SAN DIEGO (KGTV) — The developer that is negotiating with the Port of San Diego over a $3.5 billion remake of Seaport Village says they could request up to $550 million in public funding for the project.
1HWY1, the company behind the Seaport San Diego project, will update its proposal for the Port commissioners Tuesday. In an email to ABC 10News, CEO Yehudi Gaffen says they will present a plan with an increase in public amenities over what was originally conceived, but suggests that there are several important public infrastructure challenges and necessities that should be addressed in the deal.
"Let me be clear – private investment will fund the vast majority of this multi-billion-dollar project. At the same time, it is important to start a conversation about public financing strategies for public infrastructure and public space," Gaffen wrote.
“The fact that they’re attempting to do some with a combination of public and private financing is not at all atypical of a project of this magnitude," said Gary London, a commercial real estate analyst and economist whom ABC 10News contacted for his analysis of the public financing request.
London says projects such as Seaport Village that are on publicly-owned land and that are considered a public resource often involve public funding, particularly for the infrastructure elements involved.
London says there are a variety of mechanisms the Port could use to provide public funding. That includes several forms of tax revenue, although he believes it is unlikely that the financing would be structured in a way that would trigger a public vote.
"We have sort of a bad history of success, or lack of success, in terms of public vote for tax increase measures," London says. "And as interesting a project as this is, I doubt that it would be an exception."
Though 1HWY1 will present its plan update to the Port of San Diego Tuesday, there are no votes on the project scheduled.
