The framework is in place for CenterCal’s Waterfront: Redondo Beach project to obtain its lease agreements with the City of Redondo Beach following a public hearing at Tuesday’s meeting of the Redondo Beach City Council.

The Agreement for the Lease of Property and Infrastructure Financing, or ALPIF, between the City and CenterCal sets conditions that must be satisfied for the City to execute lease and operation agreements with CenterCal. It outlines business terms, including term length, rent, development responsibilities and obligations for maintenance and repair of the property.

According to the agreement, the City is entering into a 99 year lease with the developer, earning at least $250,000 annually for all but two of the first 30 years, and then $1 million annually beyond that. That rent would increase up to 10 percent every five years, according to consumer price index adjustments.

“Basically, this gets things moving,” said Mayor Steve Aspel. “We’re not doing this for people my age — I’ll be 64 in a few weeks. This is for people our kids’ and grandkids’ age.”

CenterCal’s proposed project is a significant revisioning of the existing waterfront area west of Harbor Drive, bordered by Portofino Way to the north and Torrance Boulevard to the South.

The project plans to construct 523,939 square feet of development, 312,289 square feet of which would be net new development. Nineteen new buildings would be added, including a market hall inspired by San Francisco’s Ferry Building, a 700-seat movie theater, a 120-room hotel and a 45-foot-tall parking garage.

The project would also redesign Seaside Lagoon, removing the fencing that closes the facility nine months of the year and opening the park to the public year-round. The Lagoon’s redesign would help the city avoid further fines imposed by the County Water Quality Control Board and a future overhaul of the AES power plant. Since its inception in the 1960s, the Lagoon has taken advantage of the plant’s ocean water cooling system to fill the pool.

Though the City plans to benefit from increased tax revenues, as well as percentage and annual minimum rent from the developer, Redondo will also take advantage of infrastructure improvements funded by CenterCal.

Under the agreement, CenterCal will fund approximately $127 million in improvements to public infrastructure, including reconstruction of the southern Pier Parking structure, estimated at $49 million.

The City will take responsibility for $14 million in repairs to the municipal and sport fishing piers, and $6 million for construction of a new boat ramp.

As part of city staff’s presentation to Council, city advisors from the Kosmont Companies stated their belief that CenterCal’s tenant site plan offers the “right mix and ratio of tenants,” and that CenterCal appears in line to have adequate financing.

But Councilman Bill Brand argued that CenterCal’s plan is not consistent with harbor-area uses, and that its design is simply “too big.”

“The project is 20 percent retail and 35 percent dining — when I do the math, 35 percent is [equivalent to] 15 Kincaid’s between Portofino and Torrance [Boulevard],” Brand said. “I don’t understand how you came to the conclusion that 15 Kincaid’s is going to be successful.”

CenterCal CEO Fred Bruning countered, saying that the American consumer has come to expect variety.

“People eat out 5 to 6 times a week…regarding restaurants, the more choices [available], the more everyone’s sales go up because people know that’s where you go to eat out,” Bruning said. “We think we have a very strong mix of tenants that will be successful.”

Todd Loewenstein, a former school board member and current council candidate, expressed distaste for the City’s pursuit of brick and mortar retail, citing a recent Wall Street Journal article detailing the failings of shopping centers, and questioned the wisdom of signing a 99 year lease with CenterCal.

“Wayne Gretzky said that you skate to where the puck is going to be, not where it is; the city is skating to where the puck was yesterday,” Loewenstein said. “I beg you to consider this 99 year potential mistake; give it some thought and make the right decision.”

Bruning later responded that the WSJ article refers to the slow decline of traditional indoor malls.

“That article went on to say that growth is in lifestyle centers, where people have a chance to have a good time whether they’re shopping or not,” Bruning said. “That’s what we’re bringing to the Waterfront.”

In his questioning, Brand leaned heavily into Bruning regarding $30,000 in donations made by CenterCal toward the Redondo Beach Firefighters Association PAC. He then connected that donation to subsequent in-kind donations from the PAC toward Aspel’s campaign.

Bruning responded that his company often gives to local organizations, and recently donated to the Redondo Beach Police Officers Association. He also denied the implication that CenterCal coordinated where the funds should go.

“Rescue Our Waterfront has a PAC, and they’d like to have $30,000; would you consider giving them $30,000?” Brand asked, referring to an organization opposing the project. ROW also backs upcoming Measure C, which purports to block the project through rezoning.

“If the ROW PAC was more truthful, we might consider making a donation to them,” Bruning said, recalling accusations that CenterCal is looking to install large chain restaurants and department stores in the project.

Brand also cited the size of other shopping centers within the area, noting that the Manhattan Village Mall , at 575,000 square feet, and Plaza El Segundo, at 400,000 square feet, are of comparable sizes to the CenterCal project.

Aspel cited a video from 2008, where Brand — as yet unelected to Council — advocated for a 324,000 net new square foot project.

Brand then went on the attack. “Don’t get distracted…this is not going to be successful,” he said. “This is a big project; too big for our harbor.”

“Yes, let’s not let the truth distract us,” Aspel replied.

The ALPIF was passed in a 3-2 vote, with Councilmembers Brand and Steve Sammarco against. The project will now move on to the California Coastal Commission for certification.