Hermosa Beach Lot Sold to Owner of Magic Club

The City of Hermosa Beach sold a commercially zoned site on Pacific Coast Highway for $2.45 million at an auction last week, and the land will be used for a comedy and magic club, the buyer said.

Michael Lacey, the owner of the popular Comedy and Magic Club on Hermosa Avenue, said he may build a second club at the site, Pacific Coast Highway and Gould Avenue. He said he has not decided whether he will keep open his 10-year-old Hermosa Avenue club, which operates from a rented building.

“I really want to build a landmark,” Lacey said. “The Magic Castle (in Hollywood) is a prime example of something that withstood the test of time very well. I really want to build something that’s unique . . . something that’s fun the minute you drive up until the minute you leave.”

Betty Ryan, the broker who handled the sale for the city, said the property sold for more than anyone else has paid for other property in the area.

Subject of Legal Dispute

The city will not receive all the proceeds from the sale because the property has been the subject of a legal dispute between the city, developer Charles Gotanda and his bank. As part of the settlement, the city must withhold details of the sale until after escrow closes, city officials said.

The city offered the property--which is about 28,000 square feet and has been vacant for at least eight years--for a minimum of $1.7 million, Ryan said.

Lacey’s real estate agent, Missy Sheldon, is the wife of City Councilman Chuck Sheldon.

She said her participation in the deal did not pose a conflict of interest for her husband because her fee comes from Lacey, not the city, and because Lacey was just one of many people who bid on the property.

Ryan agreed, saying: “There was no conflict. I am the broker, and I am the one who is being paid by the city. . . . This was very definitely a coincidence.”