A consultant released a report this week recommending the city raise a portion of the money to buy the Chili Cook-Off site through the selling of bonds and that Malibu fund the proposed wastewater/ storm water treatment system through a loan from the State Water Resources Control Board.
The City Council will receive a presentation on the report from the Public Resources Advisory Group at its meeting on Monday, at which time it could make a decision whether to pursue the recommended options.
The bond-selling concept would involve Malibu hiring an entity to issue bonds to accumulate whatever portion of the $25 million the city needs to purchase the Chili Cook-Off site that it does not acquire through government grants and private donations. Malibu would then pay off the bond money over time through rent money it receives from the tenants of the three buildings located on the Chili Cook-Off site. Coldwell Banker and Malibu Animal Hospital occupy two of the buildings, while the third building has been vacant since Malibu Lumber closed earlier this year.
Public Resources offered other options to the city for raising money for a Chili Cook-Off site purchase, including a city tax or creating an assessment district. But it said the bond-selling concept was the best one because it did not require an election or an environmental review.
Malibu Bay Co. owns the Chili Cook-Off site, a 20-acre property located along Pacific Coast Highway from Cross Creek Road to Webb Way, and it has set a deadline of Dec. 31 for the city to buy the property. As of Tuesday, the city has $1.5 million from Santa Monica College Measure S bond money dedicated to the purchase. Malibu Grants Consultant Barbara Cameron said the final details are being worked out for the city to receive $6 million in grant money from the State Coastal Conservancy and the Wildlife Conservation Board. She said the city is pursuing grant money from various other organizations.
Last week, three city officials went to Sacramento to speak with representatives from the Regional Water Quality Board and the State Water Resources Control Board about a $5 million grant request to help purchase the property. Councilmember Sharon Barovsky said the talks were promising, but cautioned that there are no guarantees. Barovsky added that if the grant were approved, the money would probably not arrive until after Dec. 31, but she said she hoped a letter signifying the money would be made available would be a good enough signal for Malibu Bay that the city would have the money.
At its July 11 meeting, the City Council designated $20,000 to pay for a professional fundraiser to seek money from private donors in the community. Local activist Ozzie Silna said he is also trying to raise money through private donations.
Many community members want to see the city buy the Chili Cook-Off site to eliminate the possibility of any commercial development on the property. A municipal purchase would also mean the property could be used as part of a sophisticated wastewater/ storm water treatment system. The system could cost as much as $28 million. Public Resources has recommended the city acquire the money for the project through a loan from the State Water Resources Board, with the loan being paid off over a 20-year period by the various landowners who hook up to the system.
The treatment system would involve the construction of a wastewater treatment plant on the Pepperdine University-owned property behind the Old City Hall, which the university has agreed to donate to the city in exchange for development benefits. The plant would operate as a sewage collector for nine areas in Malibu considered “high priority” by the city. The wastewater would then be treated and sent to the Chili Cook-Off site, where it would be dispersed into vegetation and groundwater. The Chili Cook-Off property could then be used for storm water management through the creation of wetlands, a small pond and other habitats.
The most significant reason for the desire by Malibu to treat the wastewater and manage the storm water by curbing the amount of water runoff is to limit the amount of pollution entering the Malibu watershed. With new rules coming down from the Regional Water Quality Board about the amount of nutrients that are allowed to enter the watershed under the threat of severe fines, the city must find a way to clean up the water.