Overview

Under the Port Master Plan (7.56 MB), a land use document required by the California Coastal Act and the Port District Act, the Port has designated Lane Field for “Commercial Recreation” uses. Permissible uses include hotels, restaurants, specialty shops, structured parking, and maritime-related office space.

On December 12, 2001 the California Coastal Commission approved an amendment to the Port Master Plan for the hotel and retail uses envisioned for Lane Field, following completion of a Master Environmental Impact Report for the proposed developments and infrastructure improvements along the North Embarcadero.

Lane Field is the first development to proceed under the North Embarcadero Visionary Plan (NEVP). The NEVP comprises a set of public infrastructure improvements for the area bordered by Market Street on the south, Laurel Street to the north, the railroad right of way to the east and the San Diego Bulkhead line (the bayward edge of land) to the west, in downtown San Diego. The NEVP will shape the future of San Diego by joining downtown and the bay. The plan will benefit the entire region, enhancing the bay’s appeal as a hub of activity. Highlights of the plan include:

• A grand entrance along Broadway, from the Santa Fe Depot west to the water.
• A 1.2-mile esplanade that will stretch along the waterfront with trails for walking and jogging.
• A pier at Grape Street and North Harbor Drive.
• The revitalization of the Broadway Pier.
• A wharf for civic events.
• The addition of 1,770 trees.
• An outdoor dining terrace, new retail businesses and lighting along the wharf and piers.

HIstory

In November 2004, the Port issued a Request for Letters of Interest to developers interested in the Lane Field/Cruise Ship Terminal Redevelopment project. In February 2005, the Port issued a Statement of Interest and Qualifications. Five development teams prepared responses. Four teams made presentations to the Board of Port Commissioners on May 10, 2005. In June 2005, the Port issued a Request for Proposals for development of Lane Field and the B Street Cruise Ship Terminal. The Board selected Manchester Viejas LLC to negotiate the terms of an agreement with District staff for a period of ninety days.

The Board subsequently authorized staff to negotiate with another proposer under the RFP, a consortium of developers organized as Lane Field San Diego Developers (LFSDD). LFSDD is comprised of Lankford & Associates, Inc.; Phelps Development, LLC; C.W. Clark, Inc.; and Hardage Suite Hotels, LLC. The Board also concurred with staff recommendations that negotiations be limited to Lane Field and the possible acquisition of the Navy leasehold at 1220 Pacific Highway. Continued negotiations regarding the “B” Street Pier and new cruise ship terminal would occur directly between the District staff and the cruise lines.

The Board approved an option agreement for the development of a 500 to 550 room hotel on Lane Field South at the December 5, 2006 Board Meeting. At the February 13, 2007 meeting, the Board also approved an option agreement for a 250 to 300 room hotel on Lane Field North.

Status

A project that will bring two new hotels to a former baseball park received unanimous support from the Board of Port Commissioners at the January 8, 2008 Commission meeting. The Board passed a resolution to authorize a coastal development permit, a critical milestone for the $400 million project to move forward.

Plans for Lane Field North include a 200-foot tall hotel with about 275 guest rooms and suites, plus 30,000 square feet of retail and restaurants, ballrooms and meeting rooms. On Lane Field South, a 275-foot tall hotel would be built. The hotel will include approximately 525 guest rooms and suites, and about 50,000 square feet of retail, restaurants, ballrooms and meeting space. Parking for nearly 1,300 vehicles is also included in a proposed subterranean parking garage. The garage would serve both hotels, the retail shops and the general public. The project, believed to be the second one in the state to do so, will meet the strict requirements of the Leadership in Energy & Environmental Design certification, which is a national recognition. The certification means the hotel project will be designed to use less energy, less water and produce fewer pollutants.

The Board of Port Commissioners found that the project is consistent with the Port's certified Master Plan and thus qualifies for the coastal development permit.

Several city leaders, including Mayor Jerry Sanders, spoke in favor of the project. Sanders stated that the project is a major catalyst for the North Embarcadero Visionary Plan, a project that will transform the San Diego Bay waterfront from Laurel Street to G Street on Harbor Drive. Julie Meier Wright, the president of the San Diego Economic Development Corporation; Nancy Graham, President of the Centre City Development Corporation; Cheryl Kendrick, Chair of the Board of Directors for the San Diego Convention Center and Sal Giametta, Vice President of Community Relations for the San Diego Convention and Visitors Bureau, also gave their support.

The project includes significant public amenities that will improve access to the bay front. C Street will be extended to improve access to the site and to preserve the views. Also, view terraces on the third floors of the two proposed hotels will be open to the public. Public plazas will also be included in the design.

About 2,000 permanent hotel jobs and 500 temporary construction jobs may result from the development. In addition, the estimated Transit Occupancy Tax revenue for the City of San Diego will be about $5.4 million during the opening year of the project in 2011, increasing to $7.5 million by 2015.