City Attorney Sues Millennium Tower Developer, Says Sinking, Tilting Were Known Since 2009

City Attorney Sues Millennium Tower Developer, Says Sinking, Tilting Were Known Since 2009Photo: Allan Ferguson/Flickr
Brittany Hopkins
Published on November 03, 2016

Today, San Francisco City Attorney Dennis Herrera filed a lawsuit against the developers of Millennium Tower, the 58-story residential tower that is sinking into the landfill, further than expected, and tilting at 301 Mission St.

According to the press release Herrera issued today, an investigation conducted by the city attorney's office has concluded that the tower's developer, Mission Street Development LLC, knew in February 2009—before any condos in the building were sold—that the structure was sinking faster than originally projected.

Based on 1,900 pages of records Mission Street Development LLC provided to Herrera's office—obtained via a subpoena served in September—the city attorney says that the developer did not disclose any of this information to potential homebuyers, as required by law.

“Before they had sold a single condo, Mission Street Development LLC knew their building had sunk more than it was supposed to in its lifetime—and that it was still sinking,” Herrera states in the press release. “Yet they didn’t tell home buyers, as they’re required to do under the law. It’s that simple.” 

More specifically, the city attorney's office alleges that by the time construction completed in 2008, the tower had already sunk six inches—the exact amount it was expected to sink within its total lifetime.

By February 2009, that number had reached 8.3 inches.

And by May 2009, Mission Street Development LLC was aware that the building was continuing to settle—"at different rates in different parts of the property, which could lead to the building tilting," the press release states.

But rather than disclose these facts to buyers, the company instead shared that "everything from the color and veining of marble to noting that the size and types of plants in the common areas of the building could change," Herrera's press release states. 

Then, as news of the tower's sinking and tilting issues came to light, the developer (which publicly goes by Millennium Partners) and some homeowners pointed to the TJPA's construction for the future Transbay Terminal, located next door, as the source of the sinking and tilting issues. 

This new lawsuit is a cross-complaint, in response to the suit previously filed by Millennium Tower homeowners against the Transbay Joint Powers Authority and its members, which include the City and County of San Francisco. That case is not a direct lawsuit against the developer, San Francisco Magazine notes.

The city's cross-complaint seeks damages from Mission Street Development LLC, "as the court deems appropriate." During a press conference the city attorney held this morning, SFMag pressed Herrera on who stands to benefit if this lawsuit prevails, and how much compensation might they receive?

Herrera's response? If the suit prevails, money should benefit the homeowners. However, that's not 100 percent certain—and it's unclear how the court would calculate the appropriate compensation for each owner.

At this point, the Millennium Tower has sunk 16 inches and its base is leaning 2 inches northwest. It's expected to sink at least 15 inches more into the landfill.

While one resident took to Vimeo this week to demonstrate the extent of the building's tilting using marbles, the Chronicle notes that an engineer's report, released in October, says the building remains seismically safe. The city is currently peer-reviewing that assessment.