Council Votes <nobr>8-0</nobr> To Pursue Civic Center Rebuild In "Public Private Partnership" Transaction (Private Entity To Finance/Design/Build/Operate/Maintain Civic Center For 40 Yrs, City To Pay $12.6 Mil Annually + CPI + Give Up Public Land Under Former LB Courthouse For Pvt Development

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Council Votes 8-0 To Pursue Civic Center Rebuild In "Public Private Partnership" Transaction (Private Entity To Finance/Design/Build/Operate/Maintain Civic Center For 40 Yrs, City To Pay $12.6 Mil Annually + CPI + Give Up Public Land Under Former LB Courthouse For Pvt Development)

In Q & A, city staff acknowledges transaction will create add'l General Fund costs requiring annual [unspecified] budget "adjustments"

City staff calls Columbia University Master of Science thesis recommending retrofit interesting but without sufficient detail and sources to evaluate

DLBA, CVB, Library Foundation, downtown residents, union reps support transaction; some speakers pointedly oppose it; Councilwoman Price calls some criticism "completely misinformed opinion" and says proposal was "very transparent"

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(Dec. 10, 2014, 2:45 a.m.) -- In a roughly three and a half hour proceeding seen LIVE on LBREPORT.com, the City Council voted 8-0 (4th dist. vacant) to authorize entering into a binding contract [exclusive negotiating agreement, prepared but final text not released to public prior to signing] with Pacific Edgemoor Civic Partners and proceed to negotiate a final agreement [which city staffer Mike Conway indicated will come back to Council] to finance, design, build, operate, maintain new Civic Center.

Under the transaction, the City will pay Pacific Edgemoor $12.6 million + an annual CPI escalator each year for forty years and give the private entity now-public property under former LB courthouse for its private development (full details in Council agendizing item below.)

LBREPORT.com provides salient audio clips from the proceeding, as well as quick launch access to the entire item below (as well as the full agendizing memo and its attached documents.)

[Scroll down for further]

Mayor Garcia followed a procedure similar to other LB Council items. City staff was allowed to make a presentation (in this case advocating the public private partnership transaction.) Mayor Garcia then allowed Councilmembers to speak and ask questions. Vice Mayor Lowenthal praised the proposal and moved approval of staff's recommendation, seconded by Gonzalez (LB's two downtown Councilmembers). Other Councilmembers then spoke (except Andrews, who spoke near the end of the meeting.)

Some Councilmembers posed non-confrontational questions and/or variously voiced support and no opposition to the proposed transaction. In salient audio clips below:

Councilwoman Price asked city staffer Mike Conway for his views on a Columbia University Master of Science thesis that advocates a City Hall retrofit and estimates it can be done for $30 million [previously reported by LBREPORT.com here with follow-up here and here.] To hear an audio clip of the Price-Conway colloquy on the retrofit, click here.

Councilman Austin asked city staffer Conway if the transaction will create additional General Fund costs beyond an annual $12.6 million + CPI escalator sum to be paid to the developer/operator. Mr. Conway acknowledged that it would involve a number of add'l annual costs (and he cited them) and told Austin and the Council that this will require "adjustments" within the annual budget process. Mr. Conway added that if increased general fund cost were anywhere from $500,000 to $1,000,000, he believes it would be a "wise investment" for city to avoid potential results of significant seismic event or some potential litigation. To hear the audio clip of the Austin-Conway colloquy on the additional annual General Fund costs, click here.

Other Councilmembers variously expressed their support, after which Mayor Garcia invited public comment.

Most public speakers testified in favor, including reps from DLBA, CVB, LB Library Foundation, several downtown area residents, union reps for hotel workers and construction/trade industry unions.

There was opposition testimony from speakers including retired Deputy City Attorney Jim McCabe click here; Eli Gonzales [sp] (lives downtown, we redacted his exact address), click here; Bixby Knolls resident Joe Weinstein, PhD click here [address redacted, whoosh sound indicates an edit.]

After the public speakers had spoken, Mayor Garcia spoke and tied the project to previous downtown visioning and rezoning proceedings (including the Downtown Plan.) Mayor Garcia said the new main library [which under the Council approved developer/operator is proposed to be nearly 40,000 sq. feet smaller than the current 135,000 sq. ft Main Library; final design to be decided] would be one of the best in the country. He said he's asked City Auditor Doud to now become part of the process to provide financial oversight and she had agreed.

"We're a city that can do big things, and at some point as a city we've got to do big things," Garcia said. He added that he believes Long Beach is ready to take these types of projects on in other parts of the city (mentioning WLB and NLB and unspecified other areas.) Garcia said he fully supports city staff's recommended action re the Civic Center.

Mayor Garcia was followed by additional comments from Councilwoman Price. She echoed Mayor Garcia's comments regarding the positives of the project but took issue with some comments made by the public, specifically that the Council didn't consider alternatives. "As someone who spent a lot of time educating myself on this I reject that completely," Price said. She called comments that the Council didn't give this enough time or there wasn't enough time for public outreach "completely misinformed opinion and thoughts and I would encourage those folks to do their research before they start spreading that." Councilwoman Price added, "I believe that this proposal was very transparent and for anyone to claim that there wasn't enough time just shows me that they weren't paying attention."

Vice Mayor Lowenthal then spoke, wrapping up by likening the new Civic Center to ambitious depression-era public works projects such as Hoover Dam. To hear these statements by Mayor Garcia, Councilwoman Price and Vice Mayor Lowenthal (in a single sound clip), click here.

To hear the full Council item from beginning to end in quick launch audio, click here (3 hrs, 28 mins.)

LBREPORT.com provides access to the full agendizing memo below.

Dec. 9, 2014 Long Beach City Mgm't Agendizing Memo recommending preferred Civic Ctr Developer for Coun...