Summary — what happened
A development impact fee (DIF) is the fee a developer pays to cover the public cost of growth its project creates — parks, fire stations, roads, libraries — collected by the city into community-specific accounts and legally required to be spent on infrastructure where the growth lands. The records establish up to $13.827 million in DIF credits authorized in 2023 for the Bosa park-land purchase. They do not establish an aggregate amount of DIF actually foregone during the Gloria administration. The Complete Communities, ADU and Hub & Spoke amounts are excluded from that aggregate because their amounts, realization or coverage are not sufficiently supported. DIF-B1DIF-B2DIF-C1 The Bosa credits become available after the park-land sale closes; the reviewed records do not establish the amount redeemed. This is a park-land purchase authorization, not a measured total of fees already waived. DIF-B1DIF-B2 A separate authorization of up to $9.1M reimburses park design and construction; it is not part of the land's $13.827M price. DIF-B3 Inferred: several of the beneficiaries named here are, in public records, proximate to the mayor's campaign and appointment network — a synthesis of public filings, not an asserted causal pattern and not a legal finding. The block Bosa built on came from Zephyr Investors LLC, whose co-CEO Brad Termini is Gloria's largest individual campaign donor ($100,000+): Zephyr bought the block for $21.1M in 2014 and sold it to Bosa for $33M in December 2015. DB Bosa-buys-UT
Inferred: the other large beneficiaries share the same combination of features in the public record — a fee waiver or credit alongside a documented campaign, appointment, or family tie to the administration; this is a synthesis of separate filings, not an asserted recurring scheme and not a legal finding. The 101 Ash ground-lease agreement was approved with 101 Ash Venture LP, whose team included MRK Partners and Kelly Moden's Create Dev LLC. The Union-Tribune reported a $32.7 million total project developer fee for 101 Ash in July 2025 and that Moden stood to receive a portion; the allocation to her or her firm was not established. This project fee is not an established amount of development impact fees waived or credited. E-380 The MRK Partners/Create Dev LLC team was selected for exclusive negotiations in January 2025 after consideration of competing unsolicited proposals. E-133 The Complete Communities program provides DIF exemptions for qualifying small units; an advocacy group's $17M+ figure rests on a mixed-status public-comment spreadsheet and is not an established total of fees waived. NFABSD DIF-C1 San Diego's ADU DIF exemptions predate Gloria's mayoralty; one builder (92+ units) used them at industrial scale before Council Member Kent Lee's pushback led to a rollback, but the $26–31M citywide estimate is unsupported. DIF-A1 DB Hub & Spoke Communities, owned by the husband of Gloria's campaign manager, builds units sized for the Complete Communities exemption; its actual DIF savings are not established. E-560 DB
Separately, the 2024–2025 San Diego County Grand Jury report "Never Been Challenged" found the city holding $178.8M in collected DIF beyond the five-year state expenditure limit (never voluntarily refunded), $720,159.87 improperly transferred from 22 community lockbox accounts to fund Build Better SD, administrative fees charged at rates up to 18% (against a 5–8% guideline), $285.7M collected FY2021–FY2024 under Gloria, and annual reports filed late every year. GJ-Report DB The campaign-finance, permit, DIF-account, and corporate-ownership records that connect these facts sit in separate systems maintained by separate agencies; no public system links them.
Timeline
Zephyr buys the block. Zephyr Investors LLC acquires a full downtown San Diego city block for $21.1M.
Faulconer-era behested donations. Under Republican Mayor Kevin Faulconer (2014–2020), Bosa Development is named among companies "with business interests pending before the city" that made behested-payment donations solicited by the mayor.
Zephyr sells to Bosa for $33M. Zephyr sells the block to Bosa Development for $33M — a $12M profit ~18 months after the $21.1M acquisition. Co-CEO Brad Termini describes an "ongoing relationship with Bosa Development" and calls Nat Bosa "the ideal person to continue the project." (Termini — Gloria's largest individual campaign donor, $100,000+.)
"The Block" becomes "Diega.". The site, originally "The Block" (approved for a 41-story and a 21-story tower, 498 units), is rebranded "Diega" by Bosa and expanded to 617 luxury residences.
Bosa park-land credit authorization. The Council approves the purchase and development agreements for North Central Square Park, with final passage on May 1. The land consideration is up to $13.827M in DIF credits available after closing; up to $9.1M is separately authorized for park design and construction reimbursement. The records do not establish how much of the credits was redeemed.
Council approves the 101 Ash agreement. The Council votes 8-0 to approve a 60-year ground-lease disposition agreement with 101 Ash Venture LP. Its development team includes MRK Partners and Kelly Moden's Create Dev LLC. The Union-Tribune reported a $32.7 million total project developer fee for 101 Ash in July 2025 and that Moden stood to receive a portion; the allocation to her or her firm was not established. This project fee is not an established amount of development impact fees waived or credited. The MRK Partners/Create Dev LLC team was selected for exclusive negotiations in January 2025 after consideration of competing unsolicited proposals.
The Grand Jury report. The 2024–2025 San Diego County Grand Jury (impaneled by a Superior Court judge, staffed by citizens) publishes "Never Been Challenged — City of San Diego Development Impact Fee Program Redux." Findings: the city holds $178.8M ($178,754,366) in DIF beyond the five-year state expenditure limit, which under Walker v. City of San Clemente and Hamilton v. City of Palo Alto must be spent on qualifying projects or refunded (the city has never voluntarily refunded DIF); $720,159.87 was improperly transferred from 22 community lockbox accounts to fund Build Better SD; administrative fees were charged at rates up to 18% (against a 5–8% guideline). The report issues nine findings and fourteen recommendations, including a mandatory independent audit at city expense.
Ocean Beach's exposure. The Ocean Beach community planning board's 14 capital-improvement requests face the potential loss of $20M in DIF funds under the Grand Jury's findings — roughly half of the neighborhood's big-ticket requests. Build Better SD permits DIF collected in one neighborhood to be redirected to "communities of concern"; Ocean Beach does not qualify.
The city's response. The City of San Diego files its formal response to the Grand Jury report. It does not commit to refunding the $178.8M and does not deny the figure; it states "Beginning with FY2023 report, City enhanced five-year findings reporting" and acknowledges it "failed to monitor total administrative fees due to lack of accounting mechanism."
101 Ash subsidies stack. The 101 Ash developer is awarded $63.8M in bonds and $82.2M in tax credits; with tax-exempt bonds and tax-credit equity included, the total public subsidy package exceeds $200M (reported at $203.2M). [101Ash-Subsidies]
The DIF components (what the records support)
Each line is a component the original report counted toward foregone DIF, with the amount the records now support. Only the Bosa authorization is documented; no total is established.
| Component | Supported amount | Treatment |
|---|---|---|
| Bosa park-land purchase | Up to $13.827M in DIF credits authorized in 2023 | Land-purchase consideration; redemption not established DIF-B1DIF-B2 |
| Complete Communities | Realized aggregate not established | Exclude $17M-plus claim DIF-C1 |
| ADU exemptions | Period-specific amount not established | Exclude $26–31M estimate DIF-A1E-319E-333 |
| Hub & Spoke | Actual waivers not established | Exclude estimates; avoid overlap E-560 |
| 101 Ash | Excluded | Project developer fee, not DIF; see earlier correction |
| Total DIF actually foregone | Not established | Do not sum authorizations, estimates and realized waivers |
Separately: $178.8M in collected DIF held beyond the legal limit and never refunded (0.93 confidence, Grand Jury finding). GJ-Report DB
The connected beneficiaries
The recurring fact across the largest waivers is proximity to Gloria's political and campaign network. Three legally distinct relationships — campaign donation, business partnership, and fee waiver — sit in three different filing systems.
- Bosa Development — up to $13.827M in authorized DIF credits (redemption unverified). Builds the 617-unit Diega tower on a block sold to it by Zephyr/Termini, Gloria's largest individual donor.
Inferred connectionthe campaign donation, the $33M land sale, and the fee-credit authorization run in one chain; the report does not claim Gloria directed the credit to benefit Termini, and the three transactions are not asserted to be causally linked — only that all three are public records and the connections between them were not. DB GJ-Bosa-UT Bosa-buys-UT - 101 Ash development team. The Council approved the ground-lease agreement with 101 Ash Venture LP; its team included MRK Partners and Kelly Moden's Create Dev LLC. The Union-Tribune reported a $32.7 million total project developer fee for 101 Ash in July 2025 and that Moden stood to receive a portion; the allocation to her or her firm was not established. This project fee is not an established amount of development impact fees waived or credited. E-380 The MRK Partners/Create Dev LLC team was selected for exclusive negotiations in January 2025 after consideration of competing unsolicited proposals. E-133
- Hub & Spoke Communities — DIF savings not established. Sole owner is Alexander Alemany, husband of Gloria's campaign manager Sarah Moga Alemany, who divested her partnership interest (a $10K–$100K interest) in September 2020, approximately three months before Gloria took office in December 2020. Its estimated $1.5–4.5M in DIF savings rests on assumed unit counts and fee rates and is excluded; actual waivers require permit records. E-560
InferredHub & Spoke builds units sized exactly for the Complete Communities waiver; the report notes the policy was championed by the administration the campaign manager helped elect, and that the divestiture was not required by any rule. Not a legal finding. DB - SDRE Homebuilders — ADU exemptions. Led by Christian Spicer; built 92+ ADU units capturing fee waivers at volume under the ADU bonus program before Council Member Kent Lee's pushback led to a rollback. DB
The bipartisan pattern
Bosa Development's giving tracks whoever controls the permits, not party.
| Mayor | Party | Tenure | Bosa relationship | City business |
|---|---|---|---|---|
| Kevin Faulconer | Republican | 2014–2020 | Donated at the mayor's behest (behested payments) | Pending before the city |
| Todd Gloria | Democrat | 2020–present | Partner Zephyr/Termini gave $100K+ to Gloria; Council authorized up to $13.827M in DIF credits for Bosa's park land | Pending before the city |
Inferred: the report frames this as a developer adapting to the party in power, not as evidence of a quid pro quo under either administration; no legal finding. Faulconer-UT GJ-Bosa-UT DB
Key players (callback index)
- Todd Gloria — Mayor since December 10, 2020. During his administration, the Council authorized up to $13.827M in DIF credits for Bosa park land in 2023; the amount redeemed and aggregate DIF actually foregone are not established. DIF-B1DIF-B2
- Brad Termini — Co-CEO of Zephyr Investors LLC; Gloria's largest individual campaign donor ($100,000+). Sold the $33M block to Bosa and cited an "ongoing relationship" with it. Bosa-buys-UT DB
- Nat Bosa — President of Bosa Development; Vancouver-based luxury condo builder; counterparty to the 2023 authorization of up to $13.827M in DIF credits for park land. GJ-Bosa-UT DB
- Kelly Moden — Planning Commission chair and principal of Create Dev LLC, a participant with MRK Partners in the 101 Ash development team. The $32.7 million developer fee reported in July 2025 was a total project figure, not a documented payment of that amount to her firm; Moden's share was not established. E-380 The MRK Partners/Create Dev LLC team was selected for exclusive negotiations in January 2025 after consideration of competing unsolicited proposals. E-133
- Sarah Moga Alemany — Gloria's campaign manager; former Hub & Spoke Communities partner; divested ~3 months before Gloria took office. DB
- Alexander Alemany — Moga Alemany's husband; sole owner of Hub & Spoke Communities after divestiture.
- Christian Spicer — SDRE Homebuilders founder; built 92+ ADU units under the DIF exemption at scale. DB
- Kent Lee — Council member who called out the SDRE ADU exploitation before the program rollback.
- Kevin Faulconer — Former Republican mayor (2014–2020); Bosa donated at his behest while having business pending, establishing the bipartisan pattern. Faulconer-UT DB
Caveats
- The fee waivers, credits, and exemptions described here are not alleged to be illegal. The Grand Jury characterizes the holding of $178.8M in collected DIF beyond the five-year limit as a violation of state law (per Walker and Hamilton); that is a Grand Jury finding, not a court judgment, and the city's response neither confirms nor commits to a refund.
- "Patronage" and "connected beneficiaries" describe the proximity of recipients to Gloria's network as documented in public records. The report does not claim Gloria directed any waiver to benefit a donor, and does not assert the donation/land-sale/fee-credit chain is causally linked.
- Total not established. The former aggregate combined a park-land credit authorization, a project developer fee and unsupported or mixed-status waiver estimates. No corrected realized-DIF total can be calculated from those components. The Bosa authorization is separately documented at up to $13.827M. DIF-B1DIF-B2DIF-C1
- Per-developer DIF waiver and credit amounts are not published by the city broken out by recipient. The Hub & Spoke savings figure (0.65 confidence) is unconfirmed and requires a California Public Records Act request.
- Bosa Development's direct campaign contributions to Gloria could not be confirmed via the Cal-Access electronic filing system; the documented campaign link runs through Zephyr/Termini.
- The Moden deal terms are characterized as favorable based on analyst review (Lisa Mortensen, via OB Rag); no conflict-of-interest finding has been issued on the appointment or the deal.
Reference key
- GJ-Bosa-UT San Diego Union-Tribune, "San Diego proposing to pay $23M in cash and DIF credits for Bosa downtown park," 2023-01-26 (evidence E-546). https://www.sandiegouniontribune.com/business/story/2023-01-26/san-diego-proposing-to-pay-23m-in-cash-and-credits-for-this-future-downtown-park/
- Bosa-buys-UT San Diego Union-Tribune, "Bosa buys 2 more condo sites downtown" ($33M Zephyr block purchase), 2015-12-10 (evidence E-554). https://www.sandiegouniontribune.com/2015/12/10/bosa-buys-2-more-condo-sites-downtown/
- Diega Bosa Development, Diega project page (617-unit luxury high-rise on the former Zephyr "The Block" site) (evidence E-557). https://bosadevelopment.com/project/diega-2/
- GJ-Report San Diego County Grand Jury, "Never Been Challenged — City of San Diego Development Impact Fee Program Redux," 2024–2025 (evidence E-549). https://www.sandiegocounty.gov/content/dam/sdc/grandjury/reports/2024-2025/d-i-f/City%20D.I.F-%20Final%20Approved%20Version.pdf
- GJ-UT San Diego Union-Tribune, "Watchdog panel says San Diego chronically breaks the law on developer impact fees," 2025-07-31 (evidence E-552). https://www.sandiegouniontribune.com/2025/07/31/the-last-of-the-red-flags-watchdog-panel-says-san-diego-chronically-breaks-the-law-on-developer-impact-fees/
- City-Response City of San Diego, "Proposed Response to Grand Jury DIF Report — Never Been Challenged," 2025-10 (evidence E-550). https://www.sandiego.gov/sites/default/files/2025-10/23-33-proposed-response-to-grand-jury-report-never-been-challenged-city-of-san-diego-development-impact-fee-program-redux.pdf
- OB-Ash OB Rag, "More Red Flags on 101 Ash Street" (developer fee, waived impact fees, deal structure), 2025-07-17 (evidence E-527). https://obrag.org/2025/07/more-red-flags-on-101-ash-street/
- OB-Ash-Council OB Rag, "Council Hands Over Ash Street Tower to Kelly Moden, Chair of the Planning Commission" (60-year ground lease, no public RFP), 2025-07-29 (evidence E-1035). https://obrag.org/2025/07/city-council-hands-over-ash-street-tower-to-development-team-of-kelly-moden-chair-of-the-planning-commission-no-conflict-of-interest-there-oh-no/comment-page-1/
- 101Ash-Subsidies San Diego Union-Tribune, "101 Ash St. developer awarded federal subsidies for low-income housing project" ($63.8M bonds, $82.2M tax credits; total subsidy $203.2M), 2025-12-19 (evidence E-1057). https://www.sandiegouniontribune.com/2025/12/19/101-ash-st-developer-awarded-federal-subsidies-for-low-income-housing-project/
- NFABSD Neighbors For A Better San Diego, undated Complete Communities advocacy page, E-1075. Its $17M claim is not an established total of realized waivers; compare the mixed-status spreadsheet in DIF-C1. https://www.neighborsforabettersandiego.org/complete-communities
- OB-Ocean-Beach OB Rag, "Grand Jury Report Casts Doubt on $20 Million in Ocean Beach Development Fees," 2025-08-15 (evidence E-551). https://obrag.org/2025/08/grand-jury-report-casts-doubt-on-20-million-in-ocean-beach-development-fees/comment-page-1/
- Faulconer-UT San Diego Union-Tribune, "Faulconer raised $500K for charity that supports/promotes Mayor's Office" (Bosa among donors), 2017-02-24 (evidence E-555). https://www.sandiegouniontribune.com/2017/02/24/faulconer-raised-500000-for-charity-that-supports-promotes-mayors-office/
- DB MathPolitics database connection/evidence IDs as cited in the full report: connections C-2883 (Bosa $13.8M DIF credit), C-2884 (Bosa–Zephyr builder relationship), C-2885 (Zephyr–Bosa $33M sale), C-2886 (Gloria–Hub & Spoke policy benefit, 0.65 confidence), C-2887 (Bosa–Faulconer behested), C-2888 (Gloria DIF mismanagement, $178,754,366, 0.93 confidence), C-2889 (Nat Bosa ownership), C-2890 (Gloria–SDRE ADU exemptions); evidence E-527, E-546, E-549, E-550, E-551, E-552, E-554, E-555, E-557, E-1035, E-1057, E-1075. → view in evidence search
- DIF-B1 Ordinance O-21640 (final passage 2023-05-01): land price $13,827,000 payable in DIF credits after closing; separate up-to-$9.1M park design/construction reimbursement. https://docs.sandiego.gov/council_reso_ordinance/rao2023/O-21640.pdf
- DIF-B2 Ordinance O-21641 (final passage 2023-05-01): authorizes DIF credits up to $13,827,000 as consideration for the park site. https://docs.sandiego.gov/council_reso_ordinance/rao2023/O-21641.pdf
- DIF-B3 Parks and Recreation Board Report 102 (issued 2025-11-13): Harmony Park; $9.1M design/construction; land funded by $13.827M in credits. https://www.sandiego.gov/sites/default/files/2025-11/prbr20251120a-item102.pdf
- DIF-A1 Coastal Commission fee-exemption report (2018-09-26) on the City's O-20934 ADU/JADU DIF exemption. https://documents.coastal.ca.gov/reports/2018/10/Th13d/th13d-10-2018-report.pdf
- DIF-C1 City-hosted PRO Housing application (2024-10-15); Danna Givot comment (2024-10-08), PDF pp. 52–57, including the mixed-status spreadsheet; public comment, not a City finding. https://www.sandiego.gov/sites/default/files/2024-10/final-application-for-posting.pdf
- E-319 OB Rag commentary (2025-03-17) giving the $26–31M ADU estimate without its working. https://obrag.org/2025/03/campaign-finance-payback-is-a-bitch-san-diegos-budget-crisis-explained/
- E-333 OB Rag commentary (2025-03-17) giving the $26–31M ADU estimate without its working. https://obrag.org/2025/03/campaign-finance-payback-is-a-bitch-san-diegos-budget-crisis-explained/
- E-560 MathPolitics analysis (2026-03-09) estimating Hub & Spoke savings from assumed unit counts and fee rates; actual waivers not established. No URL is supplied for this internal evidence record in the reverification draft. → view in evidence search
- E-380 San Diego Union-Tribune, "San Diego agrees to lease 101 Ash St. to developer for low-income housing," 2025-07-29. https://www.sandiegouniontribune.com/2025/07/29/san-diego-agrees-to-lease-101-ash-st-to-developer-for-low-income-housing/
- E-133 OB Rag, "Company Led by Head of San Diego Planning Commission Selected for Redo of 101 Ash Street," 2025-01-27. https://obrag.org/2025/01/company-led-by-head-of-san-diego-planning-commission-selected-for-redo-of-101-ash-street/
Condensed from the full investigation reports/series-4-the-giveaway/01-the-fee-that-disappeared.md. Data current as of June 2026. Every figure traces to a public filing or the MathPolitics database.
Corrections
-
2026-10-07
Withdrew the $83–100M total of development impact fees waived under the Gloria administration. The records establish only up to $13.827M in DIF credits authorized in 2023 for the Bosa park-land purchase; how much has been redeemed is not established.
The earlier total combined the Bosa credit authorization, the 101 Ash project developer fee (not a DIF waiver), and Complete Communities, ADU and Hub & Spoke estimates that are not established as fees actually waived. The Bosa deal is now dated to its April 25 / May 1, 2023 approval, and the $9.1M is identified as a separate park design and construction reimbursement, not a cash payment for the land. Sources: ordinances O-21640 and O-21641.