Showdown At The OC Water District
Posted by: Jubal | 01/16/2008 3:40 PM
Tonight, the OC Water District Board of Directors will vote on spending $300,000 on an environmental impact report, as a required prelude to buying, via eminent domain, a 40-acre parcel on the Boeing site in Anaheim (the other 60-acres of the Boeing site was purchased by Panattoni Development).
OCWD wants to construct a lake on the site to percolate water back into the groundwater system, so that less water is lost to the ocean.
Anaheim Chamber of Doom
The City of Anaheim is dead-set against this, because the lake wouldn't generate any tax revenue. So, the Anaheim Chamber of Commerce has been sicced on the OCWD to oppose the move:
Well, Platinum Pointe is in suspended animation. Meanwhile, elsewhere in the economic engine of Anaheim, a hotel-condo project was scratched "a weak housing and hotel market and the pressure of a looming Disney-backed ballot initiative." [Emphasis mine]
As the developer put it:
Now, the Chamber is saying the 40-acre Boeing property is critical to economic future of Anaheim, just as the 25-acre site optioned by SunCal was critical to the economic future of Anaheim. Color me skeptical of the dire predictions from the Anaheim Chamber of Commerce.
Eminent Domain Is In The Eye Of The Beholder
While the City of Anaheim is opposed to OCWD eminent domaining the 40-acre Boeing site, I've learned the city has encouraged OCWD to eminent domain the California Auto Dealers Exchange (CADE) and build their percolating lake there. CADE doesn't generate sales tax revenue, and since city government's don't like things that don't generate tax revenue, the city would like to get rid of CADE.
While the recently-amended Anaheim City Charter prohibits Kelo-style eminent domain by the city, it holds no such power over the OC Water District. In Anaheim's eyes, that's a win-win: OCWD gets it's percolating lake, and Anaheim sheds a non-tax revenue generating site and gains a new tax-generating site.
However, that scenario also entails the OCWD taking an ongoing business, rather than site where no business is going on.
My guess is the OCWD Board of Directors tell the Chamber and other Anaheim opponents of the district's plan "thanks for you input" and then vote to move forward with the EIR.
And then battle will be joined. Stay tuned...
OCWD wants to construct a lake on the site to percolate water back into the groundwater system, so that less water is lost to the ocean.
Anaheim Chamber of Doom
The City of Anaheim is dead-set against this, because the lake wouldn't generate any tax revenue. So, the Anaheim Chamber of Commerce has been sicced on the OCWD to oppose the move:
They believe the site should be used for new businesses in the heart of the Canyon business district, especially now that Boeing is moving out 3,200 employees by 2010.
Where have we heard that before? Oh yeah, when the Anaheim Chamber and their sugar daddy Disneyland were opposing SunCal's proposed Platinum Pointe residential project at the edge of the Resort District (full disclosure: I was a consultant for SunCal on that project). We were told -- among other spin -- that residential would generate less tax revenue on that site than a hotel, and that hoteliers were lining up to build a hotel on that spot."The site is so important to other businesses out there. It's really important to bring jobs to the region and key companies out there," said Todd Ament, president of the Anaheim Chamber of Commerce. "We've pretty much committed to protecting that site for business and generation of property taxes."
Well, Platinum Pointe is in suspended animation. Meanwhile, elsewhere in the economic engine of Anaheim, a hotel-condo project was scratched "a weak housing and hotel market and the pressure of a looming Disney-backed ballot initiative." [Emphasis mine]
As the developer put it:
"And you can't build a stand-alone hotel with the price of the land there. The price would have to drop significantly, maybe even to zero, to make it work."How can there be a weak hotel market, when Disney/SOAR/Anaheim Chamber assured us of the demand for more hotels in the Resort District?
Now, the Chamber is saying the 40-acre Boeing property is critical to economic future of Anaheim, just as the 25-acre site optioned by SunCal was critical to the economic future of Anaheim. Color me skeptical of the dire predictions from the Anaheim Chamber of Commerce.
Eminent Domain Is In The Eye Of The Beholder
While the City of Anaheim is opposed to OCWD eminent domaining the 40-acre Boeing site, I've learned the city has encouraged OCWD to eminent domain the California Auto Dealers Exchange (CADE) and build their percolating lake there. CADE doesn't generate sales tax revenue, and since city government's don't like things that don't generate tax revenue, the city would like to get rid of CADE.
While the recently-amended Anaheim City Charter prohibits Kelo-style eminent domain by the city, it holds no such power over the OC Water District. In Anaheim's eyes, that's a win-win: OCWD gets it's percolating lake, and Anaheim sheds a non-tax revenue generating site and gains a new tax-generating site.
However, that scenario also entails the OCWD taking an ongoing business, rather than site where no business is going on.
My guess is the OCWD Board of Directors tell the Chamber and other Anaheim opponents of the district's plan "thanks for you input" and then vote to move forward with the EIR.
And then battle will be joined. Stay tuned...
Mr. Ayer registered as a Republican to be electable in an interim election with no incumbents. He did...
Matt:
I find it interesting that your dislike for Anaheim, Disney, and the Anaheim Chamber has led you to a place where you think the Water District should take a piece of prime real estate away from a private business so they can build...a puddle.
Is you position now that any policy which hurts Anaheim, since they opposed your client, is now appropriate? Even actions that, by your record, you would normally oppose?
The City of Anaheim, as I understand it, made the very reasonable request of asking the OCWD if there are better sites, given the importance of the Boeing site, for recharging the groundwater basin. They further asked whether the very old technology of percolation could be replaced with direct injection wells the would make taking such a large property unnecessary.
Because Anaheim's requests were so reasonable, my understanding is that, notwithstanding your prediction, the vote at OCWD last night was 8-2 to look for other sites.
Any finally, for the record, while I don't have a client here and don't speak for Mayor Pringle, I have discussed this issue with him. I can assure you that he never spoke about this Boeing-OCWD issue in terms how the tax impact of the action, only in the economic and jobs impact.
Jeff:
For starters, I didn't indicate support for an eminent domain action on the Boeing parcel. I expressed my skepticism towards the Anaheim Chamber's declarations. You're interpreting that as an endorsement of an eminent domain action.
Also, I don't oppose eminent domain for legitimate public purposes like infrastructure. It's not something that should be undertaken lightly, but it's a long-standing legitimate government function.
I pointed out that eminent domain to buy a site where the business is leaving is preferable to eminent domain to buy a site that is home to an ongoing business. That's a reasonable, common sense position.
For the record, I am not anti-Anaheim. I think it is a great city from which I live a stone's throw and for which I have great affection, so I wish it well. Does disagreeing with the Anaheim Chamber of Commerce and the Anaheim Council make one anti-Anaheim?
Perhaps I was just reading it into the tone.
Gotta run...have a good one.
Matt:
The purpose of any Chamber of Commerce, even in Orange is to promote commerce not lakes. The Boeing site is an existing industrial site with an existing infrastructure to support it. Jeff already pointed out that the OCWD voted to look to see if another viable site is available so I will not dwell further.
By the way, have been dying to ask if Suncal ever paid of if they stiffed you like they did the people in Bakersfield. See article below.
Bakersfield Californian:
The developer, Irvine-based SunCal Cos., is “adjusting” its construction plans,
a company spokesman said Friday.
When homes will appear — and when McAllister’s showcase golf course will open for public play — remains up in the air amid a lawsuit and a smattering of liens filed against the developer. “We previously had a very aggressive, accelerated construction schedule, but with the current challenges of the housing market, it has become necessary to adjust our timelines,” SunCal spokesman Joe Aguirre said.
Two years ago, SunCal predicted residents might move into the planned 6,000-home community by the end of 2006. As recently as September, the golf course was slated to open in the first three months of 2008.
The Greg Norman-designed golf course at McAllister Ranch is now at the center of a lawsuit seeking to recover $830,530 in allegedly unpaid bills.
As of Thursday, contractors, subcontractors and building supply companies involved with work at the McAllister Ranch property had filed at least 24 mechanic’s liens against SunCal and its affiliate, seeking more than $2.2 million for construction services and supplies, Kern County Recorder’s office records show.
“I understand the developer has shut down the whole project,” said Mike Garcia, owner of Garcia Roofing. Garcia’s company was hired by Bakersfield’s Klassen Corp. to do the roofing for McAllister Ranch’s golf clubhouse, he said.
Garcia finished the roof, but is out $61,980, he said.
“I’ve never lost out on anything this big,” said Garcia, who said he has been in the local construction business for 32 years.
He said he believes the developer failed to pay Klassen Corp.
"None dare call it Eminent Domain - at any cost!"
Let the market work? Hmmm...sounds a little far
a field from that point of view.
Well, Suncal and Bob Hernandez said that it would be 25 to 55 years before a developer would be interested in the Frank Family Site. I sure hope the City of Anaheim asks for their money back on that study. Now we see that there will possibly be three hotels on that site along with more restaurants and retail.
This will fit right in with the proposed expansion of the Convention Center and another hotel that will be added to that site. Things are a hoppin in Anaheim and Matt decided to throw in with a developer who loves to sue if they can't get their way. If they had better management, they would not have even gotten involved in trying to put in residential, and could have submitted a plan for hotels and retail, but they got greedy as many developers tend to do especially when they think that the people are going to roll over and play dead.
I guess the thousands of people that supported SOAR and Disney over Suncal have proved to be the winners and our city will continue to grow as the premier family resort destination on the West Coast.