Officials Negotiating to Put Housing on Lot

Housing for low-income residents would be constructed on a vacant lot at Birch Street and Laurel Avenue under a plan the city is advancing.

Olson Co., a Seal Beach-based developer, has offered $900,000 to buy the 2.7-acre, city-owned parcel and build the housing. The amount was about $100,000 more than the city expected, and about $120,000 more than the next highest bidder, city officials said.

A final price will be negotiated in coming weeks, city redevelopment manager Eric Nicoll said.

The land was once the site of 16 single-family homes for low-income residents, but the city has bought and demolished them over the last five years because they were deteriorating and considered a blight, Nicoll said. The residents were relocated.

Olson’s bid was the most favorable of four the city received, Nicoll said.

Nicoll said the project is “an important component of our redevelopment strategy.” Other developments currently underway along Birch Street include a 25-unit condominium complex for mostly low-income residents, and single-family low-income homes on an adjacent 2.6-acre parcel, he said.

Officials would not release figures on the city costs to buy the land, relocate residents and demolish the structures because negotiations with Olson are continuing, they said.