Driscoll granted lease extension of boatyard project

Port of San Diego board also grants one-year lease – with options – for U.S. Coast Guard.

SAN DIEGO — The Port of San Diego’s Board of Port Commissioners approved two lease agreements at its Sept. 12 meeting, one allowing Driscoll extra time to complete its boatyard project and the other granting the U.S. Coast Guard permission to operate its rear range light for up to 20 years at the western end of Shelter Island.


Driscoll Boatyard Project

Driscoll, which operates out of America’s Cup Harbor on Shelter Island, has been working on a new boatyard. Construction work is still ongoing despite plans to finish the project by Aug. 1.

Commissioners granted Driscoll an extension through Jan. 1, 2019.

“Although Driscoll was unsuccessful in meeting [its Aug. 1 deadline], significant progress has been made on the project with a limited number of construction improvements outstanding,” port district staff stated in a report to commissioners. “The most significant cause of the project’s delay is due to the unavailability of equipment and personnel to complete the waterside concrete finger piers.

“In addition to Driscoll already investing over $800,000 of the $1,000,000 project requirement, the District is at no financial loss due to the delayed project as Driscoll pays a flat monthly rent for this site,” port district staff continued.

The port district and Driscoll entered into a 20-year lease agreement, with a 10-year option, in 2016.

“The lease required Driscoll to commence and diligently proceed to complete construction of a $1,000,000 boatyard development project,” port district staff stated. “Components of the project include construction of a two-story concrete boatyard administration building … [and] a high bay metal boat shed.

“[The lease agreement also called for] approximately 40,000 square feet of concrete paving, a water reclamation system including water tanks, two approximately 65-foot-long concrete finger piers for use by a new 35-ton travel lift, other docks, and related improvements,” port district staff continued.

Delays associated with this project were directly tied to one of Driscoll’s contractors: R.E. Staite. The contractor, coincidentally, was also hired by the Port of San Diego’s Shelter Island Boat Launch Ramp project. The boat launch project is also suffering from delays.

Driscoll’s boatyard is located at 2702 Shelter Island Drive in San Diego.


Coast Guard’s Rear Range Light

The port district’s Board of Port Commissioners also approved a one-year lease with the Coast Guard to operate a rear range light at the west end of Shelter Island. The agreement includes 19 additional one-year lease options, potentially making this a 20-year deal. Both parties came to terms just ahead of the current lease’s expiration (Sept. 30).

“The lease agreement is being granted at no rent to the District since the operation of the rear range light provides a public service as it increases safety for seafaring vessels,” port district staff stated in its report to commissioners. “The Coast Guard has leased this site since 1954. The Coast Guard will continue using the site for a rear range light, which provides a navigational aid to seafaring vessels.”


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