In a decision generating a lot of confusion from Coronado community members and city officials, the Port of San Diego announced it will not renew a lease with the current operator of the Coronado Ferry Landing – a verdict that was made in a closed session meeting by the Board of Port Commissioners.
During a meeting on Nov. 4, Coronado City Council members expressed dissatisfaction and confusion. The council voted to question Port District leaders about how they reached their decision and what will happen with the property in the future. They also challenged the agency’s transparency.
Why was this meeting done in secret in a closed session? … What’s going to happen to our local businesses and the other businesses that can’t get an extension of their lease?
Coronado Mayor John Duncan
“Why was this meeting done in secret in a closed session?” asked Coronado Mayor John Duncan. “…What’s going to happen to our local businesses and the other businesses that can’t get an extension of their lease?”
For 40 years, Port Coronado Associates, or PCA, has managed the ferry landing and surrounding property owned by the Port District. The company was planning a $20 million redevelopment project that would revamp the property, which includes Spiro’s Mediterranean Cuisine and Coronado Coffee Company.
According to Christian Herrera, PCA’s vice president of development and operations, the Port District gave no advance indication that it was planning to terminate the lease.
“For nearly a decade, PCA has worked in good faith with Port staff,” Herrera said after the council meeting. He added that, since 2016, his company has been trying to discuss a lease renewal with the port.
PCA’s lease is supposed to end in July 2026, and the company has been talking with the Port for a decade about securing an extension, Herrera told The Coronado News.
“The negotiations were really one-sided,” Herrera added. “There was never a partnership in the negotiation. It was more of a, ‘Give me all the information that I’m asking for,’” he said of the Port.
Herrera said he had no idea where the negotiations were going until Oct. 30 when the seaport agency informed PCA of their decision.
The Port manages 34 miles of the San Diego Bay waterline, according to the agency’s website. The district does not collect tax dollars, but manages its real estate portfolio to generate revenues that support public services and amenities.
Port District board members could not be reached for comment on Tuesday.
Because of the Port’s sudden decision, businesses subletting from PCA are unsure of what their future holds.
“That’s one of the reasons why I haven’t been able to extend the leases for all of our subtenants who have been asking for many years,” Herrera explained.
The Port District board has scheduled a public discussion of the issue at a meeting on Dec. 9 according to Sharon Cloward, president of the San Diego Working Waterfront, who spoke during public comment at the council meeting.
This is a developing story.
