Turning dreams into reality was the formidable task at hand as the Encinitas City Council’s Pacific View Activation Plan Subcommittee held its first meeting at City Hall Monday, October 6th.
Designing a path to realize the public’s hopes for the newly acquired historical property is a complex process that is fraught with obstacles, but subcommittee members Teresa Barth and Lisa Shaffer received encouragement from the mostly upbeat attendees.
(Above) Bond counsel Kim Byrens of Best Best & Krieger LLP explains the benefits and drawbacks of taxable vs. tax-exempt bonds as Pacific View Activation Subcommittee members Teresa Barth and Lisa Shaffer listen during the October 6 meeting. (Below) Less formal and more congenial than a typical city council meeting, the two-hour forum was attended by many community members, most of whom were Pacific View supporters.
Daunting issues and restrictions related to financing and zoning dominated the discussion, which was deftly organized and helmed by Shaffer and Barth. The presentation that set the meeting’s agenda can be downloaded here.
Bond counsel Kim Byrens gave a detailed explanation of the pros and cons of taxable vs. tax-exempt bonds (see her memo here) and recommended the somewhat more expensive taxable type. Her rationale was that without knowing exactly what activities will happen at the site, the more expensive taxable bonds will avoid the financial pitfalls of potentially violating IRS regulations.
Shaffer agreed, calling the cost of taxable bonds “a small risk premium” to prevent significant future tax problems. Taxable bonds would add approximately $1.5 million in debt service over the 30-year term.
Byrens said that the current presence of the Encinitas Historical Society in the Old Schoolhouse on the property would probably be viewed by the IRS as private use, making tax-exempt bonds unsuitable from the outset. The city has agreed to keep the schoolhouse on the site as a condition of the sale.
Shaffer suggested that if Pacific View’s ultimate use ends up complying with tax-exempt bond restrictions, the city could switch to the cheaper bonds in 10 years or so. After the discussion, Shaffer and Barth announced that they will recommend taxable bonds to the city council at its October 22 meeting. They hope to publicly publish their report to the council at least a week prior to the vote at that session.
More challenges appeared in the form of Public/Semi-Public zoning restrictions inherited from Encinitas’ 1986 incorporation, which throw several seemingly arbitrary flies into the ointment. For instance, a theater, playground or museum are allowed, but an art gallery, music conservatory, dance studio, glass or pottery studio are expressly prohibited. A farmer’s market, hiring hall or surf shop could be approved with a minor use permit.
The random nature of the zoning requirements drew a few chuckles from the crowd, but it was apparent that steering clear of the prohibitions will require creativity and initiative. Shaffer said that 2018 may be the soonest a zoning modification could be put to a required public vote, unless a special election is called before then.
Longtime resident Bob Bonde argued that a transit occupancy tax on hotels and short term rentals should be used to pay for Pacific View instead of bonds. He also wondered if the city had asked the school district if they would take payments on the property instead of receiving the $10 million purchase price in one lump sum.
Other speakers offered their help in guiding the property to its ultimate use. Despite the restrictions, there was an air of optimism in the room.
Several attendees suggested that the city focus on the property’s ultimate use, one that conforms with existing zoning requirements, then work backwards from there to determine its interim use.
Barth was adamant about putting the site to use as soon as possible to prevent its further degradation, explaining that “the city and neighbors deserve to get life going on that property.” Barth also spoke of wanting to hold a combination community celebration of the purchase and cleanup at Pacific View in January, 2015.
In their suggested timeline, Shaffer and Barth see interim uses of Pacific View beginning next summer.
The PowerPoint presentation which guided the meeting is here, and a memo from the city’s bond counsel Best Best & Krieger recommending taxable bonds can be found here.
Tony Kranz and Catherine Blakespear will see Pacific View through
Encinitas mayoral candidate Tony Kranz was the primary architect of the city’s purchase of Pacific View.
In November 4th’s crucial election, Encinitas Deputy Mayor Tony Kranz is running for mayor and Catherine Blakespear is a candidate for the open seat on the Encinitas city council.
If, like us, you dream of present and future generations enjoying the Pacific View site, both Kranz and Blakespear certainly deserve your vote.
The dramatic last-minute rescue of our historic Pacific View property from the clutches of developers would not have happened without the vision, political know-how and bold leadership of Kranz on the city council.
Blakespear repeatedly championed Pacific View in appearances before the Encinitas City Council and the Encinitas Union School District Board of Trustees.
Kranz and Blakespear are the only candidates who unreservedly advocated the Pacific View purchase and they’re still working tirelessly to make it happen. They remain committed to seeing this treasured blufftop site reach its fullest community potential.
There are still those who vocally oppose the city’s purchase of Pacific View and would like to see it fail. Nearly all the city council votes that enabled us to buy Pacific View passed by the narrowest of margins, 3 to 2.
Encinitas City Council candidate Catherine Blakespear’s logical and enthusiastic advocacy of Pacific View in front of the school board and city council helped close the deal.
The makeup of the city council will change after the election, and it’s vital that our pro-Pacific View majority remain intact to shepherd this complicated acquisition to its conclusion. After the purchase is completed, Kranz and Blakespear will ensure that the public’s wishes for Pacific View are fulfilled and that its financial foundation is sound.
In the big picture, both Kranz and Blakespear are longtime Encinitas locals who stand for the things that most of us want– preservation of our community’s unique character, improving our roads and infrastructure, transparent and participatory government, and leadership with integrity.
Kranz and Blakespear have already proved that they run much deeper than just platitudes and slogans– they actually know how to make the right things happen, expertly navigating through a local and regional system that can be maddeningly slow, frustrating and illogical.
SavePacificView.org relied on Kranz and Blakespear’s support and advice during the pivotal citizen-fueled email campaign that helped turn events around earlier this year, and we continue to count on them as the twists and turns of this purchase process continue.
In a compelling endorsement of Kranz and Blakespear, Encinitas City Councilmember Lisa Shaffer writes “I support Tony Kranz for Mayor and Catherine Blakespear for Council based on their competence, commitment, and collaborative capacity.” Her complete thoughts are worth reading here.
SavePacificView.org urges you to vote for Tony Kranz for mayor and Catherine Blakespear for city council. We need them to see Pacific View through.
Tony Kranz for Encinitas Mayor website
Catherine Blakespear for Encinitas City Council website
SavePacificView.org will stay on top of developments and send email updates when new Pacific View events occur. You’re also invited to stay up-to-date on Pacific View news by joining the SavePacificView.org email list here. Your name and email address will only be used by SavePacificView.org. The SavePacificView story as told by local media can be read here.
What are your Pacific View ideas? Click here to Share Your View!
The discussion about what we’d all like to see happen at the Pacific View site has begun in earnest.
You and your friends are invited to have your say and Share Your View on the SavePacificView.org website. You can login there directly or use your Facebook, Twitter or Google+ ID to post and comment. Your input is much appreciated, and essential to helping create a place that can be enjoyed for generations to come.
The historic Pacific View property as it appears today.