Politics & Government

48-Home Coastal Housing Project Could Break Ground Early Next Year

Owners of the DWP property hope to get final approval for their project by the end of the year.

Construction on a 48-home building project along Seal Beach’s last remaining coastal open space could begin construction by early next year, following Monday’s settlement agreement between the city and local developers.

The city and property owners Bay City Partners agreed to dismiss opposing lawsuits and to end nearly two years of legal wrangling over 11-acres of coastal land bordering the San Gabriel River and the First Street Beach parking lot. As part of the deal, the city will spend about $2 million, getting 6.5-acres of open space including land needed to complete the San Gabriel River Bikeway Trail and access city sewage facilities. In turn, Bay City Partners will be able to move forward with its housing project, which will include seeking Planning Commission, Coastal Commission and City Council approval later this year, said Ed Selich, a representative of Bay City Partners.

“We’re hoping to be through the city by the end of the year,” he added.

Find out what's happening in Los Alamitos-Seal Beachwith free, real-time updates from Patch.

Though the development of the land had long been a divisive issue in the city, Selich said he is confident the community will be able to get behind the latest plans for million dollar homes that fit in with the surrounding neighborhood.

“The houses are basically the same size and density as the rest of Seal Beach,” said Selich. “Everyone I have talked to has liked the project, and we feel confident that it will hold up in the public hearing process.”

Find out what's happening in Los Alamitos-Seal Beachwith free, real-time updates from Patch.

The community essentially got what it wanted – open space instead of a towering hotel, said Selich. In the 1980s and 1990s, city zoning allowed for a hotel on the property. But it would have had to be about five stories tall to be profitable, he added.

It was the hotel that most people objected to, said Selich.

In the last two years, the city initiated proceedings to take land from Bay City Partners using eminent domain, and the real estate group sued the city over its plans for a trails project along portions of the land. The city appraised the land it was looking to take by eminent domain at $120,545 compared to Bay City’s $5 million appraisal.

A judge ordered the city and Bay City Partners to enter into arbitration.

“The money that was being spent on litigation by both sides was insane,” said Selich. Between attorneys, experts and consultants, Bay City Partners spent about $750,000 fighting the city in court, he added.

With the settlement, the city will gain a valuable piece of land to develop for park space, said Seal Beach Mayor Michael Levitt.

“It’s a beautiful piece of coastal property, and it should be open for everyone to enjoy,” added Levitt.

Despite the settlement, neither the open space nor housing project is a done deal, he added.

“The city agrees to purchase that property if the City Council, the Planning Commission and the Coastal Commission approve the project,” said Levitt. “If they don’t, then the deal is basically off.”

Part of the deal includes an upfront payment of $900,000 by the city in exchange for an easement. Over the last couple years, city officials realized that portions of First Street and the driveway to the beach parking lot are actually on private land owned by Bay City Partners. With the $900,000 payment, the city will take ownership of that land ensuring ongoing beach access and the completion of the bike trail regardless of whether the housing project is approved added Levitt.

City Councilwoman Ellery Deaton said she hopes to see strong public participation at the planning and council meetings when the housing project comes up for approval.

“Everyone should have their say. It needs to be a fair and open process,” she said. “It needs to be fair to our residents and to the property owners.”


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here