Lennar Pulls Plan Off Table

By Harry Saltzgaver
Executive Editor

It’s back to square one for Lennar Homes, the developer seeking to replace SeaPort Marina Hotel with a mixed-use project at the corner of Second Street and Pacific Coast Highway.

In a letter dated Oct. 22, Lennar project manager Bea Bea Jiménez formally withdrew the project from the city’s entitlement process. Lennar representatives had been scheduled to go before the City Council next Tuesday, Nov. 5.

That hearing was to decide an appeal of a March 15 approval from a split (3-2) Planning Commission for the project to raze the hotel and replace it with 425 for-sale lofts and townhomes, with 170,000 square feet of retail and restaurant space. Eight residents had appealed that decision to the council, and Third District Councilman Gary DeLong had let it be known he sided with the appellants, at least as the project is configured now.

“I met with them a few weeks ago,” DeLong said. “I think they recognized the need for a change in use to get community support. They have density issues and height issues. I made it clear I think the density needs to be reduced by 25% or 30% for it to have a chance.”

The project approved by the Planning Commission included putting most of the parking underground, orienting much of the project to Alamitos Bay instead of PCH and adding a landmark quality to the building at the intersection of PCH and Second Street. Traffic impact on that intersection — already considered the most congested in the city — was a major concern, and the Planning Commission added a condition that a complete traffic mitigation plan be in place before construction began.

In addition to DeLong’s opposition, concerns from the state Coastal Commission staff seemed to sway Lennar. Through DeLong, the state staff made it known that it would not easily give up a public access use (the hotel) for private development in an area adjacent to the bay.

Lennar officials indicated a willingness this week to add a hotel into the mix.

“Lennar and our partners remain committed to the Seaport Marina project,” spokesman Glenn Bunting said. “We have made a substantial investment in the project and continue to be focused on developing an exciting gateway for the east side of Long Beach.

“We have decided at this time that we need to continue to refine our proposal. Among the refinements under consideration are integrating a boutique hotel into the mix of uses and reducing the number of condominiums.”

It appears that Lennar would have to at least amend its Environmental Impact Report, which was part of the Planning Commission approval and the appeal to the City Council. That document includes the controversial traffic mitigation plan that was central to several of the appeals.

Much of Lennar’s traffic mitigation is based on a proposal to extend and improve Shopkeeper Road around the Marketplace shopping center, allowing traffic to turn off Second Street or PCH and avoid the intersection. That proposal is dependent on approval by the Coastal Commission, which in turn is likely to be based on a determination whether the land bordering the road is part of the Los Cerritos Wetlands.

If the SeaPort plan is significantly reworked, it would require a new EIR — something that could take another year. But the letter sent to Suzanne Frick, director of Planning and Building at the city, calls the proposed changes a “refinement,” not a redraft.

“It is our intent to refine the project to reflect significant features important to the community, including a high quality boutique hotel, and resubmit in early 2008,” the letter signed by Jiménez says. “The existing site plan, including the building footprints, retail configuration, the internal streets and the subterranean parking design will remain as the basis for the substantial modifications.”

Greg Carpenter, Planning Bureau manager, said a new EIR is likely.

“It depends on the scope of the changes,” Carpenter said. “Right now, we’re assuming it to be a new project and a new process.”

Lennar already had received two extensions for its date of appeal before the City Council. Those extensions were granted at least partly to give the Coastal Commission time to hear an appeal of approvals for a Home Depot design center near the intersection of Studebaker Road and Loynes Drive. The projects are connected because the Home Depot also is expected to heavily impact traffic at Second and PCH, and includes significant traffic mitigation.

The Home Depot appeal had been scheduled on the Coastal Commission’s October agenda, but the developers asked for and received an extension until at least January. That extension was sought after Coastal Commission staff uncovered what it said were improper parcel divisions, and recommended the project be denied.

The Coastal Commission also has approval of the Shopkeeper Road on its docket, but that hearing has not been scheduled. The city currently is conducting a wetlands determination study on and near the property before pursuing approval of that project.