Aug. 21, 2003
The unwavering commitment by the San Diego Padres and JMI Realty to give San Diegans "more than a ballpark" is boldly evident today as blocks of new hotel, retail and residential development transform the once blighted East Village District into a vibrant, pedestrian-friendly neighborhood.
"This is the only undertaking in the U.S. to date in which a major city has conditioned its investment in a professional sports facility upon a commitment from a team's owner to redevelop the surrounding neighborhood," said John Kratzer, president and CEO of JMI Realty. "Needless to say, John Moores and the city of San Diego were breaking new ground with this project. The four-year process that has followed has involved a learning curve that neither party ever expected."
The process Kratzer refers to includes 17 lawsuits filed against the project, all of which were rejected but still resulted in repeated construction delays. The most recent hurdle involved proposed plans for East Village Square and Park at the Park -- an issue that has been resolved with the city's approval Aug. 5 of new plans that call for the Park at the Park to be enlarged to 2.8 acres and the proposed Center Field office building to be eliminated. The larger park includes nearly 2 acres of landscaped area, with the balance dedicated to surrounding walkways that integrate with the adjacent ballpark. The Left and Right Field buildings are unchanged.
The proposal marks the culmination of three months of intensive planning by the Padres and JMI Realty following Mayor Dick Murphy's recommendation last April that the project be referred back to study.
"The San Diego Padres and JMI Realty have developed a plan that provides a larger Park at the Park with nearly 1 additional acre of landscaped area than previously proposed," said Charles Black, executive vice president with JMI Realty. "It has always been our objective to provide the citizens of San Diego with a project that exceeds their expectations and that also meets the city's needs from an urban planning standpoint. While we believed that our prior proposal would have added vital synergy to the Ballpark District, at the end of the day, this is a project for the people of San Diego. The Park at the Park is the finishing touch to a world-class facility that will be enjoyed by San Diegans for generations to come."
With this resolution, the San Diego Padres have the final piece of the ballpark puzzle in place. The ballpark, Petco Park, is well into planning for Opening Day 2004 -- a day that will officially mark the start of a new era for downtown San Diego and East Village in particular.
JMI Realty, master developer of the 26 blocks surrounding Petco Park, has worked diligently over the past four years to keep redevelopment efforts on track despite setbacks including the aftermath of Sept. 11, 2001, and a recessionary economy. Noteworthy is the company's success in securing a four-star branding partner and the largest hotel loan since the New York tragedy -- accomplishments that have ensured the timely opening of the Omni San Diego Hotel in April 2004.
"JMI Realty has made significant strides in its commitment to give downtown San Diego nearly $1 billion in thoughtfully planned redevelopment, a level which significantly exceeds original expectations," said Kratzer.
He cites the 32-story Omni San Diego Hotel, located adjacent to the ballpark and which is already booking for spring 2004. Thirty-six luxury condominiums -- collectively called The Metropolitan -- occupy the top 11 floors of the hotel tower and more than half have already been sold. Additionally, JMI Realty is proceeding with Kimpton Hotels & Restaurants on a 235-room boutique hotel planned at the gateway to the Ballpark District on the corner of Sixth Avenue and J Street.

Located adjacent to the ballpark, the Omni San Diego Hotel will open in April 2004.
Construction of the Kimpton Boutique Hotel should begin in late 2003, with completion slated for mid-2005. Plans call for 235 guest rooms (28 of which are suites), and two hospitality parlors. There will also be a contemporary upscale restaurant on the ground level that will be run by the Kimpton Group. A spacious outdoor event deck and pool will be located on the fourth level overlooking J Street.
"Kimpton Hotels & Restaurants has a strong, 22-year track record in terms of creating and operating boutique hotels, and Kimpton Restaurants are known for providing the best food and beverage production in the hotel industry," said Greg Clay, senior vice president and hospitality development director with JMI Realty. "We believe this rare combination of expertise will make the Kimpton Boutique Hotel a desirable lodging and entertainment venue for business and leisure travelers, as well as a wonderful neighborhood gathering place for cocktails and dining. Ultimately, the hotel will be one more exciting catalyst in creating the 24-hour live, work and play environment of the Ballpark District."
Value is a key element of the Kimpton Boutique Hotels' operating philosophy and is delivered through exceptional, personalized service on par with luxury hotels, and through stylish accommodations.

The Kimpton Boutique Hotel is scheduled to begin construction in late 2003, with completion slated for mid-2005.
"It is vitally important to the success of the Ballpark District that visitors have access to value-oriented lodging alternatives that provide high quality accommodations and a commitment to service that will make their stay memorable and worth repeating," Clay said.
Last spring, JMI Realty broke ground on the second phase of the East Village District Plant (EVDP), a vital component of the Ballpark District that will provide chilled water for air conditioning and help minimize energy costs through shared use between Petco Park, Omni San Diego Hotel, East Village Square and other ancillary development projects including the future Downtown Library.
"By centralizing the cooling production for Petco Park and the Omni San Diego Hotel, we are able to save significant capital dollars and use the savings to enhance the value-added amenities of those projects," said Jim Chatfield, JMI Realty development director. "Additionally, the EVDP will allow for cleaner sight lines and a district with virtually no emissions to detract from the visitor experience. By removing the need for large cooling towers (and subsequent plumes of steam) on building rooftops, the EVDP is a key element toward the successful elimination of blight in the East Village."
Excitement over urban renaissance in East Village is evident in the residential sector as well, as other investors and developers step forward to be part of the area's future.
"We are pleased to be joined by developers like Intracorp, Western Pacific and Barone & Galasso, all of whom are in various stages of development and/or planning on several hundred residential units that will be built in the area over the next four to five years," Kratzer said.
"There is a very real demand for quality housing in the downtown area," he added. "This is a niche that San Diego has missed for many years. However, with the Convention Center expansion and ballpark serving as catalysts, the city's growing focus on smart growth and urban renewal is transforming this underutilized area into a thriving business, residential, recreational and entertainment mecca that will reap rewards for the people of San Diego for years to come."
Grove is president of The Grove Agency.