CITY OF LONG BEACH

R-26
DEPARTMENT OF DEVELOPMENT SERVICES
333West Ocean Blvd., 4th Floor Long Beach, CA 90802 (562) 570-5237 Fax: (562) 570-6205
J uly 1, 2014
HONORABLE MAYORAND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:
Receive information and provide direction to staff relative to a proposed project
in PD-1 Southeast Area Development and Improvement Plan (SEADIP) that
requires an amendment to SEADIP andthe Local Coastal Program; and,'
Optionally, adopt a Resolution allowing for the initiation of a Consolidated
Coastal Development Permit process pursuantto Section 30601.3 of the Public
Resources Code (Coastal Act) in connection with the Los Cerritos
wetlands/Synergy Oil Field located at 6433 E. Second Street and the "Pumpkin
Patch" locatedat 6701 East Pacific Coast Highway. (District 3)
DISCUSSION
Preservation and restoration of the Los Cerritos wetlands in the southeast part of Long
Beach has been an important goal of the City. This commitment was intended to be
pursued through an update of the underlying zoning and the Local Coastal Program
(LCP). The City's commitment to update the underlying zoning was most recently
demonstrated on J une 18, 2013, by the City Council's acceptance of a $929,000
planning grant fromthe California Department of Conservation. Concurrently, the City
Council approved a nearly$1.4million planningcontract withPlaceWorks (formerlyThe
Planning Center/DC&E) for a comprehensive update to the Southeast Area
Development and Improvement Plan (SEADIP) and an amendment to the LCP. The
update to SEADIP is well underway, with a community advisory committee formed,
several outreach efforts already completed, and an analysis of opportunities and
constraints for the entire 1,500-acre area nearly complete. The next step in this
planning process is the preparation of conceptual land use alternatives for the entire
area within SEADIP, taking into consideration areas already built out, areas for potential
newdevelopment, and areas for natural habitat and conservation, most notablythe Los
Cerritos wetlands. This three-year effort is expected to culminate in a comprehensive
revision to SEADIP and an amendment to the LCP, and is expected to balance
development densitywithwetlands restorationand natural habitat preservation.
When the City Council authorized the update of SEADIP, the City Council also directed
staff to return for further direction if a development proposal was submitted that would
require an amendment to the existing zoning regulations while staff was undertakingthe
comprehensive update. This directive was preferred over a development moratorium,
which may have had unintended consequences on smaller development projects or
tenant improvements already inthe development process.
HONORABLE MAYOR AND CITY COUNCIL
J uly 1, 2014
Page 2 of 4
Los Cerritos Wetlands, LLC (LCW), is the owner of the oil field generally located at 6433
East Second Street (formerly known as the "Bixby oil field," now known as the "Synergy
oil field") (Exhibit A - Site Map). The 156-acre site includes a majority of the Los
Cerritos wetlands, which extend to both Sides of Second Street including the 29.38-acre
City-owned wetlands. The Synergy oil field is zoned under SEADIP Subareas 11(a),
11(b) and 33 (Exhibit B - SEADIP map). The allowable uses within these subareas
include residential (subareas 11(a) and 11(b)) and wetlands and a Least Tern nesting
site (subarea 33).
Lyon Housing XLV, LLC (Lyon), is the owner of the property at 6701 East Pacific Coast
Highway, commonly referred to as the "Pumpkin Patch." The 7.08-acre site is located at
the northeast corner of Pacific Coast Highway and Studebaker Road, and has a
SEADIP zoning designation of Subarea 25. The allowable uses within this subarea
include business parks (office commercial and light industrial), restaurants and hotels.
On J une 16, 2014, LCW and Lyon (Applicants) jointly submitted a proposal (Project)
that includes the relocation of the majority of the operations on the Synergy oil field site
to the Pumpkin Patch site, removing the majority of existing oil operations infrastructure
(e.g., pipes and tanks) on the Synergy oil field, conducting required remediation,
creating a wetlands mitigation bank for eventual restoration of approximately 136 acres
on the Synergy oil field, and constructing public access improvements and trails through
the restored wetlands (Exhibit C - Conceptual Site Plans). The Applicants' stated goal
is to restore and open approximately 90 percent of the Los Cerritos wetlands on the
Synergy oil field to public access, with the restoration funds being provided through the
implementation of a wetlands mitigation bank. The oil operations on the City-owned
wetlands south of Second Street would also be considered for consolidation into the
Pumpkin Patch; however, as the City is the owner of the property, it would not be
included as part of the Applicant's proposed wetlands mitigation bank. The Applicants
expect initial efforts to consolidate the oil operations on the Pumpkin Patch to occur by
2016. Relocation of the majority of the oil operations and infrastructure would be
phased over several years. Likewise, restoration of the Los Cerritos wetlands would be
phased over several years, with the majority of the restoration occurring within 18
months of full approval of the project. The balance of wetland restoration would occur
once the oil storage facilities and equipment are removed.
Upon review of the proposed Project, staff has determined that an amendment to
SEADIP would be required to allow for the proposed land use (oil operations) in
Subarea 25. In addition, SEADIP requires the developer of Subarea 25 to participate in
the cost of constructing the extension of Studebaker Road between Second Street and
Pacific Coast Highway. This is a significant issue worthy of policy discussion, as the
roadway extension would likely have to be constructed through portions of an existing
degraded wetlands habitat. The comprehensive SEADIP update is expected to address
the viability of this requirement given the potential environmental impacts. If the City is
not interested in further pursuing the extension of Studebaker Road, an amendment to
SEADIP would be required, either through the comprehensive SEADIP update or in
conjunction with this Project. Additionally, an amendment to SEADIP would be required
to rezone Subareas 11(a) and 11(b) to open space/wetlands purposes in order to
assure that future restoration and preservation efforts for the Los Cerritos wetlands
HONORABLE MAYOR AND CITY COUNCIL
J uly 1, 2014
Page 3 of 4
were not compromised by short-term development opportunities currently allowed under
the zoning.
The Project's two sites lie within different coastal jurisdictions. The Synergy oil field is
located within the California Coastal Commission's (CCC) area of original jurisdiction
and is not a part of the City's certified LCP. The Pumpkin Patch is part of the certified
LCP and is located within the City's jurisdiction for the issuance of a local coastal
development permit, which is then appealable to the Coastal Commission. As such,
both CCC and the City would be required to issue separate coastal development
permits for the Project, creating potential confusion, inconsistent conditions of approval
or mitigation measures, and a lengthy timeline due to joint application processes.
Section 30601.3 of the Public Resources Code (Coastal Act) authorizes the CCC to
process a Consolidated Coastal Development Permit application (CCDP) when
requested by a local jurisdiction for projects that would otherwise require coastal
development permits from both entities. Because of the inter-relationship of the
proposed activities on the two sites under different jurisdictions, staff and the Applicants
believe that it would be most efficient for the Project to be viewed as one integrated
project and permitted under a unified CCDP process.
Before an application for a CCDP can be submitted to the CCC, the local jurisdiction (in
this case the City Council) must provide its consent. Staff recommends that the City
Council adopt a Resolution supporting the CCDP process, indicating its approval to
delegate its coastal development permitting authority to the CCC. The Resolution
further provides direction to City staff to work with CCC staff to identify any other City
actions necessary to undertake and complete the CCDP process.
Consenting to the CCDP process does not relinquish or reduce the City's role in taking
action on other discretionary items related to the application. The Project will require
environmental review under the California Environmental Quality Act, as well as an
amendment to SEADIP to modify the allowable land uses within Subareas 11(a), 11(b),
and 25. The City would prepare an amendment to the Local Coastal Program for both
sites, including incorporating the Synergy oil field into the certified LCP. To the extent
that an additional parcel within SEADIP and within the City's certified LCP is made part
of the Project, that parcel would also be included in the City's proposed delegation of
permitting authority to the Coastal Commission.
Chapter 12 of the Long Beach Municipal Code limits oil drilling within the City only to
designated areas mapped as Oil Operating Areas. The City would consider
modifications to the boundaries of the Oil Operating Area to encompass all of the
Pumpkin Patch site. Lastly, the project would require Site Plan Review for new
construction of any buildings, site improvements, landscaping or hardscape. All of
these local actions would need to be completed and authorized prior to the CCC issuing
the CDCP, allowing staff and the Applicants to work closely with the CCC as it
concurrently handles its own local process. This significantly reduces the timeframe the
Applicants would be subject to for processing the Project application.
Given the unique circumstances presented by this opportunity, staff is seeking direction
from the City Council with respect to processing this Project independent from the
comprehensive SEADIP process that is currently underway. Since this Project includes
HONORABLE MAYOR AND CITY COUNCIL
J uly 1, 2014
Page4 of 4
a significant portion of SEADIP that is already under review, and if the City Council
allows this Project to proceed independently, staff would require the Applicants to
conduct the same level of community engagement currently underway for the SEADIP
update. Inaddition to the fiscal impacts discussed below, taking the subject sites out of
the comprehensive SEADIP process may also result in a significantly shortened
processingtime for the SEADIP update.
This matter was reviewed by Assistant City Attorney Michael Mais on J une 19, 2014,
and by Budget Management Officer Victoria Bell on J une 18, 2014.
TIMING CONSIDERATIONS
City Council action on this matter is time sensitive as there is a pending application for
this proposal.
FISCAL IMPACT
The fiscal impact of taking action is not yet known. The California Department of
Conservation awarded the City a $929,000 grant for the comprehensive SEADIP
update, and the City authorized a $1,376,638 contract with PlaceWorks (formerly The
PlanningCenter/DC&E) on J une 18,2013. Bothagreements would needto be modified
to reflect a reduced scope of work, and the City may incur costs for modifying the
contracts. In addition, the State may require that the City reimburse the State for any
grant funds already expended by the City on the comprehensive SEADIP update.
Through April 2014, the City has incurred approximately $200,000 in consultant costs.
While no General Fund revenues have been used to support the comprehensive
planning efforts, any contract modification costs or grant reimbursements may need to
come from the General Fund. There is no local job impact associated with the
recommendation.
SUGGESTEDACTION:
Approve recommendation.
Respectfullysubmitted,
J . BODEK, AICP
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
Attachments: City Council Resolution
Exhibit A - Site Map
Exhibit B - SEADIP map
Exhibit C - Conceptual site plans
AJ B
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RESOLUTION NO.
A RESOLUTIO~I OF THE C ITY C OUNC IL OF THE
C ITY OF LONG BEAC H C ONSENTING TO A
C ONSOLIDATED C OASTAL DEVELOPMENT PERMIT
PROC ESS WITH THE C ALIFORNIA C OASTAL
C OMMISSION PURSUANT TO PUBLIC RESOURC ES
C ODE SEC TION 30601.3, IN C ONNEC TION WITH THE
LOS C ERRITOS WETLANDS/SYNERGY OIL FIELD
LOC ATED AT 6433 E. SEC OND STREET AND THE
"PUMPKIN PATC H" LOC ATED AT 6701 EAST PAC IFIC
C OAST HIGHWAY, BOTH OF WHIC H DEVELOPMENT
SITES ARE LOC ATED WITHIN THE SOUTHEAST AREA
DEVELOPMENT AND IMPROVEMENT PLAN (SEADIP) IN
THE C ITY OF LONG BEAC H
WHEREAS, the C o astal Act was amended by Senate Bill (S8)1843
effective J anuary 1, 2007, which allo ws fo r a co nso lidated permitting pro cess fo r pro jects
fo r which the C o astal Develo pment Permit (C DP) autho rity is shared by a lo cal
go vernment and the State C o astal C o mmissio n; and
WHEREAS, SB 1843 (no w co dified as Sectio n 30601.3 o f the Public
Reso urces C o de), requires that the applicant, the lo cal go vernment, and the Executive
Directo r o f the C o astal C o mmissio n agree to the co nso lidatio n; and
WHEREAS, co nso lidatio n may o nly pro ceed where public participatio n is
no t substantially impaired by that review co nso lidatio n; and
WHEREAS, the C ity C o uncil and Planning staff find that a co nso lidated
co astal develo pment permit applicatio n and pro cess is beneficial to the public by
reducing the to tal time and co st that it takes to go thro ugh the entire co astal permitting
1
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9 NOW, THEREFORE, the City Council of the City of Long Beach resolves as
10 follows:
23 Application mentioned and listed in the recitals immediately above, as well as the City
24 Council Staff Report dated J uly 1, 2014, are incorporated herein by this reference as if
25 fully set forth herein.
27 hereby given is limited to approval and consent to a legal procedure allowing the
28 California Coastal Commission, to process the above referenced Application where
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1 process; and
2 WHEREAS, the City Council and Planning staff find that a consolidated
3 coastal development permit application and process would benefit the public by reducing
4 and avoiding unnecessary and duplicative processing efforts; and
5 WHEREAS, this matter was considered by the City Council at a duly
6 aqendized public meeting conducted by the City Council on J uly 1,2014, to receive
7 public comment on the proposed coastal development permit review consolidation
8 authorization.
Section 1. The City Council and the City of Long Beach hereby authorize
the Coastal Commission to process a consolidated Coastal Development Permit for the
Los Cerritos Wetlands/Synergy Oil Field proposed project, as said project is more fully
described in that certain application jointly submitted to the City of Long Beach on J une
16,2014, by Los Cerritos Wetlands, LLC and Lyon Housing XLV, a copy of which
application and supporting documentation are hereby incorporated herein by this
reference as though set forth in full, word for word.
Section 2. That the Director of Development Services and the City
Manager and/or their respective designees are hereby delegated to act on behalf of the
City Council with respect to the proposed consolidated permit process in accordance with
the provisions of Public Resources Code Section 30601.3.
Section 3. That all documents, including but not limited to, the
Section 4. The City Council further determines that approval and consent
MJ M:abc A14- 01035 ( 6/19/14)
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permitting would otherwise require both the City of Long Beach and the Coastal
Commission to consider Coastal Development Permit (COP) applications. This is not
intended, and shall not be construed, deemed, or interpreted, to be an approval of any
required City entitlements or permits. Any such entitlement and permit determinations
shall remain in the discretion of the City. Consideration of such City entitlements shall
include, without limitation, all appropriate and required CEQA review by City.
Section 5. Public participation will not be substantially impaired by the
proposed consolidated review because: 1) the California Coastal Commission will hold a
duly noticed public hearing on the COP application; and 2) Coastal Commission will
provide public notification of the public hearing when the COP for the proposed project
will be considered.
Section 6. Pursuant to Public Resources Code Section 30601.3, the City
Council hereby consents to the processing of a consolidated COP for the proposed
project as is more fully described in the City Council Staff Report and the aforementioned
permit Application submitted to the City on or about J une 16, 2014.
Section 7. This resolution shall take effect immediately upon its adoption
by the City Council, and the City Clerk shall certify the vote adopting this resolution.
III
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I hereby certify that the foregoing resolution was adopted by the City 1
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2 Council of the City of Long Beach at its meeting of , 2014, by the
3 following vote:
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4
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
City Clerk
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