Port Seeks to End ‘Speculation’ on District Land

The Port District commissioners--stung by developer Doug Manchester’s attempt to sell a $100 option on bayfront port land to another developer for $15 million--are seeking to put a stop to such potential “speculation.”

The board heard a report Tuesday from one of its outside attorneys, Alan Perry, who said he is working on “model” contract language to protect the San Diego Unified Port District from situations involving “the transfer of interests and speculation.”

The district wants changes because of Manchester’s effort earlier this year to sell his port-obtained option to build a hotel near the future convention center site to the owners of Seaport Village.

Seaport Manfred Co. Inc. eventually pulled out of the deal but not before it aroused much controversy, including criticism from Mayor Maureen O’Connor, who accused Manchester of seeking to attain a windfall through improper speculation on public property.

Perry, who is to report back to the board April 21, said he is seeking to impose restrictions on both the sale of lease options and the sale of ownership interests held by limited and general partners.

One way to do that, he said, is to require that lease-option holders receive approval from the Board of Commissioners, which is what Manchester attempted to do. Another way, which Perry described as a “safety valve,” is to require that any profit made from the transfer of a lease option or by changes in corporate ownership--done without the Port District’s knowledge--revert to the Port District.

Perry said the city attorney’s office has asked to see his model contract language because of concerns that the city may face similar problems on land it owns in areas such as Torrey Pines. Perry also said he has been asked to discuss the matter with the county grand jury.