Los Cerritos Wetlands land swap deal hits a snag

I found this link from the LA Creek Freak. From the Long Beach Telegram:

A credit crunch has forced developer Tom Dean to back out of a land sale that was being brokered by city officials at the site of a formerly planned sports park.

Public Works Director Mike Conway told the City Council Tuesday that Dean no longer plans to buy an eight-acre property owned by Amerigas Propane L.P. that is part of land once slated for a new sports park between California and Orange avenues south of Spring Street. Dean had planned to locate a crane sale business there.

Dean also is the developer with whom the city is negotiating a land swap to allow the preservation of Los Cerritos Wetlands in East Long Beach, but city officials said that deal won’t be affected by the lack of an Amerigas purchase. However, the Amerigas purchase was considered to be the initial step toward the wetlands land swap.

Conway said circumstances have changed since council members voted Nov. 18 to postpone a vote on the proposed Amerigas purchase – a double escrow agreement that would have moved the property from Amerigas to the city to Dean – because they wanted more information. The council was to consider it again Tuesday, but unanimously voted to receive and file the matter, killing the deal.

“The subsequent purchaser’s lending institution has taken a more risk-averse lending policy and have withdrawn their funding for this project and consequently we don’t have a subsequent buyer, so this project is no longer financially viable,” Conway told the council.

Read more from the Long Beach Telegram by clicking here.

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