Huntington Beach Planning Commission Meeting - July 23, 2019

The Huntington Beach Planning Commission held a study session starting at 5:00 PM and a regular meeting at 6:00 PM on July 23, 2019. The study session introduced the proposed Magnolia Tank Farm development (General Plan Amendment No. 17-001, Zoning Map Amendment No. 17-001, Zoning Text Amendment No. 17-005, Local Coastal Program Amendment No. 17-001, and Development Agreement No. 19-001) for a mixed-use project including up to 250 residential units, a 175-room lodge (with additional guest house rooms), commercial visitor space, and open space. Numerous residents spoke in opposition. The regular meeting considered three companion topics related to the Research and Technology (RT) Zone along the Gothard Street corridor. The Commission forwarded three recommendations to the City Council.

Study Session – Magnolia Tank Farm Project

• Staff presented the project overview, stating the site is 28 acres at 21845 Magnolia St. The proposed specific plan includes four planning areas: coastal conservation (2 acres), open space and parks, residential (up to 250 for-sale units at medium density), and commercial visitor (a 230,000 sq ft lodge with up to 215 rooms, including 40 guest house style rooms, plus ancillary retail/dining). A general plan amendment from Public to Open Space Conservation, Open Space Park, Residential Medium Density, and Commercial Visitor is requested, all with a specific plan overlay. The intended schedule includes a study session on the EIR on August 13, a study session on the specific plan and development agreement on August 27, and a public hearing on September 10.
• Applicant James O'Malley (Shopoff Realty Investments) presented, emphasizing the site's transformation from a tank farm (blight to bright), no contamination from previous use, and community outreach since 2016. Michelle Whedon (Myers Research) presented market data showing high demand for housing and potential positive economic impact on surrounding property values (estimated 10% appreciation within quarter mile, 5% within half mile).

Public Comments & Testimony

• Carrie Swan (resident): Opposed the project, calling the developer's investment a "bad investment" and noting CEO charged with fraud by FINRA. Stated the project is incompatible with surrounding neighborhood, would worsen traffic, and ignored contamination from adjacent ASCON Superfund site.
• Sharon Messick (resident): Opposed, sharing personal story of her father's illnesses from childhood environmental exposure. Stated the Magnolia Tank Farm land is "broken, bruised, and poisoned ground" and not fit for homes; suggested a museum or garden instead.
• Nancy Bukos (resident, 46 years in Southeast HB): Opposed, citing proximity to ASCON, recent health issues in her household, and the project's incompatibility with the quiet neighborhood. Stated the developer had not provided adequate notice about remediation activities.
• Tim Geddes (30-year resident): Opposed, accusing the city and developer of rushing a project with unresolved environmental and planning issues. Called it "developing for the sake of developing, putting profits over people."
• Milt Dardis (resident, taxpayer): Opposed, asking what benefit the project provides to Southeast HB (e.g., no new library). Demanded core soil samples every 500 yards and a cumulative impact analysis of all nearby developments. Alleged "bait and switch" tactics by developer.
• Susan Baker (10-year resident): Opposed, citing significant and unavoidable impacts listed in the EIR (greenhouse gases, noise, traffic) and contamination unknowns. Accused the developer of fraud.
• Robin Sladyck (48-year resident): Opposed, listing contaminants found in groundwater on the tank farm property (arsenic, barium, chromium, cobalt, lead, mercury, nickel, zinc) per public records. Noted groundwater at 5-7 feet and discharge into the channel leading to the ocean.
• Dr. Jocelyn DeDiego (30-year resident): Opposed, stating the EIR is problematic because it was paid for by a developer charged with fraud. Shared personal health concerns for her daughter from ASCON. Asked Commission to reject the zone change.
• Tara Barton (40-year resident, biochemist): Opposed, stating contamination from ASCON has migrated via groundwater, air, and soil. Noted DTSC did not know about the ASCON problem until residents brought it forward. Asked for no general plan or zoning change; called for extensive independent testing.
• Richard Fancher (29-year resident, chemistry background): Opposed, criticizing the Commission for approving ASCON without understanding science. Noted 17 known metals in that site but only two monitored. Stated at least 15% of soil composition is unknown, so safety cannot be claimed.
• Pai Ian (resident, 5,000 feet downwind): Opposed, reporting respiratory impairment since April coinciding with ASCON cleanup intensification. Called the developer a "sloth focused purely on speculative profits" with a history of FINRA violations. Urged against development.
• Amber (regular meeting public comment, parent near Edison High School): Expressed concern for student and teacher health if both ASCON remediation and tank farm construction occur simultaneously. Asked the Commission to ensure deep soil testing and protect the community.

Discussion Items

• During the study session, commissioners asked questions on sea level rise and pad heights, general plan update history, affordable housing inclusionary requirements, allowed uses under current zoning (e.g., minor utilities, temporary uses), and contamination details. Staff and the applicant's geologist responded that no contamination exists from the tank farm, that SCE is conducting final investigation with a report due September, and that any remediation required by DTSC would precede development.
• The regular meeting included item 19-799 (Planning Commission Agenda Items) to deliberate three companion topics for the Gothard Street corridor RT Zone. Commissioner Kalmick introduced the items.

Key Outcomes

• Motion 1 (Urban Design Guidelines): The Commission voted 6-0-1 (Garcia abstaining) to recommend City Council direct staff to update the city's industrial design guidelines inclusive of the RT zone.
• Motion 2 (Sidewalks): The Commission voted 5-1-1 (Scandura opposed, Garcia abstaining) to recommend City Council direct staff to study the feasibility and appropriate method for implementing sidewalks in the RT zone and potentially all industrial districts.
• Motion 3 (Broadband Committee): The Commission voted 6-0-1 (Garcia abstaining) to recommend City Council create a Broadband, Wireless, and Transportation Infrastructure Technology Ad Hoc Committee to review policies and outline goals for broadband, technology, and transportation improvements in the RT zone as a technology pilot project area. Commissioner Kalmick submitted a white paper of potential ideas to accompany the recommendation.
• Chair Garcia recused herself from the RT zone item due to a conflict of interest (her office located in the corridor). Vice Chair Grant presided over that portion.
• The meeting adjourned at approximately 7:45 PM, with the next regular meeting scheduled for August 13, 2019.