The unwanted RV resort that appeared destined to replace a boat storage yard on 7 acres of waterfront property in exclusive Coronado Cays is no more. Tuesday, the Board of Port Commissioners for the San Diego Unified Port District voted unanimously to approve a lease termination agreement with port tenant, Cays Resort, LLC, that will see the agency take back the property for $3 million. The buyout deal, negotiated by Commissioner Frank Urtasun, means the port will control the fate of the land at 30 North Grand Caribe when the parties close escrow in March. The agency intends to recoup its investment by operating the existing boat-storage business before later remaking the land into a public park, as envisioned in the recently approved Port Master Plan Update. “I’m pretty proud of (the deal). We’ve made lemonade out lemons,” Urtasun, who represents the city of Coronado on the port’s seven-member board, told the Union-Tribune. “The community is not going to see a development on this property that they have been fighting for over 30 years. The port is going to find an operator to maximize the revenue stream under the current boat storage operation. And the public is going to win because one day this is going to be a public park for people from all over California to enjoy.” The land in question, on a portion of Grand Caribe Isle North, includes 7.3 acres of land and 101.3 acres of water at the foot of Grand Caribe Causeway in Coronado. The property was initially leased to Coronado Landmark, Inc. in May 1968 for a 66-year term ending in 2034. At the time, the original leaseholder entered into an unusual lease agreement with the port that included no rent and a provision granting the tenant the right to propose a redevelopment project. The developer was able to negotiate the favorable terms because it absorbed the cost of dredging the bay to create the dry land, a port spokesperson said. During the ensuing decades, the lease traded hands with different owners contemplating various projects for the prime real estate. In 2013, Arizona-based Cays Resort, LLC bought the lease out of bankruptcy. The entity, which is run by Keith Mishkin of the Phoenix real estate brokerage Cambridge Properties, has pursed several redevelopment concepts, including a 114-room boutique hotel that was rejected by port commissioners. Rendering depicts the now-dead Cottages at the Cays RV Resort proposal for the Coronado bayfront.  (Tucker Sadler Architects) Most recently, in 2022, Mishkin proposed to build 41 cottage-style RV trailers alongside shops, a restaurant and a public beach area. In February 2023, port commissioners, in a split decision, advanced the project into the environmental review stage to the ire of the Coronado Cays Homeowners Association, with the neighbors citing concerns about traffic and noise in a mostly residential area. “(Mishkin) came up with a very smart mouse trap — in that it was a really good idea,” Urtasun said. “It was really hard to oppose, but the community was in opposition to it and I had to do what the community wanted. I argued really hard on Valentine’s Day 2023 to not allow (the developer) to go into environmental assessment. I lost that vote.” The commissioner later got personally involved, which is atypical. With staff’s permission, Urtasun directly negotiated the buyout deal with Mishkin. The leaseholder, he said, had by then grown tired of dealing with the HOA and was looking for a way out. The $3-million price point was determined based on the value of the boat-yard business, with the final deal price “considerably less” than what Mishkin originally asked for, the commissioner said. Mishkin did not respond to a request to comment. Going forward, the port expects to bring in a new operator to maximize revenue from the boat-yard business with the ultimate goal of turning a profit. The storage yard, which is currently occupied by around 100 boats, has capacity for 152 vessels. The agency hired Keyser Marston Associates to prepare a financial sensitivity analysis and model operations over a 10-year period. The analysis has not been made public, but the net present value of revenue from boat storage, over the remaining lease term, is likely to exceed the purchase price, according to a staff report prepared for Tuesday’s board meeting. Eventually, when funding is available, Grand Caribe Isle North will be refashioned into a public park, with Urtasun’s stated intention of creating something far more inviting — with picnic tables, playground equipment and restrooms — than the passive grassy area, known as Grand Caribe Shoreline Park, directly to the south. Even that idea has been unpopular with the adjacent homeowners who want something just as quiet as the park to the south, he said.Related Articles Business | Balboa Park’s Botanical Building reopens after $26.5M restoration Business | San Diego abandons plan for new City Hall Business | Oceanside officials ‘unnerved’ by recommendation that the city is prime for North County growth Business | Who will decide the fate of Liberty Station? City’s battle with developer for control spills into public view Business | Single-family home subdivision proposed near Guajome Lake “This is public land. We’re using public dollars. This is going to be, one day, opened up to the public,” Urtasun said. Tuesday’s board item received no public comment, other than a video statement from Coronado Mayor Richard Bailey. “The city of Coronado wholeheartedly supports your board’s approval of the lease termination agreement,” he said. “This step is crucial in achieving the vision of the Port Master Plan Update to preserve this land for recreation open space use, which will be welcomed, not just by Coronado residents, but by residents of South Bay and throughout California.” With the board’s approval of the lease termination agreement, port staff will begin the escrow process. The contract includes a closing deadline of March 11 that the port can extend on a day-by-day basis. The agency can also terminate the deal for any reason during the due diligence contingency period, which starts in February.