There are not many opportunities for new homes in Old Town Seal Beach—and even fewer for a development of up to 43 detached single family homes. In fact, the much debated former power plant site, locally known as the DWP property, is about the only beach front choice. But, development on this nearly 11 acres has been held up because the property owners and the city could not agree on how to proceed. That might be changing.

At the Seal Beach City Council meeting on Monday, the property owners, Bay City Partners, LLC, announced they want to drop plans for a 150 room hotel in favor of developing about 43 detached single family homes on the land North of Central Way.

According to Edward Selich, Project Development Manager for the owners, Bay City now wants to use an alternative plan. “Last fall Bay City filed a second application for an alternative plan that would leave the DWP Specific Plan in place for the open space south of Central Way and change the zoning of the development area from a 150 room hotel to single family homes with a 25 foot height limit.”

The property involved is 10.69 acres of vacant land between First Street on the East, the San Gabriel River on the West, Marina Drive on the North, and the city beach on the South. It is the site of a former Los Angeles Department of Water and Power power plant which was demolished in the mid-1960’s. Bay City purchased the property from LADWP in 2003, and has been trying to develop it ever since.

The property has been vacant and unused all these years. Selich said “Bay City believes this new approach is responsive to overwhelming area resident and interested citizen desires and implements the 40-year goal of the City to preserve open space and have development in scale and character consistent with old town Seal Beach. It will allow the property owner and the city to move ahead and take a significant portion of the city and turn it from a vacant wasteland surrounded by an aesthetically unpleasant fence into beautiful open space with neighborhood friendly development.”

The city wants construction on only 30% of the land with the remainder being left to open public space. This 70/30 rule is a hot button for residents. In fact, Robert Goldberg, Old Town resident and respected frequent commentator at City Council meetings told www.OC180NEWS.com “If it’s not 70/30, it’s dead on arrival. That’s my personal opinion and that’s my take of the community.”

But how the numbers are figured, is not a simple question. In fact, according to Property Manager Selich, the maps in the Specific plan are not accurate and Bay City actually owns about 1.5 more acres than represented by the city maps. Plus, there are two other items, which in the minds of Bay City, but not in the mind of the city council, are related to the property development.

Bay City owns the public access road down to the beach front parking lot and also portions of the bike trail which runs along the river. The city has started eminent domain proceedings for the access road (see related story below). On Monday, the City council approved, over objections from Bay City, a plan to spend $2 million to improve both the bike path and the parking area.

Bay City is taking the city to court over the eminent domain proceedings. The city and Bay City are miles apart on how much they should be compensated for the access road property. But, if the city will approve the rest of Bay City’s plans, they will give the access road property to the city at no cost.

Selich said “In addition to being willing to donate the driveway and San Gabriel River Trail to the city at no cost Bay City will dedicate additional open space to the city as part of the residential development. All of this is predicated upon approval for the residential development.”

Why is Bay City willing to give away this land to the city?

If Bay City can develop 43 new lots in Old Town, it is worth a lot of money. The new development plans call for lots and homes similar to the existing properties in Old Town—with one important exception—they would be brand new.

According to local realtor Glenn Gaspar of First American Team Realty, the average selling price during the first quarter of 2010 for Old Town homes was $1.1 million, or about $447.93 per square foot. While this value is for finished construction, it gives an idea of the money represented by 43 lots on this land.

Selich told us “Our idea is not to re create Irvine here. We would like to sell as spec lots and custom homes to keep the eclectic atmosphere of Seal Beach.”

According to David Carmany, City Manager of Seal Beach, Bay City’s alternative plan, which now is what they want to use, does not provide enough detail to determine if the 70/30 rule would be met. “It doesn’t have any detail at all. Unless, and until, they make the required submittals, it’s a little hard to comment on a plan that hasn’t been submitted. They’ve submitted a zone change idea, but it doesn’t have with it any specific development proposal.”

In the mean time, the city will move forward with improving the bike path, including the part on Bay City’s land, the Eminent Domain trial is set for Oct 4, and Bay City plans to file a new site plan to accompany a residential zone change and tentative tract map to reduce zoning of the development area north of Central Way to residential.