Monday, December 11, 2006 Queen seeks new neighbors   By Mira Jang Staff writer L.B.: Council will consider how best to develop 45 acres of land surrounding ship; ideas include banquet halls, gambling, condos. The City Council is moving ahead with plans to develop the city-owned property surrounding the Queen Mary. Councilwoman Suja Lowenthal wants heavy input from the community in deciding what will be built. LONG BEACH - Just weeks after the city reached a tentative deal with Queen Mary operators to settle a rental dispute, the City Council on Tuesday will begin talks on how to develop the acres of land surrounding the ship. Councilwoman Suja Lowenthal will ask City Manager Jerry Miller to schedule a study session next month for council members to discuss options for the 45-acre property and ways to preserve the ship's historic features. "We're at a great point right now, with the legal settlement hopefully out of the way," Lowenthal said. "We've been focused on the bankruptcy, so we haven't had the luxury of imagining the potential of that area." The talks follow Queen's Seaport Development Inc.'s agreement last month to pay the city $4.9 million for back rent after a long-standing dispute over payments the city said it was owed. QSDI, which leases the ship and its surrounding land from the city, filed for Chapter 11 bankruptcy protection last year. The city expects a hearing on the rent settlement, which must receive a judge's approval, to occur in early January, said Charles Parkin, principal deputy city attorney. Howard Ehrenberg, a trustee assigned by a judge to run the property near the ship during the bankruptcy phase, has been vetting potential developers for the site. He said there are 17 bidders, with one - a company specializing in mixed-use projects - currently being evaluated to make sure it is financially qualified to take over the lease. The minimum bid for the remaining 58 years of the 66-year lease is $40 million. The courts have final say over which developer can take over the lease, but Ehrenberg said the city has strong influence over the outcome. Ehrenberg declined to disclose the name of the company, but he said it is based in Southern California and has international experience with multi-use sites, a concept, he said, that is more popular on the East Coast and abroad. "It's clearly the direction for development. It's a dynamic approach," he said. The company has proposed building hotels, a convention center, restaurants, and retail and office space, Ehrenberg said. He expects the company to offer a bid in court by mid-February, at which time other developers could make counter-offers. Typically, it takes at least one year to choose a developer for such projects, he said. Parkin said the city hopes to choose a developer by summer 2007. "The bottom line is everybody wants whatever is best for the city. It is important to me that the city approve the buyer," Ehrenberg said. Lowenthal said she and her council colleagues will help craft a vision for the Queen Mary and the adjacent land, but she wants residents to play a large role in the process - a move, she said, that breaks with the city's usual way of doing business. "I personally have felt that projects have been developer-driven or City Hall-driven. But it really needs to be community-driven," she said. To solicit more resident input, Lowenthal on Tuesday will ask the city manager to bring into the discussion the Downtown Visioning Committee, a 14-member group comprised of residents, architects, city planners and business leaders. Lowenthal said the committee will help design the Queen Mary land in a way that blends in with the rest of downtown, which has been undergoing a major revitalization. She wants more walkways, bike paths and public transportation that connects people to all the major downtown attractions, including the Queen Mary, the Pike, Shoreline Village and Pine Avenue. "We need to treat development in the context of what already exists and what we may be planning for the future. The planning can't be this island that doesn't fit into the rest of the pieces," she said. To help struggling businesses by the Queen Mary, Lowenthal hopes to increase foot traffic to the area and create a bustling tourist attraction. The committee, Lowenthal said, will host community meetings starting as early as late January to receive suggestions. So far, residents' ideas have included anchorages for yachts, high-end gambling - which is illegal - and building more banquet halls on the land to complement the ship's hotel rooms and conference rooms. Residents have also asked her to consider building condominiums, which is forbidden under the site's zoning. Although it's still uncertain how the land will be used, Lowenthal said it's clear that any changes should preserve and restore the historic character of the Queen Mary. "This is such a part of our history. I personally have a love affair with the Queen Mary. It's a tremendous historical monument," she said. Bigger than the Titanic, the Queen Mary became city property in 1967 after carrying 765,429 military personnel and serving in World War II. The ship now houses hotel rooms, restaurants, banquet halls and a museum. Revenue is up 10 percent compared with the same period last year, Ehrenberg said. Charter changes In other action, the council today convenes as the Charter Amendment Committee to discuss the council's pay, term limits and whether council members should be part-time or full-time. The committee will also talk about changing council members' pay to 50 percent of the mayor's salary instead of the current 25 percent. Members will also address creating a position for a chief legislative analyst. The discussion comes as the council considers changes to the City Charter, which serves as the city's constitution. Any changes would require voter approval. Also, Councilwoman Gerrie Schipske will ask the council to consider giving itself the power to conduct investigations. The meeting is to be held from 7 to 8:30 p.m. at Hughes Middle School, 3846 California Ave. On Tuesday, the Charter Amendment Committee will hear presentations from Bob O'Neill, executive director of the International City Management Association and from John Shirey, executive director of the California Redevelopment Agency, a former city manager of Cincinnati and assistant city manager in Long Beach. The committee will also discuss consolidating the city attorney and city prosecutor offices. The meeting runs from 3 to 5 p.m. at City Hall council chambers, 333 W. Ocean Blvd. On Thursday, the committee will hear a presentation from Duke law professor Erwin Chermerinsky, a constitutional law expert. The meeting is from 4 to 5:30 p.m. at council chambers.