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A lottery conducted several years ago by The Corky McMillin Cos for much-desired homes in the Liberty Station development in Point Loma may have seemed hinky to a local newspaper, but the state Department of Real Estate says it was legal.

The so-called “urban village” project, which includes homes, schools, parks and shops on 246 acres of former Navy land, was the subject of this months-long investigation by The San Diego Union-Tribune last year.

The investigation revealed that McMillin executives, real estate professionals and former city officials nabbed 52 of the 349 winning slots in the 2002 lottery, which attracted more than 1,400 entrants.

“We reviewed the pertinent documents and conducted interviews during our inquiry and have concluded that the evidence is insufficient to establish a basis for a violation of Real Estate Law that would result in the suspension or revocation of a real estate license,” wrote Jesse Hafen, the deputy commissioner of the department’s San Diego enforcement office in a March 7 letter to McMillin.

You can read the rest of the letter here.

McMillin chairman Scott McMillin said he and others were “excited” to receive the news that the company had been cleared.

DAVID WASHBURN

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