Redondo Beach faces lawsuits on all sides following Measure C passage

The proposed CenterCal Waterfront Redondo marketplace.
Rescue Our Waterfront leader Martin Holmes addresses the crowd at a rally on March 22. “If [CenterCal doesn’t] work with us, we won’t work with them,” Holmes said. Photo

Following the March 7 passage of Measure C, the City of Redondo Beach is being sued on all sides over the fate of the Redondo Beach waterfront and CenterCal’s proposed $400 million, 523,939 square foot revitalization project.

On Wednesday, March 22, at Samba Brazilian Steakhouse, Rescue Our Waterfront leaders Martin Holmes and Wayne Craig joined with the South Bay Parkland Conservancy and Building a Better Redondo to confirm that they will be suing CenterCal Properties, the City of Redondo Beach’s chosen partner for revitalizing the aging King Harbor waterfront. The basis for the suit comes from an email, signed by CenterCal CEO Fred Bruning, sent to supporters on March 8, one day after Measure C was approved by 57.1 percent of voters.

“We will continue to work toward approval from the California Coastal Commission,” Bruning then wrote. “We will continue to do everything we can to turn The Waterfront into a reality, because you deserve it.”

“Do we deserve it? Do you deserve to have your vote ignored?” Holmes asked supporters at ROW’s event. “Our answer is no. As long as they continue to move forward, we will continue to fight.”

The lawsuit seeks to invalidate an October 18 decision by the Redondo Beach City Council to deny an appeal made by BBR’s Jim Light, challenging Harbor Commission approval of the CenterCal project’s Environmental Impact Report.

Measure C was described by BBR’s Jim Light as a “tightening” of existing harbor zoning, though it was generally accepted as an attempt to stop CenterCal’s project. The 400,000 square foot net new development cap still exists, though new regulations prohibit development of new or expanded parking structures; set requirements for coastal-dependent, water-oriented recreational uses; require the construction of a replacement swimming facility if Seaside Lagoon needs to be replaced; and require preservation of ocean views along Harbor Drive, among others. Measure C also requires development of a boat ramp near the mouth of King Harbor at, effectively, the location that Samba currently occupies.

“The goal is to stop the project as-is. Measure C intends to do that,” Holmes said. Should CenterCal come up with a version of the project that is compliant with Measure C’s zoning, Holmes feels that the community represented by ROW would be able to work with the developer.

“But if they do not work with us, we won’t work with them,” Holmes said.

A render of the proposed CenterCal Waterfront Redondo marketplace. The developer is suing Redondo Beach over application of Measure C, which was approved by voters on March 7. Image courtesy CenterCal.

A filing on Tuesday, March 28, with the Los Angeles County Superior Court shows that CenterCal and Rescue Our Waterfront may still be leagues apart.

In its filing, CenterCal argues that Measure C is “illegal, unconstitutional and invalid” under state law, and is petitioning for the Court to prohibit the City of Redondo Beach from enforcing “any and all of the provisions of Measure C.”

The case cites legal precedent stating that public initiatives may not dictate a City’s administrative actions — effectively, that voters cannot tell the City to build a two-lane boat ramp, or to expand the acreage of Seaside Lagoon or build a new facility. It further argues that Measure C’s passage conflicts with Redondo’s City Charter, General Plan, and is unconstitutionally vague.

CenterCal also argues that its constitutional rights to property are being infringed upon. CenterCal’s rights to the land, they argue, were granted on June 23 when their application to the City (including a Vesting Tentative Tract map) was completed, and affirmed by the City Council on Oct. 18.

Redondo Beach City Attorney Michael Webb confirmed that the City had received the lawsuit, but declined comment as the litigation is pending.

City officials also confirmed that CenterCal has served Redondo Beach with a notice of default and claim, alleging that application of Measure C would violate the terms of an Agreement for Lease of Property and Infrastructure Financing between the City and CenterCal. The developer is seeking $14 million in damages to recoup the money spent on the Waterfront project. The notice of default is a necessary precursor to a lawsuit.

“If the City and CenterCal had just listened to the people from the beginning, we wouldn’t be in all this mess,” Light said. “Lawsuits, appeals to the Coastal Commission, Measure C, it could’ve all been avoided had they just listened from the very start.”

Light, who has sued Redondo Beach over harbor area zoning in the past, believes “better leadership from the City” would have led to compromise.

“If the new council wants to be representative of its people, they should honor the will of the people and stand up for Measure C, rescind their approval and withdraw their application to the Coastal Commission,” Light said.

“I saw this coming months ago. As far as I’m concerned, CenterCal was entitled,” Mayor Steve Aspel said, believing the company isn’t being vindictive in their suit. “They did the due diligence, they complied with Measure G and it was approved. If anyone thinks a company is going to just walk away after investing $14 million, they’re not in the real world.”

Councilman and Mayor-elect Bill Brand declined to comment on the lawsuit itself, having yet to read it, though he noted that the City is now being sued on both sides.

“That’s what happens when you push a project that the public doesn’t want, and the public pushes back,” Brand said. “I can say that CenterCal has never been willing to compromise; the public didn’t want this for a long time, and now they’re suing.”

In a statement, CenterCal CEO Fred Bruning challenged Brand’s assertion.

“We have been working with the City and the community for more than five years on our shared goal of making the waterfront more welcoming and accessible, and we don’t intend to stop now,” Bruning said.

“Unfortunately, if Measure C is implemented it would make this revitalization or any other waterfront restoration impossible while costing the City hundreds of millions of dollars in lost revenues for vital infrastructure upgrades. We are confident that this Measure will not apply to our project,” Bruning said.

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