thelog.com New hotels proposed for Harbor Island By Parimal M. Rohit


SAN DIEGO — And then there were two. Six submissions for a hotel devel- opment project on Harbor Island were whittled to two on April 14. One project proposed to build a 200-300 room “Boat-el” and a canal for kayak- ers, paddleboarders and users of other small watercraft. The second proposal focused on adding three medium-sized hotels, an urban beach, and offi ce space for Harbor Patrol offi cers and Port of San Diego offi cials. The Port of San Diego Board of


Port Commissioners selected Oliver McMillan Inc. and Sunroad Enterprises as the fi nalists to bring a brand new hotel project amidst nearby marinas. Oliver McMillan and Sunroad


Enterprises both proposed a large hotel project to be built on 57 acres of designated land and water and will now have to provide the Board of Port Commissioners with expanded details of how their respective proposals would be realized. The Oliver McMillan proposal


was more recreationally inclined and featured a “Boat-el” and small water- craft canal. Sunroad Enterprises’ was a little more straightforward, focusing on the Port of San Diego’s ambitions to promote Blue Economy project and research. Commissioner Bob Nelson said he preferred solely moving forward with


the Oliver McMillan proposal, adding the Sunroad Enterprises proposal lacked depth and thought. Nelson added his colleagues need to make sure whoever they ultimately select should make sure the fi nal project is consistent with California’s Public Trust Doctrine. Commissioners, in a 5-1 vote, also


encouraged either company, if selected, to partner with one of the fi rms – Topgolf International Inc. – not selected to the shortlist. “Topgolf could be an exciting addi-


tion to Harbor Island but should be sited and developed within the context of a comprehensive master plan,” port staff said of the Topgolf proposal, which would have built hitting bays, a rooftop terrace, full service bar and restaurant with a lounge and pool tables. Commissioner Gerry Bonelli voted against the recommendation because he did not believe having a hitting bay was the right use for the Harbor Island redevelopment project. In all six fi rms responded to a Port


of San Diego proposal request for the planned development of a hotel project on 57 acres of land on Harbor Island, which are both a boater’s destination and a waterfront neighborhood adja- cent to San Diego International Airport. Three of the fi rms – Tripp


Development, Pacifi c Coast Historical Dinner Show and Janez Properties Inc. – did not advance to the fi nal round


of consideration because their applications were incomplete, failed to identify fi nan- cial partners, or fell short of explain- ing how its vision would be executed. The most ambi-


tious proposal was submitted by Oliver McMillan, who proposed two 500- to 750-room hotels, a “Boat-el” venue, recreational watercraft canals, a seaplane, view corridors, plazas and open spaces, piers, urban sidewalks and an area for hospitality, blue technol- ogy, retail, public market, offi ce use, restaurants and marine services. Oliver McMillan anticipates spending between $760 million and $1.2 billion on execut- ing its proposal. Sunroad Enterprises’ pitched build- ing two 175-room hotels and one 150-room hotel, offi ce space for Harbor Police and port offi cials, a park and urban beach, infrastructure promoting Blue Economy, and restaurants. The family-owned business, which is already on Harbor Island, anticipates investing up to $300 million on the project. How each proposal would affect the


Harbor Island could have a makeover of sorts as the Port of San Diego looks to award a contract to bring new hotels to the neighborhood known mostly for its maritime uses.


port only requested broad pitches from each fi rm.


Another major issue is access.


surrounding marinas were not detailed in the staff report. Details of each pro- posal are still being fl eshed out since the


Sunroad Enterprises pursued its hotel development project on local tidelands as recently as 2015 but the California Coastal Commission rebuffed its pro- posal last summer. The proposed hotel project did not include enough afford- able lodging along the water, commis- sioners stated in their rejection last year. The Port of San Diego anticipates hosting a town hall meeting in May to solicit stakeholder feedback on the Oliver McMillan and Sunroad Enterprises proposals. Both fi rms will be issued a supplemental information request in June, to explain how their respective projects would fi t within the Port’s planning framework and provide detailed budgets. A master developer could be selected as early as August.


The Log • Apr. 22 - May 5, 2016 • 9


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Parimal M. Rohit photo


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