Construction Set to Start on Long-awaited Mercado del Barrio Project

Mayor Jerry Sanders announced today that escrow has closed on the Mercado del Barrio project, and construction is expected to begin next week on the long-awaited redevelopment project in San Diego's Barrio Logan neighborhood.

When completed in summer 2012, the public/private project will offer a shopping center anchored by a Northgate Gonzalez Market and 92 affordable apartment units at the base of the San Diego-Coronado Bridge near Chicano Park.

Public amenities will include art elements, pedestrian walkways, landscaping and plazas that highlight the culture of Barrio Logan and connections to Chicano Park.

"This project is a true win for the Barrio Logan community and all of San Diego," said Mayor Jerry Sanders. "It's going to enhance a culturally rich neighborhood, spur small-business creation and create jobs for San Diegans."

Mercado del Barrio is a cooperative venture between the city of San Diego's Redevelopment Agency, the San Diego Housing Commission, the U.S. Department of Housing and Urban Development and private firms Shea Properties, Chelsea Investment and Northgate Markets.

The mixed-used project enjoys tremendous community support, winning unanimous approval by the City Council in June 2010 after more than 20 years of planning and long delays caused by an ownership dispute.

Many Barrio Logan residents live more than three miles from the nearest big-name grocery store, and the addition of a 35,891-square-foot Northgate Gonzalez Market is a highly anticipated feature. The project also features another 47,913 sq. ft. of retail that will include specialty shops and restaurants.

The affordable housing portion of the project will feature 92 rental units developed by Chelsea Investment Co. The apartments will be available to households earning 30 percent to 60 percent of the area's median income.

"I am very pleased that the community of Barrio Logan is welcoming a development that has been the vision of the community for a long time," Councilmember David Alvarez said. "I commend Shea Properties, Chelsea and Northgate for effectively partnering with the public and private entities, who have worked tirelessly to finally get this project started."

The city began working on a development plan with Shea Properties, a commercial real estate company headquartered in Orange County, three years ago after resolving a long-standing land-ownership dispute.