Navy’s 70+ acre Old Town Campus Revitalization Moves Forward

The Navy is currently in the environmental review process as required by the National Environmental Policy Act (NEPA) to assess potential environmental impacts of revitalizing the site. The Navy released a Draft Environmental Impact Statement (EIS) in 2021 for public review and comment. In response to comments received, the Navy began a competitive solicitation process in November 2022 and in January 2024 identified a potential master developer, Manchester/Edgemoor, to work with the Navy to develop site-specific details before a final alternative is selected. Now in an exclusive negotiation period, Manchester/Edgemoor may pursue local approvals such as permitting, any necessary environmental documentation, secure financing, and negotiate a potential lease with the Navy.

“The Navy’s enduring partnerships with the City of San Diego and surrounding communities are essential to this successful initiative moving forward,” 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.”

In the Navy’s largest leasing initiative, the Navy would potentially make available for lease, underutilized property at Naval Base Point Loma in exchange for new mission-capable facilities for its primary tenant NAVWAR.

NAVWAR currently operates out of 80-year-old World War II era aircraft manufacturing plants. The Navy proposes to replace these obsolete buildings with state-of-the-art facilities to meet NAVWAR’s mission requirements. Revitalizing the property, which is centrally located and ideal for transit-oriented development, could provide much-needed housing to help address San Diego’s housing shortage and provide a possible new tax base for the City, County, and State.

NAVWAR is a significant economic contributor to San Diego, with an annual budget in excess of $11 billion, the command infuses $3.3 billion annually to the region. In fiscal year 2022, NAVWAR created 18,858 jobs in San Diego, generated $8.4 billion in contracts with private industry, and $1.74 billion in contracts in San Diego. NAVWAR provides 50% of all cybersecurity jobs in San Diego.

Revitalization of the Navy’s Old Town Campus could achieve mutually beneficial outcomes for the Navy and San Diego. In this potential leasing initiative, the developer would provide new NAVWAR facilities in exchange for private development of the remainder of the site to include housing, retail, commercial and potentially a transit center. The Navy must still complete an EIS and reach a Record of Decision before the project can begin.

"The Manchester/Edgemoor team is excited to start engaging with the local community as we move forward with the Navy through 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 Neal Fleming, President of Edgemoor Infrastructure & Real Estate.

Since their selection earlier this year, the Manchester/Edgemoor team has initiated outreach and engagement with the City of San Diego, County of San Diego, state and local transportation agencies, and others, to better understand 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 are committed to remaining engaged with the community throughout all phases of the project. Details of future public engagement opportunities will be announced when scheduled.