Hawthorne Loses Park Bid--but Holds an Ace

Foreign investors have outbid the city of Hawthorne for 5.8 acres of Caltrans property alongside the San Diego (405) Freeway, despite the city’s insistence that it will not rezone the land, which is designated for park use.

City Manager Kenneth Jue said investors from Asia, South America and Europe have offered to pay nearly $1.5 million for the 21 parcels along Glasgow Place in Hawthorne.

For years, the city has sought to buy the narrow, mile-long strip on the west side of the freeway between Wiseburn and Rosecrans avenues for use as parkland. In September, Assemblyman Richard E. Floyd (D-Hawthorne) persuaded legislators to provide the city with $200,000 to buy the Glasgow strip.

However, Jue said, the city offer of $200,000 for 20 parcels totaling 202,482 square feet fell far short Tuesday of winning the bidding contest.

“I’m disappointed but not surprised,” he said.

Jue said a city representative attending the real estate sale tried to inform the investors of the city’s intentions for the land. But he said the investors either could not understand the city representative because they did not speak English or because they were unfamiliar with the zoning laws.

Selma Gleason, a spokeswoman for Caltrans, said eight investors offered a total of $1,473,864 for the parcels. She said each bidder spoke English and was notified in the bidding manual of the current zoning.

Gleason declined to disclose the names or nationalities of the investors.

According to Gleason, the bidders were required to place a deposit of $5,000. The deposit automatically gives a successful bidder one year to obtain rezoning, variances and clearances from the city. If the zoning or code changes cannot be obtained, the buyer can void the purchase agreement but must also forfeit the $5,000 deposit to Caltrans.

Two six-month extensions can be bought for $10,000 each.

On several occasions, the City Council has maintained that the land, near the Holly Glen neighborhood, is not suitable for development, partly because of its closeness to the freeway. Single-family homes that once occupied the strip were demolished when Caltrans acquired the land.

Jue said he believes that the investors will forfeit the property once they realize the city will not rezone.