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Board Approves Coastal Development Permit for Lane Field Project

Design for Broadway Pier Cruise Ship Terminal receives the go-ahead

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 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, as well as 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.

Also at the meeting, the Board approved an updated design of the Broadway Pier Cruise Ship Terminal. The design, which was originally presented at the November 9, 2007 Board meeting, included a unique “saw tooth” roofline, the use of glass panels on the structure and incorporated public art. Several community outreach meetings were held over the past year to present the design and to seek public feedback. The public expressed a need for a combined mixed-use area. Other requests included minimizing fences and gates, while maximizing public access. The upgraded design has pushed the project cost to $23.6 million.

The Port originally intended to pay for the project with a loan received from Carnival Corporation. The amount of the loan was $12 million. The Port has been discussing financing options with both the City of San Diego and the Centre City Development Corporation to figure out how to pay for the $10.9 million shortfall. A letter from the Port to Mayor Sanders requesting assistance with paying for the cost of the terminal will be sent.

The Port’s cruise business has increased steadily over the years. An average of 200 cruise vessels arrive at the Port each year, bringing about $2 million in economic impact with each call. To keep pace with the growth, it is imperative that the Port improve its cruise facilities. A new cruise terminal is planned for the B Street Pier and the terminal on Broadway Pier is necessary for cruise operations to continue while that pier is under construction. The Port of San Diego hopes the Broadway Pier cruise terminal building will be finished by May 2009.