When Ritz Carlton adds its name to the roster of luxury hotels in downtown San Diego we know that our community grows in luster. Considered to be the top rated brand among all luxury brands(1), this will be an enormous jewel in San Diego’s crown and a particularly large boost to the community of East Village.
This four hundred million dollar project holds space for all aspects of life in San Diego along with parking for some eight hundred and eighty seven cars. Located on land being sold by the city for $20,000,000 it is boarded by Island and Market Streets and 7th and 8th Avenues. The project is a unique development which will include luxurious condos, apartments, affordable rental units, hotels and business space.
The 1.16 million square foot development will encompass two towers, one being nineteen stories with the other at thirty-nine stories high. The lower tower will hold office and retail space which will include a Whole Foods Market.
Nearly the entire block is currently a parking lot but it also holds an historic building on its south west corner, the Clermont Hotel. This hotel was built in 1887 which came close to being demolished numerous times during its colorful history. In 2001 it was finally declared a historic landmark thanks to the efforts of the Gaslamp Black Historical Society.
This new project being created by Cisterra Development will preserve the Clermont Hotel for the future with its 55 single occupancy rooms. The Ritz Carlton Hotel, with some 153 rooms, will occupy floors 20 through 27 of the high tower and above the hotel will be the Ritz-Carlton Residences. These are expected to be sold for around two millions dollars apiece.
This has not been a smooth journey. As recently as July last year there were two developers presenting their unique plans for this coveted space. Holland Partner Group came forward with plans to develop a 34-story high rise with 427 apartments(2). While Cisterra Development, the people responsible for the Sempra Headquarters building across from Petco Park, won through with their plans.
However they soon had to face another challenge presented by Unite Here Local 30 hotel workers union. They were demanding unionization of the hotel workers.
Avoiding unionization by promising a living wage to all non-tip-earning employees they soon faced another hurdle from Unite Here. Rick Bates, representing United Here, cited issues regarding potential contaminated soils and other environmental issues. Cisterra is waiting to see if a law suit arises from the union regarding this issue.
The city is expected to gain some $1.5 million from sales, property, and hotel room taxes each year. “This is the most significant enhancement to East Village since the opening of Petco Park,” stated Claudette Cooper of Buy Sell Rent San Diego, “It will provide an economic boost and an enhancement to the overall lifestyle of the Downtown area.”
There are a few more hurdles for the developer and the city but the projection for the finalization of the sale of the land by the city is scheduled for April 2018. Construction would then be completed by October 2021.
For further information on property available in the Downtown area please call Claudette Cooper at 619-241-5447