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The cleared courthouse area will become part of new Civic Center, a publicly controversial project approved by the City Council Since city negotiators didn't incorporate the courthouse demolition/asbestos abatement costs into the Civic Center transaction, Long Beach taxpayers will end up paying.
In an August 18, 2015 memo to the Council's "Budget Oversight Committee" (Lowenthal, Mungo, Price and cc'd to the Mayor and all Councilmember), LB Finance Director John Gross wrote: Until recently, it was anticipated that the Successor Agency to the Redevelopment Agency would be funding the demolition of the old County Courthouse and that the demolition would cost $2 to $3 million. Over the last year, the State has denied allowing the Successor Agency to fund the demolition. In addition, in the last few months, it was found that the old County Courthouse contains substantial asbestos and remediation is necessary. The most current cost estimate for remediation and demolition is $14.5 million. The remediation and demolition is currently being put out to bid and actual cost is expected to be known no later than October 2015. The City is also supporting legislation that would require the State to pay for demolition. In the event the State funding is not successful [and it wasn't], a funding solution is needed and must be available at the time of the proposed October 2015 award to remediate and demolish the old County Courthouse. At the Aug. 18 Budget Oversight Committee meeting, Mr. Gross presented his memo in oral fashion; no Committee members asked any questions and Mungo moved, Lowenthal seconded (Price absent) a motion to "receieve and file" the presentation. Scroll down for further
On Dec. 15, 2015, city staff received Council approval (9-0) to issue debt bonds "to finance a portion of the costs for the hazardous materials abatement and demolition" of the former L.A. County/Long Beach courthouse" which "will consist of the removal of hazardous materials, demolition of an approximately 330,000 square-foot, steel and concrete, six-story (plus basement) structure, and all related work..."
As approved by the Council (9-0) on December 15, the courthouse demolition will consume $3 million from city surplus plus $4.15 million in debt bond proceeds. A storm drain relocation to "assist the development project of 222 residential units and 8,500 square feet of commercial lease space at 245 West Broadway will take another $1.7 million from the debt bond...and "one time costs and construction costs related to the Civic Center..." will consume another $8 million. New debt incurred: roughly $14.5 million (plus the $3 million from city surplus.) These sums are in addition to several million dollars previously authorized by the immediate past and current Council on consultants, planners and outside legal counsel to develop the transaction (initial Council approvals in 2013, 8-1, Schipske dissenting.)
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