Council votes to settle Superblock lawsuit

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One official, who declined to be identified, said that the city had been in talks with iStar about a settlement, and because iStar proposed an economically viable proposal that features retail and public space along the boardwalk, the parties reached an agreement.

The settlement includes the construction and installation of new sewer and water mains extending south from Park Avenue along Riverside Boulevard, and east to the Superblock, with the cost to be borne by iStar. It also calls for the reopening of the movie theater on Park Avenue, closed since Hurricane Sandy, which is owned by Philips International, and any additional fees and charges required by the city.

“People have been asking questions about [the movie theater],” said Klein. “… At the direction of the City Council, one of the things that was very key was that we needed a movie theater — it’s an important element in Long Beach to have the movie theater back. And once we were able to reach settlement terms, [Philips] agreed to reopen as a movie theater.”

Seth Pilevsky, co-president of Philips International, did not return calls seeking comment.

Attempts to develop the Superblock stretch back to the 1970s. At one time the property comprised 13 separate lots and was home to a bowling alley and a bar, and the city’s waterfront was lined with blighted apartment buildings. For decades the property has languished amid political wrangling, numerous lawsuits, public opposition ranging from complaints about obstructed views to the shortage of parking due to overdevelopment, and the 2008 financial crisis.

In 2001, the City Council contracted with Philips International to build three 10-story buildings, one of which would have included a hotel. The project stalled, and five years later the city acquired the land through eminent domain and transferred ownership to Janow Associates, a Philips subsidiary. At that point the project was scaled back to two towers with 425 condominium units as well as hotel units, but the developer defaulted on the mortgage.

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