by Brian Simon

Opponents of Thomas Properties’ proposed 46-acre, mixed use El Segundo Corporate Campus project on Nash Street are threatening to push for a referendum if the El Segundo city council approves the project at its next meeting. The process would involve collecting petition signatures in hopes of forcing a ballot measure that would give voters the final decision on the development’s fate. Representatives from Citizens Against Gridlock in El Segundo (CAGES) spoke before the city council at Tuesday night’s public hearing on the matter, outlining their concerns about the city’s financial stake in the deal and on health, traffic and safety issues. In all, 36 people addressed the council with about an even split between supporters and foes of the project. Six of the detractors were paid representatives of Kilroy Realty Corp.--a major real estate developer with properties adjacent to the proposed campus site.

CAGES chairman and former planning commission head Brian Crowley said traffic and air quality impacts from the project would be too severe. He suggested an alternative scenario that would first update the city’s circulation element to properly study traffic mitigations, increase non-office uses on the site to maximize city revenues, and move soccer fields west of Sepulveda. Meanwhile, a Kilroy-hired environmental consultant questioned the validity of Air Quality Management District findings on the levels of chromium 6, a known carcinogen, in the immediate area. He thought improper methods were used in that study.

Other residents criticized the city for waiving a $350,000 fee for fire station start-up costs they felt the developer should pay, and for using taxpayer money to buy five acres of land. Supporters of the campus pointed to the need for new soccer fields, the economic windfall to the city and the consistency of the project with the city’s general plan. Later city consultants dismissed concerns about health impacts from chromium, soil contaminants and carbon monoxide, stating that the effects from these would be negligible.

Developer Accuses Kilroy of Hypocrisy

In speaking to the council, Thomas Properties’ senior vice president Tom Ricci detailed the economic and quality-of-life benefits that the project would offer El Segundo. These include a minimum of $28 million in new tax revenues over the next decade, a site for a new fire station, the sale of five acres of land to the city for soccer fields, a day care center and a new shuttle bus. He indicated that his company had scaled down the project to a density well under general plan limits and had provided for a series of traffic mitigations. Ricci then assailed Kilroy, accusing it of masterminding a negative campaign and employing scare tactics purely out of self-interest to maintain its domination of the local market.

"It’s about Boeing," he said bluntly, referring to Kilroy’s largest tenant. Ricci explained that Boeing’s leases were about to expire and Kilroy wanted to prevent scenarios that would tempt the aerospace giant to move its offices elsewhere. Boeing currently leases three buildings from Kilroy totaling 650,000 square feet. Of that, 250,000 square feet come up for renewal in 2003 with the remainder the following year. Said buildings are about 35 years old. In an earlier conversation with Easy Reader, Boeing spokesperson George Torres acknowledged that his company could consider a move to the Thomas Properties site.

"In the normal course of doing business, we always look at what’s available and, as leases come up, we evaluate what’s on the market," he said. Torres called the El Segundo Corporate Campus a win-win proposition for the city. "We feel Thomas’ plan seems to be well thought out and we welcome such a high caliber developer into this market. Torres also noted that another major aerospace firm, Raytheon, is a Kilroy tenant, while Northrop Grumman was on the lookout for 250,000 square feet of space.

"If I were in Thomas’ shoes, I’d look at all these folks," he said. Councilman John Gaines, who was absent Tuesday, agreed with Ricci’s summation of Kilroy’s motives. "CAGES is a committee assembled by, funded by and orchestrated by Kilroy to protect Kilroy’s interests," he stated. In the meantime, Kilroy officials maintain that they do not actually oppose the project. Chairman John B. Kilroy told the council he was in favor of a quality developer and would support any project that provided adequate traffic mitigations.

Final action on the El Segundo Corporate Campus project will take place at city council’s Jan. 2 meeting. There will be no further public hearing on the matter. ER