County of San Diego Hotel and Restaurant Development and Ground Lease Analysis
County of San Diego, CA
The County of San Diego engaged BAE Urban Economics, Inc. (BAE) in association with Maurice Robinson and Associates (MR&A) to prepare an analysis of and recommendations regarding a ground lease proposal for the adaptive reuse of historic Heritage Park Victorians into a hotel and restaurant that had been submitted to the County of San Diego Real Estate Services Division.
Heritage Park is a county-operated park located near Old Town San Diego. After beginning with a Background section describing common ground lease components and definitions, the memo provides an overview of key lease terms in comparable ground leases currently in effect in California for context and concludes with a summary and evaluation of the proposal received for Heritage Park, including recommendations to the County for further negotiations with the submitting developer.
Based on BAE’s and MR&A’s review of the developer’s submission and the analysis of comparable ground leases, the report assesses the fairness and reasonableness of the proposal and the proposed lease rates and terms, and identifies any potential conflicts or issues that may create issues with entitling or constructing the project.