City sues Fillmore Heritage Center developer

The Fillmore Heritage Center’s public spaces are empty, and no change is in sight.

CITY ATTORNEY Dennis Herrera filed suit this morning against developer Michael E. Johnson — who built the Fillmore Heritage Center  — for more than $6.5 million the city claims Johnson owes for a loan that helped build the complex.

“The years of excuses are over. Time’s up,” Herrera said in a statement announcing the lawsuit. “San Francisco taxpayers need to be made whole.”

For a few lively years beginning in 2007, the 50,000-square-foot space at Fillmore and Eddy housed Yoshi’s jazz club and restaurant and the 1300 on Fillmore lounge and restaurant, plus a gallery, screening room and garage. Yoshi’s closed in 2014 and briefly became The Addition, which Johnson ran himself before it too closed. 1300 on Fillmore closed in 2017 and now operates at the airport. The city took over the complex in 2017 when Johnson defaulted on the loan and has not yet figured out what to do with the empty commercial spaces.

“The city made this loan in good faith and has given Mr. Johnson every chance to pay back San Francisco taxpayers,” Herrera said. “San Francisco has worked with Mr. Johnson at every turn. Mr. Johnson has never held up his end of the bargain.

At a public meeting in May 2016, Johnson told the audience he had, in effect, had the project thrust upon him. He noted that he was primarily a housing developer when he was asked to become involved by local residents who wanted an African-American in charge.

He said it was a mistake for him to get involved in entertainment and restaurants. “It was a bad decision to go down that road,” he said.

After Yoshi’s on Fillmore declared bankruptcy, Johnson decided to run the club and restaurant himself. “I made another mistake,” he said. “We decided we’re going to try to resurrect it and create The Addition.”

He added: “We found out that operating that 28,000-square-foot facility was very difficult. We went six months. We couldn’t make it work. We had to close.”

The case is: City and County of San Francisco v. Michael E. Johnson et al., San Francisco Superior Court case no. CGC-18-568954, filed August 16, 2018.