by Chris Munzing
Two resolutions - the authorization of City Manager Charles Theofan to execute an amendment to the original contract between the city and the developer, Philips International, and the acceptance of the findings of the New York State Environmental Quality Review Act that the development would have no significant impact on the environment - were approved.
The approval paves the way for construction to begin, possibly as early as August, according to Theofan.
Councilman Denis Kelly, who spoke out against the project in an op-ed piece in the Herald four weeks ago, was the lone vote against both resolutions. "This project has morphed into something that I didn't want and am uncomfortable with," Kelly said. "I am uncomfortable with the condo/hotel unit aspect of this project."
Kelly was referring to the 140 hotel units in the development, which are not the traditional style. They are condo units that would be purchased and then rented out as a way to offset the cost. Philips International's attorney, Scott Furman, has said that at the outset, the developer would own all 140 rooms. Theofan added that the number of hotel units that are permanently available to the public would increase from 50 to 65.
The development underwent several changes since it last appeared on the council's agenda, on Feb. 15. Theofan said that Philips International agreed to pay the city for the Shore Road property that is part of the development. The developer agreed to pay the city at least $1 million for the property, or the assessed value if it's higher. "If that property is assessed at $40,000, we get $1 million," City Council President Jim Hennessy said. "If it's assessed at $7 million, we get $7 million.
"We got everything from the developers that we wanted," Hennessy added. "If we didn't put something there, the owners of the property would have put something there with no public access. This way, we were able to control the development."
Hennessy cited several other thriving hotel/condo unit projects in places like Chicago, Seattle and Las Vegas as evidence that such a project will work in Long Beach. He also mentioned the Plaza Hotel in Manhattan, though the Plaza is being converted into a mixed-use complex, with both condominiums and traditional hotel rooms, but not the condo/hotel rooms featured in the Superblock proposal.
One of the Superblock's current owners, Sinclair Haberman, spoke to the council about how it was gift-wrapping the property for Philips International at what he said was a low estimate. "Unbelievably, the city is only requiring Philips to go hard now on an appraised value of $19 million that the city implicitly recognizes in the first proposed contract modification is a lowball estimate of the ultimate condemnation costs," Haberman said. "More must be required of Philips to effect a fair deal for the city."
The proposed development calls for two 10-story condominium towers containing 250 condominium units and 140 hotel units, with one of the towers divided roughly in half among condos and hotel units. The plan also includes a bar, a salon, a pool, an 8,000-square-foot health club, a gift shop, two restaurants and catering facilities on the boardwalk.
"I've always been a vocal supporter of this project," Councilman Lenny Remo said. "In the last month, [we've gotten] fair market value for our property on Shore Road ... additional parking and [guarantees] that hotel rooms will be available to the public year-round, [which] is a benefit to the City of Long Beach.
"At a time when residential development in the City of Long Beach is continuing to grow and prosper, we need to expand the commercial tax base to balance the city's resources, and this project is a benefit in that aspect as well," Remo continued, adding that he was pleased to see a new business that wasn't a cell phone store or nail salon. "I will look forward to seeing how history bears us out."
Council Vice President Tom Sofield said that he was pleased to be part of the council that got this project moving after years of inactivity. "I'm proud that we're going to move forward today," he said. "This is smart growth, and I think it's going to be great for Long Beach, and this is going to broaden our tax base by over $1 million."
"This is the culmination of years of hard work by many different people," Councilwoman Mona Goodman said.
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