Published: Wednesday, May 22, 2002 Davis OKs Pike land swap   By Jason Gewirtz, Staff writer LONG BEACH - Gov. Gray Davis on Tuesday endorsed a land deal that paves the way for construction to begin on the long-awaited Pike at Rainbow Harbor development. Protesters gather outside Long Beach City Hall on Tuesday to protest the Pike at Rainbow Harbor project. City officials described the event as the final approval for the waterfront project, which has been in the planning phases for a decade. Davis' signature allows the city and Developers Diversified Realty Corp., the project's developer, to finalize a lease on the development formerly known as Queensway Bay. City and DDR officials said the close of escrow on that lease is all that remains before work can begin. "From our perspective, this is very good news because we can begin construction immediately," said Jeff Adler, DDR spokesman. Adler and Deputy City Manager Reggie Harrison said they were not sure how long escrow would take to close on the lease. City officials were also pleased at the timing of the governor's decision, which came near a city-imposed deadline for the developer to break ground. "With the May (budget) revise and all the other things they're facing in Sacramento, I'm delighted he signed it when he did," Mayor Beverly O'Neill said. Tuesday's announcement comes one week after DDR and city officials held a ceremonial groundbreaking on the 18-acre site between the Long Beach Convention Center and the Aquarium of the Pacific. Plans include 370,000 square feet of entertainment, dining and retail space, although no retail tenants have yet signed on to the project. "Retailers are reluctant to sign leases until ground is broken," Adler said. A 14-screen movie theater will anchor the development. At least 16 restaurants have also signed on to the project. One of the biggest hurdles on the project was the land-use swap that Davis endorsed Tuesday. In September, the State Lands Commission approved a deal allowing certain retail elements of the project to be built on 3 acres of the formerly submerged land. The land had been held in the state's public trust, which limits the types of development that can occur. In exchange for lifting those limits, the state received public trust over 10 acres of undeveloped land the city owned along the Los Angeles River near downtown. While O'Neill announced the latest development inside the council chambers on Tuesday, more than two dozen people protested the project outside. In what was billed as a "heartbreaking ceremony," protesters said the project had lost the "wow factor" city officials originally promised for the development. Protesters said they want the State Lands Commission to revisit the land-use swap since the design of the project has changed since the September hearing. When the commission gave its approval to the deal, protester Ann Cantrell said, it allowed specific retail uses on the 3 acres in question, including a day spa and a book store. Those elements were not part of the plan announced by DDR in its groundbreaking ceremony. "Our feeling is the State Lands Commission needs to have another hearing because (the developer) has not followed the conditions put on this," she said.