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Sale-leaseback with BCHD furthers city's soccer goal
by John Tawa
"Gooooal!"
The Manhattan Beach City Council Tuesday night approved a much anticipated sale and leaseback transaction with the Beach Cities Health District pertaining to the former TRW parking lot along Marine Avenue. If the proper land use entitlements and zoning requirements are procured, the sound of kids thumping soccer balls and smacking baseballs should become reality at the 1701 Marine Avenue venue by Feb. 2001.
Under the terms of the transaction, the Health District will purchase the entire seven-acre site from the city for $7.39 million, the price the city paid TRW for the land in November. The sale to the BCHD should be completed by May or June, returning money to the city previously earmarked for its contemplated public safety facility. The BCHD will then lease back to the city approximately six of the seven acres, improved with three lighted, regulation-size little league fields with dugouts, backstops, fencing, etc. and one full-length 115-yard, lighted soccer field. The fields will be programmed through the city's Parks & Recreation Department.
The lease, for 50 years with two 10-year options, obligates the city to make interest-only payments to the BCHD on the $6.3 million prorated cost of the six acres, plus the cost to improve the land not to exceed $2.5 million. Finance Director Bruce Moe estimated that the annual lease payment to the district once the project was completed would approximate $512,000. Field maintenance would add an estimated $75,000 to the budget annually. Under the lease, the city has the right to buy back the six acres from the BCHD at any time at the original sale price. It may also make interest-reducing principal payments to the BCHD at any time.
The BCHD will build a Health and Fitness Center for South Bay youth on the one acre it retains. The agreement requires the BCHD to build within four years.
Kristine Breese, Associate Director of the BCHD, told the council that the last four months have been spent learning all aspects of the youth and health fitness field in order to best design and program the facility.
"We learned that we have to make it cool and fun, else no one will come," she said.
The Health and Fitness Center will include an adventure challenge course for youngsters, a sport court, weight room, multi-purpose room, classrooms and possibly an outdoor play area, Breese explained.
"We are more excited than ever and more committed than ever," Breese added. "We are convinced that this is the right project at the right time."
"I think you'll find that the council is just as excited today as we were four months ago," responded councilmember Walt Dougher.
"I think this is a 'win-win' for all involved," said Mayor Linda Wilson. "It makes us able to have the fields and yet not invest the $7 million, which can be used for other things."
Three residents expressed concerns about the deal. George Clark, who lives on Marine across the street from where the fields will be, was concerned about the effects of lighting and noise on his peaceful enjoyment of his property. City manager Geoff Dolan stated that a Planning Commission public hearing on Feb. 23 would consider how to mitigate the impacts of the fields and health facility on the surrounding community.
Residents for a Quality City spokesperson Bill Eisen raised some technical points about the sale and leaseback documents. He added that his group had not ruled out litigation over the sale-leaseback transaction.
Finally, Viet Ngo stated his belief that sale of public property to the health district constituted a criminal act.
"Chief, get ready because I'm about to commit a crime," responded councilmember Steve Napolitano, nodding to police chief Ernie Klevesahl. "I'm going to vote in favor of this project."
He was not alone. The vote was unanimous. ER