SAN DIEGO – The Navy announced today the selection of Manchester Financial Group/Edgemoor Infrastructure & Real Estate (Manchester/Edgemoor) as the potential master developer for the 70.3-acre Naval Base Point Loma Old Town Campus (OTC). The Navy and Manchester/Edgemoor entered into a period of exclusive negotiations for the potential revitalization of OTC, home to Naval Information Warfare Systems Command (NAVWAR). From August 2023 to December 2023, the Navy evaluated proposals received from potential master developers. The Navy selected Manchester/Edgemoor after completion of a comprehensive source selection evaluation process.
“This is an exciting milestone for the Navy and San Diego. We look forward to continuing progress on the potential revitalization of OTC,” said Rear Admiral Brad Rosen, Commander of Navy Region Southwest. “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. We have every faith that the Manchester/Edgemoor team will be respectful and collaborative partners in this effort.”
Edgemoor is a pioneer in the development of public-private partnerships (P3s) and has completed every project on time and on budget. With over $4.6 billion in projects completed or under development, Edgemoor emphasizes delivering projects that meaningfully impact our communities. Manchester has developed over six million square feet locally, including the very successful new Navy administration building downtown, and re-envisioned and re-imagined the waterfront of San Diego.
The Manchester/Edgemoor team includes Clark Construction Group as design-builder, HKS as the designer for the government facilities, HOK as master planner and designer for the private development, and Dealy Development for entitlements.
“We commend the Navy’s decision to modernize its infrastructure and consolidate its activities on the OTC site,” said Neal Fleming, President of Edgemoor Infrastructure & Real Estate.
“The Manchester/Edgemoor team is committed to working closely with the Navy and the City of San Diego to deliver the next generation of elite government facilities for the Navy and an exciting mixed-use development for the Navy and broader community. We are ready to work with all stakeholders through the entitlement process,” said Ted Eldredge, President & CEO of Manchester Financial Group.
The Navy will work with Manchester/Edgemoor on multiple options for the private development of the approximately 70.3-acre site, while continuing to evaluate the feasibility of a NAVWAR-only development funded by traditional military construction methods.
Manchester/Edgemoor will provide the Navy site-specific details needed to continue the Navy’s environmental impact analysis required by the National Environmental Policy Act and other statutes. The Navy will evaluate those site-specific details against the alternatives analyzed in the Draft Environmental Impact Statement released for public review and comment from May through August 2021.
“This is another step toward a win-win outcome for NAVWAR and the City of San Diego,” said NAVWAR Commander Rear Adm. Doug Small. “We need secure, safe, and modern facilities for our world-class workforce in order to keep pace with our growing mission requirements - delivering and sustaining information warfare capabilities for the Fleet and our partners around the world.”
The Navy will continue to work with Federal and state agencies to fulfill regulatory requirements and will continue to engage the public in the environmental review process. The Navy expects additional opportunities for public engagement as the project progresses.
Background
The objective of the Navy OTC Revitalization Project is to provide new mission-capable facilities for NAVWAR, its subordinate command Naval Information Warfare Center Pacific (NIWC PAC), and other tenant commands. The Navy’s alternatives look at providing these facilities through Navy-only funding (MILCON) and through public-private development. In a public-private development, the developer would lease and develop a portion of the land in exchange for new Government facilities.
The Navy received proposals for the OTC Revitalization project from shortlisted potential master developers in August 2023. The source selection evaluation process identified the team whose proposal conformed to the solicitation, best met NAVWAR’s mission requirements, and represented the best value to the Government. Proposals included details such as site and design drawings for the new government facilities; demonstration of the concept for private development; specifics on how the developer would finance the project; and a proposed schedule for achieving key milestones of the government facilities.
The Navy OTC facilities, serving as NAVWAR’s headquarters, are well beyond their useful life and negatively affect NAVWAR’s cyber warfare mission, security, and workforce safety. The Navy’s proposed revitalization of OTC facilities would meet design standards for safety and security while enabling sustainment of NAVWAR’s national defense mission.
Economic Impact
NAVWAR is a significant economic contributor to the San Diego regional economy, infusing approximately $3.5 billion annually to the San Diego Gross Regional Product and generating 29,000 jobs, based on the
2019 NAVWAR Economic Impact Study prepared by the San Diego Military Advisory Council (SDMAC) and the Point Loma Nazarene University Fermanian Business and Economic Institute. NAVWAR provides a tremendous benefit through university engagement, employment, contracts awarded to local businesses, operational spending, command-related visits, and other direct and indirect impacts to the local economy.
Environmental Review
The Navy is preparing an
Environmental Impact Statement that analyzes a variety of alternatives and their potential environmental impacts and includes opportunities for the public to be involved in the process. This process supports and informs the Navy’s decision on how to proceed with the proposed project. The site-specific details received from the selected potential master developer will help inform the Navy’s environmental analyses under statutes such as the National Environmental Policy Act, the National Historic Preservation Act, and the Coastal Zone Management Act, among others.
Stay Up to Date!
Details of future public engagement opportunities will be announced when scheduled. The Navy is committed to remaining engaged with the community throughout all phases of the project.
The Navy encourages interested parties to sign up for the OTC project
mailing list to receive notices about the project and opt-in for text message alerts (or update their contact information).
For More Information
Additional Background Information
What is NAVWAR Revitalization?
NAVWAR Revitalization is a U.S. Navy real estate project in San Diego to replace 80-year-old obsolete World War II B-24 bomber factories on Naval Base Point Loma Old Town Campus (OTC). The project includes approximately 70.3 acres of Federal land and could include the demolition of existing facilities with construction of new state-of-the-art mission capable buildings, utilities, and infrastructure. The project requires approximately 1.7 million gross square feet of office, lab, and warehouse space for approximately 5,000 Federal and contractor personnel. Revitalization could occur through Navy-funded development of the site or through a public-private partnership. Public-private options could include commercial mixed-use development (housing, retail, commercial), including options with a mass transit center.
Where is OTC located?
OTC is located at 4301 Pacific Hwy - approximately 1.5 miles from downtown San Diego and a half-mile from the San Diego International Airport. OTC is located in the Midway-Pacific Highway Community Planning District, near Interstate 8, Interstate 5, and Pacific Highway. The property is adjacent to the Old Town Amtrak and San Diego Trolley stations.
Why is the Navy pursuing this project?
OTC is home to Naval Information Warfare Systems Command (NAVWAR). The existing World War II aircraft factories are beyond their useful life and their degradation is affecting NAVWAR’s cyber warfare mission, security, and workforce safety. Revitalization will address substandard, inefficient, and obsolete facilities that are incapable of meeting and sustaining NAVWAR’s mission requirements.
For media inquiries, contact:
Caitlin Ostomel, Director of Public Affairs, Commander Navy Region Southwest
619-705-5240 or 619-607-2459; caitlin.r.ostomel.civ@us.navy.mil
Christine Tuomey Lewellyn, Director, Creative Strategy, Edgemoor Infrastructure & Real Estate
301-272-7411 or 301-742-8316; christine.lewellyn@edgemoor.com