Development: Spinnaker Plan Scheduled for A Review in April
Although a few changes are still on the horizon, prospects continue to brighten for the sail-shaped Spinnaker Hotel project that could cost up to $70 million.
It’s expected the Spinnaker project, which is in the environmental impact review phase, will become part of an overall redevelopment plan for the South Embarcadero.
The 20-stories-tall, 250-room hotel would be built on a 4-acre land parcel between the San Diego Convention Center and South Embarcadero Park.
This week, representatives from the hotel’s development group, Fifth Avenue Landing LLC, are expected to meet with staff members from the San Diego Unified Port District.
They will begin ironing out issues brought up during last week’s public hearing on the South Embarcadero plan, said Perry Dealy, development manager for the Spinnaker project.
Among the issues are the cost and funding for a pedestrian bridge that would connect the Spinnaker to the Convention Center, retaining public basketball courts near the Spinnaker site, and the costs and funding of two sets of public restrooms, one of which would be located near a proposed water taxi location at the hotel.
The Spinnaker project is scheduled to go before commissioners again April 17, said Rita Vandergaw, a Port District spokeswoman.
If the questions are answered to commissioners’ satisfaction, they would vote on the project and likely approve it, she said.
The South Embarcadero plan will eventually go before the California Coastal Commission for approval, including switching the Spinnaker property’s land use designation from marine to commercial-recreational.
Before that occurs, however, the port must complete the EIR phase and certify the project.
Possible Changes
Earlier in the EIR, Fifth Avenue Landing made an initial proposal that went into the EIR document. They have since made other changes to the project in response to previous comments made by community groups and stakeholders such as the San Diego Convention Center Corp. and the California Coastal Commission.
According to Dealy, president of Dealy Development Inc., changes made in response to those previous comments included shifting the hotel tower 20 feet west and lowering the ballroom’s height to 25 feet.
Other major changes included expanding the property’s pedestrian promenade, adding new driveway access off Convention Way and further defining a water transportation center planned for the property.
The changes added an estimated $500,000 to the Spinnaker project’s cost, Dealy said.
Fifth Avenue Landing currently consists of partners Art Engel and Ray Carpenter, both local businessmen.
Among other companies, Engel owns water taxi service San Diego Harbor Excursion. Carpenter owns a local marine construction engineering firm. Neither Engel nor Carpenter has owned or built a hotel before.
They are planning to bring in a hotel brand as a third partner.
“We’ve got four flags that we’re currently in discussions with to become a joint venture equity partner,” Dealy said. He did not identify the companies.
Finding a strong brand will be an important factor in finding financing for the project, said Bob Rauch, a local hotel analyst.
Rauch sees good prospects for the Spinnaker. “Location is A+,” he said, “and I think the size is probably a little less than what the Convention Center and the convention bureau need, but it’s certainly financiable. There’s no reason why it wouldn’t be anything but a tremendous success.” Pat Shea, chairman of the board of directors for the Convention Center Corp., echoed part of Rauch’s sentiments. The Convention Center’s priority for hotel development Downtown is the third Convention Center headquarter-size hotel, the 1,200-room Campbell Shipyard project.
The hotel is considered necessary to fully utilize the Convention Center, which will open a nearly size-doubling expansion this fall.
The Campbell site is heavily polluted and the hotel’s developer, locally based Manchester Resorts, is awaiting its cleanup before it seeks financing for the project.
To put the Spinnaker in context, Shea explained, “What’s really important to the Convention Center is the development of the Campbell headquarters hotel.
“Our position to the port has always been if this helps get us the Campbell Shipyard hotel, then they should definitely do it because that is so critical to our success, and if it gets in the way, then it’s a real problem for us.”
If it’s neutral, then the Convention Center wants the port to look at land use issues, such as whether the Spinnaker will block the center’s views and if the project will cause more congestion for the traffic behind the center, Shea said.
Blocked views could hurt the Convention Center’s marketing as a waterfront property, he said.
