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14 SigNAL TriBuNE Council continued from page 1 ment Obligation Retirement fund, according to staff reports. The Oversight Board will ultimately have to approve these agreements that are worth several million dollars along with any other agreement that City officials may negotiate. Although the Oversight Board has not yet initiated meetings, City Manager Ken Farfsing explained in an interview Tuesday night that the City must follow the law but still wants to match the right developers to the properties that are now up for sale. “Part of our goal is basically to make sure we can implement our gen-
eral plan and…continue to revitalize the community,” Farfsing said. “I don’t think we want to sell properties to someone who’s just going to sit on it as a vacant property and, you know, 30 years from now, maybe develop it.” Farfsing added that the City is “being proactive.” Both agreements cover two major properties that are deeply affected by problems largely attributed to its deep ties over decades to the oil industry. Sale of the 700 block of Spring Street and Anastasi Property: $5,562,500 Under the terms of the purchase and sale agreement between the City and Signal Hill Petroleum, 12.99 acres that span about four blocks will be sold for
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over $5.5 million, or $10 per square foot. Signal Hill Petroleum agrees to eventually transform the area that’s bounded by Spring Street to the north, California Avenue to the east, 29th Street to the south, and Atlantic Avenue to the west. The site is close to Long Beach Memorial Hospital, and the plans will divide the area into three parcels with three distinct project phases: a gateway retail parcel for businesses that include general goods, grocery and ancillary retail over seven acres; a parcel for a “suite-style” hotel that will cover three acres; and an office/retail parcel where a mixed-use plan will build medical and administrative offices and a support retail area over three acres. However, before any development takes place on this land, Signal Hill Petroleum will have to closely study the downside of the real estate deal, and there is some leeway for this buyer to back off from the final sale. A report from the city manager’s office indicates that the property has 20 abandoned oil wells in addition to three active and five idle wells. In addition, safety and environmental standards weren’t always in place or enforced. The purchase and sale agreement outlines a list of tasks needed to handle soil remediation, well re-abandonments, and abandoned pipeline removal in addition to other issues. What’s more, earthquake faults in the area need to be studied. There are also other oil interests and surface rights with third-party oil operators. The estimate so far for the remediation work needed for the property totals $4.83 million. Assuming that the Oversight Board approves the agreement, once the sale is finalized, Signal Hill Petroleum has one year to fully study the issues related to the land development and perform due diligence, and then it is given an additional year to get its development plans approved. According to the agreement, project development should be completed by Dec. 31, 2020. David Slater, chief operating officer for Signal Hill Petroleum, acknowledged at Tuesday night’s Council that the deal will require a lot of work. “The City, through its vision and through its redevelopment agency, has really created a tremendous opportunity here, but it’s an opportunity with a lot of challenges,” Slater said. “Our company is committed to working to evaluate those challenges and figure out how to bring a great development and great amenities to the community through this property.” Signal Hill Petroleum is responsible for many key development projects throughout the city. The Signal Hill Gateway Center, which has retailers Home Depot, Petco and Dollar Tree, is just one of the many projects where Signal Hill Petroleum takes credit for the development. Councilmember Ellen Ward expressed her enthusiasm for Signal Hill Petroleum’s involvement when she voted positively on the actions to approve the sale. Ward said the City is “so blessed to have Signal Hill Petroleum” and praised the company’s experience with both the oil industry and development. “Because I think it would have cost us a lot more in the long run,” Ward said, “and so I am very much for this project. It’s going to bring in sales tax and services to the city, which we’re going to need.” Like Ward, the other three present council members voted to approve the actions that will eventually get the sale agreement on the Oversight Board’s agenda. They each had to vote both as councilmembers and as members of the City Council as Successor Agency. Councilmember Ed Wilson was absent
APriL 20, 2012 Tuesday night. Signal Hill Petroleum does have an advantage of flexible terms where the agreement allows the company a year to perform due diligence and still walk away from development, especially if it determines that remediation costs likely exceed the $4.8-million estimate. “We had to give them [Signal Hill Petroleum] the flexibility on the due diligence and flexibility on when it got built to induce them to go forward on this transaction,” the city attorney said as he explained the agreement, “because otherwise, there are just too many unknowns.” Sale of the 3100 California Avenue property: $730,132.04 (paid through a release of surface rights and a cash payment) The City Council and Successor Agency approved a separate deal with Signal Hill Petroleum involving the fate of property in the odd shape of a trapezoid. About 1.6 acres on 3100 California Avenue will be divided, according to the purchase agreement. Signal Hill Petroleum will buy about 58,000 square feet. The City will still hold on to about 11,000 square feet of real estate for a freeway sign that advertises for the Auto Center and also flashes public service announcements off the 405 Freeway. In return, Signal Hill Petroleum will release surface rights over the sign’s parcel of land (valued at just over $55,000) and surface rights for the new police station property on Walnut Avenue. Farfsing explained that although the City had purchased the Walnut property, it still needed Signal Hill’s cooperation in order to build on the property since the surface rights were controlled by an agreement for oil production. Those surface rights for the police station were valued at an amount over $530,000, according to the agreement. Signal Hill Petroleum will also pay an additional amount that totals over $143,000. This agreement is also subject to the approval of the Oversight Board. Other Council highlights Concerts in the Park Gary Dudley of the Signal Hill Community Foundation presented a report on the Concerts in the Park series scheduled for this summer on Wednesdays from July 11 through Aug. 15. Concert T-shirts will be available for $14 through the City Community Services Department. They will also be sold during the concerts while supplies last.
Outstanding Older American The Los Angeles Commission on Aging and the Los Angeles County Board of Supervisors will celebrate the 47th anniversary of Older Americans Recognition Day in May. Outstanding older persons from L.A. County’s 88 cities will be honored at that time. Hansen and Pilar Alcivar-McCoy of the Community Services Department congratulated Al Sirignano, who will be among the honorees at the celebration next month. Signal Hill honorees Mayor Tina Hansen recognized Carol Yochum as a Signal Hill nominee for Assemblymember Bonnie Lowenthal’s 2012 Woman of the Year Award. Hansen also issued a proclamation recognizing Terry Rogers as a Signal Hill nominee for Senator Alan Lowenthal’s 2012 Woman of Distinction Award.
Mayor Tina Hansen (left) recognized Carol Yochum (right) for her nomination to receive Assemblymember Bonnie Lowenthal's 2012 Woman of the Year Award.
Terry Rogers (left) is proclaimed by Mayor Tina Hansen (right) as Signal Hill’s nominee for Senator Alan Lowenthal's 2012 Woman of Distinction Award.
Economic development In a second reading, the Council voted 4-0 to approve an ordinance that adopts a set of economic development incentives and programs that aim to attract businesses to the city and develop property. Aleshire addressed concerns voiced by three Signal Hill residents about the language of the ordinance.
Louise Cunningham modeled a sample concert t-shirt to celebrate the Concerts in the Park Series on Wednesday beginning July 11 through Aug 15.
EDCO Transport Services In a second reading, the Council voted 4-0 to adopt an ordinance that approves a zoning ordinance amendment. The zoning ordinance amendment reduces the setback standards for specific areas along California Avenue as requested by EDCO Transport Services. The next Signal Hill Council meeting will take place on Tuesday, May 1 at 7pm at the Signal Hill Council Chambers.