Whoops…. Seems like something happened “on the way to the church” with Bay City/Seal Beach deal?

April 25, 2011 by  
Filed under Local News

We were a little  premature in our congratulations to the City and the partners (owners) on the settlement of the DWP land adjoining First street.

We forgot the old adage”…if it sounds too good to be true….It probably is!”

When we heard this ever festering civic problem was finally solved…it was a little disappointing that the city had given in to the demands of Bay City Partners, but  understood that sometimes its best to bite the bullet when you are in litigation and settle.  Especially in times like these when the city is ill equipped for lengthy litigation with some well heeled millionaires.

It was disappointing because we believed that Bay City had known what the parameters surrounding the future development of the project would be when they bought it “way back when?” and assumed that would work to the benefit of Seal Beach.

It was also disappointing to find out that instead of being a 70/30 division; 70% open space and 30% housing is was going to be 60/40.

Well folks…it looks like its going to be a lot worse than that….. if it ever gets done.

Last week we saw the ‘Settlement Papers’ and here’s what the settlement shows:

1-Instead of a small boutique hotel on 30% of the land…we’re going to get large homes on 50% of the land. That’s right …not the 70% / 30% we were promised by 50%!

2-We’re going to pay Bay City a NON-REFUNDABLE $900,000 . . .whether or not the project is approved by the City OR THE COASTAL COMMISSION!  That $900,000 is to be considered a four year lease for the Driveway Parcel and Bike Trail at 1st and Ocean.

3-The City staff “shall use each of his or her best efforts to secure consideration of the proposed project”  (No public input. No Rezoning input!) Further the staff should recommend ‘IN GOOD FAITH ..”  that they approved the plan.  (At least that’s how we read it.  However you can get a copy and read it for yourselves and tell us if we’re wrong.) Our staff HAS to testify that they are happy with the deal!

4-Additionally the city agreed that Bay City Partners would not have to pay any Park Fees, any Park Improvement Obligations or furnish an Affordable Housing requirements (either in lieu fees or on-site improvements.  They pay none of these fees.  Who does?  (One would guess we, the citizens do.)

5-It gets better …or worse depending on your viewpoint.  The City agreed to reduce our overhead charges on the  project from 17.5% to 8%. We would also waive Transportation Facilities Fees . That  means they could be getting  a 50% reduction in normal charges.

6-And the council agreed to testify for them…..before the Coastal Commission!   We don’t even know if the agreement is legal and our City Council is  promising to testify on behalf of the project!

7-The city agreed to pay $1,100,000 for a piece of the land….and that’s AFTER the land was changed from a 70/30 split to a 50/50 split.

8-THINK THAT’S ALL –no it isn’t. The city agreed that Bay City can take a “Donation Tax Credit” of $2,000,000. (That won’t make the tax man very happy!)

9-The city agreed to give them 7,000 feet of city owned property that will mean another four lots for Bay City Partners.  Since they are planning on a sales price of $900,000 per lot that almost another $4million.

We hear all the time about the consuming  greed of some rich Americans ….. usually its pro-athletes or movie stars.  Well it looks like Seal Beach has some of its own.

So what can we do now?

Well, I’m not a lawyer but it seems like the whole deal is now in the hands of the Coastal Commission. (Except my guess is we’ve lost the $900,000.  We’re probably stuck to pay that off.)

Tonight, Monday, go to the council meeting at 7 p.m.  Tell the City Council what you think.  Tell them what you want them to do.   If they don’t do it….then you’ll have to wait until the next election BUT and this is an important “BUT”..we can still go to the Coastal Commission and fight this miscarriage of what those Council members and City employees gave away.

Remember good old Thomas Jefferson. He did his best to make sure that the country was always going to be in the hands of the people.  He felt if it was – it would always be around; and if it wasn’t then – it wouldn’t.

So what we’re asking the citizens of Seal Beach what do you want to do?

Let us know if you want to fight….or lay down!  We’ve got your back!

Email <whatsupinsealbeach.com> Write to: WUSB, Box 90279, Long Beach,CA 90809

Be Sociable, Share!

Comments

3 Responses to “Whoops…. Seems like something happened “on the way to the church” with Bay City/Seal Beach deal?”

  1. Libby Appelgate on April 26th, 2011 1:40 am

    Instead of going to the meeting tonight with all the misinformation I see,I will wait for the public hearings after the EIR is written by BC. That will be the best time to negotiate. We will hopefully be having many of these and the Coastal Commission is the last hurdle.

  2. Nat Ferguson on April 26th, 2011 2:13 am

    I’m curious to know what you’d like to see done with the property? Or are you upset that the City didn’t get a better deal? I happen to know two of the partners, to say they are “greedy rich Americans” is inaccurate.

    The last I read, Ellery had settled on what she thought to be an equitable deal. If she promised her constituents that the City would settle at 70/30, then your gripe should be taken to her. If an American chooses to pursue real estate investing as a livelihood and negotiates a better deal because of expertise, to the winner goes the spoils….

  3. Wilm on May 4th, 2011 5:10 pm

    Nat: For some reason I could only read part of your comment. if you can send it to me again I’d like to see your thoughts.

    bill