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Expansion of San Diego Convention Center Moves Forward with Approval of Memorandum of Understanding

Tuesday, 02 December 2008
Contact: Marguerite Elicone (619) 686-6222

A proposal to expand the San Diego Convention Center came closer to fruition today as the Board of Port Commissioners authorized a Memorandum of Understanding (MOU) between the Port of San Diego, the San Diego Convention Center Corporation and Fifth Avenue Landing, LLC.   The MOU will allow the three parties to negotiate terms for a new lease and option agreement for a new hotel and the expansion of the Convention Center. 

Fifth Avenue Landing, LLC, has a lease expiring on June 30, 2024 and an option agreement to develop a 250-room hotel on its leasehold bay ward of the Convention Center.  Fifth Avenue Landing's option to develop the hotel has been extended to November 30, 2009.  This will allow the San Diego Convention Center Corporation a one-year due-diligence period to assess the feasibility of expanding the Convention Center and developing a hotel on the Fifth Avenue Landing site.  If the Convention Center and the Port District agree to a new option agreement, then the Convention Center may purchase Fifth Avenue Landing's leasehold interest to make way for the expansion and a new hotel. 

San Diego Mayor Jerry Sanders attended the Board meeting and expressed his support for the Convention Center expansion.  "This forward-looking agreement will let us keep pace with other cities that are aggressively working to take our customers in the convention market," he said.  "An expansion will help us keep the biggest and most lucrative conventions and remain competitive long into the future."

Cheryl Kendrick, Chair of the San Diego Convention Center Corporation Board echoed the Mayor's remarks.  "Our Convention Center has been the envy of our competitors, driving the economy and creating jobs.  Since its opening, it has contributed $16 billion in economic impact to the region.  The expansion would create 6,000 new jobs and have an annual impact of $2 billion."

The property included in the Fifth Avenue Landing, LLC option agreement includes 221,000 square feet of land and 360,899 square feet of water.  The hotel project included in this option consists of a 250-room hotel that would stand about 23 stories.  It includes 198 parking spaces, a water transportation center, an area for temporary docking that could accommodate up to 30 large yachts, a pedestrian bridge, public promenade and a public park/plaza.  The hotel operator will be determined at a later date.