DEPARTMENT OF DEFENSE DEPARTMENT OF THE NAVY

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DEPARTMENT OF DEFENSE DEPARTMENT OF THE NAVY FINDING OF NO SIGNIFICANT IMPACT (FONSI) FOR IMPLEMENTATION OF THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF SAN DIEGO AND THE U.S. NAVY FOR REDEVELOPMENT OF THE NAVY BROADWAY COMPLEX IN SAN DIEGO, CALIFORNIA. Pursuant to the Council on Environmental Quality (CEQ) regulations (40 Code of Federal Regulations 1500-1508) implementing procedural provisions of the National Environmental Policy Act (NEPA) and the U.S. Navy Procedures for Implementing NEPA (32 CFR 775) as described in Operational Navy Instructions (OPNAVINST 5090.1C), the Department of the Navy gives notice that an Environmental Assessment (EA) and Finding of No Significant Impact (FONSI) have been prepared for implementation of a Development Agreement between the Navy and the City of San Diego, which directs redevelopment of the Navy Broadway Complex (Complex) with Navy administrative and mixed uses. A draft EA was released for public review on 17 September 2008. The Navy held three public meetings, including a weekend, weekday, and week night meeting. Each public meeting included a two-hour public hearing and a two-hour open meeting session during which the public had the opportunity to review the draft EA and related documents, and to speak with Navy experts on environmental issues related to the project. The 45-day public review period ended on 3 November 2008. The Navy received written comments from 15 different commenters at the public meetings (59 distinct comments); 27 persons/organizations submitted oral comments at the public meetings (76 distinct comments); 30 persons/organizations submitted comments to the website, and 31 persons/organizations submitted written comments by letter and e-mail. The comments received by the Navy totaled 900 megabytes (MB) when collected in electronic format. An Environmental Impact Statement (EIS) and Record of Decision (ROD) were prepared for the redevelopment of the Complex in 1990 and 1991, respectively, and were used to negotiate the terms and conditions of the Development Agreement, which was signed in 1992. An EA was prepared for the proposed action in 2006 and a FONSI was signed on 22 November 2006. This FONSI supersedes the 22 November 2006 FONSI. Proposed Action: The proposed action is to redevelop the Complex through implementation of the Development Agreement Page 1 of 6

consistent with the military use of the property and the goals and objectives established in Public Law 99-661, which allows the Navy to enter into a long-term lease(s) of the Complex to implement a co-location concept on the site. The proposed action would allow the federal government to retain title to the property and to lease portions for private revenue-generating uses that could offset the cost of Navy facilities. Redevelopment of the Complex would provide modern, centralized administrative space for the Navy s San Diego region at little or no cost to the taxpayer. The Development Agreement defines the vesting of development rights to the Navy and its private development partner to proceed with and complete development of the permitted uses of land, density and intensity of use, the maximum size and height of proposed buildings, viewscapes, open space, and parking standards in the manner set forth in a Development Plan, Urban Design Guidelines, and previously established Mitigation Monitoring Program. Redevelopment of the Complex would include up to 92,900 square meters (1 million square feet) of upgraded Navy administrative space within a total maximum of 302,000 square meters (3.25 million square feet) of mixed uses including hotel, retail, and commercial space, and a museum. The Navy would dedicate E, F, and G streets, which traverse the Complex property, as public streets, and a 0.77-hectare (1.9-acre) portion of the site as public open space. Existing Conditions: The Complex is located on four city blocks along a portion of the waterfront in downtown San Diego known as the Embarcadero. The 6.25-hectare (15.45-acre) site houses the Commander, Navy Region Southwest (CNRSW); the Commander, Navy Fleet Industrial Supply Command (COMFISC); Fleet Industrial Supply Command, San Diego (FISCSD); Naval Facilities Engineering Command Southwest (NAVFACSW), and several other Navy administrative uses, and is central to other military installations including Naval Base Point Loma, Naval Base Coronado, and Naval Base San Diego. Constructed between 1921 and 1944, the Complex currently has 80,351 square meters (864,866 square feet) of administrative and warehouse space that is located in two large and six smaller buildings. The southern and eastern parts of the property were previously developed with many structures that have since been demolished, and nearly half of the site is presently used for parking. Page 2 of 6

Impacts to relevant resources that were evaluated in the EA for each alternative included land use, transportation and circulation, aesthetics and viewshed, public services and utilities, socioeconomics, geology, seismicity and soils, hydrology and water quality, air quality, noise, cultural resources, and public health and safety. The EA also evaluated cumulative impacts, including global climate change. Alternatives Analyzed: The EA was prepared to assist with the decision of whether or not to implement the Development Agreement as directed by the 1991 Record of Decision. The enabling legislation for the proposed action, Public Law 99-661, requires that the value of the facilities obtained by the Navy be at least equal to the value of the land leased, that any property leased be developed in accordance with the terms and conditions provided in the Development Agreement, and that the Navy facilities be constructed on the Navy Broadway Complex site. As such, this EA analyzes two alternatives: the proposed action (implementation of the Development Agreement) and the no action alternative (no implementation of the Development Agreement). The no action alternative would result in the continued use of the Complex by CNRSW, COMFISC, FISCSD, and NAVFACSW under similar to existing conditions in buildings dating from the 1920s to 1940s. There would be no redevelopment of the site with Navy and non-navy uses, and the Navy would need to program for significant funding increases to bring the existing buildings up to a reasonable level of modernity and efficiency. The no action alternative is carried forward as a baseline for comparison to the other alternative as required by CEQ regulations. Environmental Effects: This EA demonstrated that implementation of the proposed action, which includes measures to reduce or avoid impacts to the environment as defined in the Development Agreement, would not have a significant effect on the human environment, and therefore an EIS is not required. The EA revealed that with measures in place to reduce project impacts, and associated development-related best management practices, that there would be no significant effect on the human environment. Page 3 of 6

The project site is located within the heavily developed downtown area and it has been determined that there would be no significant impacts to sensitive biological resources. There would be no significant impacts to land use, or uses within the Coastal Zone. Development of the site in conformance to the Development Agreement and Urban Design Guidelines would ensure that buildings would be visually compatible with the surrounding downtown and waterfront views. The Development Agreement includes measures to minimize impacts to traffic, including the extension of E, F, and G streets to provide for continuous vehicular and pedestrian access; enhanced access on G Street between the Marina neighborhood and the G Street mole; widening and improvements to Pacific Highway adjacent to the Complex; implementation of a Long-term Travel Demand Management Program; and enhanced pedestrian and bike facilities along Broadway, Pacific Highway, and North Harbor Drive. It also includes provision of two traffic signals at intersections of E and G Streets with Pacific Highway, a continuous center turn lane on G Street through the site, a four-way stop-controlled intersection at North Harbor Drive and G Street, and enhanced sidewalks on Broadway. These improvements would reduce the impacts to traffic and circulation to a less than significant level. The proposed action would occur in the San Diego Air Pollution Control District, which has been classified as federal basic nonattainment for ozone and state nonattainment for particulate matter equal to or less than 10 microns in size (PM10) and fine particulate matter equal to or less than 2.5 microns in size (PM2.5). Based on the air quality analysis for the proposed action, the maximum estimated emissions for the proposed action would be below conformity de minimis levels. The proposed action is presumed to conform to the State Implementation Plan, and a formal conformity determination is not required. Therefore, a Record of Nonapplicability (RONA) for Clean Air Act Conformity was approved and signed on 13 March 2009. Consultation with local public safety and utility agencies has indicated that there would be no significant impacts to police, fire, schools, recreational facilities, potable water, wastewater, solid waste, electric, or gas services. As defined in the terms and conditions of the Development Agreement, the Page 4 of 6

Navy s private development partner would be responsible for the following commitments which are designed to minimize impacts to public services and utilities: the payment of school fees of all non-military and non-parking development; installation of new sewer line and looped 12-kilovolt line; and dedication of a 0.77-hectare (1.9-acre) public open space area. There would be no disproportionately high or adverse effects to human health from the proposed action on minority and low-income populations. No environmental justice effects or adverse effects to children are anticipated. Potentially significant impacts to public health and safety due to the presence of hazardous materials at the site would be reduced to a level below significance by implementation of measures agreed to by the Navy in the Development Agreement and compliance with regulatory requirements. The California State Historic Preservation Office has concurred that the proposed action would not have an adverse effect on historic properties. To minimize the potential for impacts to cultural resources at the site, the Navy would conduct archaeological monitoring during construction activities in accordance with Stipulation 9 of the San Diego Metropolitan Area Programmatic Agreement, and a discovery plan would be prepared and approved by the Navy prior to the start of ground-disturbing activities. There would be no significant impacts related to geology, soils, and seismicity. Potential impacts related to faulting would be reduced through compliance with current construction practices and the latest seismic safety and building code regulations adopted for downtown development by the City. There would be no significant impacts to hydrology or water quality. Potential short-term impacts to soils and erosion during construction of the proposed action would be reduced to less than significant levels through compliance with City and San Diego Regional Water Quality Control Board regulatory requirements. Potential impacts during construction and operational noise levels would be reduced to less than significant levels by compliance with the California Administrative Code and the City of San Diego Noise Ordinance. Page 5 of 6

REDEVELOPMENT OF TEE NAVY BROADWAY COMPLEX IN SAN DIEGO, CALIFORNIA. Finding: Based on information analyzed during preparation of the EA, the Department of the Navy finds that implementing the proposed action would not significantly affect the human environment. The EA and FONSI addressing this action may be obtained by interested parties by contacting Commanding Officer, Naval Facilities Engineering Command Southwest, 1220 Pacific Highway, San Diego, California (Attn: Gene Beale), telephone (619) 532-1027. 27- a/,/& 7 Date ' -dg?yd/ M. A. Han le Rear ~dmi&&~, Deputy Co U. S. Navy Page 6 of 6