New life for Old Police Headquarters
Port District, developer nearing makeover deal
By Ronald W. Powell
UNION-TRIBUNE STAFF WRITER
March 6, 2008
SAN DIEGO – The Old Police Headquarters, an architectural jewel that has languished near the San Diego waterfront for more than two decades, will likely begin a reincarnation as a commercial center this summer.
An artist's rendering shows a view of planned redevelopment at the Old Police Headquarters next to Seaport Village.
Confidential negotiations between the San Diego Unified Port District and developer Terramar Retail Centers over the financing and lease terms are nearing conclusion, and both sides are confident the $40 million makeover can begin around midyear.
If that happens, Terramar says the stately Depression-era structure that is listed on the National Register of Historic Places could emerge with the verve and allure of Seattle's Pike Place Market or Boston's Faneuil Hall Marketplace.
“It's a gorgeous building, and we think we can adaptively reuse it in a wonderful way,” said Terramar's Bruce Walton of the 100,000-square-foot, two-story complex at Kettner Boulevard and North Harbor Drive, adjacent to Seaport Village.
The sticking point has been the nature and the amount of a subsidy the Port District is willing to provide to make the deal work.
Overview
Background: The Old Police Headquarters was built in the 1930s with money from the Public Works Administration. It served as a dispatch center, jail and court until 1987, when San Diego police moved to a new headquarters on Broadway.
What's changing: The Port District, landlord of the complex, is entering the final stages of a lease deal to rehabilitate the headquarters. A Carlsbad developer, Terramar Retail Centers, plans to renovate the structures and make space for two large restaurants, a public marketplace and specialty shops.
The future: Both sides expect to strike a deal by summer. Terramar wants to begin renovation during the summer on what is expected to be a two-year construction job.
Under the development plan for the 7-acre site, two large restaurants and a public market would occupy most of the space, with specialty retail shops rounding out the mix of venues. Construction would take about two years.
Walton said his company will keep 90 percent of the building intact, including its facade, which is an example of Spanish Colonial Revival and Classical architectural styles.
Progress has been slow since the California Coastal Commission approved a redevelopment permit in August 2006, because of the mounting expense of renovating a historic building and the high price of borrowing money in a struggling economy, Walton said.
Port Commissioner Laurie Black said a port investment will pay off when the city's former law enforcement hub is turned into a hot spot for tourists and locals.
Black said the port assisted the 30-story Hilton Hotel – slated to open in November – with a $46.5 million subsidy and should help the Terramar project. Both developments are on the South Embarcadero on port-administered state tidelands, and the agency would receive rent from them.
“I don't see any difference in helping build the Hilton and rehabilitating the Old Police Headquarters,” said Black, a San Diego representative on the seven-member commission. “It will be a gift to tourists and the people of San Diego.”
Gary Smith of the 400-member San Diego Downtown Residents Group said he is looking forward to a rebirth of the headquarters, which has been shuttered since 1987.
“We're so tired of looking at that pink monster,” Smith said.
He believes the development plan could invigorate the waterfront, but fears that the port will set rents so high that only national restaurant chains will be able to afford the space.
Smith said he has pushed for local restaurateur Diane Powers to bring her colorful mix of food and shops to the headquarters. He believes that Terramar will need someone like Powers to bring a local flavor to the venture.
Powers held the lease for 34 years at Old Town State Park until a new concessionaire was chosen in 2005. She operates the Casa Guadalajara restaurant on the fringe of Old Town, as well as nine shops.
Walton said his Carlsbad-based company has had talks with Powers and has also drawn interest from some “popular national eateries.”
“It would be great to get some local business owners and operators,” he said.
Walton said his company and port officials are struggling to find a rent structure that works for both. He said the port will “not be writing us a check” to assist in the rehabilitation, so the deal likely hinges on a rent allowance.
Paul Fanfera, the port's senior director of real estate, said the port is reviewing Terramar's development costs as well as its revenue projections once the headquarters reopens as part of its review.
“We're getting to the point where hard decisions will have to be made,” Fanfera said.
Said Walton: “We're working our way through a rent and economic package, and we're optimistic that we're 60 days away from an agreement.”