Golden Gateway Center Found Not Liable in Fraud Case
In a rare move, the judge threw out all of San Francisco Waterfront Partners' breach of contract claims for 8 Washington, essentially deciding phase two in favor of Golden Gateway without sending it to the jury.
SAN FRANCISCO—The San Francisco Port Commission awarded the development opportunity for 8 Washington or Seawall Lot 351 at the intersection of The Embarcadero and Washington Street to San Francisco Waterfront Partners II LLC pursuant to an RFP issued in 2008. The developer of the failed condo project was owned and funded by CalSTRS, the California State Teachers’ Retirement System, which spent more than $50 million and 10 years trying to develop the property.
Golden Gateway Center gave San Francisco Waterfront Partners the option to purchase the property if it could obtain the necessary approvals. San Francisco Waterfront Partners was able to obtain approval from the San Francisco board of supervisors. Shortly thereafter, however, community groups began gathering signatures for a ballot measure that would nullify the board’s action. The measure qualified for the ballot and became Proposition C on the November 2013 ballot, which was overwhelmingly rejected.
This failed real estate development project was the subject of the “No Wall on the Waterfront” referendum in San Francisco. San Francisco Waterfront Partners II LLC subsequently sued Golden Gateway Center, the owner of the proposed development property, for fraud and breach of contract, and demanded Gateway refund all option payments and pay CalSTRS all of its project development expenses.
Buchalter’s trial team representing Golden Gateway Center was led by shareholders Glenn Zwang and James Wright, senior counsel Peter Bales and Randall Manvitz, and associates Alexandra Grayner and Zachary Young. Mike DiRé, director of real estate investments for CalSTRS and manager of the real estate investment portfolio, testified on behalf of San Francisco Waterfront Partners. Former supervisor and city attorney, Louise Renne, who led the political movement against the project also testified.
On February 7, the jury found that Gateway was innocent of all fraud charges. The following day on February 8, the judge threw out all breach of contract claims.
“In a rare move, late Friday, the judge threw out all of San Francisco Waterfront Partners’ breach of contract claims, essentially deciding phase two of the trial in favor of Golden Gateway Center without sending it to the jury, as she had planned,” Zwang tells GlobeSt.com. “As a result, Golden Gateway Center was just found to be not liable for fraud.”