The Seal Beach City Council approved a settlement agreement on Monday night, March 28, with Bay City Partners, LLC, owners of what many consider the last significantly sized, undeveloped coastal property in the city.
Known as the “DWP site,” the property is the former location of Los Angeles Department of Water and Power plant. It contains about 10.69 acres of vacant land between First Street and the San Gabriel River and Marina Drive and the city beach.
The property owners want to develop the site and said they were frustrated by what they saw as the city dragging its feet on reviewing their development plan.
According to a combined statement from the city and Bay City Partners, the settlement will assure continued public access to the beach and San Gabriel River Bike Trail.
“This settlement is the conclusion of the Council’s negotiations with Bay City Partners for last couple years,” said the recently seated City Councilwoman Ellery Deaton.
Deaton represents Council District 1, in which the property lies.
“As a new councilmember and an eleventh hour participant in the process, I supported the work of the Council and voted to end the costly court battles and put the project before the public for their comments and review,” Deaton said. “It was very important to me to fulfill a promise I made to our constituents to reach a settlement to this matter, stop unnecessary litigation costs and retain 70 percent south of Central Way as open space for public use. This settlement has accomplished these goals.”
The city and property owners have been battling in court over about a one-half acre portion of the property owners’ land that is commonly used as access to the Rivers End Restaurant and the staging area for wind and kite surfers near the San Gabriel River, as well as access to the city’s sewer system west of First Street.
The city had been pursuing taking the land through the process known as eminent domain, in which city governments can condemn and take private property for the common good of all of its citizens.
Under the law, the city would have to pay fair market value for the land. However, the property owners and city’s appraisals of the property’s value differed widely and the court battle continued for about 18 months, with legal fees that kept rising for both sides.
Under the settlement, Bay City Partners and the city of Seal Beach agreed to dismiss their respective lawsuits.
“This settlement agreement is a major step in ending the long and disruptive saga of the fate of the DWP site,” said Ed Selich, Bay City Partners spokesman. “For more than 44 years, this land has sat in an unproductive and blighted state. Now it will finally come to life with beautiful open space and a residential project in scale and character with Old Town Seal Beach. Bay City looks forward to the day that we can remove the fence surrounding the property so that the grand vistas to the ocean are opened for all to enjoy.”
If the City and California Coastal Commission approve Bay City’s pending proposal, Bay
City would keep the southerly 70 percent of the DWP property as open space.
“This is a significant achievement for the community,” said Seal Beach Mayor Michael Levitt. “The city’s concessions on beach access and the bike trail will enable the city to complete the Rivers End Staging Project on time and on budget. In addition, it is the first step in the process toward preserving over six acres of open space for public use.”
Both the city and property owners agreed that the settlement’s key features include:
• Stopping costly litigation,
• The city receiving a sewer access and maintenance easement,
• Leasing the beach parking lot access road and bike trail on the DWP property, · Helping the city receive a $2 million Clean Water Act grant to improve the River’s End parking lot and San Gabriel River bike trail,
• Preparing a comprehensive environmental impact report on Bay City’s proposal and the city’s payment of $900,000 for the easement and …
• If the Coastal Commission approves Bay City’s proposal, the city would purchase the 70 percent open space for $1.1 million.
Bay City has submitted a proposal for a 48-lot residential project.
The city will process the applications through the normal city channels and conduct a series of public hearings.
“While it is unfortunate that under this agreement, the city will have to pay for the easement and open space, it is cheaper and more productive to stop litigating and move ahead with the public review process,” Deaton said. “We will be paying $900,000 up front for the sewer easement; the $1.1 million agreed to for the open space will not be paid for nor the land deeded over until the project has received all it’s approvals, including Coastal Commission approval.”
