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San Diego Regional Chamber of Commerce Opposes Tenth Avenue Marine Terminal Proposal

On Thursday, July 24, 2008, the Chamber Board of Directors met and chose to take a position to oppose the “Port of San Diego Marine Freight Preservation and Bayfront Redevelopment Initiative,” proposed by San Diego Community Solutions, because of concerns over negative impacts on San Diego’s economy and the safeguarding of waterfront jobs and maritime operations.  Before the Chamber Board discussed the initative, it was reviewed by the Chamber’s Infrastructure, Transportation and Public Policy committees, as well as the Military Affairs Advisory Council.

The proposed initiative, which despite its name is not sponsored by the Port of San Diego, would create a new zoning area called the Multi-use Maritime District, allowing for mixed-use development along the Tenth Avenue Marine Terminal (TAMT), such as hotels, restaurants, parks and sports arenas.  Much of the maritime operations at the terminal would be replaced with office towers and/or retail and commercial development.  While this may seem like a favorable boon to downtown San Diego’s business, it would in fact create an incompatible environment for entertainment or public use with the noise and conditions of maritime operations, which are a vital part of our region’s economy.

The proposal also has the potential to eliminate thousands of high-paying waterfront jobs, as maritime and shipping operations could be reduced to less than 15%.   Maritime trade impacts more than 42,000 jobs directly tied to cargo and at least $7.6 billion in economic impact to the region's economy.  If trade operations are reduced, water-dependent freight operations could be put out of business and high-paying positions put in jeopardy.

Cargo activity at the TAMT is an important and lucrative part of San Diego’s economy, generating $1.6 billion annually.    Twenty-five billion dollars worth of international goods pass through the Port’s two marine terminals annually, as well as an average of 150 million feet of board lumber and 12,000 tons of perishables (including 50,000 containers of bananas!)   The TAMT is a vital center for shipping and trade, linking San Diego’s economy with the rest of the world. 

The initiative also has the potential to create conflict with the designation of the Port as one of 15 strategic ports by the U.S. military, as commercial uses would conflict with space, usage and security of the Port.  The military uses the Port's two marine terminals to transport classified cargo to support military operations around the world.  Because of security issues, private development simply cannot exist alongside a freight terminal used for military purposes.

Redevelopment would hinder current and future economic gains from the port, for the San Diego region as well as globally. The initiative will be on the November 2008 ballot in Port District member cities San Diego, National City, Chula Vista, Imperial Beach and Coronado.  The Board of Port Commissioners voted unanimously to oppose this initiative in May.