LongBeachReport.com | LBReport.com | City Mgm't Has Opened Escrow, "Anticipates Closing By End of May," On Wetlands Swap, Seeks <nobr>May 18</nobr> Council OK To Swap Smaller Portion of Public Service Yard For SE LB Open Space Without Four Acres North of 2nd St.

(May 14, 2010) -- LB city management has opened escrow, and anticipates closing by the end of May, on a swap of part of the city owned Public Service Yard (developable industrial property) in exchange surface rights to part of the SE LB open space/presumed wetlands (owned by a Tom Dean-related LLC) by the end of May, an item agendized by management for the May 18 City Council meeting discloses.

The agendizing memo, signed by Public Works Director Mike Conway with initialed approval by City Manager Pat West, cites Council approval of the transaction on August 4, 2009 [in a 5-4 Council vote: Yes: S. Lowenthal, DeLong, O'Donnell, Andrews Lerch; No: Garcia, Schipske, Reyes Uranga, Gabelich]...although the transaction now differs somewhat from what the Council voted to approve last year.

Among the changes: reducing slightly the amount of land to be swapped on both sides...which management says will allow the "majority" of the city's Public Service Bureau to remain at the Public Service Yard (in the 1st Council district), eliminating city costs to leaseback the property and reducing "significantly" [amount not specified] funding needed to co-locate the remainder.

LBReport.com photo: Public Service Yard between PCH and Anaheim just east of L.A. river

City management's memo discloses that in an April 20 closed Council session, Councilmembers [presumably by voted action, details not publicly disclosed] directed city staff to use alternative parcels to circumvent issues [raised by opponents of the transaction] to carving out a new four acre parcel (north of 2nd St., east of PCH) without obtaining a Coastal Development Permit (a management-proposed action that also encountered Coastal Commission staff opposition).

"Staff was directed to proceed with the inclusion of these [alternative] parcels in the real estate exchange," city management's memo says...but then learned that the alternative parcels aren't legal parcels...with no legal parcels north of 2nd Street viable for exchange.

City management thus proposes for Council approval on May 18:

...[I]n order to maintain an approximate 3:1 ratio in the exchange, staff now proposes to reduce the amount of land at the Public Service Yard to be exchanged for the 33.77 acres of wetlands south of 2nd Street. Staff proposes to remove approximately 2.7 acres from the northerly portion of the Public Service Yard from the exchange...

LBReport.com photo: Northern portion of Public Service Yard between PCH and Anaheim just east of L.A. river
This will reduce the City-owned land in the exchange to approximately 11 acres. The majority of the Public Service Bureau will remain on site, on City-owned property, with the remainder to be co-located at the Gas & Oil property. This will serve to eliminate the need to leaseback the property beyond the 6-month free rent period. The Gas & Oil Department will continue to provide the funding needed to co-locate the remaining portion of Public Service Bureau; however, as the co-location needs will be minimized, the funding need will be significantly reduced.

The memo states: "The parties are currently in escrow and anticipate closing escrow by the end of May 2010."

Regarding timing considerations, management's memo states: "City Council authorization is requested on May 18, 2010, in order to proceed with the exchange in a timely manner."

Regarding Fiscal Impact, city management's memo says: "The recommended modification will void the anticipated $209,088 per year in lease costs for the Public Service Yard. In addition, the cost related to relocation and colocation of the Public Service Bureau will be greatly reduced. Actual savings will not be known until final plans are developed. There is no impact on local jobs by this action."

Not mentioned among Public Works Director Conway's list of fiscal impacts: LB city taxpayers would (according to previous management representations) remain financially liable for toxics and/or clean-up at the Public Service Yard after the private party acquires its portion of the developable industrial site. City management has indicated in previous Council colloquy that the City plans to have a covenant and/or agreement in place with the private party land owner to minimize such potential cost exposures...but the covenant and/or cost-exposure/future development agreements (if any) are not disclosed in managament's May 18 memo.

Developing...with further to follow on LBReport.com.

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