San Diego issues eviction notice after $4.2 million rent dispute

San Diego city officials issued a final demand to Mission Bay Sports Center on Thursday, requiring the business to pay nearly $1 million by Monday or face eviction. The notice cites a total debt of $4.2 million, which includes back rent, interest fees, water charges, and audit penalties. This deadline marks the latest step in a dispute that has dragged on for years.

The city argues that the sports center, a locally owned business offering jet ski and paddleboard rentals, has failed to meet its lease obligations. A default notice sent to Debra Boone, an individual listed in the documents, outlines specific violations. These include a lack of provided insurance documentation, unauthorized subleasing, and a redevelopment plan that is years overdue. City documents further question whether the subleases were ever formally approved by the municipality.

Subtenants have pushed back against the city’s characterization of their lease status. Stephan Aarstol, who owns Tower Paddle Boards and Tower Beach Club, stated he operates under a signed lease from Mission Bay Sports Center. Aarstol claimed the city was aware of the sublease and intended use of the property for years. He noted that the city council previously voted on the issue and expressed confusion over the sudden strictness. Aarstol said, “The city council said it's OK. Everybody said this is all fine, right? So it's, it, it just doesn't make any sense to me.”

Mission Bay Sports Center disputed the debt amount in a letter sent to the city in June, saying it was surprised by the default notice. The company did not respond to a comment request for this report. However, an employee on site on Thursday said the business had no comment and confirmed that Debra Boone, the recipient of the notice, no longer worked there.

The city maintains that it attempted to resolve the issue collaboratively before initiating legal action. In a statement provided to ABC 10News, the city said the leaseholder repeatedly failed to pay rent as required. The statement added that the city made numerous attempts to work with the tenant and provided multiple opportunities to get back into compliance. City officials said the tenant took advantage of the city’s willingness to work toward a resolution, leading to the current eviction proceedings to protect public interests.