New partners set to buy lease for proposed waterfront hotel.

Two local businessmen who planned to develop the Spinnaker Hotel, a posh property with sail-style architecture that would complement the waterfront San Diego Convention Center, are selling their lease on the acreage, according to the San Diego Unified Port District.

Fifth Avenue Landing LLC--composed of Art Engle, owner of Harbor Excursion and a co-owner of the Marine Group Boat Works, and Ray Carpenter, owner of R.E. Staite Engineering, which has the 5-acre leasehold for the proposed hotel--has agreed to sell it to Spinnaker Waterfront Hotel LLC for $14 million, says Karen Weymann, assistant director of real estate for the Port District, which has the fight to approve or reject the leasehold reassignment.

Brian Ross and Todd Sabin are partners in Spinnaker Waterfront Hotel. Their real estate consultant, Jim McInerney, says the partners expect to finalize the leasehold acquisition in October.

McInerney says financing has been obtained for acquisition of the lease, but not for development of the hotel as yet.

Weymann says the current estimate for the project, including financing, design and construction of the 250-room Spinnaker, some road work, a pedestrian bridge connecting it to the Convention Center and a 1-acre park, is $175 million.

McInerney says the Spinnaker is not to exceed 23 stories.

It would stand on the waterfront in front of the Convention Center between the Marriott Hotel & Marina and the new 1,190-room Hilton.

Weymann says that the Spinnaker has been on the drawing board since 1999. Engle and Carpenter, meanwhile, are building a boat landing where Harbor Excursion's vessels would board passengers and drop them off adjacent to the site of the proposed Spinnaker.

It is expected to be completed in November or December, when the new Hilton opens, she says.