The Art of Negotiating for land for ball fields and a community center!
On the morning following the vote by the City Council to send the Crummer Development Agreement (“the good twin”) on for an EIR, I find it imperative to remind Malibu of “the other deal” (“the bad twin”).
The Malibu Bay Company owns a substantial amount of land in Malibu and would love to finalize a Development Agreement so that they can be assured of developing all of their land holdings! There is nothing unusual about that because after all, they are developers. Because of their considerable wealth, they hire the most competent negotiators that they can find!
As we all know the City of Malibu is in need of land for ball fields, a community center, and for other recreational uses. The City hired a very competent appraisal company (Mason & Mason) to appraise the Malibu Bay Company properties.
Let us examine two properties that might be able to accommodate the city’s needs:
Property #1 — Point Dume Parcel – 19 acres but only 5.2 acres is usable because the “development is required to be setback from the top of the canyon slope 100-feet…”(Mason & Mason). Appraised value $16,500,000 by Mason & Mason.
Property #2 — Trancas Canyon Residential — 28 acres (at worst, 15 acres usable). Appraised value $ 1,180,000 by Mason & Mason.
The Trancas Canyon Residential property is only 2 miles west of the Point Dume Parcel and unquestionably has much more suitable land, with much better traffic conditions, and is valued at 92 1/2 percent less than the Point Dume Parcel, and could accommodate substantially more playing fields as well as a community center and significant park land and open space. It also has much safer ingress and egress.
“The concept of highest and best use represents the premise upon which value is based.” Mason & Mason. It is on this premise that the parcels were appraised. The value of the Pt. Dume Property, were it to be used for commercial development, may be $16.5 million to the Malibu Bay Company. However, the value for ball fields in Malibu has nothing to do with “highest and best use”. The Trancas Canyon Residential property, appraised at a value of $1,180,000 is a much more appropriate value for land for ball fields and a community center.
As for the “Art of Negotiating,” let us examine “the bad twin.”
For “donating” the Point Dume Parcel, “Our Ad Hoc Team” gave the Malibu Bay Company the right to: (1) increase their amount of commercial development in the Civic Center from approximately 200,000 sq. ft. (assuming that they even had that right) to 286,088 sq. ft. (2) increase their commercial development in Trancas by 33,000 sq. ft. and (3) allowed them to increase their residential developments in Trancas by 11 homes, (1 being a beach front property).
This increase, estimated in added value to the Malibu Bay Company of more than $25,000,000, has been represented by the ad hoc committee as a great deal for the City of Malibu. The inequity of the deal goes far beyond the economic values, the deal will negatively change Malibu, forever!
Citizens of Malibu, if you value continuing your lifestyle on our American Riviera, please make yourselves aware of what happens in your City. Get active NOW!
Jay Liebig