Port of San Diego Approves Lease Deal and Renovation Plans for Coronado Ferry Landing

The Port of San Diego Board of Port Commissioners has approved an Option to Lease Agreement with Port Coronado Associates, LLC (PCA) for the continued operation of the Coronado Ferry Landing. The proposed amended and restated lease agreement includes PCA's planned renovation project for the center.

The iconic Coronado Ferry Landing opened in 1987. The unique waterfront shopping and dining destination has incredible views of San Diego Bay and the San Diego skyline, and features a public ferry pier and boat dock, offering bay access for the public. The center is currently under a 40-year lease with PCA that is scheduled to expire June 30, 2026. If PCA meets all the requirements of the Option agreement, they will be granted a 35-year amended and restated lease and can move forward with their proposed two-phased, two-year renovation project.

"This agreement is good for Coronado, for people who visit and enjoy the center, and for those whose livelihoods depend on its success," said Chair Ann Moore, Port of San Diego Board of Port Commissioners. "It's also a positive outcome for the Port and the public. The agreement preserves a cherished destination, helps ensure its long-term vitality, and generates additional revenue to the Port that we can reinvest into public amenities and services on and around the bayfront."

"I am pleased we got a deal done," said Commissioner Frank Urtasun, Coronado's appointee to the Board of Port Commissioners. "Not only will the center remain open, but the renovation plan preserves its existing charm and delivers on long-needed improvements and modernization - exactly what the City of Coronado and our community has wanted from the start. I appreciate PCA's commitment to seeing this through and I wish them success into the future."

"Port Coronado Associates appreciates the collaboration and partnership that made this milestone possible and look forward to continuing our investment in one of the region's most iconic waterfront destinations," said Christian Herrera, vice president of development and operations, Port Coronado Associates. "Our commitment is to create a vibrant, welcoming and world-class experience that reflects the unique character of Coronado while serving residents and visitors alike. We are excited to build on the Ferry Landing's legacy and ensure it remains a place the people of Coronado can take pride in for generations to come."

PCA's planned renovations are anticipated to begin in 2027 and include:

• Upgrades to the common areas, plazas and landscaping;

• Modernization of building systems and parking facilities; and

• Targeted structural and utility improvements to the ferry pier.

The total anticipated project cost is $21.9 million, which includes future tenant improvements, soft costs, and construction costs. The amended and restated lease will be executed if PCA completes specific preconditions before June 30, 2027. The preconditions include, but are not limited to:

• An agreement that extends existing subtenant leases through June 30, 2027 in the event the Option terminates prior to its expiration;

• Beginning early work that includes investigative review and selective building component demolition; parking infrastructure improvements, landscape and asphalt upgrades;

• Submittal of working drawings and construction contract;

• Securing project financing;

• Obtaining construction and/or development permits;

• Delivering payment and performance bonds;

• Providing pre-negotiated letters of intent with prospective and/or existing subtenants for no less than 25% of the total leasable square footage of the site.

The Coronado Ferry Landing consists of an approximately 38,000-square-foot specialty retail shopping center, two parking lots, a public ferry pier and public boat dock on an approximately 13-acre bayfront site at 1201 First Street in the City of Coronado.