The Last Stand
The Struggle for the Ballona Wetlands
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By Mary Moore

STAFF WRITER (Daily Breeze Newspaper) Publish Date:Sunday January 07 , 2001

Taking a swipe at Playa Vista's developer and seeking favor with Los Angeles environmentalists, state Controller Kathleen Connell has called for a public hearing to determine what should happen to property coveted by the developer but owned by the state.

Playa Vista Capital had an option to buy the 73-acre piece of land, which the state acquired in 1984 from the Howard Hughes Estate to settle a tax debt. However, the deadline on the option expired on Dec. 31 — without an offer to buy from Playa.

Connell, a Los Angeles mayoral candidate, could have extended the option, but decided not to. Her decision, a surprise to the developer, throws a wrench into Playa's plans to develop the land although the delay may be more symbolic than damaging.

Playa executives had hoped Connell would extend the option so they could postpone a decision to buy the land. That decision hinges on whether the next phase of the Westchester-area development receives necessary environmental approvals.

The development has been mired in bitter feuds between the developer and environmentalists, who oppose any development and favor restoring the area as the Ballona Wetlands.

Environmentalists are claiming victory as Connell moves forward with plans for a public discussion on alternative uses for the 73 acres, a hearing that could be scheduled in as little as two weeks. They are urging Connell to support their proposal: give the 73 acres to the state parks department and preserve it as open space.

Connell, a member of the State Lands Commission, estimates the 73-acre parcel east of Lincoln Boulevard is worth $115million, although people familiar with the property say that appraisal does not PLAYA/A11 Playa for methane contamination discovered on the Playa Vista property.

Although Connell said she likes the idea of preserving the area as open space, she is not committed to a particular proposal. For example, she said, housing activists support the Playa Vista development for the affordable rental units and homes it offers.

“I'm going to be keeping an open mind,” she said. “It's the last piece of major land intact in the city of Los Angeles.”

Option created by Davis

The option agreement for the land created by Gov. Gray Davis when he was state controller and Maguire Thomas was the Playa Vista developer. In 1994, Davis extended the option. Playa executives said they are disappointed Connell refused to extend the option, but they are quick to add that they could still end up with the property. The agreement gives Playa Capital the right to match any future offers — a right of first refusal.

“The developer continues to look forward to developing it,” said CobyKing, a Playa spokesman.

If Connell and lawmakers push to convert the parcel into a park, rather than sell it, Playa's rights are unclear. The option applies most clearly to a sale of the 73 acres, not to a parkland conversion. Why didn't Playa exercise the option before it expired?

“Playa Vista had an option to purchase the land at $115 million and didn't do so. We see this as a valuable piece of property,” King said. “But we really feel that, until entitlements are in place, it's probably not a good idea to buy the land.”

If a state-mandated environmental analysis of the next development phase passes legal mus ter, Playa Vista will be eligible to apply for permits to build — known entitlements. At that point, King said, buying the 73-acre parcel might make more sense.

King said the environmental reports could be out in the next two or three months. Others familiar with the Playa project say the report may be out on Jan. 15.

According to King, Playa's original plan for the 73 acres includes 21 acres of open space, a salt water lagoon, habitat restoration and parks. The area also would include 2,000 new homes, 900,000 square feet of offices, and 30,000 square feet of community space. King said the entire Playa project earmarks 25 percent of its housing units as affordable.

“The Westside is crying out for affordable housing,” he said.

A matter of timing

Connell's involvement in the fate of the 73 acres is perfectly timed for her run for mayor, fueling speculation that she has picked Playa Vista to showcase herself as an environmentalist — a criticism Connell denies.

She first took a public stand on Playa Vista last summer, when she blocked a deal backed by Playa Capital and Los Angeles City Councilwoman Ruth Galanter to swap the state's 73-acre land for developer-owned land west of Lincoln Boulevard.

Connell balked, arguing that the state-controlled land is worth more than the land the developer was willing to offer. The swap would have given Playa developers the state's parcel cash-free, but it would have allowed Galanter and the nonprofit Friends of Ballona Wetlands to acquire a piece of the wetlands that they consider more viable for restoration than the 73-acre site.

Playa's lobbyists approached Sen. Debra Bowen, D-Redondo Beach, and then-Assembly Speaker Antonio Villaraigosa, asking them to introduce legislation and make the land swap happen.

But the request came near the end of the legislative session — not enough time for Bowen and Villaraigosa, who refused to do anything unless they knew the true value of the land to be swapped.

If the 73 acres is turned into a park, that land swap proposal would be rendered irrelevant. The developer no longer would have anything to swap. Bowen, however, has said she may reintroduce legislation authorizing a land swap.

Candidates take stands

Coming just three months before the city's election, Connell's recent strong stance on Playa Vista follows Villaraigosa's position. Villaraigosa, another candidate for Los Angeles mayor, became the darling of the anti-Playa Vista environmentalists when he pushed for a $25 million park bond, a portion of which is earmarked to buy land at Playa Vista and restore it as wetlands. Voters approved the bond last spring.

Connell's critics question whether her recent high profile on Playa Vista is an orchestrated effort to outshine Villaraigosa as the environmental candidate for mayor. On that score, however, Villaraigosa appears to be the one to beat.

He has received an endorsement from the League of Conservation Voters and has been recommended for an endorsement by the Sierra Club's political committee. The Sierra Club's endorsement is expected as early as this week.

Meanwhile, Connell sits on the board of the Ballona Wetlands Foundation, a group formed two years ago as part of the settlement ending a lawsuit over the Playa Vista development. The Foundation board has four members, all of them parties to the original lawsuit: Galanter, Playa Capital, the Friends of Ballona, and the State Controller's Office.

A representative from Connell's office has attended two or three of the monthly meetings, said Ruth Lansford, president of both the Friends of Ballona and the Ballona Wetlands Foundation. That record, she said, compares to the other three on the board: each has sent representatives to every meeting. “I have felt that (Connell) didn't really take that much interest,” Lansford said. “I presume now that her interest has something to do with running for mayor.”

Environmentalists weigh in Connell gets no criticism from the hard-core anti-Playa Vista environmentalists — those who favor zero development on the property and total restoration of the Ballona Wetlands. To them, Connell is as much ahero as Villaraigosa.

“This is the biggest thing to happen since DreamWorks pulled out of the project,” Sabrina Venskus, president of the Ballona Wetlands Land Trust,said of Connell's refusal to extend the option deadline. “This is huge.”

The next challenge could be the biggest one: convincing Connell to go one step further and make sure the 73 acres is turned into a park.

Environmentalists — or, for that matter, Connell herself — will need to find a Sacramento lawmaker willing to introduce legislation formalizing the park proposal. Playa Vista's property falls under the purview of Bowen and Assemblyman George Nakano, D-Torrance, making them the most likely candidates.

Bowen said she is considering a bill to create a Playa Vista park. However, she said, introducing a bill to revive last year's attempted land swap deal between Playa Capital and the state is equally possible. That leaves Connell.

“I think a park is one of the options we need to explore,” she said. “I've been supportive of park lands in the past.”

Publish Date:Sunday January 07 , 2001

Daily Breeze Newspaper

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