Competing Developers to Work Together on Harbor Island Plan

Oliver McMillan and Sunraod Enterprises will work together on a plan.

Commissioners with the San Diego Port District on Thursday were expected to decide between two development plans that will bring astounding change to the east end of Harbor Island.

In the end, the commissioners couldn’t choose just one. Instead, they picked both, and asked the two developers to work together and come back with a revised plan.

“We dropped the green flag on these discussions and I’m very hopeful that within the next few months, we can have staff report back to us about the progress of these discussions,” said port Chairman Marshall Merrifield.

Sunroad Enterprises had proposed a $600 million plan that would have included two hotels, research space, a so-called urban beach and two pedestrian bridges.

A second plan by developer Oliver McMillan was a more ambitious $1.2 billion plan that included two hotels with up to 750-rooms, a so-called "boat-el", and a canal for kayaks and small watercraft.

The McMillan plan was recommended by Port District staff, but in the end, commissioners voted 5-1 to ask the developers to work together on a new plan.

The motion that won approval directs Sunroad to build 325 rooms on the east end of the island. McMillan will be responsible for developing the rest of the island.

Both developers said they were happy with the compromise.

“I think there were some complex issues that the board tried to wrestle through as best they could. I respect that decision and we’re going to make a good project,” said Paul Buss, president of Oliver McMillan.

It remains to be seen what will become of the proposed canal and pedestrian bridges.

“We have to see what staff can give us as far as guidance with regards to what are the features that are really most important and which are the features they think should be integrated in both parts of the project,” said Yuri Feldman, president of Sunroad Enterprises.

Whatever the final plan becomes, it will need environmental reviews and a change in the port master plan would have to be approved by the Coastal Commission. One of the developers said that the process could take up to five years.

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