The owner of the dilapidated California Theatre building in downtown San Diego must either sell or demolish the site, according to a legal settlement reached with the city, it was announced Wednesday.
The resolution of a lawsuit filed by the city two years ago holds that the nearly century-old abandoned building on C Street must be listed for sale by the end of the month, after which its owners will have until the end of next year to finalize the sale of the property. If the sale does not go through by then, the building’s owner, Caydon Property Group, will have 90 days to obtain permits for a controlled demolition.
For many, the building is better known for the Caliente! Old Mexico horse-racing mural on the back of the building along Third Avenue, as opposed to its long-shuttered box office on 4th Avenue, which, like a ghost from the past century, featured a poster of Wendy’s Where’s the Beef? ad campaign.
Caydon, which purchased the property in 2019 with plans for a hotel and condominium project at the site, could face up to $1 million in immediately imposed civil penalties if the settlement terms aren’t met.
“This long-neglected property has been a danger and a drain on our community for far too long,” San Diego City Attorney Heather Ferbert said in a statement. “With this settlement, the owner faces a clear choice: sell the property or demolish the unsafe structures. Either way, San Diegans will finally see action at the California Theatre site.”
City officials said that in recent years, the building had become a frequent haunt for trespassers, some of whom set fires inside the structure. The City Attorney’s Office said the property also poses a danger to the public because toxic substances like asbestos and lead paint are present in the buildings, while structural hazards like collapsing pieces of the buildings endanger pedestrians.
“For decades, the California Theatre has blighted downtown and been a barrier to achieving the progress desired by residents and local businesses. This settlement delivers real accountability and a clear path to resolving the unacceptable conditions at the site,” San Diego Mayor Todd Gloria said. “I’m grateful to the City Attorney and her Housing Protection and Civil Code Compliance Unit for their diligent work to secure this outcome, which moves us closer to realizing the tremendous potential of this property and its role in revitalizing the Civic Center area.”