On March 4, 2008, the Board authorized exclusive negotiations with Island Partners, LLC (Island Partners) for an option agreement to lease and develop the Marine Sales and Service Site at Shelter Island Drive and Anchorage Lane. The Board selected Island Partners for development of the site after its proposal was presented to the Board on February 12 and March 4, 2008. Island Partners' proposal includes construction of a two story building of approximately 10,850 square feet, approximately 25 boat slips, water taxi/guest dock (which may also be used by Anchorage A-1 boaters), fish weighing station, shoreline protection and a 9-foot wide public pedestrian promenade along the shoreline of the proposed lease premises. The estimated cost of the project is $5.5 million.

The 14-month Option will provide Island Partners with the right to enter into a new 40 year lease upon completion of all necessary conditions. The proposed lease includes rent in the amounts offered in Island Partners' proposal on March 4, 2008

History

The Marine Sales and Services Site is currently occupied by three tenants in three separate buildings: Crow's Nest, Custom Marine Electronics and The Marlin Club, and approximately 25 slips which are part of the Crow's Nest leasehold. The proposed project will replace the existing three buildings with a single building, and will replace all of the existing slips. The redevelopment of the site will provide expanded views of the Yacht Club Basin from Shelter Island Drive, a more attractive facility that can house marine sales and service uses as well as The Marlin Club, and a public promenade.

Background

On July 10, 2007, the Board of Port Commissioners authorized issuing a Request for Proposals (RFP) for the Shelter Island Marine Sales and Services Site located on Shelter Island Drive, southeast of Anchorage Lane in San Diego, California. This site contains approximately 27,291 square feet of land and 47,420 square feet of water area.

The total building area to be developed must be between 10,000 and 15,000 gross square feet and the water improvements (i.e., piers, gangways, and boat slips) to be developed must not result in any increase in the existing water shading. Approval of project design, securing development permits, and obtaining financing is required prior to entering into a long-term ground lease with the District.