SEAL BEACH : Development Profits Are Key, Mayor Says

Commercial development and resulting revenue will determine the future of Orange County’s northernmost seaside city, Mayor Victor S. Grgas says.

“The next year can be a very rosy one if the revenue streams we’re relying on come to fruition. If not, it’s going to be a very tight economic situation (and) we may have to defer projects that need to be done,” Grgas said.

Grgas said the prime unknown is the Mola Development Co. residential project planned for the Hellman Ranch Property in northwest Seal Beach. If approved, the project would bring the city about $800,000 annually over the next 20 years in redevelopment funds as well as the $1 million the company has agreed to pay the city if the California Coastal Commission approves the project.

Although these amounts wouldn’t make much of a difference in most cities, the prospective revenue from the Mola project will determine whether Seal Beach residents will fast or feast in the coming years, Grgas said.

“Seal Beach is a true bedroom community,” he said. “It doesn’t have a lot of its tax base coming from retail or industry. A lot of things have to be done soon, and it’s going to be expensive. That money has either got to come out of our pockets or from something like Mola.”

Grgas said two of the most expensive items on his agenda are a sand replenishment project for the beach and an overdue restoration and extension of the concrete barrier wall under the pier.

“The fact is, without Mola we don’t have the money for these projects,” Grgas said.

Seal Beach operates on a yearly budget of $14 million with a $1-million reserve and is ineligible for most state and federal grants because of the affluence of its residents, Grgas said.

Other upcoming projects include public hearings on a proposed Bixby Co. development on property across the street from Rossmoor Shopping Center. The project’s plans include retail, office and residential uses.