Since the project got the greenlight last year it's been a lightning rod of controversy. Just last week, the San Diego city council voted in a closed session to file suit against developer Doug Manchester. The suit asks for reimbursement for the costs of lawsuits already filed against the project regarding environmental issues.

City Councilwoman Donna Frye said the lawsuit is to hold the developer liable for legal costs. “It's a basic contact and all the city is doing is enforcing the terms of the contract,” noted Frye.

In 2006, private developer Manchester Financial Group was selected by the U.S. Navy to enter into negotiations to develop the Navy Broadway Complex along Downtown's waterfront. At build out, the project will include a 327,000-sf office building that will be funded by Manchester in exchange for a long-term lease agreement with the Navy. Consisting of 14.7 acres at Broadway and Harbor Drive, the site is currently approved for 1,200 hotel rooms and 1.8 million sf of office space and about 180,000 sf of retail space.

Manchester officials were not available for comment, but in an interview with Real Estate Southern California magazine, which, along with GlobeSt.com and other online and print publications, is produced by Real Estate Media, Doug Manchester said he envisions something similar to the Time Warner Center in New York for the Manchester Pacific Gateway project. Construction on the site could begin as early as next summer.