Judge’s Ruling Clears Hurdle for $1B Mixed-Use Project in San Diego

The development of the 3 million-square-foot Navy Broadway Complex in San Diego will not be stopped by the California Coastal Commission now that a U.S. District Court has ruled that the state entity does not have the standing to require developer Manchester Pacific Gateway L.L.C. to secure a Coastal Development

The development of the 3 million-square-foot Navy Broadway Complex in San Diego will not be stopped by the California Coastal Commission now that a U.S. District Court has ruled that the state entity does not have the standing to require developer Manchester Pacific Gateway L.L.C. to secure a Coastal Development Permit for the $1 billion project.The ruling comes nearly one full year after Manchester filed a suit against the Commission following its claim of jurisdiction over the development, which will be constructed in a public-private partnership on property owned by the U.S. Navy. It was Manchester’s assertion that because the project will sit on Navy land, on which the company has a 99-year ground lease, it should fall under the domain of the federal government and its coastal laws. Now that the judge has concurred, Manchester is free to move to the next step in the development process of the Navy Broadway Complex, or NBC–sort of.Located on nearly 15 acres along Downtown San Diego’s waterfront, NBC will be home to the Navy’s new 17-story Southwest Regional Command Center, in addition to a bevy of commercial offerings. Office and retail space, as well as a hotel and a museum will also grace the property. Additionally, five acres of public park and open space will be incorporated. Despite Manchester’s successful bid to designate the Commission’s demand for a coastal development permit illegal, the company says it has every intention of respecting the environment and the coastline. But other relevant obstacles must be cleared before construction can move forward. “The project got reviewed under the National Environmental Policy Act and the California Environmental Quality Act, and both reviews are being challenged,” Steven Strauss, a partner at law firm Cooley Godward Kronish, told CPN today; Strauss litigated the Commission case on behalf of Manchester. The cases are set for trial in May and October, respectively. Manchester will be held to that promise, as the court ordered that the project be reviewed under federal coastal law.San Diego-headquartered Manchester Pacific Gateway L.L.C. is a subsidiary of Manchester Financial Group, a company that specializes in the development of commercial and hotel properties.