The Port of San Diego and the United States Navy have come to an agreement that will result in the early relinquishment of the United States Navy’s lease at 1220 Pacific Highway.
The Navy has leased the 13,759 square meters facility just east of the B Street Pier between North Harbor Drive and Pacific Highway since 1949, mostly for office use.
When the Port was created in 1962, it inherited the lease from the City of San Diego, which was scheduled to expire in 2049. The acquisition of the land opens up new potential for public access, recreational, and commercial development in a prominent section of the San Diego Bay waterfront.
This agreement indicates a continuation of the two agencies’ long-standing positive partnership. In 2022, the Port and Navy inked a first-of-its-kind deal giving the Navy access to California’s Low Carbon Fuel Standard (LCFS) market to assist fund electrification initiatives throughout San Diego Bay. The Port and Navy also collaborate on bay natural resource management and efforts linked to sea level rise.
Furthermore, the Port will provide the Navy with US$5.75 million in enhancements for facility or support services under an inked Lease Termination Agreement.
The Port will also advance land use planning goals to provide new public access and recreation spaces, such as expanding Lane Field Park northward along Harbor Drive, extending B Street to San Diego Bay, adding more visitor-serving amenities and parking, and improving mobility connections.
“This is historic. We are thrilled we have a deal with the Navy that means there will soon be more for visitors and our communities to enjoy and experience along our San Diego Bay waterfront,” stated Rafael Castellanos, chairman of the San Diego Board of Port Commissioners.
