Merrill Plan Bears Watching

* When Laguna voters approved the Treasure Island hotel and estate home development in April, something that convinced a lot of people that it was a worthy project was the City Council-approved memorandum of understanding that outlined the major pieces of a development agreement.

That agreement governs when and how the project will be constructed, including developer improvements and city financial responsibilities.

A dramatically different development agreement was the subject of a Planning Commission hearing on July 28.

The new agreement was negotiated by two City Council members and the landowner, Merrill Lynch Hubbard.

As almost all planning commissioners pointed out, the biggest difference is that the city now has to hand over or spend a minimum of $3 million to $5 million upfront before the project even gets off the ground.

The original conditions of approval called for the landowner and developer to pay these costs, with city reimbursement coming from the project’s future bed tax revenues.

Voters were warned that Merrill Lynch would try to pick the city’s pocket if this project was approved. As Commissioner Cheryl Kinsman pointed out, the new development agreement goes further than even opponents’ campaign literature predicted, with many millions being committed by the city upfront.

This proposed agreement fulfills the fears of the No voters and betrays the trust of the Yes voters.

Laguna Beach has a new city treasurer, Laura McQueen. As a professional certified public accountant and past controller for large companies, she should take a look at the proposed agreement.

Treasurer is an independent elected position that is intended to safeguard the city’s finances. Many residents would appreciate a professional financial review of this proposed agreement and its impacts.

DOUGLAS REILLY

Laguna Beach