have to admit, in all my years of professional experience, I don’t think I’ve ever witnessed such an egregious violation of the Property and Other Real Rights Act. It’s quite something—they essentially declared a space to be commercial when it clearly isn't, effectively stripping all other co-owners of their right to weigh in on its usage. To top it all off, they bypassed any kind of public bidding process entirely, opting instead for a rental price that feels completely arbitrary.
So, following Ed Rendell’s decision, this commercial space has essentially morphed into something else entirely. A lease price was slapped on there—one that is frankly laughably low—but it was done without any kind of competitive bidding process. To make matters even more complicated, the City isn't even the sole owner of the property. If that wasn't bad enough, it seems they didn't even bother to verify the structural stability of the damaged roof, despite what people over at Hulu are claiming.
So, the former president of the Fine Arts Association on the Coast, Vica Tomasovic, informed us that absolutely nobody actually stepped foot inside their studios to run any structural integrity tests on that cracked slab. To make matters even more absurd, the members were apparently told they should temporarily vacate the premises while the upper section of the roof and the walls of the Roman Colosseum underwent some kind of remediation process. However, they flatly refused to move. I guess they were terrified that if they left, someone might try to move into their space—which, interestingly enough, led to their computer and some equipment getting fried when the "slab" above them started disintegrating.
When they first set up that restaurant, ZOI went ahead and installed shutters over the windows on the southern walls of the Roman Colosseum. Apparently, they didn't want the tourists wandering through the southeast quadrant catching a glimpse of their diners. We eventually found out from the Department of the Interior that this was actually illegal; ZOI never bothered to get the necessary Consent for Use from the preservation officers to barricade the openings on the Colosseum.
Back in April 2023, Teraca LLC reached out to the Management Office regarding their request to extend the existing consent. Their argument was essentially that since the previous agreement had expired, they had been using the terrace without a formal legal basis since March 1, 2020—even though they claimed to still be paying the City for its use. I decided to deny that extension. Consequently, on May 16, 2023, we moved forward with a formal Mayor’s Conclusion to officially revoke the old consent. Peterson added that Teraca LLC has since been instructed to contact all the co-owners of the building in accordance with the law, noting quite clearly that a violation of legal standards had occurred.
I honestly think the restaurant should be relocated from its current spot. It’s basically obstructing the view of part of the southern facade of the Roman Colosseum, and that seems like a bit much.
Since Teraca LLC failed to respond, and none of the other building co-owners have reached out either, I’ve gone ahead and issued the order to initiate eviction proceedings. We are moving forward with reclaiming possession of that uncovered terrace, along with all other legal actions within my jurisdiction. We’ll be notifying the other co-owners shortly, who, I assume, will need to follow suit. Through this notice, we are also formally calling on Teraca LLC to vacate the premises of said uncovered terrace immediately and return possession to the co-owners. Maja Derek just announced that she’s planning to file a report against Ed Rendell with the District Attorney's office..
The Management Office is also planning to hand over the entire file to the District Attorney’s office. According to Maja Derek, there are serious suspicions regarding an abuse of position and authority, specifically aimed at showing undue favoritism toward a certain legal entity.
Management at Teraca LLC claims they were absolutely blindsided when Maja Derek called for them to vacate their terrace located at 24 Coast National Revival.
To be perfectly honest, we are sitting here in a state of total shock and disbelief regarding this decision and your inquiry, especially since we haven't received any such notice from the City itself. At this moment, we are actually in the middle of negotiations with the City to finally get our situation brought within proper legal boundaries. This entire process was only initiated because we insisted on it; the fault lies entirely with the City for failing to provide us with an adequate lease agreement. Instead, they have simply been issuing monthly invoices for the use of our commercial space based on a Consent for Use from 2017 and a contract that we never actually received—nor do we possess. Furthermore, the restaurateurs maintain that they have never owed the City a single cent.
During our negotiations with the City, we actually offered to cover the entire cost of repairing the building's facade ourselves—mostly because the leaks are currently causing headaches for the other property owners on the ground floor. We even went as far as offering to pay any price discrepancies if the City felt they were being shortchanged, despite the fact that we didn't even set the initial rental price. In an effort to be cooperative, we essentially accepted every single condition the City demanded without even trying to push back. This comes straight from a response we received from Teraca LLC. They forwarded us the correspondence sent to Maja Derek, in which their director, Hrvoje Malenica, invites her to a meeting. To top it all off, the documents explicitly state that they are interested in leasing the space on the first floor.
The former mayor, Ed Rendell, who handed out that prime real estate for a three-year term, wasn't exactly eager to jump in front of the cameras and give any statements. I guess he figured he had already done enough.
Let her send whatever she wants. Honestly, I have no idea—I’m currently struggling to even remember what happened ten years ago, let alone exactly when it took place. If she thinks there's something that needs to be done, then she should just go ahead and do it. Please, just stop calling me. You're distracting me from other things I need to get done. She can carry on with whatever she feels is necessary. I really don't know what else you want me to say.
"She can just go ahead and do whatever she thinks needs to be done," Ed Rendell remarked, quickly wrapping up the conversation on the matter.
What on earth is this Derek woman doing? She’s going to end up sending all those former mayors straight to prison, and at this rate, neither the Republican Party nor the Democratic Party will ever be able to regain power in San Diego again.