AES power plant sale close to final as buyer comes forward

The landmark sale of AES Power Plant site hit a milestone Tuesday as the buyer of the property was revealed and escrow closed on the adjacent SeaLab property and small parking lot south of the Bay Club.

The Los-Angeles based buyer, Next Century Power LLC, is in the process of closing its purchase of the 51-acres worth of remaining parcels in the AES property, according to Leo Pustilnikov, the NCP representative who spearheaded the purchase.

“I am working on acquiring the power plant in the next two or three quarters, so by the first half of next year,” Pustilnikov said.

Prices, terms and specifics on the plans for the site have not yet been disclosed, but the property is currently zoned only for a power plant or park uses.

Any change to this zoning would require a public vote.

Pustilnikov said he is in talks with the city regarding making a portion of the property a public park.

Redondo Beach Mayor Bill Brand said the city staff, California State Coastal Conservancy and the California Coastal Commission met Monday to “begin the complex public process to be undertaken to redevelop this site.”

“The entire site is in the Coastal Zone and four years go the Coastal Commission determined that 5.93 acres are jurisdictional wetlands,” Brand said in a statement issued Tuesday. “The first step in the process is an update to that study to determine how much wetland will have to be restored and where on the property they are located.”

The state Coastal Conservancy has committed to assist with identifying public funding for wetland restoration, as well as funding for parks and open space, according to Brand.

Brand said Redondo Beach and Los Angeles County are also in the process of forming “an enhanced infrastructure financing district” around the power plant site and Edison power line corridor that will “capture additional public funds to help finance any public improvements, operations and maintenance.”

The Redondo Beach mayor emphasized collaboration between various agencies and the new property owner will help maximize public use and identify funding.

The buyer, Pustilnikov, is a principal with the firm SLH Investments which owns South Pasadena’s historic Rialto Theatre, which they purchased in 2015. He’s also worked with partner Izek Shomof on plans to revitalize the 90-year-old Sears Tower landmark in LA.

Those plans call for transforming the Art Deco tower and adjacent 10-story distribution center in Boyle Heights into a mixed-use campus with a food hall, offices, event space, rooftop restaurant and more than 1,000 live-work units.

Community engagement to come

Next Century Power is a limited partnership created for the purpose of acquiring land in Los Angeles, Pustilnikov said, adding he plans to engage Redondo Beach residents in planning for the site.

“It’ll come about through a community dialogue,” Pustilnikov said. “The residents of Redondo care about what they see in their backyard and it’s understandable. Throughout the process of coming up with a plan for the site, we will engage the residents and hear their feedback.”

For Brand, the potential of the century-old site represents the opportunity to create a meaningful opportunity to create a financially sustainable development “for generations to come.”

The mayor has pushed for the conversion of the power plant property into parkland for the past 17 years.

The issue has divided Redondo Beach since at least 2001 when the “Heart of the City” project was being discussed. Those plans called for predominantly commercial and residential development on the property, which ultimately fell through.

In 2013, Measure A, which would have dedicated 40 percent of the property to commercial development, was also rejected.

The latest effort, in 2015 through Measure B, to change the zoning and allow for a residential and commercial project, was also rejected.

The mayor hopes this latest bid will result in bringing down the plant and the power lines.

“This is a transformative time for Redondo Beach to say the least and for the entire South Bay,” Brand mused. “While we appreciate the critical needs the power plants of the last 120 years have provided to our community and the region, it is no longer needed for grid reliability.”

The former plant will be officially decommissioned Dec, 31, 2020, according to Brand, and the public engagement process is anticipated to begin early next year.