The Port of San Diego has taken a significant step towards revitalizing the East Harbor Island area with the approval of a 40-year lease agreement in principle with Topgolf International. This project promises to bring new life to the waterfront, offering panoramic views of San Diego Bay and the downtown skyline while generating economic activity and providing entertainment options for residents and visitors alike.
On Tuesday, the Port of San Diego Commissioners voted unanimously to sign a non-binding term sheet with Topgolf, with the condition that the venue operator takes financial responsibility for its parking needs. This decision, though not constituting project approval, marks a milestone in the project’s development. The full-fledged lease agreement is expected to return to the board for approval in the second half of 2024, and construction is anticipated to commence in mid-2025.
Topgolf’s proposed 70,700-square-foot, three-level facility on a 9.5-acre site will feature 102 hitting bays, a 4.5-acre outfield with 10 underground golf targets, and a polyester barrier netting system suspended on poles up to 170 feet in height, according to a report in the San Diego Union-Tribune. Additionally, the location will include multiple restaurant and bar areas, event space, and 293 surface parking spaces. The project is estimated to cost at least $61 million, with Topgolf’s minimum annual rent starting at $1.53 million.
Shaun Sumner, a port executive overseeing the agency’s real estate department, emphasized the positive impact of this project on the waterfront. He stated that Topgolf is expected to bring in over half a million guests every year, with the potential to attract even more visitors when combined with complementary “eatertainment” concepts. Sumner highlighted that approximately 11 acres of public realm amenities, including a park plaza, new landscaping, public access to the bay, and widened promenades, are part of the project’s vision.
While the term sheet outlines a 40-year lease agreement with Topgolf, the company’s rent will be tied to sales, starting at 5.5 percent and increasing to 7 percent toward the end of the term. Moreover, Topgolf has committed to covering a portion of public infrastructure costs for the broader redevelopment of East Harbor Island. The board will review the $4 million sum designated for this purpose as part of an ongoing environmental analysis.
Topgolf’s community benefits package includes the “Youth Play it Forward” program, allowing young athletes to play for free during off-peak hours. The proposal also offers discounts for military, police, fire, and emergency medical workers.
Despite the unanimous vote by commissioners, the project has faced opposition from some members of the community who object to the venue’s appearance and the proposed tall netting system. While the majority of public speakers expressed concerns, local business associations, the carpenter’s union, area hotels, and community groups have voiced support for the project, highlighting the potential benefits it could bring to the area.
