$15.5 Million in Grant Funding to be Allocated for National City Balanced Plan Improvements

The Port of San Diego is completing the administrative process to direct $15.5 million in grant funding for two National City Balanced Plan projects - the Marina Way Realignment and the Connector Rail Track. The Marina Way Realignment helps set the stage for more commercial development on the National City Bayfront.

In 2023, the Port was awarded a total of $35.5 million in California Port and Freight Infrastructure Program (PFIP) funding, which is being administered by Caltrans. At the August 11, 2026 Board meeting, the Board directed staff to inform Caltrans that the Port would like to allocate $8.8 million of those funds toward the Port's Marina Way Realignment project and $6.7 million toward the Connector Rail Track project, which is led by Pasha Automotive Services and BNSF. Once Caltrans is informed, they will make the funds available to the Port. In July, the Board approved Coastal Development Permits for both projects.

"This grant funding is an important investment in the future of the National City Bayfront and in the Port's continued work to bring the Balanced Plan to life," said Chair Ann Moore, Port of San Diego Board of Port Commissioners. "By realigning Marina Way and supporting the Connector Rail Track, we are helping unlock new opportunities for economic development and commercial recreation, improve access to San Diego Bay, support maritime operations, and create a more welcoming waterfront for National City residents, visitors, and businesses."

"For National City, this funding represents meaningful progress toward a bayfront that better serves the community," said Commissioner GilAnthony Ungab, M.D., Port of San Diego Board of Port Commissioners. "The Marina Way Realignment will help create a more welcoming connection to Pepper Park, the Bayshore Bikeway, Pier 32 Marina, and future economic development and commercial recreation opportunities, while the rail improvements will support a more efficient working waterfront. Together, these projects move us closer to the community-driven vision of the Balanced Plan: more access, more recreation, and a stronger National City Bayfront."

Marina Way Realignment
The project, which is the commercial segment of the Marina Way Realignment, will realign an approximately 1,200-foot-long segment of Marina Way between the eastern side of the National Distribution Center and the eastern entrance to Pepper Park. The new, curved roadway will be 38 feet wide with two lanes (one lane in each direction), on-street parking, street lighting, landscaping, stormwater treatment systems, and new storm drain, sewer, water, and other underground utilities. The utilities will be built to support the full buildout of the proposed commercial recreation development of the Balanced Plan. Additional commercial recreation development will provide more tax revenue for the City of National City and more rent revenue for the Port (the Port does not assess or collect taxes). The estimated project cost is $9.8 million, $8.8 million of which is covered by a PFIP grant the Port received in 2023, and the remainder is funded by the Port. Staff is tracking toward bringing a construction contract award to the Board for approval by December. Construction is anticipated to begin in early 2027 and be completed in early 2028.

Connector Rail Track
Proposed by Pasha Automotive Services and BNSF, this project proposes construction and operation of a rail connector track to run parallel with the realigned Marina Way. This is a tenant-led project. This project will increase operating efficiencies at the National City Marine Terminal by connecting the existing on-terminal rail track to the BNSF National City Yard (east of the National Distribution Center), reducing unnecessary train movements and reducing the required effort associated with building daily trains by improving near-terminal rail storage capacity and creating a more direct connection between the BNSF National City Yard and NCMT. By constructing the connector track parallel to the realigned Marina Way, the projects together create a clear delineation between maritime industrial land uses and commercial land uses. BNSF will be the lead entity responsible for construction of the connector rail track. The Port will serve as a pass-through agency for the PFIP funding.

National City Balanced Plan
The National City Bayfront is made up of 273 acres of waterfront land and 167 acres of water. It includes Pepper Park - with a public boat launch, fishing pier, and new splash pad and playground, a portion of the Bayshore Bikeway, an aquatic center, public art, Pier 32 Marina, the National City Marine Terminal, and other maritime & industrial facilities. The area within and around Pier 32 Marina is referred to as the Marina District. The Balanced Plan, a product of public outreach and close collaboration with the City of National City and business and community stakeholders, is a land use plan that rebalanced land uses - commercial recreation, maritime, and public access - in the Marina District. Implementation of the Balanced Plan involves development activities by both the Port and Marina District tenants.

The Port-led development that is part of the Balanced Plan includes the following:

• Marina Way Realignment: Proposed by the Port, this road realignment would be curved between the entrance to the Marina District and generally the existing intersection of 32nd Street and Tidelands Avenue. The road would be realigned in two segments - the commercial segment and the park segment. The commercial segment will be completed first. The park segment will be completed as a subsequent step in a future phase. The road realignment will create a more contiguous footprint for commercial recreation development.

• Park Expansion: A 2.5-acre expansion to Pepper Park is planned as a future phase. In order to accommodate the park expansion, a corner of the marine terminal will be reconfigured.

The tenant-led development that is part of the Balanced Plan includes the following:

• Commercial Recreation Development: Proposed by GB Capital, owners and operators of Pier 32 Marina, this development proposes construction and operation of a commercial recreation project in two phases. Phase 1 would consist of a recreational vehicle (RV) park, cabins, tents, structured tents, dry boat storage, and an expanded marina. Phase 2 will consist of up to two hotels.

• Connector Rail Track: Proposed by Pasha Automotive Services and BNSF, this development proposes construction and operation of a rail connector track and storage track.

• Tidelands Avenue Closure: Proposed by Pasha Automotive Services, this development proposes closure of Tidelands Avenue between Bay Marina Drive and 32nd Street as well as West 28th Street between Tidelands Avenue and Quay Avenue.

In December 2025, the California Coastal Commission (Coastal) unanimously certified the Port Master Plan Amendment (PMPA) to incorporate the Balanced Plan into the Port Master Plan. In February 2026, the Board unanimously accepted Coastal's certification of the Balanced Plan PMPA. That important milestone means the Port, City and tenants can begin making progress on projects to expand commercial recreation and maritime uses, as well as expand and improve public access and park space on the National City Bayfront.