City’s surplus land plan in Mission Bay receives resistance

San Diego's Mission Bay Park Surplus Land Proposal Faces Community Resistance as Council Delays September Vote

Advisory committee votes 7-2-1 against mayor's plan to designate park properties for potential redevelopment

SAN DIEGO — A controversial proposal to designate three commercial properties in Mission Bay Park as "surplus land" faces strong community opposition after an advisory committee voted overwhelmingly against the plan, setting up a contentious City Council debate scheduled for September.

The Mission Bay Park Committee, which advises the city's Parks and Recreation Board, voted 7-2-1 against Mayor Todd Gloria's proposal during an August 5 meeting at Paradise Point Resort, following unanimous public testimony opposing the plan.

The Proposal

The mayor's plan targets three properties totaling approximately 28 acres: Marina Village (a 23-acre banquet and conference center at 1936 Quivira Way), Dana Landing Marina (4.5 acres), and Sportsmen's Seafood restaurant (0.8 acres). All three properties currently operate under expired or expiring leases, with Marina Village's lease set to expire in April 2027.

Under the proposal, declaring the properties as surplus land would allow the city to offer long-term leases exceeding the current 15-year state limit, potentially attracting developers for major redevelopment projects. The city's long-term Mission Bay Park Master Plan calls for a 500-room hotel and conference center at the Marina Village site.

"These city-owned properties are hidden gems in Mission Bay that have not reached their full potential," Gloria said in a statement. "We want to make sure they serve the public in the best possible way."

State Law Requirements Create Housing Concerns

The central controversy stems from California's Surplus Land Act, which requires cities to first offer surplus properties to affordable housing developers before considering other uses. This requirement has sparked fears among community members that the park could be developed for residential housing.

The city previously requested an exemption from the state Housing and Community Development Department but was denied. City officials maintain they don't want housing on the properties and argue that multiple legal hurdles would make residential development extremely unlikely.

"To develop housing on Mission Bay, you'd have to have a City Charter amendment because park land can't be used for anything else," said Rachel Laing, the mayor's communications director. "Also, people don't want to turn public land into private housing development, so you'd have to get California Coastal Commission approval. Those two hurdles alone are next to insurmountable."

Community Opposition Intensifies

During the August 5 committee meeting, all public speakers opposed the surplus land designation. Attorney Bob Ottilie, who helped draft Proposition C (which requires Mission Bay park revenues to remain within the park system), received applause for his opposition speech.

"If you follow the law, you run the risk. If you negotiate in good faith, you end up with housing. And if you don't negotiate in good faith, you end up in litigation that leads to housing," Ottilie warned the committee.

Former San Diego City Councilmember Donna Frye also voiced strong opposition, questioning how state-granted tideland and dedicated public parkland could be declared surplus. "How could state-granted Tidelands on dedicated public parkland be declared 'surplus' and made available for developers to submit proposals to build affordable housing? It made no sense to me then and it still doesn't," Frye wrote in comments to the committee.

Community members expressed distrust of city officials' assurances. "The public doesn't trust the city council or the mayor and there's a belief that no matter what you decide on the two issues, the city is going to go forward with it anyway," said Clifford Weaver during public testimony.

Financial Motivations Questioned

Critics argue the city's primary motivation is financial rather than park improvement. Current law requires most Mission Bay Park lease revenues to remain within the park system, but surplus land designation could potentially redirect future revenue to the city's general fund.

"I think it's to take the money. I think they're trying to find ways to get money and so they're gonna steal money from the Mission Bay Park Fund," Ottilie said.

Council President Joe LaCava acknowledged the city's financial interests, stating, "We are very hungry for revenue, and this is potential revenue that doesn't come through the backs of San Diegans."

Council Divisions and Delay

The San Diego City Council postponed its decision on July 29 by a 7-1 vote, with LaCava dissenting. The delay came after Councilmember Marni von Wilpert pulled the item from the consent agenda to allow public discussion.

Von Wilpert and Councilmember Jennifer Campbell expressed opposition to the surplus designation, instead advocating for the city to lobby state lawmakers for a special exemption from the Surplus Land Act. "This place needs to be upgraded, but it needs to stay a public park," von Wilpert said.

Councilmembers Sean Elo-Rivera and Kent Lee supported the mayor's plan as necessary to generate private investment in the aging buildings. Elo-Rivera described Marina Village's current condition as "basically a restroom for birds."

Business Owner Concerns

The proposal has also concerned current tenants. Joe Busalacchi, whose family has operated Sportsmen's Seafood since the 1950s and employs 100 people, said he was close to negotiating a lease extension when the city suddenly ended discussions.

"We've been the longest-operating business in Mission Bay," Busalacchi said. "It doesn't make any sense. There's nothing you can build on this little piece of land."

September Showdown

The City Council is expected to reconsider the proposal in September following their August recess. The committee's strong opposition vote sends a clear message to council members, though it remains advisory only.

City officials maintain they have sufficient "off-ramps" if the surplus land process doesn't proceed as intended. However, with community opposition mounting and significant legal and procedural hurdles ahead, the future of Mayor Gloria's Mission Bay redevelopment vision remains uncertain.

The controversy highlights broader tensions in San Diego over balancing development needs with public land preservation, as the city grapples with budget pressures and housing demands while trying to maintain cherished public spaces.

Sources

  1. Schwab, Dave. "City's surplus land plan in Mission Bay receives resistance." Times of San Diego, August 12, 2025. https://timesofsandiego.com/politics/2025/08/12/citys-surplus-land-plan-in-mission-bay-receives-resistance/
  2. McDonald, Jeff. "Big changes could soon come to southwestern Mission Bay Park, if the city gets its way." San Diego Union-Tribune, July 28, 2025. https://www.sandiegouniontribune.com/2025/07/28/big-changes-could-soon-come-to-southwestern-mission-bay-park-if-the-city-gets-its-way/
  3. McDonald, Jeff. "San Diego council puts off declaring dozens of acres along Mission Bay surplus property." San Diego Union-Tribune, July 31, 2025. https://www.sandiegouniontribune.com/2025/07/31/san-diego-council-puts-off-declaring-dozens-of-acres-along-mission-bay-surplus-property/
  4. NBC 7 San Diego. "Debate over future of Mission Bay Park." August 7, 2025. https://www.nbcsandiego.com/news/local/mission-bay-park-committee-votes-down-plan-to-surplus-property/3882702/
  5. FOX 5 San Diego. "Community pushes back on city proposal to declare Mission Bay Park properties as surplus land." August 6, 2025. https://fox5sandiego.com/news/local-news/community-pushes-back-on-city-proposal-to-declare-mission-bay-park-properties-as-surplus-land/
  6. CBS 8 San Diego. "San Diego City Council considers declaring three areas of Mission Bay Park as surplus land." August 5, 2025. https://www.cbs8.com/article/news/local/san-diego-city-council-considers-declaring-three-areas-of-mission-bay-park-surplus-land/509-ae32fa0c-c127-461a-81a2-4d1ac719914c
  7. Page, Geoff. "Mission Bay Park Committee Votes Against 'Surplus Land' Proposal." OB Rag, August 6, 2025. https://obrag.org/2025/08/mission-bay-park-committee-votes-against-surplus-land-proposal/
  8. Frye, Donna. "Donna Frye Urges Mission Bay Park Committee to Oppose Declaring Property Within Park as 'Surplus Land'." OB Rag, August 5, 2025. https://obrag.org/2025/08/donna-frye-urges-mission-bay-park-committee-to-oppose-declaring-property-within-park-as-surplus-land/
  9. Page, Geoff. "A Deeper Dive Into Issue of 'Surplus Lands' of Mission Bay." OB Rag, August 8, 2025. https://obrag.org/2025/08/a-deeper-dive-into-issue-of-surplus-lands-of-mission-bay/
  10. City of San Diego. "Mayor Gloria Issues Statement on Renewed Civic Center Redevelopment Efforts." July 2, 2025. https://www.sandiego.gov/mayor/mayor-gloria-issues-statement-renewed-civic-center-redevelopment-efforts
  11. City’s surplus land plan in Mission Bay receives resistance

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