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San Diego Court Deal Sets 2026 Deadline for California Theatre Sale or Demolition

The settlement ends the city’s nuisance case by imposing firm milestones with financial penalties to resolve the long-deteriorated site.

Overview

  • The owner must list the downtown property for sale by the end of August and complete a sale by Dec. 31, 2026.
  • If no sale closes by the deadline, Caydon has 90 days to obtain permits for a controlled demolition.
  • Failure to comply could bring civil penalties of up to $1 million under the court-approved agreement.
  • The city documented hazards including asbestos, lead paint, structural failures, fires and persistent trespassing at the shuttered venue.
  • Caydon bought the site in 2019 for a planned 41‑story project before collapsing into receivership, and it denies wrongdoing in the settlement.