Malibu Completes Purchase Of 29.24 Acres For $42.5 Million

MALIBU, CA – The City of Malibu closed escrow on the purchase of 29.24 acres from the Malibu Bay Company on Thursday, giving the City ownership of three parcels for the community’s future use, according to a City press release.

Malibu City Council approved the purchase agreement and authorized the issuance of Certificates of Participation (COPs) to fund a portion of the acquisition at a July 9 meeting. The COPs were issued in August with a top credit rating from S&P Global Ratings (S&P), the press release said.

“Malibu has leveraged years of careful fiscal management to take advantage of a rare opportunity to acquire such valuable and desirable open space in California’s coastal region,” said Mayor Rick Mullen in a statement. “This land was commercially zoned, and by purchasing it, we can ensure it will never become a shopping mall or an office building, but instead will benefit the community in perpetuity.”

Malibu's strong financial position allowed the City to take advantage of this opportunity, the press release said. Malibu received an AA+ long-term rating for the COPs from S&P and an issuer credit rating of AAA – the highest rating possible for a city, according to the press release.

“This is an exciting and consequential event in the history of Malibu. Owning this property opens up a world of possibilities for the community,” City Attorney Christi Hogin, who helped negotiate the deal, said.

The City made the purchase with a combination of Undesignated General Fund Reserves, Designated General Fund Reserves, Los Angeles County Measure R and M funding and through the issuance of COPs, according to the press release. A portion of the lands will be developed for transportation or parking uses consistent with the guidelines for L.A. County Measure R and Measure M funds.

The purchase includes 9.65 acres located at 23575 Civic Center Way; 1.11 acres located at Civic Center Way and Webb Way; and 18.48 acres located at Pacific Coast Highway and Heathercliff Road.

"Potential land uses will be thoroughly explored and discussed in a robust and transparent process which will be developed in the coming months based on feedback from the community," the press release said.

Photo via Matt Myerhoff/City of Malibu