San Diego Auditor Wants Review of Leases to Nonprofits

A report by San Diego’s city auditor says the city should review its long-term leases of thousands of acres of public property to nonprofit organizations at little or no cost, reports The San Diego Union-Tribune.

Auditor Eduardo Luna said the city has not implemented the recommendations of a consultant hired in 2006 to examine such arrangements. The consultant called on officials to more closely assess whether nonprofit lessees support a municipal goal or service or are able to pay rent.

San Diego collected $993,298 from nonprofit groups for 126 leases, representing a total of 2,656 acres, in the 2010 fiscal year—about $31 per acre per month. “While there are good public policy reasons for the city to subsidize rents for many nonprofit groups, the city nonetheless incurs costs for providing free rent in addition to the forgone lease income,” Mr. Luna’s report said.

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