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Mayor Mike Gin Members of the Redondo Beach City Council SUBJECT: Amendments to the Coastal Zoning Ordinance, Coastal Land Use Plan, Harbor/Civic Center Specific Plan, and General Plan as it relates to the Harbor-Pier Area Dear Mayor Gin and Members of the City Council: I urge you to take additional steps before rendering a final decision that will have lasting implications for many years to come. It is critical to avoid making poor planning decisions based on negative public perceptions that were created by such past developments as the Village, Seascape and Pier Plaza projects. As you well know, the Harbor Enterprise operating costs continue to increase while revenues have been stagnant or are in decline, yet the solutions are complex and involve both economic and political issues. In this regard, I strongly recommend that the Mayor and two Council Members meet with the principles of at least the four major leaseholders (Decron, Portofino, Port Royal and Marina Cove) altogether to discuss such critical issues as: 1. What are the economic and/or legal ramifications of adopting an overall development cap that would allow far less total building square feet than the development standards? 2. What level of investment in leasehold improvements would occur under a scenario where the potential capacity could not be fairly shared amongst all leaseholders? 3. Rather than simply doing what maybe political tolerable, should a new Environmental Impact Report be completed which possibly could be partially/wholly funded by the leaseholders? Reality is a majority of the land leases will not expire for another 20 years or more and without strong support from those leaseholders most capable of investing the millions required to upgrade and improve the Harbor-Pier Area the likelihood of anything positive happening significantly decreases. Consequently, if nothing much actually happens Redondo Beach will simply fall further behind the neighboring beach communities in attracting reinvestment to its coastal commercial district. In fact it is expected that much more redevelopment will be occurring in nearby Downtown Hermosa Beach including additional hotel rooms which would attract visitors away from our Harbor-Pier Area and result in less transient occupancy taxes to the City’s General Fund. I believe that residents and businesses alike wish see something special happen in the Harbor-Pier Area, however for the City Council to make the best decision possible this process should not be rushed or dictated solely by politics. Nobody supports over-development in the Harbor-Pier Area which is why extra care must be taken to adopt proper zoning regulations that will allow something special to happen and attract our residents and visitors back to our waterfront.