Downtown development hits another kink in the road

Eron Ben-Yehuda

HUNTINGTON BEACH -- The future of a controversial Downtown project became

even more muddled Tuesday after the Planning Commission gave approval for

individual property owners to build on the project site.

The developer CIM Group has a preliminary deal with the city to construct

a multimillion-dollar hotel, restaurant and retail complex in a two-block

area bounded by Main Street, Walnut Avenue, Sixth Street and Pacific

Coast Highway. But the commission, by a 5-2 vote, allowed the owners of

small lots in that area to go their own way. Commissioners Edward Kerins

and Fred Speaker objected, but for reasons other than any potential

conflict with CIM’s project.

CIM is trying to negotiate buyout agreements with the owners who have

refused to make any deals so far. Armed with approved plans, they seemed

even less willing to bend.

“We think CIM is going to fail, and we’re going to stay there forever,”

said Keith Bohr, a consultant hired by the property owners.

So far, the project has been met with strong resistance -- and not just

from owners of property standing in its way. Some residents say such

“overdevelopment” would destroy Downtown’s charm.

The developer still has an ace in the hole, though. It can ask the city

to use its power of eminent domain over commercial property to force the

owners to sell.

“We’ll see what the future holds,” said David Biggs, the city’s economic

development director.

Biggs suspects the individual property owners may build up their land to

boost its value before eminent domain kicks in.

But even a forced sale requires CIM to pay fair market value, which the

developer has not come close to negotiating so far, Kohr said.

“They haven’t offered [enough] money to make these guys blink,” he said.