Comments by Steven Hyman

Local Government Committee passes AB1991—next stop: Appropriations Committee

I unfortunately have seen too many projects endlessly appealed to the Coastal Commission which perhaps explains my views.  I resent that things get dragged out for years, if not decades.

It would be great if the loser had to pay the owner’s expenses like attorney fees and interest.  That would cut down on the frivolous appeals that go on here.

The only positive thing I can say about the judgment and settlement is that this is the beginning of a more moderate approach to development.  Maybe the staggering amount of money being paid will be a wake up call that endless litigation has its painful limits.

Property owners have rights too.  And hopefully, they will have more rights soon.

I’m sure that’s not what you want to hear but there are many people besides me who feel this way also.

I have said for years that this place has been run by the loud minority.  Its time for the silent majority to take our town back. And I think you are starting to see that.

Local Government Committee passes AB1991—next stop: Appropriations Committee

Its a sad commentary about doing business on the Coast that people feel the need to get permit consultants and attorneys to try and get things accomplished in a reasonable time period.  The permit process for both the County and City have gotten out of hand and the process has become abusive, expensive and takes too long.

Its critical for large projects to hire these consultants.  Unfortunately, the little person who just wants to build their dream house doesn’t have the resources to hire these people and is abused by the system.  This is what I call permit hell.

Personally, this infill parcel looks out of place with homes surrounding it, HWY 1, McDonalds and a sewer plant.  This isn’t like someone trying to put 500 condos at Ano Nuevo!

And as far as the size of the judgment and settlement goes, that’s the price to be paid when peoples’ property rights are trampled.

It would be interesting if someone ever did a full accounting on what Beachwood really cost us.  Besides the $18 million settlement, there’s the $5 million on HMB’s legal fees.  The other question is how much of other City services, fees, experts and employee costs were spent.  That’s got to be a few million more.  So when all is said and done, this sacred piece of wetlands probably cost the community $25-30 million, which grossly exceeds the market value.  What a incredible waste of our money and time.  Its very sad and will hopefully we will never see this repeated.

Opinion: Review’s coverage of AB 1991 is biased and incomplete

Snappy headlines and lead in sentences are designed to draw readers in to an article.

I do this a lot writing on a relatively dry subject matter.  In fact, I spend a lot of time thinking about this and the closing line.  I’m always gratified when my lines are used as written.

I think the Milk and Wildlife people were mentioned because it shows the efforts taken to kill the bill by people who have nothing to do with it or don’t live anywhere near HMB.  These comments do more harm than good because everybody knows they were put up to it.

At least the City got a bunch of locals to speak, who do care how this plays out. Even if some were realtors and members of SAMCAR.

Local Government Committee passes AB1991—next stop: Appropriations Committee

Really don’t know enough about the City’s expenditure on Police to voice an opinion other than anything that represents such a large percent of the budget showed be carefully examined.  There are also other areas that can stand some cutbacks.  Hopefully a less litigious City Council will allow us to trim that budget item significantly without causing any harm except to the outside lawyers.

And lets not forget that the City has millions of dollars of real estate that can be sold.  Cities do this all the time.  We sold a HWY 1 lot recently and the Harbor District is selling the Burnham Strip. Eventually the City will be able to sell Beachwood to another developer and recoup a small portion of their purchase price. These are examples of non-performing assets that will be better used by others and raise cash too.

Bankruptcy is an irresponsible way to settle ones obligations.  And its not needed either.  There’s plenty of money here.

But let’s hope AB 1991 passes so we don’t have to face these bleak alternatives.  Maybe Lanny Davis can have his friend Bill come out here and twist some more arms in Sacramento.  I understand he’s going to have more free time soon.

Local Government Committee passes AB1991—next stop: Appropriations Committee

I bet the total cost will be closer to $30 million when you add in some other costs.  Who knows how much of the City’s time and expenses with staff, experts has piled up over the past 10+ years.  And we are only talking about Beachwood.  Go add to that monies spent on N Wavecrest and Pacific Ridge and you are really talking about some serious money.

The next few years are going to be so interesting watching this play out.  Ken, you Kevin and I will become such good buddies as this drama unfolds.  We actually agree on a few things already even though we’re approaching it from different sides.

As I said in the Review, anybody who thought living in a small town was boring doesn’t know HMB.

Local Government Committee passes AB1991—next stop: Appropriations Committee

If the bill fails, we’ll see where the City finds the $18 million.  That’s the $18 million question that hasn’t been answered yet.

Local Government Committee passes AB1991—next stop: Appropriations Committee

The City of HMB is in a tough spot with poor options.  One is bad and the other is worse.  But that’s the price you pay when you litigate things to death.  And the City lost. 

Despite the popular opinion here, settling was the smart choice. And now the Judge’s decision is settled law.  Hopefully now other cities will learn from our mistakes and tread more carefully or they too can stare down the barrel of choking judgments.

It will be interesting to see how this plays out with all the lobbying efforts from both sides. If this bill fails, HMB is going to have to do some serious belt tightening including cutting legal fees and selling assets before they come to the voters for money.

I also can’t imagine all the vacant land owners are going to agree to a moratorium so this infill lot can be built.  That would end up being a class action lawsuit that would truly be the end of HMB.

As I previously said, more money so far has been wasted on attorney fees than the land is worth. And if this bill doesn’t pass, we will have the privilege to pay $18 million for it.

Local Government Committee passes AB1991—next stop: Appropriations Committee

I have observed over the years how well organized these groups are in championing their positions.  Whether or not they have tons of money, they do seem to have the ears of many legislators.

Maybe what we are seeing here with this bill is that the proponents are well organized too.  And who knows, perhaps Mr. Davis can even persuade his former boss to come out here to save HMB.  That would be very cool to see Bill out here on the stump.

And Kevin’s wish is starting to come true because our commissions are down as we are selling many of the distressed homes in the lower price points.  These homes are going now for less than people paid 1-2 years ago.

But in all seriousness, its so sad to see massive amounts of money and time being wasted on this infill parcel. The attorney fees alone already have exceeded the value of the land.

Local Government Committee passes AB1991—next stop: Appropriations Committee

I do feel that the opposition is well funded, well organized and very savvy.  Its good to see that City was able to hire a group that will make this somewhat even.

Of course Orick has a strategy.  Otherwise they wouldn’t have been hired.  Its true that in most of these situations the lawyers are always the ones who make out, win or loose.  Wish I could work that way.

Local Government Committee passes AB1991—next stop: Appropriations Committee

Its good to see that the City has a very professional law firm with good PR expertise helping them get out of this unfortunate situation.

Looks like the first round was won by the citizens of HMB.  But its too early to start popping the champagne cork yet because the opposition is so well funded and organized.

To those who think Keenan is making lots of money, I’m sure there are easier ways.  This like so many other projects here are 10-20 year battles with millions spent on lawyers and endless studies.  Should this project get built, it will take years to complete and many more millions spent in the process.  Quite the contrary, trying to do business in HMB is a hard way to make a buck.

And should this bill fail to pass, paying $18 million, while a staggering amount of money, is better than paying out $50 million.  The appeal was not a certainty as Judge Walker’s decision shows.

On to round 2.

HMB to Sacramento: If you don’t support AB1991, we’ll kill this dog

Jim,

You first and foremost need to have this conversation with your Realtor.

But I don’t think anyone knows how this will play out.  Will AB1991 pass?  If not, how will HMB pay for the debt?  Sell land, bond issue, raise fees, cut budget are all options should Plan A not fly.

HMB will owe a lot less than $18 million if AB1991 fails

I agree with you in that something should be done with Beachwood.  The big question is what and by whom.

Assuming that AB 1991 is defeated then HMB needs to come up with $18 million in cash.  Beachwood might be an appealing source of cash to pay down the debt but you first have to settle the debt before you can sell it off.  People kind of frown upon selling something they don’t own yet.

The City would maximize their revenue if they played local developer.  But that takes experience and money to develop the infra-structure.  And I’m sure all the environmental reports take time and money too.  As well as the permit nightmare that the new owner is going to face.

So while in theory, it seems like a great idea. The reality is that it will take millions of dollars to develop and years more of time.  And whoever buys this is assuming the worst case scenario in terms of development to see if it pencils out.  If the new owner can squeeze out a few more lots, that the gravy and his just compensation for taking on this risky project.

HMB to Sacramento: If you don’t support AB1991, we’ll kill this dog

Some seem disappointed that they couldn’t bury the City with a $50 million judgment so now they want to take the irresponsible tact of ducking their obligation by hiding in bankruptcy. That’s a poor option.

Assuming that the bill doesn’t pass, the City needs to liquidate some of their real estate holdings to satisfy the judgment.  They probably own enough to take care of all if not most of the $18 million.

Without the City coming up with a lot of the money, the public isn’t going to bail them out. The City needs to feel the pain from their past actions. There isn’t a prayer that the a bond would pass.  Otherwise we will keep wasting our money on silly lawsuits and have more judgments.

The one thing we agree on is that the spending here is out of control.  The least painful of all the cuts is to lawyers, except to them.  But even if you took a meat cleaver to the budget, you won’t find $18 million.  So the land has got to go.

Of course, if you really want to cut expenses, dissolve the City and let the county run this place like they do the rest of the coast.  They couldn’t do a worse job and they have deeper pockets. And then we aren’t wasting money by duplicating expenses on things like planning and building and staff.  And then there will be no need for the City Hall building so that can be sold for hard cash to settle part of our debt too.

HMB to Sacramento: If you don’t support AB1991, we’ll kill this dog

I think paying $18 million is better than $50 million.  0 is best but I think the City had an uphill battle in court.

I will also tell you that if the financing has to be approved by the public, the chances of that happening are worse the AB 1991.

I vote for the City selling off some of their real estate holdings to settle their obligations.  I’ve been saying that since day one.  They need to contribute significantly to solving the problem they created. Otherwise, they’ll never learn from their mistakes and we’ll keep being asked to bail them out.

And I’d be willing to give them a huge discount on my commission should they list their properties with me.  You see, not all pro-grow people are evil and greedy.

HMB to Sacramento: If you don’t support AB1991, we’ll kill this dog

Ken,

I think this attitude is dangerous, if not scary.  It is the height of irresponsibility to risk financial ruin on a gamble.  The potential of losing is too high.  Settling this was the logical thing to do.

Leonard,

I can’t look at Beachwood and see anything special. Its not part of the ecosystem that is going to save the planet.  Its near a sewer plant, homes, McDonalds.

As to what is special to me are the coastal bluffs, the mountains.  It wouldn’t bother me if all the land on both sides of HWY 1 from Ocean Colony to Montara were developed.  And since we can only build around 100 homes a year, that’s decades till this place is built out.  There are a bunch of PUD’s in HMB that are going to be tough to develop.

There’s quite a lot of open space already here.  And more can be gotten if you want to write a check.  Unfortunately, what I see here is that people want it for free.  The Burnham Strip is a perfect example of that.

Anyway, its apparent to me that many of the posters here have different views than me.  And that’s OK.

And the good news is that the attitude here is changing again.  The shocking judgment has woken up the silent majority here.  What has happened in the past won’t be repeated, hopefully.  If for no other reason than the City won’t have the cash to litigate thigs for decades.

HMB to Sacramento: If you don’t support AB1991, we’ll kill this dog

Mike

Lets say HMB went forward with the appeal. Either the decision would have been overturned, reduced or upheld.  The settlement reduced the judgment by almost 60%.  That’s not too bad other than its still a staggering amount of money to find.

It also put some sort of closure on this.  A 2-3 year appeal could have made it hard for homeowners to sell their homes because some prospective buyers may have been afraid to locate here with such a huge judgment undecided.

Leonard

I’ve been blasted for being insensitive to the wetlands weeds on Beachwood but you seem to think its ok to ignore a federal judgment.  Look who’s cherry picking things.

Lets get real.  These weeds are on many undeveloped lots, big and small.  I sold a 2 acre parcel in Moss Beach surrounded by roads and homes on all sides.  There were some sensitive weeds on it which caused the buyer to be careful of where to put his home.  So in the middle of his property he will have a bunch of weeds.  What a joke.

To many, its the principal.  From a pragmatic point of view, this is an infill lot.  And its incredible that we have wasted so much money on this.

Now we are going to own this and we grossly overpaid for it.  Everybody, except the property owner, lost.

HMB to Sacramento: If you don’t support AB1991, we’ll kill this dog

I know many people here have repeatedly said this was a bad deal.  The City wasn’t bargaining from a position of strength.  They were in a $41 million hole.

That being said, what could you offer Keenan that would motivate him to settle now instead of pushing for the whole enchilada plus interest?  As it was, he agreed to wait a few years for money.  That was a generous concession cause it gave us a few years to find the money.

Coastal Commission takes on AB1991

To Barry, Kevin, Mike and Ken,

I respect your commitment to HMB and I know you are all very intelligent.  We just see things differently and that’s OK.  Just as nothing I’ve said here has changed your views, there’s nothing you have said so far that’s changed mine.

Perhaps my anger is over the never ending fighting that has gone on here for 10-20 years.  Everything is such a major production.  Maybe a few things got done but so many other projects that really matter to the community are fought tooth and nail.

I also resent the massive amount of money that has been wasted in the process.  I know the money could have been spent better on things that really matter to the community.

Is Beachwood worth the $23 million?  Not to anybody I know.  Were these weeds worth the battle?  Again, not to me. 

I would venture to say that many of the newer communities like Alsace Loraine, Highland Park, Miramar and the new golf course had the same weeds yet they got developed.

And Barry, in case you thought I was being sarcastic about McDonald’s, let me clarify things.  I LOVE McDonald’s and I was thrilled that they opened their place here right after I moved here with my family.

Its going to be interesting, to say the least, to see how this plays out.  Whoever said living in a small town was boring, doesn’t know HMB.

HMB to Sacramento: If you don’t support AB1991, we’ll kill this dog

Ken,

None of us know what was really said behind closed doors.  But its tough to negotiate when you tell the opposition that just won a $41 million judgment that you won’t appeal.  There would be no incentive for the other side to move an inch.  Just dig in your heels and say give me $41 million now please.

I think the appeal was a smoke screen to buy time to work out a deal.  I also have to wonder how seriously they thought the chances of getting the bill approved was.  What this did accomplish was it put off writing a check for a few more years, probably the same time it would have taken to go through the appeal.

I can’t tell you that I’m surprised the Coastal Commission and Sierra Club are against this settlement.  To me and many people I know, that means this settlement scares them and their power and influence are evaporating.  And that’s a good thing too.

And as far as McDondald’s goes, I said Beachwood was near it.  I bet some of the better golfers on the Coast could hit it from a nice clear part of the Beachwood property.  Although, I hear the weeds are a horrible hazzard.

Coastal Commission takes on AB1991

What I can’t ignore is the damage this has been done to our town.  This inflexible attitude of weeds over people has gotten out of hand and threatened our financial stability.

Every day when I drive past Beachwood, I stare at it and shake my head.  When I point out to potential homeowners the site, they ask me if I’m joking.  They too can’t see the rationale for saving the weeds.

Its good that the City settled.  Maybe Walker’s decision will start injecting some reality into things.  I can’t imagine this folly being repeated again.  If for no other reason, the City is too broke to take on another battle like this.

For another, like the little boy who cried too many times there’s a wolf, the weeds first group is loosing influence and credibility because of the horrible damage they’ve done.  And that’s a good thing.

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