In other matters, the city council looks into creating a strategic plan for the arts in Malibu.
By Jonathan Friedman / The Malibu Times
The city council on Monday unanimously approved a measure that allows the Malibu Lumber Yard shopping center owners to renew a construction loan. As a result, a deal that allowed a partial rent deferral from the center’s owners to the city was canceled.
Helping the council members to make the decision was the presence of the city’s contract real estate attorney, who answered any questions the council members had about the issue.
At last month’s meeting, the council members were uneasy because city staff members were unable to answer various questions about the item regarding the shopping center that sits on city land. Mayor Jefferson “Zuma Jay” Wagner complained that the city’s relationship with the center had become “muddy.” The council delayed the item, and center owners Richard Sperber and Richard Weintraub said this put their bank loan at risk.
Malibu Lumber had sought an extension on a $25 million construction loan from Wells Fargo that was due earlier this summer. The bank had agreed to the request on the condition that the city do away with a deal it made last year with Malibu Lumber allowing a deferral of some payments that might be owed the city on top of regular lease payments based on a certain formula. As a result, the item went before the council last month.
Tony Canzoneri, the city’s contract real estate attorney, told the council this was a positive item and he could not think of any reason he would recommend the council not approve it.
“I don’t know how we got to the place of thinking that there was something in this that was not healthy for the city,” Canzoneri said. “This is healthy for the city. It really shows the strength of the property. We see many loans today where lenders have a due date coming on the loan, and the lender wants out.”
One issue raised last month was that the document pertaining to the item did not include a clause indemnifying the city from litigation. Canzoneri said this was not necessary because the item did not put the city at a legal risk. He said this was an issue between Wells Fargo and Malibu Lumber, and the city was best to stay out of it. Mayor Pro Tem John Sibert agreed with this philosophy.
“When you have the city becoming a landlord, we end up with a difficult situation,” Sibert said. “This one, however, doesn’t appear to me to be a difficult decision … in fact it’s better than what we had before … because it does not include the deferment. It is relatively technical because all we are doing … is allowing them to go ahead and extend their loan with Wells Fargo. And that shouldn’t be the city’s business unless it adversely impacts us. And I don’t see that.”
Weintraub said after the meeting that he was glad the situation was over, and that getting the loan renewal secured with Wells Fargo is now in process. Last month he and Sperber announced they were looking for an additional partner or possibly to sell the property because the center had cost more than they had expected for various reasons. Weintraub said on Tuesday he had no update on that situation.
City to create arts task force
Also at Monday’s meeting, the council endorsed a concept to create a Malibu arts task force that would develop a strategic plan for the arts in Malibu. The proposal came from council members Laura Rosenthal and Lou La Monte, who comprise the council’s arts ad hoc committee. They proposed a task force with 11 members (two appointed by each council member and an at-large member appointed by the council as a whole).
“I have never been involved in any issue in this city where more people have spoken to me about it,” La Monte said. “So I don’t think we’re going to have the kind of issues we have with raising a crowd for this.”
The city will put information on how to apply for a seat on the task force on its Web site at www.ci.malibu.ca.us. Appointments could be made as soon as next month.
The council also voted to set aside $2,000 for a 20th anniversary celebration of Malibu’s cityhood. Rosenthal said a fundraising effort would be done to add to the amount. She said she is working with former Mayor Joan House and local activist Laureen Sills on an unofficial committee regarding the anniversary celebration.
Also, city staff will look into possible programs next month surrounding the Oct. 2 opening of Legacy Park. This was in response to Council member Pamela Conley Ulich’s complaint that it was unfair the opening will take place on a Saturday because children involved in AYSO and their parents would not be able to attend.