The development site occupies the entire block bounded between Neilson Way and Main Street, and Bay Street and Bicknell Avenue, as well as another parcel across the street. The larger site, on the west side of Main Street, used to be the location of the Pioneer Boulangerie Bakery.
Along with the price tag comes all the approvals and conditions given by the Santa Monica City Council to build the 170,000-square-foot, four-story, 133-unit housing and retail development. Typically those conditions are good for one year and the developer can apply for a six-month extension.
But as time was running out on the conditions — the plans for the property were approved by the City Council in February 2002 — building permits were issued last week by City Hall, according to Chris Harding, a local land use attorney. He added that approval might make it more attractive to prospective buyers.
“Now he’s in a better position to develop it because we have building permits,” Harding said.
City Councilman Ken Genser said building permits are good for 18 months. He hopes to see the property developed soon, however he would like to see some design changes that he didn’t like during the approval process.
“I supported the project, and I have no objection to it being built, but I wouldn’t mind if someone rethought the project,” he said, adding he thought the design was too massive and the buildings should be more uniform instead of several different facades as they are planned currently.
Jacobs had envisioned the ground floor of the buildings’ retail space to have neighborhood-serving stores and upstairs, luxury apartments for rent.
Jacobs, who has developed seven other properties in Santa Monica, battled City Hall for nearly four years to get the project approved. It went through several different revamps before the City Council signed off on it.
The developer also sued City Hall — claiming the planning department spent too long preparing a crucial document that reviews impacts to the neighborhood. Jacobs claims it has cost him millions of dollars because City Hall dragged its feet in completing the environmental impact review of the project. The report was completed several months after the supposed deadline.
Jacobs has said in the past that the delay has cost him nearly $3 million because he was sitting on land that he had to pay for and the city delayed him his right to get a return on his investment in a timely manner. Jacobs has said that he pays $115,000 a month for the mortgage, insurance and maintenance of the property.
A Santa Monica judge dismissed the case last May, but there are plans to appeal it, said Jacobs’ attorney Steve Schiffres. The City Council recently discussed the status of the case and settlement negotiations have been on and off.
“We are always committed to working something out with City Hall,” Schiffres said.
Santa Monica Superior Court Judge Patricia Collins granted the city’s motion to dismiss the lawsuit on the grounds that the city is not liable for permit delays. Judge Collins ruled that the city had not deprived Jacobs of his property rights and “delays in the permit process itself are not actionable.”
Judge Collins ruled that “such delays are an incident of ownership that may be imposed on the developer rather than the general taxpayer without violating the United States Constitution.” Judge Collins also ruled that Jacobs failed to produce any admissible evidence to show that the city fabricated delays.
Originally published in the Santa Monica Daily Press print edition on March 2, 2004. Read the original PDF.