The San Francisco city attorney’s office will subpoena developer Nick Podell to compel him to attend a city hearing and respond to allegations that he failed to fulfill a sizable economic commitment made in 2016 as part of a Mission District housing deal.
The developer allegedly promised to fund $500,000 in renovations while securing permits to build the Madelon, a luxury Mission District apartment complex at 2000 Bryant St.
The subpoena follows a request from District 9 Supervisor Jackie Fielder to the Government Audit and Oversight Committee. Podell has not confirmed that he will be present at the Feb. 19 meeting and, to ensure his presence, Fielder asked for the subpoena. It is unclear what will happen if he ignores the subpoena. The city attorney’s office declined to comment.
The dispute goes back to September 2016 when Podell’s lawyer, speaking at a hearing, committed $500,000 for a community art space within 681 Florida St., a 100-percent-affordable housing complex built on a parcel of land that Podell donated as part of the development deal.
The art space is now occupied by Cultura y Arte Nativa de las Americas (CANA) and the work was completed in October of 2024.
“I’m asking the clerk to issue a subpoena to have him appear before our committee, to answer our questions about why he has not fulfilled the promise to the community around this half a million dollars,” said Fielder after Thursday’s meeting of the Government Audit and Oversight Committee. Podell was not invited to attend yesterday’s meeting.
Records of Podell’s commitment include a 2016 hearing in front of the Board of Supervisors, where Podell’s representative, attorney Steven Vettel, said his client had committed to providing $500,000 in capital funding to build out the 10,000-square-foot community art space.
That oral statement was followed up with a letter to then-District 9 Supervisor David Campos. Although it has no signature, Podell’s name is at the end of a letter describing different pledges, including the $500,0000 commitment.
Emails obtained by Mission Local show communication between two nonprofit housing developers and the New York-based company Junius Real Estate Partners, which appears to be acting on Podell’s behalf.
The correspondence dates from 2021 to 2024 and includes multiple attempts by the Mission Economic Development Agency and the Tenderloin Neighborhood Development Corporation to collect the $500,000.
“MEDA and our partners at TNDC have understood the tenant improvement commitment for the community arts space at 681 Florida Street since we were awarded the site. We have always prioritized this investment as a vital resource for the Mission, and we are glad to be working towards a resolution with Nick Podell,” read a statement by Mission Economic Development Agency.
“We look forward to seeing these funds go to CANA’s new space to ensure this cultural hub can fully serve our neighborhood.”
A Junius representative wrote in 2021 that the funds could be disbursed “to whatever entity you want.” In an exchange in January 2024, however, Junius informed the developers the money was to be sent upon completion of the project.
In October, a MEDA representative wrote, “kindly asking” for the $500,000 as construction wrapped up.
Susan Heller, whose company, H.Y. Floor & Gameline Painting, Inc, completed the flooring at the art space, said she is still owed 35 percent of her bill — about $47,000.
The total cost of the buildout was up to $2.7 million, according to Roberto Hernandez, chief economic officer at CANA. Most of it was paid for by private donors, but the expectation was that they would also receive Podell’s contribution.
“We’re just a small family business. Why are the small businesses funding this big developer? It just doesn’t seem fair,” said Heller.
Reached by phone on Thursday, Podell declined to comment. Junius Real Estate Partners did not reply to a request for comment.
The last time a supervisor called for a subpoena to be issued was in June when the city attorney — on behalf of District 10 Supervisor Shamann Walton and Fielder — subpoenaed the former leaders of the Parks Alliance after the nonprofit dissolved in economic chaos.
Former District 3 Supervisor Aaron Peskin also asked for a subpoena in 2016 over the Millennium Tower.