The Bay City Settlement is a Major Problem for the City of Seal Beach!

(Ed. Note: An earlier draft on April 29 attributed some comments to Marc Loopesko. Those were made by Bruce Stark.)

The “Settlement” agreement that was distributed last week by some concerned Seal Beach citizens was, to most who viewed it, a frightening document to review.

As understood by most who got copies….it was accepted as a ‘fait acompli’.  It appeared as if our city council had literally signed an agreement behind closed doors that benefitted a private entity with a windfall profit on the DWP property that could enrich the Partners in excess of $30 million dollars while indebting the city dramatically!

At Monday night’s City Council meeting enraged citizens were  there in substantial numbers.  When the council meeting was opened to comments – limited to 5 minutes per speaker – they spoke with a passion that would  have made Patrick Henry proud… and the Council sat silently without comment.  The silence seemed like disdain at first and then the City Attorney said that the Brown Act restricted the Council Members  from commenting on something that was not on the printed Agenda for the evening.

It probably is not fair to say that the council seemed ambivalent to the comments, nevertheless for those speaking from their hearts,  to be the object of complete silence to their complaints…. one of which was that this “Deal” had been done behind closed doors … it must have seemed like they were in the City of Bell.

Hopefully that is not the case.  Mayor Levitt did speak briefly to answer one of the speakers and said…’There has been no agreement.  Nothing has been agreed to.  Nothing has been signed off.“  The clear indication seemed to be that it has yet to be addressed in public.  We certainly hope so but we are  still left with a copy the last page that says

” IN WITNESS WHEREOF, the City and Bay City cause theagreement to be executed.

Dated: 3-16-2011. . .  signed  Michael Levitt, Mayor of City of Seal Beach.”

The Limited Liability Corporation, Bay City Partners includes three Seal Beach locals: Brian Kyle, owner of O’Malley’s Restaurant on Main Street, Bob Griffith who used to own the Rexall Drugstore before he became one of the largest landlords in Seal Beach and now lives in a majestic “castle-like” home on the Gold Coast. Griffith also owns of Griffith Enterprises on Main Street, where you can peek in the  window and see a couple of cars….but Griffith doesn’t sell anything there and doesn’t encourage visitors.  The last of the Seal Beach partners is Rocky Gentner, who sells boats on the north end of the property that could be turned into more home-sites.  Gentner and Griffith are two of the largest owners of the LLC with  25% each.  Kyle is a close third with 15%.   It’s doubtful that those opposed to the project can affectively diminish the influence of Gentner or Griffith. Griffith usually provides a big red Cadillac to drive Santa around in the Christmas parade and everybody loves Santa.

Carla Watson was the first speaker of the night.  A 47 year resident of Seal Beach , Carla was one of group who lobbied the Coastal Commission to place the DWP property on the priority list because 1) It was one of the last remaining scenic bluffs along the ocean, 2) A bicycle path feeds into this property, and 3) the land was in the public domain.  Since that time a consensus was reached on restrictions on the property and she said that when Bay City purchased the property they knew the plan and constraints on the property.  In a most eloquent speech she defended the original position of the previous City Councils and the consensus.

Bruce Stark , another of the opponents also spoke and described the plastic cover that’s been around the fence for over a year –  that was put up by the LLC –  as “ a punishment inflicted on the neighborhood.”  He said there was no other reason for it to be there.  It served no purpose. The neighbors used to enjoy looking across at harbor and the jetty…as did the rest of the city and the tourists but Bay City Partners decided to obstruct the view.  (Perhaps – with pending litigation they didn’t want the voters to see what a prize jewel it was for the planned city park?)

Bruce later announced that the DWP is on the Council Agenda for Monday, June 13.  We encourage all to show up at that meeting.

Robert Goldberg in an email sent to opponents of the plan warned that they should keep in mind that the ‘agreement’ clearly draws “the line” at a location inconsistent with the DWP Specific Plan.  That plan states that all development shall be north of  the north-side of an imaginary westerly projection of Central Way.  Therefore, the Plan would have allowed Central Way to be continued straight onto the property to provide both an access road and a southern boundary of the developed area. Instead, the signed agreement allows 13 homes to be built on top of the imaginary westerly projection  of Central Way. (Ed.Note – This could be a crucial mistake!)

Goldberg and Loopesko both also attacked the split that was always supposed to be  70%/30% with 30% being for homes and 70% for open space and for park area.  Now it is closer to 50%/50%.

Jim Caviola, a resident and a lawyer, said “This is a rip off. These guys are going to get $900,000 for a lease to service our sewer system and to continue to give access to the beach parking lot!  They may make as much as $40 million dollars and we’re giving still going to pay them $2 million?”

Chi Kredell, a leading SB  citizen for more than 50 years speaking to the entire Council said, “This is a stab in the heart to us. How could you do this to us?”

Former Mayor Charles Antos said he sat in on the negotiations before he retired earlier this year and that it was a ‘terrible deal’ for the city to make. Antos emphasized that he had nothing to do with the agreement.

One of the current council members told me  “Appearances can be deceiving. This agreement came about for many reasons, the main one was to save the city money.  The city has had exorbitant legal expenses brought about by Bay City Partners. We where in danger of losing the two million dollar grant from San Gabriel Conservancy to upgrade the first street Parking area; we were virtually squeezed by Bay City Partners.  If we had lost the eminent domaine suite on the roadway we could have been put in a huge financial loss. The city council was never happy with this agreement but it was the best deal we could get out of very greedy landowners who were willing to use legal costs to put the city in a bind.” ( Ed Note: Unfortunately, we were told,  the Brown Act would not let them discuss this with the citizens because the LLC and the City were in Litigation.)

Council Member Ellery Deaton, who got on the Council just before the agreement in question was decided (?) said yes… they did agree to $900,000 for a sewer easement.  But more importantly that
stopped litigation so the project could get out of closed session under the cloak of secrecy and be vetted by the public.  No zoning change was given and everything in the settlement agreement except for the sewer easement purchase is now open for public debate.  Deaton went on to say that was her main reason for voting to stop the litigation–to get the discussion out in the open.  There is always room for different opinions, but the opinions need to be aired publicly.

Needless to say there are conflicting comments by the Council members and that may have been caused by the ‘heat of the moment.’

What’s Up in Seal Beach remembers Pres.Reagan’s comment “Trust ….but verify!”  For Seal Beach that will be on June 13th!