The plan includes raising funds through grants and donations to buy the land, and seeking a loan to fund a water treatment facility. In other action, the council approves new film permit rules and passes plastic foam ban.
By Jonathan Friedman/ Assistant Editor
The City Council instructed city staff at Monday’s meeting to go forward with a recommended plan from a consultant to pursue the money to acquire the Chili Cook-Off property and to pay for a municipal wastewater/storm water treatment system.
The plan involves raising money through grants and donations to purchase the Chili Cook-Off site and seeking a loan to fund the water treatment program, with fees from those hooking up to the system paying off the loan.
Public Resources Advisory Group made a presentation to the council on Monday based on a report it drafted. The consultant recommended the city raise at least $13 million toward the $25 million for which Malibu Bay Co., the owner of the Chili Cook-Off site, has offered to sell the property. Public Resources said the city should acquire the remaining sum by issuing bonds and paying them off through the rent money it receives from the tenants of the three structures on the property. The amount Public Resources recommended the city should raise through grants and donations and the amount it said the city should acquire through issuing bonds were based on how much debt the city could acquire while, according to Public Resources, keeping with a “prudent practice” and be able to pay off the bonds with the rent money alone and not through the city’s general fund.
Based on discussions with city officials, professionals familiar with lease rates and the current lease rates on the Chili Cook-Off site, Public Resources estimated the city could expect $947,000 in rent money per year. In its report, the consultant said one of the risks of issuing the bonds is that if the expected rent revenue does not come, then the city would have to go to its general fund to pay off the bonds. Currently, two of the structures on the Chili Cook-Off site are occupied (Coldwell Banker and Malibu Animal Hospital), but the third structure has been vacant since Malibu Lumber closed earlier this year.
Malibu Bay Co. has set a Dec. 31 deadline for the city to come up with the $25 million to pay for the Chili Cook-Off site, a 20-acre property stretching along Pacific Coast Highway from Webb Way to Cross Creek Road. As of Tuesday, the city has acquired $1.5 million of Santa Monica College Measure S bond money. The City Council also designated $8.5 million toward the acquisition, but it is not clear where that money would come from. Also, Malibu has applied for several grants. Last week, the city’s grants consultant, Barbara Cameron, said the final details are being worked out for Malibu to receive a $6 million grant from the State Coastal Conservancy and the Wildlife Conservation Board.
At a quarterly review meeting on Wednesday, the City Council was expected to hire Susan Shaw of Susan Shaw & Associates to help the city seek private donations toward the Chili Cook-Off site acquisition. Shaw was active in the successful Malibu cityhood campaign in the early ’90s. Malibu Coastal Land Conservancy members Ozzie Silna and Steve Uhring said at Monday’s council meeting that they were seeking private donors as well.
In addition to preventing it from being commercially developed, a municipal purchase of the Chili Cook-Off site would allow it to be part of a 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 wastewater treatment portion of the project, costing about $25.7 million, through a loan from the State Water Resources Board. The loan would be paid off over a 20-year period by the various landowners who hook up to the system.
The treatment system would involve wastewater being treated at a plant located on a property behind the old City Hall on Civic Center Way that is being donated to the city by Pepperdine University. The treated water would be sent to the Chili Cook-Off site and dispersed into vegetation and groundwater. The Chili Cook-Off property would then be used for storm water management through the creation of wetlands, a small pond and other habitats. This portion of the project would cost about $2 million and the city says it is seeking grants to fund it.
Councilmember Pamela Conley Ulich suggested the city should hold a sales tax election in November to raise money for the Chili Cook Off-site purchase and the costs associated with the wastewater/storm water treatment system.
Public Resources officials told her it was too late to feasibly do that since the deadline to put something on the ballot is Aug. 12. She then suggested an April election might be a good idea.
Film permit ordinance approved
The council approved the first reading of a new ordinance regarding film permitting. According to the new law, which must be approved on a second reading at the Aug. 8 council meeting, filming would be allowed at one home for 16 days, but it can be extended to 20 if the homeowner could get 100 percent approval from people living within a 500-foot radius. Also, filming could occur after 10 p.m. until 12 a.m. and from 6 a.m. to 7 a.m. if the homeowner could get unanimous approval from those living in the 500-foot zone.
Plastic foam ban passed
The council approved the final wording of an ordinance to prohibit the selling of food and drinks in plastic foam containers. This ordinance must also be approved a second time before going into effect.
Diana Nielsen, owner of Malibu Yogurt & Ice Cream, told the council she thought it was unfair that the law would prevent her from selling products in plastic foam containers, while Ralphs and other stores would not be prohibited from selling packaged plastic foam cups and containers. Councilmember Sharon Barovsky said the reason for this was because people getting yogurt from Nielsen’s shop could litter the ground with the containers, while people buying cups from Ralphs are probably bringing them home, and will throw them in the garbage.
Councilmember Jeff Jennings voted against the ordinance, saying, “This is not an effective effort to make any serious public policy to solve the problem.” He went on to say he believed the ordinance came out of political motivation “to appear to create a feel-good solution.”
Barovsky said she resented Jennings’ comment and said the ordinance was the first step toward cleaning the environment.