Bay City Housing Project Faces Critical Planning Commission

While signaling dissatisfaction with the project, the Seal Beach Planning Commission delayed a decision on controversial plans to build 48 homes on the city’s last remaining coastal open space.

Bay City Partners, the group that owns the 10.7 acres at First Street and Marina Drive submitted last-minute changes to the project this week in response to the city’s staff report and after two city committees already rejected the project. The changes didn’t give city staffers or planning commissioners enough time to study the new proposal, they said.

However, that didn’t stop the planning commissioners from delving into the several aspects of the project that they already have problems with it - namely, the high density of the 25-foot–wide lots and plans to designate less than 70 percent of the parcel for public open space as called for in the city’s Specific Plan. Bay City Partners is looking to have the city approve zoning and land-use changes for the property (from hotel or motel to residential) as well as an environmental impact report for the project. It won’t be easy for them to convince the five-member panel to approve the project.

“How much do we have to compromise? Do we have to compromise on both the development type and the open space? I am willing to compromise on the development type, but I am not willing to compromise on the 70/30 (open space to housing ratio), and I don’t see why we should,” said Planning Commissioner Robert Goldberg.

The project has a long and complicated history. Formerly owned by the Department of Water and Power, the city has spent decades planning for its use and hundreds of residents offered community input. Ultimately, the property was zoned for open space and visitor uses such as restaurants, shops or a hotel. The city had several opportunities to buy the land and preserve it as open space but never did for lack of money. Bay City Partners bought the property but quickly decided that a hotel on the property would not be economically feasible.

They came up with plans for high density housing and quickly ended up in dueling lawsuits with the city that cost upwards of $1 million dollars and ended last year with a settlement agreement in which the developers would give the city 6.5-acres for open space and access to a bike trail and the First Street parking lot if the project is approved. In exchange for the open space, access and a sewer easement, the city will pay Bay City Partners nearly $2 million and give the developers about 7,000 square feet of roadway along First Street.

Goldberg suggested that the developers exploited confusion about the Site Plan’s open space boundaries to come up with a proposal that is about 1.2 acres shy of being 70 percent open space. Goldberg and Planning Commission Chairwoman Sandra Massa-Lavitt objected to the developer’s efforts to count a small pocket of landscaped grassy area at the end of a private road as part of the project’s open space. A smaller 24-home development would allow for 70 percent open space and lot sizes in keeping with Old Town housing, added Goldberg.

Brian Kyle, a Bay City Partner, said the commission’s attitude is frustrating. The Partners would not be willing to accept a smaller housing project, he said.

Kyle and the project’s supporters, who helped overflow City Council Chambers Wednesday, argued that the city is infringing on property owners’ right and attempting to ‘take’ open space by preventing the property owners from fully developing the land.

“You can’t take open space without giving us money,” said Ed Selich, the development’s project manager. “If they don’t let the property owner use his property, they violate state and federal law.”

The city of Half Moon Bay will spend decades paying off a $20 million court decision after loosing a lawsuit over a similar issue, said Selich. Both Kyle and Selich stopped shy of threatening another lawsuit but said that the city would only get its 6.5 acres of open space for $1.1 million if the 48-home project is approved. If not, the city would have to pay fair market value of several million dollars for the land, Selich added.

Several residents spoke in favor of the project, noting that most neighbors would prefer a small housing development rather than the 150-room hotel the land is currently zoned for. They called on the city to stand up for property rights, and they cited the Bay City Partners contributions to the city as local business owners and residents.

“I have observed a public taking of private property and the denial of constitutional rights. The public taking of private property is in the guise of ‘what’s best for the citizens of Seal Beach’ and is being done by a small group of private citizens,” said Seal Beach resident and realtor Cynthia Metzger. “Bay City Partners, as individuals, get no thanks or kudos for their efforts, taxed contributions and impressive improvements to our town. I know them all, have done business with each one of them, and have experienced and witnessed their quality of character generosity and extreme hard work.”

Conversely, several residents spoke out in opposition to the project, accusing the developers of threatening the city with lawsuits and attempting to bully the community into approving a project designed for maximum profit rather than community needs.

They also accused the City Council of betraying the public trust and public process in the settlement agreement. They further questioned the city’s authority to throw in 7,000 feet on First Street to the property owners as part of the agreement without ever going through any kind of public hearing process.

The settlement agreement “shows the city is literally predisposed to approve the project,” said Nancey Kredell. “(The land) “is a jewel for the city of Seal Beach. I call it our legacy property.”

“I couldn’t believe that anyone would sign away our legacy behind closed doors,” added Kredell.

The Planning Commission will reconsider the issue at the May 16 meeting after city staffers have reviewed the recent changes which include reorienting several homes to face First Street and Marina Drive. Ultimately, the City Council and the California Coastal Commission will have final approval of the project. The council is expected to take up the issue in June.