The reality of a baseball park being built Downtown continues to be delayed, with the city approving a fifth extension to issue bonds to cover their portion of the deal.
Nonetheless, the mood among businesses Downtown remains optimistic the project will get done , eventually.
“I don’t think there’s anybody who feels it’s anything but complicated,” said Leslie Wade, a spokeswoman for the East Village Association. “At this time, there is not pessimism in the community, but there is a concern, and we want to be as supportive of the city as possible because they have a huge task in front of them.”
Wade said there’s still a wait-and-see attitude from businesses and developers looking to move into the East Village, but she said the ballpark is not the only catalyst for new tenants. Housing developments continue to be built Downtown despite inactivity surrounding the ballpark.
“The initial momentum (with the ballpark project) was so fast,” Wade said. “It was almost like Downtown didn’t know what hit it. Now, we’re just kind of waiting and holding on.”
Jeff Schwimmer, owner of Old World Deli at Eighth Avenue and Island Street, witnessed the momentum of the project coming to an abrupt halt.
“Between them closing all the streets and demolishing the buildings that housed our regular customers, so far those have been replaced with nothing,” Schwimmer said.
Schwimmer said he was busy when construction work was under way. Workers would routinely come in for lunch and the construction companies used the deli to cater meetings.
But when work on the project stopped, so did regular activity for in his shop. Still, Schwimmer hasn’t given up hope.
“I don’t have any reason to believe that the ballpark is not going to get done,” he said. “The question is when.”
In 1998, voters approved Proposition C, which included a memorandum of understanding giving the city the right to work with the Padres to build a baseball-only stadium in the East Village.
Numerous Roadblocks
The initial agreement was to expire in March 2000. It has been extended several times since, because the city has not been able to issue $225 million in bonds to cover its portion of the deal. Delays were caused by numerous lawsuits challenging the deal and a federal investigation into the actions of former city councilwoman Valerie Stallings.
“When you have 14 or so lawsuits, there will be delays,” said Councilman Byron Wear, whose 2nd District includes the ballpark site. “The city manager and mayor are working very hard to put together documentation for bond underwriters and putting together paperwork to insure the city against lawsuits.
“We want to get this project back on track.”
Delays have caused the project’s cost to escalate from the original $411 outlined in the agreement to about $452 million, according to the city. Of that amount, the city’s portion will be $225 million, and the Padres and its private development partners will pay $149 million. The Centre City Development Corp., the city’s redevelopment agency, is expected to contribute $74 million and the San Diego Unified Port District has committed to $21 million.
San Diego Mayor Dick Murphy has said he hopes the bond measure to finance the city’s portion of the expected $225 million should go before the City Council by the end of November, and work should re-start on the project by the end of the year.
That’s little consolation for JMI Realty, the company owned by Padres majority owner John Moores, which is responsible for redeveloping 26 blocks surrounding the ballpark. That redevelopment plan calls for more than 700,000 square feet of office, retail or commercial space, along with 850 hotel rooms in the 26-block district.
Withdrawal From Project?
Dennis Cruzan, JMI’s chief operating officer, said the company has invested nearly $50 million into ancillary development surrounding the project. But, he said, if the ballpark doesn’t happen, neither will that development.
JMI began construction on the larger of three hotels it plans to build near the ballpark, but work stopped on the 512-room Westin Hotel in April. That project is expected to cost $160 million, and Cruzan said work will not start again until city’s bond measure is issued.
The company has secured $100 million in construction financing for the Westin. Cruzan would neither confirm or deny reports that JMI is seeking additional funds from the San Diego City Employees Retirement System. It was reported that a representative for the company appeared before the board of the employment group to discuss pension-fund financing for the proposed hotels.
“We’re talking to a lot of different people on a variety of fronts,” Cruzan said.
JMI also plans to build a 203-room AmeriSuites Hotel and another 150-room hotel. If the ballpark is not constructed, however, one or more of those hotels could still be constructed to serve the expanded San Diego Convention Center near the ballpark site.
Cruzan said that is yet to be determined.
