An empty and boarded-up, fire-damaged shop at Seaport Village will soon be razed to make way for a new common area at the popular bayside destination.
On Tuesday, Port of San Diego Commissioners voted unanimously to hire Costa Azul Contracting Group Inc. to demolish the 849-square-foot structure, which was the former home of the since-relocated Seaport Market. The $228,489.10 construction contract includes exterior repairs to the adjacent Bay Company storefront, currently in operation.
The contract was approved as part of the board meeting’s consent agenda, which means commissioners did not discuss the item. The work is expected to be completed over a 90-day period, from March through May, a port spokesperson said.
“In October 2020, Seaport Village faced a significant challenge with a fire incident in the Lighthouse District, impacting two vital structures … . The aftermath has left the (former) Seaport Market building and common area alley in disrepair, raising added concerns for public safety and security,” states a staff report prepared for Tuesday’s board meeting. “Beyond rectifying the safety and security concerns, the removal of these damaged structures presents a unique opportunity for the district to reimagine and explore alternative uses for the site.”
The port expects to turn the vacated site into a common area with to-be-determined amenities and programming, the spokesperson said.
Opened in 1980, Seaport Village consists of 90,000 square feet of specialty retailers and restaurants on a 14-acre site at 849 West Harbor Drive. In 2018, the San Diego Unified Port District took over the operation of Seaport Village.
The government agency has since spent nearly $11 million on fresh paint, landscaping, new programming, tenant improvements and deferred maintenance needs. The revival effort has paid off in the form of splashy new tenants, including the center’s recently opened seaside anchor Malibu Farm. Seaport Village is currently 97 percent occupied with 63 tenants, the port spokesperson said.
The soon-to-be demolished building, located east of Kettner Boulevard and near the parking lot, was badly damaged on Halloween night in 2020. A man who appeared to be homeless set fire to a broom and placed the broom into a trash and storage area alongside the building, according to a notice distributed internally at the time by the Harbor Police Department. The department has not arrested anyone in connection with the incident.
The port received $135,995.29, with a $100,000 deductible applied, as part of an insurance payout, the staff report states. The shop’s tenant, Seaport Market, has since moved to a storefront near Spill the Beans and Crack Taco.
“The dilapidated condition of these structures not only increases risk to the general public, visitors, district tenants, property vendors, and management staff but has also elicited multiple complaints from neighboring tenants,” according to the staff report. “Some tenants have complained that the current state has negatively impacted their businesses, hindering marketability and impeding their ability to generate sales.”
The construction project is, according to the port, exempt from analysis under the California Environmental Quality Act. The structure set for demolition is also not yet old enough to meet the criteria for historical designation at the local or state level.
The latest work at Seaport Village comes as the port continues to advance a multi-billion-dollar proposal that would raze the seaside retail center entirely and remake surrounding areas.
The redevelopment project, known as Seaport San Diego, is proposing to refashion 102 acres of land and water area on San Diego Bay into 2.7 million square feet of mixed-use development, including a 500-foot observation tower at the foot of Pacific Highway. In September, the port initiated a state-mandated environmental review of the project. A draft of the document is expected to be released later this year.