Manchester Pacific Gateway/Navy Broadway Complex Clears Significant Legal Hurdle

SAN DIEGO, CA--(Marketwire - April 30, 2008) - Manchester Pacific Gateway, LLC announced today that a United States District Judge has ruled in its favor in a suit against the California Coastal Commission. The Court declared that the Coastal Commission cannot require Manchester to obtain a Coastal Development Permit under state law for Manchester's proposed development of the Navy Broadway Complex (NBC). The NBC site is excluded from the "coastal zone" by Federal law. Further, the Court ordered that the NBC Project should be reviewed under Federal, not state, coastal law.

Manchester filed suit against the Coastal Commission for declaratory relief in June 2007 after the Commission attempted to exercise state law permit jurisdiction over Manchester's development of the NBC site. Manchester responded that the Commission does not possess such jurisdiction because the project is being developed on Navy land and the project is the product of Federal legislation and Federal agency discretion. With the ruling, Judge Jeffrey T. Miller agreed.

"The Navy Broadway Complex is being developed with the highest sensitivity to the environment and the coast line," said "Papa Doug" Manchester, Chairman of Manchester Financial Group, parent company overseeing the development. Further, "This ruling removes an important hurdle and moves us forward with development of this landmark project which will revitalize and invigorate San Diego's waterfront."

According to Rear Admiral Len Hering, "This was a critical ruling for the Navy to move forward with this important public-private partnership and for the Navy to realize its long-sought objective for development of a new state-of-the-art Southwest Regional Command Center while providing for an array of public benefits for the people of San Diego."

"This is a significant legal victory for Manchester and the Navy because it means that the Coastal Commission cannot assert its jurisdiction to require a Coastal development permit on Federal land which is excluded from the Coastal zone," said Steve Strauss, a partner at law firm Cooley Godward Kronish who is outside legal counsel for Manchester, and who litigated this case.

Manchester is a San Diego-based developer that is a party to a long-term Ground Lease with the U.S. Navy. The proposed NBC Project is a Manchester and U.S. Navy joint public/private venture with plans to develop a billion-dollar, mixed-use project on the NBC site at San Diego's waterfront. The project will include over three million square feet of office, hotel, and museum space, including a new 17-story Class A office building for Navy headquarters, and over five acres of public park and open space.

Contact Information: Press Contact: Steve Strauss Cooley Godward Kronish 858/550-6006 - phone sms@cooley.com