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Navy Chooses Developer for Proposed Renovation of San Diego Broadway Complex

Navy NewsStand

Story Number: NNS060406-07
Release Date: 3/31/2006 2:48:00 PM

By Journalist 1st Class (SW) Jason McKnight, Navy Region Southwest Public Affairs

SAN DIEGO (NNS) -- Commander, Navy Region Southwest, Rear Adm. Len Hering announced the Navy's decision to enter into exclusive negotiations with Manchester Financial Group to redevelop the historic downtown San Diego Navy Broadway Complex.

The end cost of the project could be valued at up to $1 billion, said Perry Dealy, president of Manchester Financial Group.

"We believe we've chosen a world-class developer," said Hering. "I also want to emphasize that this is a partnership. We are all stakeholders in this project. Together with the city, we will completely redesign San Diego's front porch into something we'll all be very proud of."

The Pacific Gateway, the new name of the redesigned complex, will consist of about 14 acres of prime real estate on San Diego's Embarcadero.

Seven buildings will be built on the land, with 2,110 underground parking spaces and 490 above-ground spaces.

Current Navy administration operations will be moved into "Navy Square," with the main office being a 19-story tower totaling 373,000 square feet. Another smaller tower would be used for museum space and future Navy expansion.

The largest building on the redeveloped land will be an 800-room, 40-story hotel. The remaining buildings will be offices, hotel rooms and retail shops.

All current quality of service and quality of life facilities will be incorporated into the new design of Navy Square, and some, like a health club, will be added or expanded.

"Dining facilities and the availability of nearby retailers will offer Sailors and civilians more than what they're used to," said Dealy.

Upgrading the architecture and opening up the closed-in Navy Broadway Complex is a lynchpin in the North Embarcadero Visionary Plan, which seeks to join the city's bay with downtown and improve the appeal of both areas for business and public use.

San Diego Mayor Jerry Sanders said now that a decision on a developer has been reached, the proposal will have to go through months of public review and negotiation before any ground is broken.

"I want to remind everyone that this is Navy land," said Sanders. "Let me say that again: Navy land. What they do with it remains their decision, but after working with them over the last few months, I have no doubts whatsoever that they'll do whatever they can to help make this vision a reality for San Diego."

Sanders also said that the alternative, that the deal falls apart and fails to meet the Base Realignment and Closure Commission's deadline of Jan. 1, 2007, could have very undesirable results for all parties.

Nancy Graham, president of Centre City Development Corporation, said that because this deal is so important, public workshops will be held in the coming weeks to make sure everyone was informed of the plan and could comment on it.

"I can't tell you how thrilled we are," said Hering. "The potential to be involved in something as major as reforming San Diego's front porch is just wonderful."