Seaport Village Expansion OKd Despite Manchester’s Objections

Despite strenuous objections from Hotel Inter-Continental developer Doug Manchester, the San Diego Unified Port District on Tuesday granted Seaport Village Ltd. an option to develop 12 acres at the site of the old police headquarters.

The action will allow Seaport Village to triple its size, expanding inland its bayside complex of restaurants, stores and entertainment spots.

Seaport Village attorney Richard Burt described Tuesday’s action as “the end of the first phase.”

“Seaport Village has had plans for an expansion project for a number of years, and today the port commission signaled its approval of those plans,” Burt said. “The port commission did the right thing and granted the option. We now have to perform the conditions of the option. And we will do that.”

The price of the 24-month option is $280,000 for the first year and $23,333 for each of the second 12 months. During that time, Seaport Village must develop plans for the project, secure Port District approval of the plans, and acquire financing for the expansion, which is expected to cost $40 million to $50 million.

Manchester has contested the proposal for some time. In January he successfully delayed the port commissioners’ approval of the plan by claiming that the Port District could gain more revenue by allowing one of his hotels to use a site where Seaport Village plans to build a parking garage.

Christopher Neils, an attorney for Manchester, told the commissioners that the difference in return would be “positively staggering.”

At issue is the proposed rerouting of Harbor Drive--one of the options in the Seaport plan--that Manchester said would make access more difficult to a third hotel that he plans to build next to Seaport Village.

Manchester, who has the right to veto the Harbor Drive rerouting, said he would agree to it if the commissioners gave him control of the parcel where the shopping center plans to build its parking garage. But Burt said that “a retailer has to control his own parking.”

With Manchester threatening to exercise his veto, commissioners recessed briefly in hopes that attorneys for Manchester and Seaport Village could reach an agreement.

When no compromise was reached, the commissioners approved the Seaport plan anyway.

Seaport Village architect Frank Hope said that the project could go forward, even if Manchester exercises his veto.