Why this matters
National City leaders and residents point to high levels of air pollution, lack of beach access and fewer economic benefits at their bayfront compared to neighboring cities.
National City’s bayfront has long been a sore subject for some local leaders.
Largely dominated by a naval base and industrial businesses, the city’s share of the bay is a stark contrast from its neighbors to the north and south. San Diego has a convention center, an outdoor music venue, a park, courts and hotels — each helping draw millions of dollars in revenue for that city. Chula Vista, at long last, has launched its bayfront redevelopment, anchored by the massive Gaylord resort that opened last year.
Now, the Port of San Diego’s plans to revamp the National City bayfront could be more important than ever. The city, facing threats of fiscal insolvency by 2030, is seeking ways to generate new revenue — including from new hotels that would be built around the bayfront.
Last week, City Manager Douglas Schulze presented a five-year plan to stabilize the city’s finances. Much of it relies on generating new revenue through bayfront investments, though Schulze’s plan did not yet include specific figures.
In July, port commissioners approved a coastal permit that allows crews to realign a portion of Marina Way. The work “sets the stage for more commercial development” on the bayfront, the port said in a news release. It also makes room for a 2.5-acre expansion at the recently upgraded Pepper Park.
Port officials expect to award the construction contract later this year.
The port also cleared the way for a connector rail project that will provide easier access to empty railcars and help with maritime operations. Both projects are set to begin early next year and be completed in 2028.
But officials have longer-term, more ambitious projects envisioned. The owner of Pier 32 Marina, GB Capital, has also proposed constructing and operating an RV park, cabins, tents, dry boat storage, an expanded marina — and up to two hotels.
All of the projects are part of a bigger picture called the National City Balanced Plan, which maps out what changes the port and National City will make in the Marina District.
Hotels would add to the $2 million the city currently collects each year from transient occupancy taxes. Leaders have also proposed increasing the tax to yield $400,000 more annually.
“Hotels are great revenue generators for cities because not only do you get the sales tax and the property tax, but you also get the (transient occupancy tax),” City Manager Douglas Schulze said.
“That’s something that is important to the city, is to grow our revenues through growth of the business community.”
The port works with five member cities, including National City, to manage 34 miles of the San Diego Bay waterfront.
That arrangement has led to “endless battles” between National City, the port and the Coastal Commission over how to develop the shared bayfront, Mayor Ron Morrison said.
Morrison, who pioneered the balanced plan more than a decade ago, said National City hasn’t gotten a fair deal.
San Diego, the largest city on the bayfront, has received the port’s investment in the convention center. In Chula Vista, the port invested in the Gaylord Pacific Resort. Both these investments are “revenue generators” for those cities, Morrison said, and “we don’t get any revenue off this.”
“What little of it stays in National City is for more port terminal business, more truck traffic, more of that type of stuff, nothing that the public ever sees,” he said. “That’s always been kind of a sore point between National City and the port.”
Earlier last month, Schulze warned that without additional revenue, discretionary funds — spending on what’s considered non-essential city services such as parks, the library, swimming pool and nutrition center — would be cut first from the National City’s nearly $90 million general fund budget.
For at least two consecutive years, councilmembers have dipped into the city’s depleting reserves to balance the budget.
Councilmember Jose Rodriguez said it’s “critical” for the city to boost revenue.
“We need to keep our eye on the prize and constantly be bringing in additional businesses and additional revenue and playing a much more active role in doing so,” he said.
One fight still lingers at the bayfront: beach access.
Councilmember Marcus Bush said he appreciates the port’s efforts, but that its relationship with the city has a long way to go.
“I don’t know that this balanced plan really addresses that and allows us access to a beach,” he said.
He said Pepper Park’s sandy perched beach feature falls short of that. “The public touching the water is a beach,” Bush said.
Lesley Nishihira, the port’s vice president of planning, pointed out that the Navy owns most of National City’s bayfront. The port manages less than 300 acres of waterfront land there, she said.
Nishihira also defended the agency’s beach access efforts. In an emailed statement, she said the port has worked with the National City community to develop and expand public access and commercial recreation along the bayfront since the 1970s.
Nishihira said people today can launch motorboats, kayaks, paddleboards and other devices from a public boat launch or the marina, and fish from the newly upgraded Pepper Park. Local youth can also join rowing programs out of the port’s Aquatic Center, she added.
“The Port built, paid for, and/or facilitated the development of these amenities without local tax dollars,” she said, referencing how the port stopped collecting taxes in 1970.
She said “beach access isn’t feasible due to public safety, marine navigation, and environmental protection issues” from National City.
“Beach access would encourage swimming and similar activities in water-space used for maritime and industrial commerce, including frequent movement of large vessels that would create risks to public safety,” Nishihira said.
National City port representative GilAnthony Ungab said in a statement to inewsource that he’s spent his professional life managing complex projects and will continue advocating for advancing the balanced plan. He replaced former commissioner Sandy Naranjo in 2024.
Much like how a city can create a land use plan for designing its neighborhoods, the National City Balanced Plan maps out how it will design the bayfront. It’s supposed to have commercial recreation, maritime and public access “rebalanced” — a product of public outreach and collaboration between city officials, businesses and community stakeholders.
Claire Groebner, a community organizer and the associate director at Olivewood Gardens, said rethinking National City’s industrial land is possible, much like how land uses were changed for San Diego and Chula Vista.
She was part of a community meeting involving residents last month that included discussions over the city’s bayfront.
“It’s all choices, right? We can change how things are,” she said. “National City is a small city. It’s easy to push us around.”
Type of Content
News: Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources.
