The San Diego Unified Port District has leased land from the Navy to provide additional space for a proposed hotel and support a beautification project on the city's North Embarcadero.

A document sealing the agreement was signed at a morning news conference by Port Commissioner Stephen Cushman and Rear Adm. Len Hering, commander of Navy Region Southwest.

The deal involves 3.4 acres at 1220 Pacific Highway.

“This property is a key piece in the redevelopment of the North Embarcadero,” Cushman said. “The port and its future tenant, Lane Field San Diego Developers, will turn the acreage into a bustling block with two hotels, public promenades and open space.”

Several Navy office buildings occupy part of the property, and either the port or a company that acquires the lease will need to replace the buildings at another location.

Hering said the Navy is pleased to make property available for part of the North Embarcadero Visionary Plan – a proposal to create landscaped paths and parks along North Harbor Drive from Seaport Village to Laurel Street.