Seal Beach Settles Lawsuit Over DWP Property, Ending Two-Year Battle Over Coastal Open Space

The Seal Beach City Council approved a settlement agreement Monday night to end two years of legal wrangling and negotiations over the former DWP property, 11 acres of prime coastal land bordering the San Gabriel River and the First Street Beach parking lot.

The settlement between the city and Bay City Partners, a developer group that owns the land, paves the way for the group to build homes on a portion of the land while selling much of it to the city for $1.1 million for open space and trail use. Though there are still many steps before the housing project or the open space can be developed, the settlement is a landmark moment in one of the most divisive issues to face the city in years.

“While it is unfortunate that under this agreement, the City will have to pay for the easement and open space, it is cheaper and more productive to stop litigating and move ahead with the public review process,” City Councilwoman Ellery Deaton said in a written statement after Monday’s council meeting. “We will be paying $900,000 up front for the sewer easement; the $1.1 million agreed to for the open space will not be paid for nor the land deeded over until the project has received all it's approvals, including Coastal Commission approval.”

As part of the settlement, Bay City Partners and the city will drop their dueling lawsuits over the land, and the city will purchase 70 percent of the property for open space for $1.1 million. In turn, the city promised to act in good faith while considering Bay City’s plans to build homes on the remaining portion of the land. The project would still need to go through several steps of community meetings and gain planning commission, city council and Coastal Commission approval, said Deaton.

 “This is a significant achievement for the community,” said Mayor Michael Levitt. “Bay City’s concessions on beach access and the bike trail will enable the City to complete the Rivers End Staging Project on time and on budget. In addition, it is the first step in the process toward preserving over 6 acres of open space for public use.”

“This Settlement Agreement is a major step in ending the long and disruptive saga of the fate of the DWP site,” stated Bay City representative Ed Selich in a written statement. “For more than 44 years, this land has sat in an unproductive and blighted state. Now it will finally come to life with beautiful open space and a residential project in scale and character with Old Town Seal Beach. Bay City looks forward to the day that we can remove the fence surrounding the property so that the grand vistas to the ocean are opened for all to enjoy.”

 Last year, the city and Bay City squared off with dueling legal maneuvers. Seal Beach initiated proceedings to take land from Bay City using eminent domain, and the real estate group sued the city over its plans for a trails project along portions of the land. A judge ordered the city and Bay City Partners to enter into arbitration.

The battle has been a hot button issue in the community between those who wanted to see the land preserved as open space and those who supported the property owner’s rights to build. The debate was a key factor in Deaton’s January election to the City Council.

“As a new councilmember and an 11th-hour participant in the process, I supported the work of the council and voted to end the costly court battles and put the project before the public for their comments and review,” said Deaton. “It was very important to me to fulfill a promise I made to our constituents to reach a settlement to this matter, stop unnecessary litigation costs and retain 70% south of Central Way as open space for public use.  This settlement has accomplished these goals.”

The city’s $2-million project to complete the Seal Beach portion of the San Gabriel River Bikeway Trail along the property is already underway. The trail runs from Seal Beach to Azusa. Paid for by a grant from the Rivers and Mountains Conservancy, the project includes paving and aesthetic improvements to both the trail and the First Street beach parking lot and Windsurf Park. Earlier this year, the council voted unanimously to move forward with the project amid threats from Bay City Partners to file another lawsuit to halt the project.

 More details on Monday night’s settlement to come.