Artist's rendering of the proposed entertainment venue at the bayfront.
The Port of San Diego has approved an extension for negotiations on the development of the former Navy property at 1220 Pacific Highway. Developers LPP Lane Field LLC, aiming to create an entertainment venue, will have until December 10, 2023, to finalize discussions. This strategic move follows challenges in previous hotel-focused plans, shifting efforts to a cultural destination that enhances the bayfront experience. The extension allows for more time to plan the project’s next steps, ensuring community interests are met.
The strategic vote by the Port of San Diego commissioners included a second amendment to the First Right to Negotiate Agreement with LPP Lane Field LLC, a consortium comprising Portman Holdings, Hensel Phelps Development, and Lankford & Associates, which has already successfully built the adjacent Lane Field hotels. The newly amended agreement shifts the objective from securing an option to lease the property to entering an exclusive negotiating agreement.
Currently, the developers are focused on negotiating for two out of the four parcels on the 3.4-acre site. Specifically, they plan to create a park space on a 0.3-acre parcel near their dual-branded Marriott SpringHill Suites-Residence Inn, positioned at Broadway and Pacific Highway. Additionally, a proposal for an entertainment venue covering a 1-acre parcel has been made. This venue will be located north of the Lane Field hotels, situated between North Harbor Drive and Pacific Highway.
The previous approach outlined by the development team involved a mixed-use plan centered around hotel facilities, but this concept was abandoned due to challenging economic conditions. Financial constraints regarding hospitality financing for new hotel constructions have led to this shift in focus. The existing Lane Field hotels, which overlook outdated Navy office buildings, are now in a position to enhance the property’s potential with fresh projects aimed at revitalizing the area.
The Navy has maintained control over the property since 1949 but voluntarily relinquished a 100-year lease in September 2023 in exchange for $5.75 million in products and services from the Port. The formal termination of this lease occurred in October 2023, although the Navy retains usage rights for up to four more years.
The developers had initially set a deadline of January 2024 to submit a detailed development plan, but this timeline was pushed back to April 2024 following an unexpected offer from an operator interested in the entertainment venue. The prior mixed-use plan proposed was ultimately rejected in September 2024 due to issues related to feasibility.
After the rejection, the Port’s right-to-negotiate agreement mandated a 270-day negotiation period, which was subsequently extended by 180 days to allow more time for discussions. The development team is optimistic about the new entertainment venue concept. They describe it as a cultural destination that would enhance the bayfront experience.
At this time, the name of the prospective venue operator remains undisclosed, but the developers believe in the project’s potential and its ability to thrive in the San Diego market. However, questions remain regarding the future of the two parcels that are not part of the current development focus, totaling just over 2 acres. Port staff are actively assessing various options for these excluded parcels.
As developments continue to unfold regarding the site at 1220 Pacific Highway, the community and stakeholders remain attentive to the evolving plans that promise to shape the area while honoring its historical significance.
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