Navy’s Epic Revamp of 70+ Acre Old Town Campus Gains Momentum

The Navy is deep into an environmental review as mandated by the National Environmental Policy Act (NEPA) to examine the potential environmental impacts of revitalizing a site at Naval Base Point Loma. A Draft Environmental Impact Statement (EIS) was released in 2021, opening the floor for public scrutiny and feedback. Responding to public input, the Navy began a competitive solicitation process in November 2022 and identified Manchester/Edgemoor as a potential master developer by January 2024. Currently, in an exclusive negotiation phase, Manchester/Edgemoor is set to seek local approvals, necessary environmental documentation, secure financing, and negotiate a potential lease with the Navy.

Rear Admiral Brad Rosen, Commander of Navy Region Southwest, emphasized the importance of the Navy’s partnerships with the City of San Diego and surrounding communities for the initiative’s success. “While the Navy’s goal is new mission-capable facilities for NAVWAR and other tenant commands, the Navy recognizes that any project that is good for the Navy should also provide positive impacts to the community,” said Rosen.

This initiative marks the Navy’s largest leasing endeavor, aiming to make underutilized property available for lease at Naval Base Point Loma. In return, the Navy would receive new state-of-the-art facilities for NAVWAR, which currently operates out of near-obsolete World War II era aircraft manufacturing plants.

Relocating and upgrading these facilities is not merely a strategic move for NAVWAR but also a potential boon for addressing San Diego’s housing shortage. The site is centrally located and ideal for transit-oriented development, which could provide housing and a new tax base for the City, County, and State.

NAVWAR’s economic contributions to San Diego are significant, with an annual budget exceeding $11 billion and creating 18,858 jobs in the area in fiscal year 2022 alone. Additionally, NAVWAR generated $8.4 billion in contracts with private industries, with $1.74 billion of that within San Diego. Moreover, the command provides 50% of all cybersecurity jobs in San Diego.

Revitalizing the Old Town Campus offers a mutually beneficial outcome for both the Navy and the community. The proposed leasing initiative includes developing new NAVWAR facilities while also accommodating housing, retail, commercial spaces, and potentially a transit center within the site. However, the Navy needs to complete an EIS and reach a Record of Decision before the project can commence.

Neal Fleming, President of Edgemoor Infrastructure & Real Estate, expressed enthusiasm for engaging with the local community during the environmental review process. “This project represents a generational opportunity for the Navy and City of San Diego, and we intend to make sure the community is involved in each step along the way,” said Fleming.

Since their selection, the Manchester/Edgemoor team has initiated outreach efforts with the City of San Diego, County of San Diego, state and local transportation agencies, and other stakeholders to gain a better understanding of their priorities.

“We remain dedicated to continuing our collaboration with the Navy and the City of San Diego to create cutting-edge government facilities for the Navy, alongside an engaging mixed-use development for the wider community,” said Ted Eldredge, President & CEO of Manchester Financial Group.

The Navy and Manchester/Edgemoor have pledged to maintain active engagement with the community throughout all phases of the project. Details on future public engagement opportunities will be announced in due course.