(Dec. 4, 2007) -- Lennar Homes has effectively dropped out of a proposed development of the SeaPort Marina Hotel PCH/2nd St. site and Taki-Sun, Inc. -- which is the former owner of the site and currently operates the SeaPort Marina Hotel -- will become lead developer on the project.

In a release, Pacific Coast Associates, LLC., an affiliate of Taki-Sun, Inc., and Lennar Homes announced what they called a "reorganization of their joint venture partnership that paves the way for Taki-Sun to become lead developer of SeaPort Marina in Long Beach."

A proposal by Lennar to build 425 condos and 170,000 sq. ft of commercial space on the site encountered resistance from SE area residents, some members of LB's Planning Commission and 3rd district Councilman Gary DeLong who variously urged that it be reworked.

Opponents had appealed a March 2007 Planning Commission vote (3-2) approving the Lennar PCH/2nd project.

On October 25, Lennar withdrew its project application but planned to return in early 2008 with a revised proposal. Councilman DeLong said at the time that he'd met with Lennar reps a few weeks earlier and communicated to them that the community is looking for less density, lower heights, less traffic associated with the project...and a different use.

Taki-Sun VP Ray Lin said, "Our team is fully committed to continue working with the City and the community to refine the SeaPort Marina plan and create a project that everyone will support."

The release says that based on input "from the community and the elected officials of the City of Long Beach, plans for the project were recently modified to reduce the density of the residential component and add a boutique hotel. These changes required withdrawal of the previous entitlement application from the City Planning Department. After conducting additional meetings and outreach with the community, Taki-Sun will resubmit plans for the revised project. The proposed changes will make the SeaPort Marina development a more dynamic mixed-use project and attractive amenity for the community."

A few weeks before Lennar withdraw its project application, proponents of a separate Studebaker/Loynes ("Home Depot") development sought postponement of a scheduled Coastal Commission hearing on their project. Speculation centered on the extent to which possible traffic mitigation in connection the PCH/2nd St. project might affect the Studebaker/Loynes Home Depot proposal (now facing dual appeals by its opponents).

The PCH/2nd intersection, which often backs-up with traffic without either of the proposed developments, was cited by multiple opponents of the Studebaker/Loynes ("Home Depot") development (a project Councilman DeLong supports).

The Studebaker/Loynes development, approved by the Council in Oct. 2006 (6-3, O'Donnell, Schipske, Gabelich dissenting) now faces two appeals by its opponents: a Coastal Commission appeal and separate judicial (CEQA) challenge.

Regarding the SeaPort Marina Hotel site development, the release says Taki-Sun and PCA have retained Development Services Group (an affiliate of RCLCO) to spearhead the development process. "Our intent is to meet with and gather input from all interested constituencies in the coming weeks. This feedback is essential and will influence how we shape the project," said Development Services Group managing director David Malmuth in the release.

The SeaPort Marina Hotel will remains open for business and continue to operate during this process, the release said.