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After Bruising LUE Battle, 5th Dist. Residents Wary, Seek Details Re Density, Height, Traffic, Parking As Housing Developer Olson Co. Mulls Whether To Complete Purchase Of LBCC-Owned Los Coyotes Diagonal Parcel

Housing Would Require Company To Seek Council Approval To Change Parcel's Land Use/Zoning To Residential


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(July 14, 2018, 4:15 a.m.) -- On July 12, the Olson Company, a southern CA based developer of mainly infill housing, held its second meeting with nearby residents to gauge how they'd respond if the company were to complete its pending purchase of roughly six acres along Los Coyotes Diagonal south of Wardlow Rd. (south of "Ralphs") to build housing for purchase/sale (not apartments.) The meeting drew nearly fifty people (invited by the company from a radius of 300 feet from the property, plus those who learned about the meeting via NextDoor) to a Thursday 6 p.m. meeting at the Wardlow/Studebaker Sixth Church of Christ, Scientist. LBREPORT.com was present and provides coverage below.


The Olson Co. doesn't own the property at this point and has no "site plans" for public review; it's currently in its "due diligence" period -- which runs until early September -- during which it will decide whether to go through with the roughly $16.625 million purchase, mindful that it will require City Council majority approval to change the parcel's current land use and zoning from a now planned LUE designation as commercial to residential.

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Image source: Olson Company

The parcel is one of the small non-residential areas (zoned "institutional") integrated into the surrounding post-WWII ELB single family housing tract. Two medical buildings (one at the southern end, the other fronting Palo Verde Ave.) and surface parking are currently on the parcel; part of the parcel is vacant; LBCC bought it for plans that didn't materialize and has been trying to sell it for years.

Nearly 50 residents attended the meeting at the Studebaker/Wardlow church; some were present at the company's first meeting in June (LBREPORT.com coverage here); others were first-timers. As with the first meeting, the July 12 meeting was conducted by Olson VP of Development, Doris Nguyen.


ELB residents recently fought (and won) a heated Land Use Element-revision civic/political battle to protect the area's suburban single-family home density and low rise commercial uses, and a number of residents who spoke were plainly wary or worried about the same issues that surrounded the land use element (LUE): increased density, heights, traffic and parking impacts.

For extended on-demand audio, click here. Our audio is edited to focus on the land use issues; audio edits are indicated with a "whoosh" sound. Other items that came up in the meeting included concerns over a 300 foot radius used by Olson to notify residents of the meeting; (Company reps indicated that radius may be increased for future meetings.) Some residents also voiced individual property concerns.

Raman Vasishth (a high visibility figure opposed to increased density during the land use element issue) stated he is flatly opposed to changing the current land use to residential. However nearly all other speakers at the meeting stopped short of categorical opposition to housing. Several indicated that their views on housing on the site would depend on specifics of the residential development: how dense, how high, what type (tall townhomes or single family homes similar to the adjoining neighborhood) and traffic and parking impacts.

Sponsor

Sponsor

Among those voicing concerns but stopping short of outright opposition was Corliss Lee, who entered the 2018 election against Councilwoman Stacy Mungo in large part over the LUE issue. Amid public pressure, in Oct. 2017 Councilwoman Mungo declared her opposition to increased density in general terms, which turned into specifics when she pledged in late January 2018, and made the motion and voted in early March 2018 to keep 5th dist. commercial areas commercial (not mixed residential use) and maintain 5th dist. commercial building heights basically as they are. Ms. Lee finished third in April and Councilwoman Mungo outpolled runoff opponent Rich Dines in June, winning re-election with roughly 55% of the vote.

Ms. Lee commended the Olson Co. for meeting with the community prior to speaking with city officials, acknowledged that the Olson Co. proposal comes at a difficult time after the bruising LUE battle, and voiced concern about a scenario in which the City might grant Olson land entitlements and Olson would instead sell the property to others, leaving residents with the entitled increased density. Ms. Nguyen replied that the Olson Co. generally does build what it entitles, and a company rep added that in Huntington Beach, Olson agreed to covenants (that run with the land for subsequent buyers) that would limit future density and development.

Sponsor


Ms. Nguyen said that after its first community meeting in June, she and company representatives met Development Services Director Linda Tatum and with Councilwoman Mungo. Asked by LBREPORT.com what Councilwoman Mungo told the Olson Co, Ms. Nguyen said "We just kind of generally told her that we are talking to the community and just having a series of meetings...She expressed about the community as a whole, the process that...the community went through for the land use element...But we just talked about that we're going to have a series of meetings and we're going to try and build consensus with the neighborhood first." So was the Councilwoman supportive, opposed, agnostic? A company rep reiterated what Ms. Nguyen had said, to which Ms. Nguyen added "so [Councilwoman Mungo didn't express] an opinion one way or other...just 'thank you for letting me know,'" Ms. Nguyen indicated the Councilwoman Mungo had said.

Dr. John McGuide, DDS -- whose dental office is in the southerly medical building on the site -- politely but firmly voiced his displeasure at the possibility of losing the location (through possible demolition of the medical building for housing) where he's built a practice for roughly 18 years. Ms. Nguyen indicated a possible option is to retain one of the two medical buildings on site, although this would have an impact on the rest of the development. A resident followed-up by voicing the view that retaining the southerly medical building was preferable to retaining the older medical building fronting Palo Verde Ave.

Olson Co. reps indicated the company has until early September to complete its "due diligence" phase and decide whether to complete the property purchase and seek City Hall entitlements allowing housing...or not.

Sponsor

Sponsor

As previously reported by LBREPORT.com, on March 27, 2018 LBCC's Board of Trustees voted in a closed session to approve a purchase and sale agreement with "Olson Urban Housing, LLC" for real property (that LBCC previously declared "surplus") at 3320-3340 Los Coyotes Diagonal plus 3325 Palo Verde Ave. (APNs 7191-014-902, 903, 904, 905, 906, 010 and 022) for $16,625,000.


LBCC's Board of Trustees' May 22 public agenda contains a report summarizing its March 27 closed session item as follows:

[LBCC Board of Trustees publicly agendized summary of the March 27 LBCC Board action]

Background - The Board previously declared the Property surplus and established its intention to sell the Property in accordance with applicable law. At the direction of the Board, the District also sought and received a waiver of the surplus property procedures under Education Code section 81360 et seq. in order to be allowed to select the most qualified entity that is the best fit for the Property and to negotiate a successful purchase and sale agreement with said entity in order to maximize the District’s revenue.

Pursuant to the waiver, the District received proposals from several parties offering to purchase the Property. Subsequent to a failed escrow, District staff reviewed the proposals and identified the proposal from Olson Urban Housing, LLC as providing the best terms for the District. Therefore, the District negotiated the Purchase and Sale Agreement with Olson. However, as stated in the Olson Purchase and Sale Agreement, Olson requires certain conditions to be satisfied before it will complete the purchase of the Property.

The motion was made by LBCC Trustee Doug Otto, seconded by Trustee Vivian Malauulu. Final Resolution: Motion Carried: Aye: Virginia Baxter, Jeff Kellogg, Vivian Malauulu, Doug Otto, Sunny Zia

Developing.

Clarifier: The land use change would be to allow residential instead of the March 2018 Council approved Land Use Element map revision designating the area's "Placetype" as two story "community commercial" (which doesn't allow residential mixed uses.) The LUE says the "community commercial Placetype" serves the "auto oriented need for goods and services, promotes commerce and provides local jobs." Once conclusively adopted (after a forthcoming EIR process) the LUE would replace the city's current zoning code designation that lists the parcel without residential for "institutional" uses.


No one in LBREPORT.com's ownership, reporting or editorial decision-making has ties to incumbent Long Beach officials, development interests, advocacy groups or other special interests; or is seeking or receiving benefits of City development-related decisions; or holds a City Hall appointive position; or has contributed sums to political campaigns for Long Beach incumbents or challengers. LBREPORT.com is independent, not part of an out of town corporate cluster and no one its ownership, editorial or publishing decisionmaking has been part of the governing board of any City government body or other entity on whose policies we report.
LBREPORT.com is reader and advertiser supported. Support independent news in LB similar to the way people support NPR and PBS stations. We're not non-profit so it's not tax deductible but $49.95 (less than an annual dollar a week) helps keep us online.


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