Port extends negotiation agreement with Seaport San Diego

8/15/24 - Thor Kamban Biberman - The Daily Transcript

The Board of Port Commissioners agreed on Tuesday to extend Seaport San Diego's exclusive negotiation agreement (ENA) for another three years to ensure the availability of finances, and to fine tune the big mixed-use development where Seaport Village is today.

The ENA was first approved in 2017 and was set to expire this year.

Yehudi Gaffen, CEO of project developer 1Highway1, conceded he is glad he doesn't have to try and finance the project in the current economic environment.

He said what he wants most from the process is clarity. While he wanted to be much further along, Gaffen appreciates the support the project has received from the Port and other governmental organizations.

As for why the project has taken this long, Gaffen said there is no single reason.

The discovery of an 11,000-year-old fault on the site, all the changes going on downtown and the COVID-19 pandemic are some of the setbacks Seaport San Diego has faced.

"We did our best, but that's what happens to plans when God laughs," Gaffen said, adding the project was also delayed by area stakeholders who were concerned about the proximity of the project to the waterfront.

1Highway1 has been able to obtain $550 million in public financing toward a more than $1 billion bill for the project's infrastructure.

Plans are subject to change, but if all goes as Gaffen would like, the environmental impact review (EIR) would be certified by no later than 2026, the Coastal Commission would give its blessing in the 2027-2028 timeframe, and the project would break ground in 2029.

​The current iteration of the plan is highly detailed with everything from the way signage should look to how hotels will be incorporated into the property.

The developer plans to demolish 124,478 square feet of existing land-side development and redevelop the project site with approximately 2.74 million square feet of mixed-use space, along with subterranean parking, and the associated infrastructure.

The project site consists of approximately 105 acres of land and water area on San Diego Bay.

Just how this will be developed and what will ultimately be included depends on market conditions and the availability of financing at the time.

The overall intent of the Seaport San Diego plan is to transform an aging Seaport Village, which was built in a quasi-New England style, into a "world class waterfront development consisting of an integrated, mixed-use, pedestrian-oriented project."

On the land side, the uses would include an aquarium, a conference center, public event spaces, shopping, dining, entertainment, marine technology uses, educational uses, and fishing industry services.

The Seaport San Diego development is intended to include as many as 2,050 hotel rooms in seven hotels dispersed among five buildings, reflecting a wide range of room types and costs. As many as 400 rooms would be lower-cost options, such as hostel and/or micro-hotel guestrooms.

The "iconic tower" in the plan would consist of a 410,405-square-foot, 34-story structure that will include 400 guest rooms beneath the tower, a 43,000-square-foot observation deck, restaurants, a 30,000- square-foot art exhibition space, a 40,000-square-foot atrium, and about 3,000 square feet of retail/health and wellness space.

Just how many other hotel rooms will be constructed in other parts of the project would depend on market conditions.

The hotels, tower, and restaurants would be just one part of the development. The project's 540,000-square-foot "Blue Campus" would include a 201,830-square-foot aquarium, a 26,123-square-foot Butterfly Pavilion Learning Center, and a 220,067-square-foot Blue Tech Innovation Center (BTIC).

On the waterside, uses would include an active commercial fishing harbor, sportfishing and recreational boating, public and private boat docking, berthing, mooring, piers, navigation, recreational in-water uses, environmental education, aquaculture, and water transit.

Water-side improvements would involve the construction of 561,400 square feet of floating docks and fixed piers to support a variety of vessels, water taxis, and fishing boats on San Diego Bay.

An event center is also an allowed commercial public assembly use. This could feature a large open-air deck and glass facades to provide visual connections to the water.