A (G)RAND Deal For City

By Jorge Casuso

October 27, 1999 -- Calling it a momentous decision that will leave a lasting legacy, the City Council Tuesday night voted overwhelmingly to buy most of RAND's sprawling stretch of land between City Hall and the sea.

The $53 million deal for 11.3 acres of the non-profit think tank's 15-acre property capped five months of intense negotiations. Under the agreement, the city will take over the development of the Civic Center plan, which will likely be altered after intensive debate, while RAND will keep the southern end of their property for a new 300,000-square-foot headquarters. The purchase will be bankrolled with Earthquake Redevelopment District bonds, which could total $95 million

The council also voted to grant a 42-month lease to the legendary Chez Jay restaurant, a tiny 10-seat watering hole where for 40 years neighbors and laborers have rubbed shoulders with some of the world's biggest stars. The restaurant will then be granted six-month leases until the city is ready to develop the site.

"This is a golden opportunity," said Mayor Pam O'Connor. "A lot of things are coming together. This is just the beginning."

"This is an absolutely great day for this community," said Michael Feinstein, a driving force behind the deal. "The opportunities this provides us are, if not unprecedented, certainly momentous. This is a win-win situation."

"The Council's action tonight is a visionary decision that will provide significant benefits for both the City of Santa Monica and RAND," said RAND president and CEO James A Thomson. "Santa Monica will take ownership of one of the most unique and exciting parcels of land in the Southland. And we at RAND can now move forward to create a headquarters that will serve our cutting edge research needs and be a credit to the community."

The 6 to 0 vote to purchase the property -- with Councilman Paul Rosenstein abstaining to protest what he said was a lack of public process -- came after intense lobbying for affordable housing advocates who wanted more funds allocated to address the city's housing "crisis."

"I'm not opposed but concerned about the use of so much set aside when we have a housing crisis," said Rent Board commissioner Alan Toy. "I don't want this to be on the back of the residents. The golden fleece is blinding people with its radiance."

The Rent Control Board asked that 60 percent of all earthquake recovery funds be used to create affordable housing, while the Commission on Older Americans and the Housing Commission asked that 50 percent be allocated for that purpose.

Responding to the housing advocate's calls, the council voted to increase the percentage allocated for affordable housing from 20 percent to 30 percent of the purchase cost.

"I've heard the housing concerns tonight loud and clear," said Councilman Kevin McKeown, who made the motion to increase the allocation. "All of this is going to involve an awful lot of public process. What we're looking at tonight is only part of the bigger picture."

A few of the speakers spoke out for the need for more open space.

"We think this is something you can move forward with enthusiastically," said Chris Harding, past president of the Santa Monica Youth Athletic Foundation. "This opens up potential for more open space."

Tuesday's brief debate - there were about two dozen speakers - is likely only the beginning of a long and heated public process to determine what to do with the property, which stretches between Pico Boulevard and Colorado Avenue and Main Street and Ocean Avenue.

But if the public testimony was any indication, the debate will center on how to balance the needs for housing with those for more open space.

"We need to balance a number of competing issues," said Councilman Ken Genser. "It's clear that this land is large enough and strategically positioned and that there is the will in this community for housing and open space."

Although all agree the debate is only just beginning, several of the speakers felt there was not enough public input before the vote to buy the land.

"I have a lot of questions about what's going on here and about the process," said former planning commissioner Frank Gruber, who helped put together RAND's existing Civic Center Plan. "You're being asked to make a vote on big issues without the public process. I think it needs discussion."

Councilman Paul Rosenstein agreed. "I think the public deserves an opportunity to look at the details, and I don't think that's happening tonight."

Rosenstein's amendments to delay the vote until more details are in failed to win a second, as the other council members said it was important to seize a once-in-a-century opportunity.

"There's overwhelming support, even by those who question what we will ultimately do with the property," said Councilman Richard Bloom. "I wonder what public reaction would be if we didn't have this jewel in our hand. That would ignite a furor. This type of opportunity may never come again."

"It is an incredible opportunity," said Councilman Robert Holbrook, calling the deal the largest single item in his nine years on the council. "We've got to get this land."

Under the agreement, RAND will remain in its 50-year old building for 42 months while it builds its new headquarters. To assure RAND meets the timeline - which can be pushed back by mutual agreement - the city will hold 10 percent of the purchase price.

If RANDs entitlements to develop the land cost more than $1.7 million, the city will pay up to $2.3 million.

"We want to make sure we don't end up with endless occupancy of the old building," said Bob Moncrief, the city's housing and redevelopment manager.

Bonnie Holmes, headquarters project manager, said RAND has pledged to proceed quickly.

"We recognize that the city is eager to have us move into our new facility and turn over the 11.3 acres so that the public process can go forward expeditiously," she said.

Under the schedule set buy the purchase agreement, RAND will work to complete construction and move into its new building within four years, Holmes said.

Perhaps happiest of all was Jay Fiondella, the owner of Chez Jay, who is now assured his small watering hole to the stars and homeless alike will survive the wrecking ball - at least for the foreseeable future.

"I'm in shock, in pleasant shock.," Fiondella said, knocking on the wooden podium and crossing himself. "I don't know where to start."

And then he talked fondly about his workers and his longtime customers and the famous peanut from his restaurant that travelled to the moon.