San Diego Port Authority Denies $455 Million Hotel Project

Longtime port residents Ray Carpenter and Art Engel were disappointed to discover that their $455 million project, that would provide over an additional 1,000 rooms in San Diego’s downtown bayfront, was denied by port commissioners. The two envisioned two hotels: The first was a 44-story hotel housing 843 rooms. The second was a more affordable option for travelers, with 220 additional rooms in a five-story hotel located on the bay side of the San Diego convention center.  

The vote failed to pass the board of commissioners by a 5-2 vote. Commissioners cited the project’s location and possible environment impacts as reasoning to deny the proposal. In order for the project to move forward, the Port of San Diego needed to certify an environmental impact report, but commissioners refused to do so. 

Downtown San Diego real estate would benefit from having affordable options for lower income tourists. This proposed project would have been the first to provide waterfront access to individuals who would otherwise be unable to afford such features. The nightly rate for the latter option would have been as low as $87. Carpenter expressed disappointment with the decision, noting that he had hoped to have the projects completed by as early as 2025. 

The site where the hotels were proposed to stand remains undeveloped, though the city has plans of enlarging their convention center. While the city’s plans have received the blessing of the Coastal Commission, the expansion remains in limbo because the ballot measure seeking to finance it, an increase in the city’s hotel room tax, failed to garner the two-thirds majority necessary for it to pass. 

The future of Carpenter and Engel’s projects remains uncertain. The two redeveloped their plans in an effort to appease port commissioners. They made necessary adjustments to reduce the environmental impact of their projects. Though the projects would have created some unintended issues in the city, including obstructed views and increased traffic, many recognize that the job creation and affordable lodging outweigh the costs. 

Reference

Leave a comment

Your email address will not be published. Required fields are marked *