San Diego officials have decided to retain four historic officers’ quarters on the former Naval Training Center as the California Coastal Commission recommended, but will not have to spend $3.2 million to do so.
City Council members voted 8-0 to approve the land-use portion of the plan, and 7-1, with Councilwoman Donna Frye opposed, to approve the plan’s environmental portion during their July 17 session.
Councilman Ralph Inzunza Jr. was absent.
The city’s original plan was to turn over the four houses to the project’s developer, National City-based Corky McMillin Cos., which planned to sell them for $3.2 million.
But the Coastal Commission recommended the houses remain in public ownership. At the time, city officials indicated San Diego might have to pay McMillin for the lost revenue or renegotiate the business plan.
Megan Conley, a McMillin spokeswoman, said that’s not the case.
“It’s our risk,” Conley said. “We’re hopeful we will be able to make up some of that revenue in future cost savings.
“If we never make up the money, we never make up the money. Hopefully we can.”
Conley said McMillin will work with the city’s redevelopment agency, the Centre City Development Corp., to find ways to cut costs in construction and building materials, for example. She said there could be other methods to make up the lost revenue, but primarily the focus is on cutting costs related to the physical work.
The Coastal Commission recommended at least one of the houses be used as a museum. The others could be leased and used as a bed-and-breakfast, short-term rentals, or for private residential use.
Among the 28 changes recommended by the commission, which met on June 12 in Los Angeles, included height limitations on buildings in the residential and business areas, ensuring a former chapel on the site is available 50 percent of the time for civic and public use, and preserving and enhancing public views.
The city’s modified plan will go back to the Coastal Commission for approval in mid-August. The commission must approve the $500 million plan before development can start.
The 361-acre plan calls for 350 houses, 1,000 hotel rooms, 46 acres for open space and parks, two hotels, a civic arts and cultural center and space for educational facilities, offices and restaurants.
