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Commission Will Allow School, Park to Go Forward

Posted on: Thursday, 14 July 2005, 18:00 CDT

The State Lands Commission has dropped its opposition to a San Pedro welcome park and the proposed Port of Los Angeles Charter High School after reaching a compromise with city and school leaders imposing financial conditions that allow the projects to move forward.

Under the terms of the agreement, signed in late June and approved by the Harbor Commission on Wednesday, the port can pursue its purchase of three parcels for the park and continue upgrades to a downtown San Pedro building that will house the high school. In exchange, the port also agreed to a complicated land-swap deal with the city and lease agreement with the charter school's foundation.

"We're very pleased that the State Lands Commission has worked with us, made a commendable effort to understand why we value these two initiatives and has allowed the port to enter into (an agreement) that establishes a framework for how we can move these projects forward within the guidelines of the Tidelands Trust," Harbor Commissioner Elwood Lui said in a statement.

State lands officials have long expressed concerned over whether Tidelands Trust money, which can't be spent on nonharbor projects, was being misused on the park and school. A May 6 letter to the Port of Los Angeles from Paul Thayer, executive officer of the State Lands Commission, which regulates the approximately 4 million acres of protected lands included in the Tidelands Trust, was seen as a threat of a lawsuit.

In the letter, Thayer demanded that the port "recover the trust funds illegally spent on welcome park property acquisition by selling the property."

In March, the Harbor Commission approved an expenditure of $337,558 for a vacant home at 415 N. Gaffey St. The commission voted in January to acquire all three properties.

City attorneys and members of the charter school's foundation began talks with the Lands Commission on a compromise following the May 6 letter. On Wednesday, Thayer said the agreement essentially addresses concerns the Lands Commission had about the projects.

"It's a way for the community to get the park they wanted for some time and allows the port to keep in the business of public trust uses only," Thayer said. "With respect to the charter school, we have said a temporary nontrust use could go in there."

To allow the welcome park to be built at the terminus of the Harbor (110) Freeway, the port has agreed to attempt to exchange the entire site with similar property owned by the city that is closer to the port's boundaries.

The exchange must take place "within the next two years," according to a port statement. If a land-swap deal can't be reached by June 2007, the port agrees to sell off the welcome park properties for no less than the original purchase price.

Councilwoman Janice Hahn, who has said the welcome park is a top priority, said she was "cautiously optimistic" about the agreement but has concerns about the economics of the deal. Hahn has said funding for the park should come from $5 million of the $23.5 million set aside in the China Shipping settlement for projects that reduce port-caused blight.

"I know one of the (proposals) the (State Lands) Commission has agreed to is the idea of a land swap," Hahn said. "I think there are a lot of problems with that. They're talking about swapping city property."

Under the deal, the Lands Commission also moved forward the charter high school, which will offer state-mandated courses as well as a maritime curriculum. The school is now on track to open in the fall in its initial location, one building at the former Evergreen Marine Corp. offices.

The port purchased the three-building complex in 2002 for $5.6 million for the school, a new Port Police headquarters and a maritime library. In 2003, the Harbor Commission approved $3.3 million in renovation funds with an additional $1 million added in March.

Thayer said any port funds spent to convert the school would violate state law.

Thayer maintains that any improvements required to meet state building standards for learning institutions such as widening corridors between classrooms or using school elevators would need to be paid for by the school's foundation.

The deal also includes a rental agreement that allows the port to lease the property to the school at market rate for five years. The school can defer a portion of rent from the first two years to the final two years.

After five years, the school would need to buy the building or relocate, Thayer said.

In another provision, port has agreed not to approve any community projects for four months, including the three that have been approved for funding out of the China Shipping settlement.

Source: Daily Breeze

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