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Olson Co., Developer Of "For-Sale, In-Town Housing," Holds Community Meeting, Explains Its Purchase/Sale Agreement (In Escrow/Due Diligence Phase) For LBCC Property @ 3320-3340 Los Coyotes Diagonal & 3325 Palo Verde

  • Doesn't Own Property Yet And Doesn't Have Site Plan But Envisions Some Type(s) Of For-Sale Market-Rate Housing
  • Hasn't Discussed Plans Yet With City Staff Or Councilmember Mungo But Plans To Do So Shortly, Sought To Hear Concerns From Residents First...Who Consistently Cite Density, Traffic, Parking, Infrastructure
  • 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.
    (June 28, 2018, 8:45 a.m.) -- Representatives of the Olson Company ("California's leading developer of for-sale, in-town housing") held a June 27 community meeting and told area residents that the company is in an escrow period/"due diligence" phase under a purchase/sale agreement for LBCC-owned property at 3320-3340 Los Coyotes Diagonal [south of the "Ralphs" market] & 3325 Palo Verde Ave...and scheduled to meet to heard potential issues voiced by potentially impacted nearby residents.

    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.


    Image source: Olson Company

    Roughly 35 residents attended the Olson Company-organized meeting at the adjacent LB Alliance Church from among those within 300 feet of the project site to whom the Company sent notices (plus others who learned of the meeting via LBREPORT.com after we learned about it via NextDoor.com). LBREPORT.com attended the meeting and provides extended VIDEO coverage of salient portions below.

    Olson Company VP of Development Doris Nguyen told the meeting:

    [Scroll down for further.]




    • The Olson company doesn't own the property yet; the sale hasn't closed and isn't expected to do so for a considerable period of time.

    • The company doesn't have a site plan yet but envisions building some type(s) of for-sale market-rate homes. The Company isn't planning to build below-market/subsidized/"affordable" housing (although Ms. Nguyen acknowledged that it has done so at some other locations) and isn't planning apartments. However, Ms., Nguyen noted that the Company's plans depend on how City of Long Beach officials respond because the Company will seek entitlements (city approvals) including land use/zoning changes to allow a residential development in an area now zoned for commercial uses.

    • The Company says it's hasn't spoken yet with City planning staff or with Councilwoman Stacy Mungo, but has scheduled meetings to do so shortly. Ms. Nguyen said (and reiterated several times) that the Company's practice is to speak with residents before speaking with city officials. She said the Company's June 27 community meeting was the first of several such meetings that the Company plans to hold as the project progress.

    • The Olson Company became a party to the LBCC purchase/sale agreement through an LBCC RFP ("request for proposals") type process in which LBCC chose another firm for another project on which escrow wasn't successfully completed. The Olson Company became the "next in line" to whom LBCC offered the property.

    • The Olson Company put down a deposit [exact amount unspecified] with LBCC that Ms. Nguyen says the Company can get back if Olson decides during its now-ongoing "due diligence" phase not to pursue the project.

    For LBREPORT.com VIDEO, launch below:

    Sponsor

    Sponsor

    Ms. Nguyen said the Company's purpose in scheduling the meeting was to hear from residents...and attendees consistently voiced concerns about density, traffic, parking and lack of adequate infrastructure. (One speaker noted that Fire Station 18 adjacent to the site no longer has a fire engine.)

    No residents flatly opposed housing. Some indicated they'd prefer medical or commercial uses with fewer traffic impacts (to which Ms. Nguyen politely responded that Olson doesn't build commercial centers.)

    Sponsor


    Among those attending and speaking were Corliss Lee (former 5th dist. Council candidate/April 2018), Ann Cantrell (part of the leadership of Citizens About Responsible Planning) and Raman Vasishth (frequent NextDoor.com communicator.).

    LBREPORT.com pressed for details about the company's envisioned residential density level, noting that since it has a purchase/sale agreement in place with a sale price $16.625 million, the Company presumably envisions some density level to have its development financially "pencil out." A company rep responded [paraphrase] that there are multiple potential configurations for housing types and the Company doesn't have a particular configuration in mind at this point.

    Sponsor

    Sponsor

    Prior to the meeting, LBREPORT.com made a quick inquiry to the City of LB's Department of Development Services, and spokesperson Jacqueline Media told us by email (late afternoon June 27):

    Per your inquiry of the property located at 3320-3340 Los Coyotes Diagonal, there is no current activity on our end. A pre-application was submitted to the City (Development Services/Planning Bureau) back in 2015 [LBREPORT.com presumes by a previous, different party]; upon review of the submittal staff provided the applicant with feedback/comments. No resubmittal from the applicant or new application for this property has been received since then. Also, to confirm, this property is not zoned as a Planned Unit Development (PUD)

    Background

    As previously reported by LBREPORT.com, 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 Districtís 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. Further to follow.

    Clarifier: The land use change to be requested 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 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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