Contact Information: Press Contact: Steve Strauss Cooley Godward Kronish 858/550-6006 - phone sms@cooley.com
Manchester Pacific Gateway/Navy Broadway Complex Clears Significant Legal Hurdle
Federal Court Ruling Denies California Coastal Commission Authority to Request Coastal Development Permit
| Source: Manchester Pacific Gateway
SAN DIEGO, CA--(Marketwire - April 30, 2008) - Manchester Pacific Gateway, LLC announced
today that a United States District Judge has ruled in its favor in a suit
against the California Coastal Commission. The Court declared that the
Coastal Commission cannot require Manchester to obtain a Coastal
Development Permit under state law for Manchester's proposed development of
the Navy Broadway Complex (NBC). The NBC site is excluded from the
"coastal zone" by Federal law. Further, the Court ordered that the NBC
Project should be reviewed under Federal, not state, coastal law.
Manchester filed suit against the Coastal Commission for declaratory relief
in June 2007 after the Commission attempted to exercise state law permit
jurisdiction over Manchester's development of the NBC site. Manchester
responded that the Commission does not possess such jurisdiction because
the project is being developed on Navy land and the project is the product
of Federal legislation and Federal agency discretion. With the ruling,
Judge Jeffrey T. Miller agreed.
"The Navy Broadway Complex is being developed with the highest sensitivity
to the environment and the coast line," said "Papa Doug" Manchester,
Chairman of Manchester Financial Group, parent company overseeing the
development. Further, "This ruling removes an important hurdle and moves
us forward with development of this landmark project which will revitalize
and invigorate San Diego's waterfront."
According to Rear Admiral Len Hering, "This was a critical ruling for the
Navy to move forward with this important public-private partnership and for
the Navy to realize its long-sought objective for development of a new
state-of-the-art Southwest Regional Command Center while providing for an
array of public benefits for the people of San Diego."
"This is a significant legal victory for Manchester and the Navy because it
means that the Coastal Commission cannot assert its jurisdiction to require
a Coastal development permit on Federal land which is excluded from the
Coastal zone," said Steve Strauss, a partner at law firm Cooley Godward
Kronish who is outside legal counsel for Manchester, and who litigated this
case.
Manchester is a San Diego-based developer that is a party to a long-term
Ground Lease with the U.S. Navy. The proposed NBC Project is a Manchester
and U.S. Navy joint public/private venture with plans to develop a
billion-dollar, mixed-use project on the NBC site at San Diego's
waterfront. The project will include over three million square feet of
office, hotel, and museum space, including a new 17-story Class A office
building for Navy headquarters, and over five acres of public park and open
space.