San Diego’s waterfront and a big chunk of downtown looked a lot different in 1991 when the California Coastal Commission signed off on a congressionally-blessed plan for a public-private partnership between the city and the Navy to develop federal property into a giant retail-commercial complex.

The project didn’t get constructed, but 20 years later the Navy found a private partner and set out to develop the Navy Broadway Complex: a $1.3 billion, 2.9-million-square-foot office-hotel complex on the 16-acre site south of Broadway between Pacific Highway and Harbor Drive. It would include a new Navy administration building and a public park.

The Coastal Commission would like to put the project through a review process because it and the area around it have changed dramatically, but the Navy refused to participate. Last week, the commission sued in federal court to have its way.

The lawsuit is the latest shot in the running battle between the commission, the Navy and  would-be developer Manchester Pacific Gateway LLC, with whom the state is already fighting in court. 

The commission had made it clear in 1991 that “any proposed deviation from the plan or guidelines will require the Navy to submit a new coastal consistency determination, or its developer, to obtain a coastal development permit.”

Since then, downtown added 13,000 residential units, Petco Park was built, the convention center expanded and the Navy pier became home to the Midway Aircraft Carrier Museum. Environmental and development standards evolved, and San Diego elected its first Democratic mayor (in 2012) since 1986.

The project remained dormant until 2006 when the Navy signed an agreement with Manchester LLC, whose boss is developer and U-T San Diego newspaper owner Douglas Manchester. The commission asked the company to apply for a coastal development permit, and it briefly complied before rescinding its action and heading for court, claiming it didn’t have to file for a permit. That case is in the U.S. Ninth Circuit Court.

While the courts are deciding if Manchester needs a permit, the commission has taken another tack with the Navy. The agency cited federal law that requires a new review of projects involving federal agencies if substantial changes have been made over time, and in November 2011 unanimously voted to begin that process.

The commission staff recommended 11 changes that could bring the project into compliance, including increased public space, museum relocation, a commitment to “green” building standards, public transit improvements, traffic and parking studies

The Navy said none of that was necessary.

The politically-charged project is spearheaded by developer Manchester, who calls himself Papa Doug. Manchester has holdings in telecommunications, radio broadcast, medical instrumentation, publishing and real estate, and vigorously supported Republican Councilman Carl DeMaio’s unsuccessful run against Bob Filner for mayor last year.

Filner and Manchester, arguably the two most powerful people in San Diego politics, don’t seem to care much for each other. In 2009, when Filner was a congressman, he asked the FBI, the U.S. Attorney General, the local U.S. attorney, San Diego's Mayor's Office, Centre City Development Corp. and the Port of San Diego to investigate “possible fraud” in the siting of the Navy Broadway Complex.  

During the mayoral race last year, Manchester dissed Filner in an interview with his newspaper. “I think that Bob Filner is a bad congressman and he’s a bad guy.”  

But for now, their political dual will take a back seat to the effort by the Coastal Commission, which is the lead agency for ensuring that federal agencies comply with the state's federally approved costal zone management program.

–Ken Broder

To Learn More:

California Sues Navy in Fight over Prime San Diego Waterfront (by Rebekah Kearn, Courthouse News Service)

Filner's Frank Talk and Doug Manchester's Navy Complex Lobbying Plan (by Matt Potter, San Diego Reader)

The Newspaper Magnate and the Mayoral Candidate: A Reader's Guide (by Liam Dillon, Voice of San Diego)

Filner Requests Investigation on Navy Broadway Complex (by Liam Dillon, Voice of San Diego)