Port Signs Term Sheet with the Navy, Signifying Acquisition of 1220 Pacific Highway

Wednesday, 14 May 2008
Contact: Marguerite Elicone (619) 686-6222

A press conference was held on May 14 to announce the Port of San Diego's acquisition of a portion of Navy property at 1220 Pacific Highway. At the conference, Rear Admiral Len Hering, Commander, Navy Region Southwest and Stephen P. Cushman, Vice Chair of the Board of Port Commissioners signed the official document that allows the Port to take over the Navy's lease of the property.

Acquiring this property is a major step toward implementation of the North Embarcadero Visionary Plan, which will transform San Diego's Embarcadero area with a waterfront esplanade and various amenities.

"This property is a key piece in the redevelopment of the North Embarcadero," Vice Chair Cushman said. "The Port and its future tenant, Lane Field San Diego Developers, will turn the acreage into a bustling block with two hotels, public promenades and open space."

In 2005, the Port of San Diego and the U. S. Navy signed a Memorandum of Understanding that allowed the Port to acquire the long-term lease that the Navy holds on property located at 1220 Pacific Highway. The property includes a small portion of Navy land and property between the Lane Field parking lot and the Holiday Inn on the Bay. The area encompasses about 3.4 acres and includes several office buildings occupied by Naval Facilities Engineering Command Southwest.

The MOU allows the Port or its designee to acquire the Navy lease and construct a new facility, at a yet to be determined location, to replace the Navy's offices at 1220 Pacific Highway. The document, called a term sheet, was negotiated within the framework established by the MOU and allows the property t be acquired in two phases.

"Today's revitalization of the downtown waterfront from Seaport Village to Laurel Street takes partnership and the Navy is pleased to work closely with those involved to make it all possible," said Len Hering, Commander, Navy Region Southwest.

About 14,000 square feet of the property fronting Harbor Drive adjacent to the proposed Lane Field North development will be acquired in the first phase. This area will be incorporated into the hotel, retail and restaurants planned for Lane field North. The rest of the property will be released to the Port in the second phase.

Plans for Lane field North include a 275-room hotel that will be operated by Woodfin Suites Hotels, LLC. On Lane Field South, a 550-room hotel will be built. The operator will be InterContinental.

The Lane Field development will meet the strict requirements of the Leadership in Energy and 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.

Acquisition of the lease will result in a new administrative facility for the Navy and allow the Port to redevelop 1220 Pacific Highway and extend "B" Street through the property to North Harbor Drive, which is part of the Port's long-term vision for the North Embarcadero.

 

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