The Ferry Landing Overhaul Starts in January, but the Operator Still Has to Earn Its Lease

"It's the bottom of the ninth inning," Commissioner Frank Urtasun said on June 23, 2026. Urtasun represents Coronado on the Board of Port Commissioners, and he was speaking just before the board voted unanimously on the future of the Coronado Ferry Landing. Most summaries of that vote said a renovation had been approved. The board actually approved a 12-month audition. Port Coronado Associates, the company that built the center at 1201 First St. and has run it since the 1980s, now has until June 30, 2027 to show it can deliver a $21.9 million remodel. If it meets every condition, it gets a 35-year lease running through June 30, 2062. If it misses any of them, the Port can end the relationship.

That timing matters to anyone who catches the ferry, picks up dinner at Village Pizzeria or takes guests to Peohe's for the view. The first proof that the deal is working will be in the parking lots, and it is due in about three months.

A lease you have to earn

The Ferry Landing opened in 1987 under a 40-year lease that Port Coronado Associates, or PCA, signed in July 1986. That lease was set to expire on June 30, 2026. In its place, the Port granted an option that began July 1, along with a list of what Commissioner Danielle Moore called "eight specific, time-bound conditions." She added, "This typically doesn't happen in a typical lease."

Before the long-term lease can be signed, PCA has to do the following, according to the Port staff report and Union-Tribune coverage:

1. Start early construction work within six months of the option's start.
2. Submit full working drawings within nine months.
3. Lock in financing and secure project investors.
4. Provide bonds.
5. Get all building permits.
6. Sign a construction contract at least one month before the option expires.
7. Collect commitment letters from subtenants covering at least 25% of the leasable space.
8. Agree that current subtenants' leases will run through June 30, 2027 if the option ends before the long-term lease is signed.

Counted from July 1, 2026, those deadlines fall at about the turn of the year for early work, around the end of March 2027 for drawings, and by the end of May 2027 for the construction contract. Each one is a date the public can check.

The terms after the option are strict as well. The long-term lease requires personal guarantees from members of the Engel family, who run PCA. It also sets minimum maintenance spending, requires a condition assessment every 10 years and calls for a review of operations halfway through the term. PCA's minimum rent is $600,000 a year until the remodel is finished. That minimum more than doubles in 2030 and climbs to almost $2 million by the end of the term. Port staff estimate the lease is worth $18.5 million in rent to the Port in net present value.

Why the board wrote it this way

The deal follows a long and public disagreement. PCA proposed a major remodel in October 2022 in exchange for a longer lease. After three years of talks, the Port board turned the proposal down in closed session in October 2025. The Port's position was that $17.5 million in deferred maintenance had to be addressed first. It argued that much of the proposed remodel was upkeep already required under the existing lease. PCA said publicly that the Port wanted the property for itself. The board still told staff to keep negotiating. Since then, PCA has finished 95 repairs on the property, including several on the dock and pier.

Both sides sounded optimistic in June. Christian Herrera, the Ferry Landing's vice president of development and operations, called the agreement a milestone and said the goal was a center that "reflects the unique character of Coronado while serving residents and visitors alike." In a voicemail played at the meeting, Arthur Engel said, "Our family and our team have been proud stewards of this property for decades." Urtasun explained the structure of the deal plainly. "We have to make sure that they perform before we're going to get into a long-term lease," he said. He also said "the community of Coronado had waited long enough."

What changes, building by building

The project keeps the center's current footprint and adds no commercial floor area. It redoes the eight single-story buildings: siding, roofs, storefronts, windows, insulation, HVAC, electrical, plumbing, fire and life-safety systems, signage, awnings and the public restrooms. PCA has said the new look takes its cues from the Hotel del Coronado.

The plaza will probably feel the most different. The fountain will shrink to make room for common space with tables, seating and bike racks, and the plan adds new lighting, landscaping and signs to help people find their way. The two parking lots will be resurfaced and restriped, with new lighting and EV charging. The number of stalls stays about the same, apart from changes needed for ADA and EV requirements.

Under the CEQA filing, the work is scheduled in three stages:

Current businesses are supposed to stay open during the early work, and the work is sequenced to keep access and parking available. In the two main phases, the plan expects specific buildings, parts of the plaza, sections of the parking lots and segments of the pier to close temporarily as needed. Public access, walking routes and ferry service are to be kept open "to the greatest extent feasible." PCA has to finish by July 1, 2029. After that date, the penalty is $250,000 per day.

The center is fully leased to 24 subtenants and brings in $29.4 million in annual sales. PCA's directory lists dining spots such as Coronado Coffee Company, Cold Stone Creamery, Cocina 35 Brunch and Le Parfait Paris, and shops such as La Camisa, Coronado Tasting Room, Vom Fass and Miss Match. Il Fornaio sits on a neighboring parcel run by a related company, Ferry Landing Associates. It falls outside this leasehold. We covered the restaurant changes along the waterfront in our guide to Coronado's 2026 dining openings.

The pier is waiting on the boats

The pier is the one piece without a fixed date. The plan calls for new decking, repairs to some concrete piles, a stainless-steel fire line with hydrants and replacement lights. That waterside work has been scheduled for later, so it can be coordinated with a separate ferry electrification project.

That project is Flagship's ZEST program. It will replace the diesel MV Cabrillo and MV Silvergate with two new battery-electric ferries on the same Coronado route. Each will carry 275 passengers, be fully ADA accessible and have more room for bikes and strollers. A $15.27 million grant from the California Air Resources Board pays for much of it, and Flagship is contributing $5.5 million of its own. Total public and private investment is more than $21 million. Flagship also plans to install a fast charger at each dock. In early 2025, Flagship was aiming for a first ferry in fall 2026. Its newer project summary says construction starts in late 2026, with launch planned for 2027. It also promises "no changes to the schedule."

For now, Flagship's posted schedule shows sailings from Broadway Pier every 60 minutes and from the Convention Center every 30 minutes. Crossings take about 15 minutes, and the one-way fare is $9 for anyone age four and up. If you rely on the ferry instead of the bridge, our guide to getting around Coronado covers other ways across.

What hasn't been answered yet

Some questions are still open. The Port's press releases from July through late September 2026 include no update on the Ferry Landing. We found no public record of permits issued, a confirmed start date for early work or a community meeting. The project documents also don't say how construction will affect the Tuesday farmers market, which has its own history at the ferry landing. Flagship's materials don't confirm whether a shipyard has been chosen for the new ferries. Until those answers come out, every date above is a plan.

The first date that will show whether PCA is on track is January 1, 2027. That is when crews are scheduled to start on the parking lot asphalt, the EV conduit and the fountain.

If you own property near First Street and want to understand how a multiyear construction schedule at the Ferry Landing could affect it, The Clements Group is glad to walk you through it. Schedule a private consultation and we will go over the dates, the phases and what they mean for your block.

This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.