Act V workshop far better than expected...

Act V workshop far better than expected

This is a follow-up to my letter last week, “Workshop not what it

was meant to be,” (Jan. 14 Coastline Pilot) in which I explained my

disappointment that the workshop on the “Corporation Yard and Public

Parking Project” scheduled for Jan. 15 didn’t appear to be what I and

others envisioned.

The meeting took place Saturday. Facilitator Delia Horwitz made it

very clear that the discussion would focus on positive solutions that

would result in compromise on the points listed and if anyone got off

track, she would interrupt and reel them back in.

I have to admit, that by the end of the day, the word workshop

took on a whole new meaning. It was obvious this was not your

traditional informal type workshop. It turned out to be much, much

better and far more informative than I thought it would be.

Councilman Steve Dicterow mentioned that he felt the day’s

activities had been a success and suggested that this type workshop

meeting might be used for other projects of community interest. I

would say go for it. This could be a new and refreshing approach that

could help bring all segments of the community together on a variety

of projects.

A big thank you goes to our City Council, especially Mayor

Elizabeth Pearson-Schneider, Councilwoman Toni Iseman and Horwitz,

who did their homework and provided facts that made intelligent

discussion possible resulting in an extremely interesting and

informative day.

I agree with Pearson’s e-mail, which summed up the workshop, that

this is very exciting as it gives me hope that maybe there is still

the possibility that the Village Entrance will become a reality in my

lifetime.

CAROLYN WOOD

Laguna Beach

City did its job in Montage negotiations

Over the last few years, a great deal has been written about the

Montage Resort, both positive and negative. The question has been

asked, “Did the city do its job?” Let’s look at the facts.

The city of Laguna Beach has a world-class resort that everyone I

know enjoys. Many regard it as the best new resort in America. Its

success is of considerable benefit to our city.

Current projections are that Montage will bring the city nearly $4

million in discretionary revenue per year (in current dollars). Right

now, more than $500,000 goes straight to the general fund from sales

and property taxes. This is over and above the monies that come in

from bed tax. And the park and public parking structure -- funded by

visitor-paid bed taxes -- will have been paid off in three and a half

years.

The city not only has a world-class resort in Montage; it has a

word-class park there as well. The city required the developer to set

aside seven acres of the 30-acre site for the public park, pathways

and subterranean public parking area. (Only 19 acres of the site were

actually developable.) The escalation of the cost of these

improvements occurred for a number of reasons. Additional park area

was added beyond what initially was planned, extensive grading was

required for the parking area and to shore up the bluffs for the

park, and the Planning Commission and design review process added a

number of costly but worthwhile improvements. Keep in mind that no

checks were written for the public improvements -- only bed tax

forgiven and paid for by hotel guests, not residents -- and forgiven

for less than four years.

Some more history and clarification: The city did waive certain

permit fees as part of the negotiations, not an uncommon practice for

cities that stand to gain far more in tax revenue. The city

effectively lost close to $1.5 million as a result of the six-month

appeal to the Coastal Commission by Montage opponents.

Many people may not know that to avoid the six-month delay, the

developer offered project opponents an agreement that unfortunately

was turned down: residential development would have been reduced with

a commensurate increase in the public park and open space. The

project was appealed anyway; the Coastal Commission denied the appeal

and unanimously upheld the city approvals. The public in the process

lost an opportunity for more open space (in exchange for one of the

estate lots), and the city consequently lost six months’ worth of bed

tax.

A few more points of clarification: the negotiated interest rate

on the park costs was 10% and the city only paid 8.5%. This was the

prevailing rate for a commercial construction loan, far different

than residential refinancing rates. City projects require a city

project manager to oversee the improvements. The Montage was not

given a project manager by the city, and rent was not paid for the

trailer in which the city employee worked. Finally, despite what some

may have been led to believe, dedications of libraries and senior

centers would generally not be required of a project the size of the

Montage.

Your Planning Commission, Design Review Board and City Council

worked very hard during the long and very public process of planning

and development of the Montage Resort. The height of the hotel is

well below the allowable limit, ocean views were required for 50% of

the frontage along Coast Highway, and the public parking area was

designed to maximize the view, be aesthetically pleasing and easily

accessed. The park, the two public restrooms, and the public parking

structure are all maintained in perpetuity by the resort owners --

not the city. In comparison, Heisler Park costs the city

approximately $200,000 per year and today is in need of a costly

renovation.

Did the city do its job? You bet. At no time did this City Council

member forget that she worked for the best interests of the residents

of our community. If letter writers wish for inspiration, go down to

Treasure Island Park at the Montage Resort, stroll along the path

overlooking the ocean, and walk down to the beautiful coves. We truly

are fortunate to have this wonderful resort.

KATHLEEN BLACKBURN

Former mayor and City Council member

Laguna Beach

The view from the Athens Group

I am writing to you both as a proud resident of Laguna Beach and

on behalf of The Athens Group, developer of Montage Resort and Spa.

I would like to compliment Councilwoman Toni Iseman on her letter,

“Iseman responds to accusations,” that appeared in all three papers

last week. In that letter, Iseman calls for local political discourse

to be based on values and vision and for debate to focus more on

specific policy differences. We applaud the tone of working in a

positive spirit and at the same time, believe her letter raises

specific points that warrant public clarification.

The resort paid up-front for all the public improvements and those

costs have been reimbursed not by local residents but by visitors

staying at the resort, via the bed tax. Without clarification,

Iseman’s letter might leave the impression that Laguna Beach

residents paid for the public park and the public parking facilities

a the resort. The bed tax repayment for the public improvements,

according to our information, will be completed some time toward the

end of next year -- which is on track with estimates stated during

the referendum campaign.

Additionally, the resort provides nearly $4 million per year in

total support for Laguna Beach through property, sales and bed tax

dollars -- of which roughly $3 million is in bed taxes. This

represents nearly 10% of the city’s general fund and has

significantly increased the city’s total discretionary income.

The most important fact for residents to know is that they have

not paid a single cent for the resort. Yes, some permit-processing

fees were waived, but that represents, as does the short-lived bed

tax repayment, revenues temporarily forgone -- not hard dollar costs

to the city. Such revenues would not have been there in any case,

except for this project. More important and of great benefit to the

community, are the costs we have assumed going forward. Maintenance

on the park is the sole responsibility of the resort owner, in

perpetuity. The cost of maintaining these public amenities represents

tens of millions of dollars over time.

Additional points of clarification:

* The city did not pay rent for office space and the full-time

city staff person assigned to the construction project was not

“given” to Montage but rather served as a public “watch-dog” to

ensure that every detail was completed per city specifications.

Unlike most projects, not a single hotel room could be occupied, nor

a singe residential permit pulled, until the city accepted all the

public improvements.

* The public improvement costs rose over the initial estimate for

a number of reasons, mainly related to good design. The Planning

Commission, Design Review Board and City Council decided (and we

agreed) that the new park at the resort should be unique, a jewel. No

detail was overlooked in the design of the park, adding to increase

in cost. For example, everyone agreed that the landscaping needed to

be first rate; just the cost alone of lowering and landscaping the

Wesley Drive parking structure added at least $1 million to the total. But the result, most agree, is worth it: far better ocean

views and, in lieu of a concrete structure, an attractive green park

area along the public streetscape.

We’re extremely proud of the resort. We take enormous pride in

knowing that we’ve implemented the most stringent water-quality

standards and best management practices ever imposed on a commercial

project in California -- a key component of the project’s rare

unanimous approval at the Coastal Commission.

We also take pride in indications that public support for Montage

is higher today than at the time of the referendum when voters

endorsed the hotel -- recognition that Montage has turned out well

beyond most people’s expectations.

As I look ahead, I know that the resort will continue to be a

world-class resort and thus a valuable asset for Laguna Beach. Laguna

Beach is a unique community in many respects, one where a high value

is placed on the involvement of the public in shaping community

development. We welcome public comments on what we’re doing and look

forward to continuing to work together to make a positive difference.

JOHN MANSOUR

The Athens Group

Montage deal still irks opponents

According to the press and interviews, both Mayor Elizabeth

Pearson-Schneider and Frank Ricchiazzi appear to be delighted with

the Montage Spa and Resort paying out $300,000 in property and sales

taxes to the city when the amount should really be around $3 million

if bed taxes were included -- but they are not.

Frank Ricchiazzi and the Laguna Beach Taxpayers Assn. have

orchestrated a letter-writing campaign trying to con us into

believing that the city is receiving adequate taxes from the Montage

by touting the amount of $300,000 for this year as good. This amount

is paltry. The taxpayers association members talk about fiscal

responsibility as if they invented the term. So where was the

taxpayers association when Laguna needed them? Where was the

association when the Montage was given a $2.5-million budget for the

public park, parking structure, and landscaping and then upon

completion they stuck the city with a bill of $9.7 million?

I’ll tell you where they were; absent as well as silent.

In 1999, the taxpayers association told us that the bed tax from

the Montage Resort would produce a revenue stream that could fund

much-needed improvements within the city. Until 2008 even though

there are millions in bed taxes coming in from the Montage all of it

will be going toward paying off this debt. Funny that they are now

delighted with the current amount of only $300,000 coming into the

city coffers. Let’s see what that could buy; toxic weed and feed that

Montage like to use to keep their fluffy grass oh-so-green, or two

new benches outside City Hall for those weary flatlanders. Certainly

not much else.

So what is the taxpayers association saying now? They’re saying

that the city will be getting $300,000 from the Montage and hoping

you won’t notice the $2.7 million discrepancy. So why have they been

absent, silent and trying to spin the bad news to look like good

news? Because it was their cronies on the council, Mayor Elizabeth

Pearson-Schneider and council members Cheryl Kinsman and Steve

Dicterow, who make up the council majority and who were financially

incompetent at that time as to allow this situation to exist.

Maybe they can fool all of us some of the time, but this time most

of us aren’t fooled.

CHARLOTTE MASARIK

Laguna Beach

Taxpayer’s thoughts are independent

After reading the letters in last week’s community papers I had to

respond.

Taxpayers are individuals who live busy, fulfilled lives and are

not in each other’s pockets. I was pleasantly surprised that so many

of “us” wrote since we do not get together to write letters that

follow party lines like other groups in town. You know the ones --

long-winded letters that regurgitate the same old thing that are

nothing but long winded editorials.

So, when you read a letter from one of the taxpayers, keep in

mind, we are independent thinkers.

MARTHA LYDICK

President,

Laguna Beach Taxpayers Assn.

Shack plans will work well for area

I’m writing to you in support of the current project proposal at

the Pottery Shack.

Many people have decried the reduction in parking granted for this

historical building/project.

I would like to point out that the restaurant/businesses will be

used by many locals as well who walk, not drive.

They will also be used by pedestrian traffic as well.

Will there be an impact to the neighborhood? Most certainly.

Does the historical significance of the pottery shack outweigh the

impact to the neighborhood?

I believe it does. I live in the neighborhood and I’m willing to

adapt.

I think the impact to the historical integrity of the neighborhood

will be greatly diminished if the Pottery Shack is demolished and

replaced with a three-story modern structure such as the one block

north on South Coast Highway (which houses Gina’s, the Heidelberg,

etc.).

This is quite possible and within the rights of the developers if

they choose to pursue that course. I have postcards depicting the

pottery shack throughout many decades. It’s a big part of Laguna

history.

The pottery shack is a Laguna institution.

Will the pottery shack remain as it has in the past?

No.

But historically significant buildings maintain a thread of

history and continuity of our town; an importance we shouldn’t

overlook.

I appreciate that progress is inevitable. I believe that the

project that is proposed for the Pottery Shack will maintain most of

the history and provide for an updated use of the structure.

KEN PACE

Laguna Beach

New police chief should know city well

Of course the officer selected to replace retiring Chief James

Spreine should have plenty of police supervisory experience, that’s a

given. But in addition our new police chief should be familiar with

our strange town. That is, a town full of tourists and visitors, a

long narrow town of difficult topography, weird streets and even more

weird people, which includes me.

Fortunately, we have at least two well-qualified officers on our

own police force. I am not suggesting that we shouldn’t examine

outside qualified candidates, but I firmly believe we should give a

high priority to promotion within our own force when we have such

well-qualified candidates available -- candidates who are familiar

with our police officers, our town, our politics and our other

peculiar attributes and failings.

DAVE CONNELL

Laguna Beach

Speak out on Alta Laguna development

The Top of the World neighborhood needs help in trying to preserve

public views form the north end of Alta Laguna Boulevard, from the

Alta Laguna Park and the mini view park at the end of the cul-de-sac.

We encourage your readers to go look at the stakes at the lot

furthest north [3355 Alta Laguna Blvd.] and attend the Design Review

Board public hearing scheduled for Jan. 27.

This staking, for a 6,000-square-foot house, should be compared to

the recently completed home next door, which we consider a reasonable

compromise where the homeowner will enjoy tremendous unobstructed

180-degree-plus views while a significant portion of public views is

preserved.

In the past several years, 3355 Alta Laguna Blvd. representatives

have attended numerous public hearings concerning this and the

adjacent property. Mark Singer is the architect for both. All of the

other lot owners in this sensitive location have recognized in their

designs the importance of preserving the public views from this

location. The public and the Design Review Board’s concerns and

perspectives were clearly and exhaustively identified and repeatedly

explained at great length to this owner. From the staking of the

proposed house it would appear that all of this exhaustive input has

fallen on deaf ears.

The city needs to enforce the city’s general plan and Coastal Act

protection for prominent ridgelines, public parks, public views, open

space values and environmentally sensitive areas. The city needs to

hear from the public; input should be given the Design Review Board,

city of Laguna Beach, 505 Forest Ave. Please attend the Design Review

Board meeting on Jan. 27.

PIERO WEMYSS

President,

GENE FELDER

Secretary,

Top of the World Neighborhood Assn.

No good excuse for nasty campaign

Yes, I know you have heard all this before but as I haven’t been

able to get it off my mind. I think I’ll go ahead and say my piece

concerning the tactics employed to promote a candidate who runs for

office in our fair town.

I returned to Laguna from Italy at the end of October to a town

filled with ugly signs and newspapers filled with one-sided writing

that just blew me away. I couldn’t believe this was my little Village

of Laguna.

Do not misunderstand, I am not against campaigning for the person

you feel is best for the position of council person. What I, and so

many others, objected to was the uncalled for smear ads, signs and

fliers with which we were bombarded daily.

The degradation of one candidate was an indication of the

thousands of dollars being poured into this attack and an indication

of the caliber of those responsible for doing it.

Residents deplored the level to which politics had sunk.

To further substantiate the mean-spirited manner perceived by

everyone, there was a follow up article in Coastline that interviewed

some of the people who had been involved with this campaign action

about the way they felt about their own behavior after the election.

Their answer was an “in your face” attitude that stated whatever had

to be done to win was OK and, further, that they usually win.

I’m sure these people had the money to hire expert, expensive

advice that kept them legal but ethically it’s another story, one

which we real Lagunans hope will never be repeated .

Oh yes, one more thing to keep in mind, the next time these same

folks want something it could be your honor or your business or your

town, and if you happen to be in the way ...

ANNE ENGLAND

Laguna Beach

The Coastline Pilot is eager to run your letters. If you would

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CA 92652; fax us at (949) 494-8979; or send e-mail to

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