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By Jorge Casuso

November 12 – In an effort to build affordable housing near the beach, the City Council Tuesday gave the go-ahead to negotiate a land swap with the owners of a luxury beachfront hotel.

Under the proposed deal, the City would exchange its vacant beachfront property at 1920 Ocean Way next to Hotel Casa del Mar for the surface lot on the corner of Pico Boulevard and Ocean Avenue owned by Edward Thomas Companies, which owns both Casa del Mar and Shutters on the Beach Hotel next door.

While negotiations are underway, the City will find a developer to build at least 120 affordable units above ground-floor retail on the site of the 127-space surface lot.

“The wonderful thing (is) seeing people of mixed incomes living together in a very wonderful place,” said Council member Ken Genser, who once lived at the old Sea Castle down the block.

The developer picked by the City must build a minimum of 40 residences that are affordable to low-income households and another 80 units “suitable for artists, families, local workers, and persons at risk of homelessness,” according to the staff report.

The ground-floor commercial uses must “promote an active and engaging Ocean Avenue street environment,” the report stated.

To begin the negotiations, Edward Thomas Companies must meet a number of “negotiating points,” including picking up all costs associated with replacing the 127 space parking spaces and allowing the City to determine the appropriate development parameters for the site.

“These requirements are designed to provide the City with flexibility, certainty and control throughout the development process,” according to staff.

The City became the owner of the property located at 1920 Ocean Way in July 1979 and in 2001the council “reaffirmed its commitment to use the property for affordable housing.”

Later that year, the council authorized staff to negotiate the terms and conditions to acquire the surface lot, including a possible trade of the vacant beachfront land next to Casa, according to staff.

When no agreement was reached, the City decided to move ahead with the development of affordable housing on the beachfront site, a move that revived the negotiations.