3165 Paci?c Highway, San Diego, CA 92101 . . PO. Box 120488, San D'ego, CA 92112-0488 Uan 18d Port 619.686.6200 of San Diego October 28, 2016 Ms. Melody Lasiter, Coastal Planner California Coastal Commission San Diego Area 7575 Metropolitan Drive, Suite 103 San Diego, CA 92108-4421 RE: Coastal Development Permit Application #6?16-0258 Dear Melody: Thank you for reviewing the additional materials provided by Port staff at the Port/Coastal staff coordination meeting held on August 19, 2016. The additional materials included an offer to amend the subject CDP project description to revise the permit term and include removal of the head house, and a preliminary interim Navy Pier site plan. This letter responds to your fourth ?Non-Filing Letter? dated September 16, 2016 which requests additional information in order for Coastal staff to complete its review of the subject CDP application. Below are the responses, information and attachments that correspond to the requests contained in your letter. 1. In response to the public access modifications we discussed at the August 19 coordination meeting, attached is a revised preliminary interim site plan (Attachment As requested, the attached site plan includes: several pedestrian walkways, including from the Embarcadero Promenade to the entrance along the southern perimeter of the pier (shown in gray), from the Embarcadero Promenade to the public viewing area on the east end of the pier, and North/South pedestrian walkway connections; bicycle racks and public benches/seating on the west end of Navy Pier within a 7,840-square-foot public viewing area; and landscaping/planter boxes at both the front of the pier (east end) and the west end of the pier. Please note that all fixtures for the public space will be temporary, since we do not want to over-spend money installing amenities that might be replaced when the long-term solution for the pier is determined. In addition, additional coastal access signage will be developed to direct the public to the western public viewing area; such signage will conform to the existing coastal access signage the Port has developed for the area, similar to what is currently found at the entrance and pathways at Navy Pier (Attachment In addition, the Port worked with the City of San Diego on wayfinding signage that includes Navy Pier. This wayfinding signage is currently on the Embarcadero and in upland areas of downtown San Diego. San Diego Unified Port District Ms. Melody Lasiter Page 2 of 5 October 28, 2016 2. As we have discussed in our previous meetings, and correspondence, we are confirming that during the ?interim period," the Port and Midway Museum will commit to developing a long-term plan for Navy Pier, including relocation of some or all of the parking and development of some or all of a public park. Additionally, the North Embarcadero (NE) PMPA project, which we shared with you generally when we met in August, has now been formally presented to our Board at the October 13 meeting. Lesley Nishihira sent you the corresponding staff report in advance of that Board meeting. Attached, please find the staff presentation that was presented at the meeting (Attachment As the presentation demonstrates, these are only preliminary and directional ideas, but will frame the work that staff will undertake over the next six to nine months in planning the NE district. As we have offered before, we will be glad to meet with you regularly to get your input on this project as we move along its development. Please let us know the level of involvement you would like to take. 3. An amended project description for the Interim Navy Pier Plan that includes demolition of the head house, installation of the public access amenities, and a revised project term is attached (Attachment Regarding the project term, the Port is requesting a total period of four (4) years? the first one (1) year is the estimated time that it will take to receive all necessary approvals, procurement, and demolition of the head house prep period). During year one, the prep period will also allow for modification of the parking rate ranges for the existing 397 public parking spaces to occur prior to demolition of the head house. The additional three (3) years following demolition of the head house would allow for installation of the additional approximately 151 public parking spaces; during these three years, all of the surface public parking spaces on the pier would be subject to the new parking rate ranges, thereby allowing the District to raise the funds necessary to cover demolition of the head house. During this interim four-year period, one plus three, the District will develop a long-term plan for Navy Pier. It is important to recognize that the funding for the demolition of the head house will come from the incremental revenue created from both the additional spaces created by removing the head house AND the parking rate increase. Also worth noting, and as you have previously confirmed, we will not be able to raise the parking rates until after we receive the CDP approval, which we understand may take six to nine months. Please note that the Port would also like to revise the proposed parking rates for Navy Pier from what we submitted in our original CDP application; this new rate range structure is also described in the attached amended project description. Based on further understanding and calculations of the cost of demolition of the head house, resurfacing of the lot for an interim period, installation of the additional public access amenities on the pier, and less time in the "interim Ms. Melody Lasiter Page 3 of 5 October 28, 2016 period" to generate revenue, we have had to revise the proposed parking rates so that these costs can be funded. The rate ranges are also broader to account for potential future market changes in parking rates for the area. 4. A site plan showing the current configuration of Navy Pier is attached (Attachment 5. An estimated Interim Development timeline is attached. Until the Coastal Commission approves the CDP, the timeline will only show time periods versus actual dates. It is anticipated that demolition of the head house, installation of the additional public access amenities, and reconfiguration of the parking will take approximately two years to complete accounting for various agency permitting required (Attachment This will allow us to raise the appropriate funds to cover the cost of removing the building. 6. As detailed in our June 8, 2016 response letter (Response the Port of San Diego Shuttle (formerly the Big Bay Shuttle from 2012-2015), recently completed its fifth year of operation this past 2016 Labor Day weekend. The shuttle program operated 7 days per week for 15 weeks during the period between Memorial Day weekend and Labor Day weekend. Five (5) shuttles operated daily Sunday? Thursday from 10:00 am. to 8:00 pm, and Friday-Saturday from 10:00 am. to 10:00 pm. These have been the operating hours, days and count of shuttles in operation over the past five years. The rate per person for all day use is $3 with unlimited on and off privileges during the day of purchase. The eight (8) shuttle stops have varied over the past five years with some adjustments to the stops between the Sheraton on Harbor Island to the Hilton Bayfront Hotel/South Embarcadero, transporting visitors along North Harbor Drive and the waterfront. The route for the Port of San Diego Shuttle for Summer 2016 included eight (8) stops at: Sheraton on Harbor Island, Anthony?s Fish Grotto/San Diego Maritime Museum, Broadway Landing, USS Midway Museum/Tuna Harbor, Seaport Village/Headquarters, Grand Hyatt, Marriott Marquis and Marriott Bayfront (along Lane Field Park). Ridership History Summer Tickets Sold Ridership (On/Off Use) 2012 24,366 41,179 2013 13,541 26,643 2014 12,158 19,896 2015 10,585 21,511 2016 11,055 20,409 Ms. Melody Lasiter Page 4 of 5 October 28, 2016 The 2016 shuttle program was advertised via several modes, including by the many Port tenants along the shuttle route, their concierge desks, via their websites and customer service representatives. Ace Parking who operated the shuttle for the Port, advertised the shuttle via their interactive website, social media sites, including Twitter and Facebook, and announcements in the general media. The shuttle was cross promoted through concierge desks at each of the hotels in the downtown market where Ace manages the parking. The Visitor Information Center at Broadway Landing also provided the public with brochures and information on the shuttle. The Port advertised the shuttle program via our website, social media and via announcements at public events throughout the summer. The five shuttles were wrapped with identifiable advertising so the public could easily recognize them. Each shuttle stop included an A-frame sign identifying the stop including details about the shuttle program and the $3fare for all day use. Port tenants along the shuttle route sold tickets for the shuttle to their patrons. Advertising plans for future shuttle programs will be determined once the type of shuttle program is selected and should include all of the advertising forms noted above, and may include radio spots and other multi-media formats to improve public awareness. The selection of the future format of the shuttle program will help us determine the future advertising needs to promote the program. At this point in time, a vetted advertising campaign is not possible. Port staff is currently working with IBI Company on a shuttle study to determine how to grow ridership and create sustainable use of a year-round shuttle. As this study concludes, staff will be considering the shuttle option used over the past five years, as well as other new transportation alternatives similar to the San Diego Downtown Partnership?s on-demand shuttle service with Free Ride. Free Ride utilizes an advertised subsidy model to offer people a free ride service. They are also utilizing 100% electric vehicles. To learn more about their program, please visit: Additionally, we will also try to better understand current impacts and emerging trends of next generation ?ride sharing" services and business models, Uber and Lift, as they relate to an on-going shuttle service/program. Funding of the shuttle program is currently done via sales of advertising, tickets and tenant participation. As part of the shuttle study, new concepts for funding the future shuttle are under consideration. The IBI Company study is just now wrapping up the statistics from this past summer and is expected to be completed by the end of this year. In addition to the shuttle, there are eight (8) Deco Bike stations on tidelands spanning from the South Embarcadero to Harbor Island and Spanish Landing; MTS has several stops along North Harbor Drive, which serve all areas of the Embarcadero with many stops within easy walking distance of the many waterfront attractions and businesses. The trolley and train station are only one block from the main area of the North Embarcadero off Broadway. All alternative Ms. Melody Lasiter Page 5 of 5 October 28, 2016 transportation options are listed on our Port website and our Port Tenants? websites so that visitors have various options when planning to visit the Embarcadero. Our tenant hotels and businesses inform us that, along with their own hotel shuttles, taxis, Uber and are often utilized by their guests and visitors as modes of transportation to their locations along the waterfront. For a comprehensive view of the Port of San Diego Shuttle, attached is the 2016 Ridership Report (Attachment We appreciate the feedback Coastal staff has provided us on this project over the past several months, and hope that with this additional information, Coastal staff will deem our CDP application filed and docket this item for the next Coastal Commission meeting. If you have additional questions, please contact me. Sincerely Chief Operating OfficerNice President (619) 686-6498 Attachment 1 - Interim Period Navy Pier Site Plan Attachment 2 - Interim Period Coastal Access Signage for Navy Pier Attachment 3 - NE PMPA Staff Presentation from October 13 Board meeting Attachment 4 - Amended Project Description for Interim Period Navy Pier Plan Attachment 5 - Site Plan of Current Configuration of Navy Pier Attachment 6 - Navy Pier Interim Development Timeline Attachment 7 - Port of San Diego 2016 Shuttle Ridership Report SDUPD Doc. No. 1124216