Port Ordered to Sell Land, Halt Renovations

The California State Lands Commission has directed the Port of Los Angeles to halt a $6-million building renovation and to sell land purchased for a San Pedro park, calling the projects an inappropriate use of port funds under state law.

The commission wants the port to halt construction on a building expected to house a proposed charter high school championed by Mayor James K. Hahn.

It has also directed the port to sell land it bought for a proposed Welcome Park “to recover the funds illegally” spent on the project, according to a letter sent this week to Harbor Commission President Nicholas G. Tonsich. The commission asks the port to report before May 30 about its plans.

Paul D. Thayer, the commission’s executive director, said Thursday that the letter was prompted by the use of port money on the two projects, both of which he said are inconsistent with the state Tidelands Trust.

The trust requires that port funds be used for water-related purposes and the people of California.

The commission’s position is that “what’s been done here is inappropriate,” Thayer said. “It was only this spring, when the port started to spend money, that the staff sort of ran out of options.” The commission rarely writes such letters of ultimatum, he said, and it has the power to sue the port to recoup the funds.

Port spokesman Arley M. Baker said officials plan to talk further with the lands commission and have requested a June meeting. “Basically, our priority is to keep the dialogue going, and certainly responding to their request for a written response by the end of the month,” he said.

The renovation is being done on a dilapidated building near the port administration building in downtown San Pedro. The port bought that building and two others in 2002 for $5.6 million, primarily for a new port police headquarters, officials say.

But port records obtained by The Times show that senior managers and commissioners have worked behind the scenes for more than three years to use the building for a proposed charter high school due to open this fall, a project led by Commissioner Camilla Townsend.

That concerns state officials, who say it violates statutes requiring that port money be spent on port-related projects. They have also opposed the port spending millions of dollars for land along North Gaffey Street just south of the Harbor Freeway for a new Welcome Park enhancing the entrance to San Pedro.

Baker said Thursday that the current construction is intended to create office space for the port. He said the port does not plan to halt the renovation project because it needs to move 30 staff members into the building this summer. The port will not decide whether the school should rent the building, he said, until after the final review of an environmental impact report.

Thayer is unconvinced. “They should not be spending money on improvements that benefit the school,” he said.