SAN DIEGO—Listening to stakeholders and being sensitive to the historic nature of the land in question are key to successful developments on government land, said developers of projects around San Diego at Tuesday's CREW San Diego lunch event. The program “Real Estate Development on Government-Owned Land,” moderated by Carey Algaze of Pacifica Cos. and featuring a panel that included Yehudi “Gaf” Gaffen of Gafcon Inc. and Joe Haeussler of McMillin Cos., highlighted a number of these projects and what makes them unique.
Gaffen introduced the Seaport Village project on Downtown San Diego's waterfront. He said waterfront project development harks back to his thesis on their conceptual design and that he has had a long-time dream to work on waterfronts. It's a “dream come true to bid on the Seaport project.” Gaffen has had previous waterfront experience working on the City of San Diego North Embarcadero Visionary Plan and the Port of Los Angeles Waterfront.
The proposed scope of work for the approximately $1.5-billion Seaport Village development includes an aquarium in conjunction with Scripps Institute of Oceanography; a “Spire” tower in conjunction with the Smithsonian that will include an observation platform, an event center and an outdoor area; three or four hotels with various price points, including standard, “micro” and luxury accommodations, as well as a “new-generation” hostel.
The proposed commercial-development area for the Seaport Village project is 250,000 square feet. Also proposed as part of the project is a focused career-path school development with Scripps Institute of Oceanography, including trade training, and health-and-wellness areas.
Next, Haeussler presented the Liberty Station project, located on a 360-plus-acre site that was formerly a naval training center from 1922 to 1977. The project is a collaboration between McMillin NTC LLC and NTC Foundation, whereby NTC's reuse plan was created in 1998. Collaborating with the local redevelopment authority, the project includes retail, commercial, promenade, parks and open space, a worship center, memorial and education, residential, office and hotel districts. The educational component includes three high schools, two junior-high schools and one elementary school. In addition, there is a 46-acre waterfront park and a nine-hole golfing green. The retail component is a combination of large “chain” stores and artisan stores.
Liberty Station is completed except for three new proposed hotels; a few retail spaces are available for lease, and much of the remaining space is on second-generation or lease renewals. The developers received numerous awards for this redevelopment project, which was rebranded Liberty Station to embrace the past and form new traditions.
The panelists discussed being awarded government project and said that community involvement in the form of engagement and outreach is crucial. Gaffen said his firm is working with local fishermen on the Seaport with the aim of creating a market like Pike Place in Seattle. Both speakers said meeting with people in person is essential. Detailed proposals are also recommended.
In discussing the public versus private sectors, Haeussler said there were many additional regulations to be concerned with regarding Liberty Station, including the Federal Aviation Administration, the Coastal Commission and various historical commissions. He said there were constrains to the scope of work due to these regulations.
Gaffen said politics was a major factor in the Seaport Village project and that developers and planners must be sensitive to the issues and concerns of all stakeholders involved. Agreements must be put in place for everyone's protection.
The speakers also addressed constraints and design evolution in these projects. Haeussler said constrains led to the redevelopment of Liberty Station as opposed to a resale, and Gaffen said the design of Seaport Village has evolved and improved with the constraints.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
