This post was originally published on this site
Despite approvals by the City of Los Alamitos with construction permits granted, the controversial 246-unit Lampson Project appears to have hit another slowdown.
At issue, again, is the unusual geographical alignment of the proposed site, which is physically located in the City of Los Alamitos. Yet, most of the opposition has come from residents of Seal Beach who live across the street from the proposed development.
When the 12.4-acre site belonged to the federal government and operated as an office complex, the sewer service was provided by the City of Seal Beach, although the site was in Los Alamitos.
However, when the Los Al Council approved the construction permit for a much larger project slated for the same site, it was suggested that the Rossmoor Los Alamitos Area Sewer District (RLAASD) would provide the sewer service if Seal Beach did not.
As it turns out, the RLAASD is a micro agency, consisting of three members from Los Alamitos and two from Rossmoor, that, for the most part, handles sewer connections and complaints of about 8,000 connections.
The small, largely unknown agency has one paid employee and no staff for the construction of major infrastructure.
Seal Beach, meanwhile, provides service to hundreds of homes in College Park East, which is directly across from the site, and a connection to the site made sense and there was no objection to providing minimal service to the federal government.
Local attorney Carol Churchill, a Rossmoor resident, attorney, and a former Mayor of Signal Hill, has methodically researched the documents and says it appears the sewer situation is further complicated by the fact that the sewer connection to the Lampson site runs deep underneath College Park East.
“They cannot run the lines down Lampson Avenue because of a major natural gas pipeline that would create a danger to residents If compromised,” she said.
Nevertheless, attorneys for the developers and even a state agency have apparently been putting subtle pressure on the Seal Beach City Council, suggesting existing laws compel the city to continue providing service.
Recent agendas from the SB City Council indicate they have met in executive session more than once recently to discuss pending litigation, and a copy of the letter from their city attorney obtained by ENE indicates they believe that the state and developers are misreading existing law.
Charles M. Kelly, an associate editor of the SUN, reported that, in a memo dated March 6, 2025, Ghirelli had warned the Seal Beach Council of a threat of litigation over the Lampson Project.
The recent letter obtained by the Event News-Enterprise, written by Seal Beach City Attorney Nicholas R. Ghirelli, was apparently in response to correspondence from Shannan West, Chief of the Housing Accountability Unit, a division of the Housing Policy Development section of the California Department of Housing and Community Development, regarding potential litigation.
“This letter responds to your letter to Seal Beach Interim City Manager Patrick Gallegos, dated March 17, 2025, regarding the Lampson Avenue housing project in the City of Los Alamitos (‘Project’),” the letter begins.
“As you know, the Project site is located within the City of Los Alamitos in the sewer service area of the Rossmoor/Los Alamitos Area Sewer District (“District” or “RLAASD”). This site is wholly outside of the jurisdictional boundaries and service area of the City of Seal Beach,” Ghirelli said.
Ghirelli then started addressing the assertions made by West in her letter to the Seal Beach City Manager.
“In your letter, you characterize the Applicant’s current request for sewer service from the City of Seal Beach as a ‘post-entitlement permit’ related to infrastructure in the City of Seal Beach. As explained below, the Applicant’s request for sewer service from the City of Seal Beach is not a ‘post-entitlement permit’ under these circumstances. In addition,” the city attorney said.
“The facts here simply do not implicate Government Code section 65589.7, as you suggest in your letter. In summary, we disagree with HCD’s conclusion that the City ‘must approve the sewer connection to the Project or make findings of denial as required under Government Code section 65589.7.’
After making it clear that the city will not roll over in agreement that Seal Beach taxpayers are not compelled to provide the expanded sewer service to more than 250 housing units proposed for the site, they are willing to discuss it.
In addition, Ghirelli informed the state in this letter that they are also not under any obligation to provide sewer service to the district, they are open to negotiations.
“Although the City has no obligation to provide sewer service to the Project, the City is working with the Applicant to gather information regarding the potential impacts to the City’s sewer system,” the Seal Beach City Attorney said.
“If the City were to decide to provide sewer service to the Project, as requested by the Applicant, the City will continue to work in good faith to assess this information,” he said.
In addition, Ghirelli pointed out to the state that key provisions of any such agreement were left out of the state’s letter.
“As City staff explained to HCD staff in November 2024, the decision to provide sewer service outside of the City’s jurisdictional boundaries—within the limits of the City of Los Alamitos, and within the service area of a separate public agency (RLAASD)—requires the voluntary negotiation of an agreement between the City and RLAASD, and potentially approval by the Orange County Local Area Formation Commission (LAFCO), all in accordance with the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000,” cites the SB City Attorney in the letter to West.
“Your letter does not address this important statute that regulates the organization of local government in California—the primary issue in this case,” he said.
The ENE was not able to review the letter sent by West to the city of Seal Beach but did obtain a copy of the letter from Richards/Watson/Gershon, the law firm that represents Seal Beach.
Meanwhile, developers must still feel confident that the project will move forward, as the Orange County Business Council reported this week that the 12.4-acre site planned to house the development was purchased for more than $85 million by one of the nation’s largest home builders (See related story).
Sources close to the negotiations say Seal Beach officials are concerned that they will have to eventually add more than 1,000 new residences under their housing element to their aging sewer system.
City officials have now said, through their attorney, that they’re willing to discuss it, but under no law are they compelled to add the sewer capacity to handle the project.
Public works officials are studying whether the aging Seal Beach sewer could handle the sewer requirements of these additional residences, and with big money now in the game, taxpayers could eye impact fees and other financial alternatives if city officials develop any interest in serving Lampson.
Lampson site sold for $65.2 million
A property site purchased at an auction from the federal government approximately four years ago for $26.5 million has been resold this past week for $65.2 million, according to a local business journal.
The site known locally as the Lampson project has reportedly been purchased by one of the nation’s largest homebuilders.
The Orange County Business Journal first reported the sale of the building and 12.4 acres along Lampson Avenue to Lennar Corporation, a public company. The site, once utilized by offices and government agencies, is now at the center of a proposed housing complex that has caused consternation for residents who live near the site.
According to public documents, Lennar Corp. is based in Miami, Fla, and operates local offices across the country, including one in Irvine. The company has a market capitalization of over $27 billion, has more than 13,000 employees, and a reported income of over $34 billion in 2023, according to financial reports.
It is considered one of the country’s top public home-building companies.
Although Lennar’s company website has not made any official announcements yet, the OC Business Journal said the building at 4665 Lampson Ave., formerly named Poplar Plaza, has purchased the site from investors led by MWInvestment Group, LLC.
Matthew J. Waken is the principal of the company, domiciled in Ladero Ranch, according to the California Secretary of State’s Office.
MWInvestment Group LLC was the winning bidder of the GSA property auction in 2021, and since that date, a coalition of local investors and companies have collaborated to create a project consisting of 246 homes at the site.
After much controversy, the City Council of Los Alamitos voted to award the project a construction permit by a vote of 3-1-1 in November of 2024.
A local office building spanning more than 92,000 square feet could be torn down and converted into a housing development.
The building on 12.4 acres just south of the Joint Forces Training Base Los Alamitos was bought by national homebuilder Lennar Corp. for $65.2 million last month, according to CoStar data, the journal reported.
Lennar’s exact plans for the property at 4665 Lampson Ave. have not been confirmed or finalized, but documents widely available through the city of Los Alamitos and public sources indicate the site has been targeted for residential redevelopment.
