Property owners off the hook for $2.5 million

Bryce Alderton

Property owners in a 545-acre section of Huntington Beach will not

have to foot the $2.5-million bill for the addition of traffic lanes

fronting their property and improvements made to water reservoirs and

storm drains, the City Council decided Monday.

After much debate between property owners, council members and city

staff lasting for nearly an hour, Councilman Peter Green made a motion

Monday night not to require 83 property owners to reimburse the city and

developer PLC a total $2.5 million.

The area under fire was the commercial and residential district

bounded by Central Park and Ellis Avenue in the north, Huntington and

Main streets on the east, Yorktown and Clay avenues in the south and the

city’s boundary line on the west.

The developer and the city sought reimbursements for improvements made

to curbs, gutters and sidewalks and the costs of creating an extra lane

on each side of a street to provide for right-of-way traffic flow.

The original 1990 agreement called for the developer, Pacific Coast

Homes to provide infrastructure for the development. The city agreed to

reimburse the developer for excess.

In 1996, PLC purchased the project and assumed the obligations to

construct public facilities as required under the development agreement.

PLC made $35.3 million in street improvements and spent another $11.2

million to construct a reservoir.

The company claimed it should be reimbursed for these costs, but the

city claimed the improvements made didn’t improve traffic flow near the

properties.

In a settlement the city agreed to reimburse PLC for improvements made

to storm drains and water reservoirs, with the property owners only

incurring the costs of street improvements.

Residents have fought this agreement.

Several commercial property owners in the affected area spoke up

during the public hearing claiming that they did not want to be charged

for improvements made to the front of their property, which they said

didn’t bring any added traffic to their businesses.

They also claimed improvements had already been made when they bought

their property.

The council was divided on the issue. Council member Grace Winchell

opposed Green’s motion, saying the city would be losing out on added

revenue and that the improvements made to the streets, curbs and gutters

benefited the property owners. “Those streets benefit the whole city of

Huntington Beach,” argued Michael Leifer, attorney for some of the

property owners. “Why should [the burden of reimbursement] fall on this

isolated group?”