Unions

Whole Foods backs out of downtown hotel-office project

Whole Foods backs out of downtown hotel-office project

Upscale grocer Whole Foods, long planned for a hotel and office development in downtown San Diego, has backed out amid continuing delays related to pending litigation.

Although approved two years ago, the $400 million 7th & Market development has been on hold since last year when labor union interests filed suit alleging that city approvals relied on an outdated 2006 environmental analysis for all of downtown instead of a specific impact report analyzing just the development.

San Diego-based Cisterra, which is developing the project, said Whole Foods had the right to terminate its participation as a tenant after a certain period of time elapsed and exercised that right...

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