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Navy Selects Developers for What Would Be Among San Diego’s Largest-Ever Projects

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Navy Selects Developers for What Would Be Among San Diego’s Largest-Ever Projects


The U.S. Navy selected its development team for a planned mixed-use redevelopment of its massive defense technology research complex in San Diego, considered among the largest redevelopment projects in the city’s history.

After a year-long selection process, the Navy said it will negotiate formal project details and construction timelines with a team led by developers Manchester Financial Group of San Diego and Edgemoor Infrastructure & Real Estate of McLean, Virginia. The 70-acre project will also require regional government planning and environmental approvals before moving forward.

The Navy is looking to replace its aging Naval Information Warfare Systems Command complex, better known as NAVWAR and built in 1942 to produce bomber planes, with a new facility as part of a larger redevelopment in partnership with private developers. Potential elements discussed by the Navy and local government officials include more than 4,000 apartments along with new retail, offices and possibly a hotel.

Rear Admiral Brad Rosen, commander of the Navy’s Southwest regional operations, called the selection “an exciting milestone for the Navy and San Diego,” a region that is home to one of the world’s largest concentrations of military personnel and contractors.

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“While the Navy’s goal is new mission-capable facilities for NAVWAR and other tenant commands, the Navy recognizes that any project that is good for the Navy should also provide positive impacts to the community,” Rosen said in a Navy statement Tuesday.

The statement said the selected project team also includes Clark Construction Group as design-builder, with architecture firm HKS set to design the project’s government facilities. Architecture and design firm HOK will serve as master planner for the project’s private-sector elements, with Dealy Development handling entitlements.

A planned mixed-use development would replace an aging former bomber factory hangar complex in San Diego that currently serves as a Navy defense technology research facility. (U.S. Navy)

Manchester Financial was founded by longtime office and hotel developer Douglas Manchester, who previously worked with the Navy to redevelop an aging military office campus on the downtown San Diego waterfront into what is now a single office tower housing the Navy’s southwestern headquarters.

Manchester Financial CEO Ted Eldredge said in the Navy statement that the Manchester/Edgemoor team will work with the Navy and city “to deliver the next generation of elite government facilities” for the military with mixed-use elements to serve the community.

The Navy said it will also continue to evaluate the feasibility of a NAVWAR-only development funded by traditional military construction methods. For now, its public-private plan calls for the Navy to grant developers a 99-year ground lease at no charge for the federal property spanning about 70 acres and located 2 miles north of downtown San Diego.

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In exchange, developers will build the Navy a new defense technology research campus spanning about 1.7 million square feet on 10 acres within the property. The remaining 60 acres would be deployed by developers for elements that could include between 4,000 and 8,000 apartments, up to 1.3 million square feet of commercial offices, 225,000 square feet of retail and possibly an on-site hotel.

The planned redevelopment would include a replacement for the aging Naval Information Warfare Systems Command facility in San Diego. (U.S. Navy, Manchester/Edgemoor)

Project costs have not been finalized and will depend on elements ultimately planned for the site, but local officials have called the NAVWAR project among the largest redevelopments in the city’s history based on its acreage and the scope of its mixed-use elements. It is among several projects nationwide where the Navy is looking to redevelop older facilities to include commercial and housing components.

The Navy first issued a request for proposals in 2022 for the San Diego project and subsequently narrowed its selection process to at least four undisclosed development teams. The Navy is looking to update its regional cybersecurity and communications technology research operations after conducting patchwork repairs and updates to the aging San Diego hangar facility over the past few decades.



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Coastal Commission ruling opens door to development of National City waterfront

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Coastal Commission ruling opens door to development of National City waterfront


National City’s Pepper Park can soon expand in size by nearly 50%, thanks to a ruling this week by the California Coastal Commission to approve the National City Balanced Plan.

The approval of the plan at the CCC’s Wednesday meeting, developed by the Port of San Diego, means that not only will the popular park have the ability to increase in size, big changes are coming for commercial, recreation and maritime uses on the National City bayfront.

“We are grateful to the California Coastal Commission for its support of the National City Balanced Plan,” said Danielle Moore, chair of the Board of Port Commissioners. “The progress we have made has been anchored in tireless collaboration with the community, business leaders and, of course, the city of National City. It’s about bringing more recreational opportunities to the bayfront while also streamlining and strengthening maritime operations, and we are eager to bring these projects to life.”

Other components of the balanced plan include:

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  • Realigning Marina Way to serve as the buffer area between commercial recreation and maritime uses
  • The closure of Tidelands Avenue between Bay Marina Drive and West 32nd Street, and West 28th Street between Tidelands Avenue and Quay Avenue, around six acres, to increase terminal efficiency by eliminating redundancies
  • The development of a recreational vehicle park, tent sites, cabins and the “ultimate development of up to two hotels with up to 365 rooms, as well as dry boat storage,” a port statement read
  • A connector rail project to connect the existing rail and loop track located on the National City Marine Terminal to additional rail car storage spots at the existing Burlington Northern Santa Fe National City Yard east of the National Distribution Center

The Board of Port Commissioners must accept the CCC’s certification, then the port and city can begin the process of completing the above projects.

“I am proud of the work we have done to help create a lasting legacy for National City, the Port of San Diego, and the entire region,” said Port Commissioner GilAnthony Ungab. “Nearly a decade in the making, this plan balances the interests of the community and many other stakeholders, addresses public access, maritime, and recreation uses, and expands waterfront access in my community.”

The National City Bayfront is 273 acres of waterfront land and 167 acres of water, and includes the National City Marine Terminal, Pepper Park, Pier 32 Marina, the Aquatic Center and pieces of public art.



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Gloria announces effort to add more townhomes, cottages to San Diego neighborhoods

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Gloria announces effort to add more townhomes, cottages to San Diego neighborhoods


Mayor Todd Gloria announced an initiative Wednesday intended to expand housing options in neighborhoods by integrating small-scale residences such as townhomes, rowhomes and cottages into an area’s existing character.

The Neighborhood Homes for All of Us initiative is also intended to support community land trusts — nonprofit organizations that acquire land to create permanent affordable housing.

“Since Day 1 of my administration, I have been focused on building more homes that San Diegans can actually afford — and getting them built faster,” Gloria said at a news conference Wednesday. “‘Neighborhood Homes for All of Us’ is the latest piece of that puzzle. This innovative program will break down the barriers that have gotten in the way of building the type of housing that I believe is ideal for young families and first-time homebuyers for whom the dream of homeownership has long felt out of reach.”

Around 80% of land zoned for housing in the city is restricted to single-family homes, which continue to increase in price, Gloria said. And a significant portion of new housing being built consists of apartment buildings with primarily studio and one-bedroom units, leaving working-class families fewer and fewer options for homes.

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Neighborhood Homes for All of Us is intended to increase the housing supply and allow community land trusts to keep housing affordable in disadvantaged communities for low- to middle-income families.

“San Diego is an incredible place to raise a family, and more families need the opportunity to do that in San Diego’s existing, highly desirable single-family neighborhoods where their kids can learn and play in a great community,” City Planning Director Heidi Vonblum said. “But today, that comes at a price that is out of reach for too many. Integrating more options for families requires careful and thoughtful planning, with input from existing and future community members across the city, to ensure these new home opportunities for San Diego’s families are built in ways that best enhance and benefit San Diego’s amazing neighborhoods.”

The initiative will roll out in two phases. In the first phase, beginning this week and continuing through next summer, San Diegans can help determine what the neighborhoods can look like. The public will be able to see renderings showing small-scale neighborhood homes within San Diego’s existing communities, along with new regulations that “provide a clear pathway for building these homes,” according to a statement from Gloria’s office.

Phase 1 will also include an open house and ways for the community to provide feedback and concerns.

Phase 2, scheduled for the second half of 2026, will be for city staff to develop regulations allowing for the building of more neighborhood homes in a way informed by the public feedback.

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The initiative is partly funded through a Regional Early Action Planning grant from the San Diego Association of Governments.



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Affordable housing project for San Diego Unified teachers moves forward

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Affordable housing project for San Diego Unified teachers moves forward


The first of five affordable housing projects for San Diego Unified School District teachers was approved on Wednesday night.

The school board voted unanimously in favor of working with the developer who bid on the project at the Instructional Media Center on Cardinal Lane. The Affordable Workhouse Housing project promises 100% affordability, with 108 one-, two- and three-bedroom units, and some surface lot parking.

“It’s a practical solution to a very real problem, and it sends a message that we are committed to stability, not just for employees but for the students,” one speaker said.

Board members say the project will be fully funded by the developer, DECRO Corporation based in Culver City, and that the estimated annual rent revenue is $125,000 dollars. It is expected to increase 2.5% each year.

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Some in the neighborhood are concerned.

“We are one way in and one way out. We are built in a canyon,” neighbor Callie Grear said.

“Parking here is horrible,” neighbor Paul Grear said. “Everybody is parking in front of our street. I can’t even park in front of my house.”

“The safety of our neighborhood is in jeopardy with this plan,” neighbor Patricia Torres said. “We are already overcrowded. We are asking this board to reconsider building on this site.”

Despite the pushback, board members unanimously voted in favor of moving forward with the developer on this project. Unless exempt, it will first undergo city scrutiny. There are still four other locations still on which SDUSD wants to build.

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A vote for housing on those other four properties has been postponed until January so that the school board can hold a workshop and appropriately question the developers that are bidding on those projects.

In all five projects, San Diego Unified hopes to build 555 units in the next 10 years.



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