CCDC’s ‘Thrust’ Called Not Compatible : Rival’s Exit Aids Downtown High-Rise Project
Plans by Seaport Manfred Co. Inc. to build a 25-story, 750-room hotel and a high-rise 150-unit apartment building on two key blocks in downtown San Diego moved an important step forward Friday when a rival developer dropped his proposal for a similar project on the same property.
The two proposals had been on a collision course since April 3, when newcomers led by James Clark, an orthopedic surgeon from La Jolla, asked the Centre City Development Corp., the agency in charge of downtown redevelopment, to delay its negotiations with Seaport Manfred.
Was Taken by Surprise
Clark, representing his wife’s ownership interests on one of the blocks proposed for development, said Seaport Manfred’s plans had taken him by surprise; he asked for more time to come up with definitive plans and concepts.
The CCDC agreed, giving him until June 5. Though the agency regularly holds competitions between developers, it is under a legal requirement to give property owners in renewal areas first shot at carrying out development proposals.
Clark, who brought on advisers Bernard Fipp, a former top official for the Koll Co. in San Diego, and residential developer Judd Halenza, then met with CCDC officials Gerald Trimble and Max Schmidt.
After a crucial meeting last Tuesday with the CCDC, Clark’s wife, Ging Ling, notified the agency in a letter two days later that because of restrictions placed on the development by CCDC, principally that the residential part had to be high-rise, the group was dropping the project.
“Our proposal of hotel, parking and 150 non-high-rise housing is market oriented and can be successfully financed, developed and completed . . . without subsidy. However, we concluded that because the current thrust of CCDC is to encourage high-rise residential construction, we are not at this time prepared to follow through with that type of project,” Ling said in her letter.
Neither Clark nor Ling was available for comment. Clark’s attorney on the matter, Christopher Neils, referred calls to Clark.
Departure Clears Way
The Clark group’s departure opens the door for Seaport Manfred, which wants to proceed with its $116-million development in a two-block area bounded by 1st Avenue, Front Street, Martin Luther King Way and the railroad tracks next to Harbor Drive.
The area is regarded as a key entrance to downtown and Horton Plaza from the convention center and is scheduled for significant changes, including the punching through of 1st Avenue and Front Street across the railroad tracks to Harbor Drive, as well as being the site of a proposed bayside trolley station and pedestrian bridge.
“We’re pleased,” said one of Seaport Manfred’s principals, Roger Manfred, in a prepared statement responding to the sudden change of events. “This enables Seaport Manfred . . . to move forward as originally anticipated. We will be working with CCDC and the city to ensure that we meet their time lines. As this progresses, we’ll be able to talk about it more.”
Seaport Manfred is composed of Manfred, a hotel developer, and Seaport Village principals Morris B. Taubman and Lee Stein.
The company’s proposal, unveiled in late March, envisions development of Roger Morris Plaza (taking the first names of Manfred and Taubman), consisting of a 25-story hotel, an adjacent 15- or 16-story apartment complex, and 60,000 to 100,000 square feet of retail commercial spaced on the lower floors of the hotel and apartments. The development involves no public subsidy.
1991 Completion Seen
Plans call for breaking ground late next year and completion sometime in 1991.
Seaport Manfred formed an development agreement with the Ice Block partnership, which owns the northern 60,000-square-foot block. In contrast, the Clark group owned 10,000 square feet of property--or about a quarter--of the southern block.
Last month, Clark said that despite several meetings, he and Seaport Manfred officials, represented by Stein, were unable to agree on a possible joint venture.
As for whether the Clark group’s abandonment of their proposal means that Seaport Manfred has agreed to buy out Clark’s interest, Tom Gable, whose public-relations firm represents Seaport Manfred, said, “Absolutely not.”
Gable said Seaport Manfred will work through the CCDC--which has the power of condemnation--to acquire the necessary land for the project.
Trimble told CCDC directors Friday that he will give them a proposed negotiation agreement with Seaport Manfred on June 5. The agreement formalizes negotiations between the agency and the developer, with the expectation that negotiations will lead to a development contract.
The contract would have to be approved by the board of directors and the City Council.
