Administration says Ocean Terrace developer is pursuing permits; committee told default not warranted while developer pursues building permit

City attorneys and staff updated the committee on the Ocean Terrace (ocean terrace) project timeline and a settlement agreement governing park and public-benefit obligations tied to that development.

Staff said the developer submitted construction drawings, obtained Historic Preservation Board approvals for the park and the project, and submitted the payments required under the settlement agreement. The settlement included an updated timeline for delivery of public benefits tied to the park; the plan identified the building permit issuance for the park as a critical path item and set a target (the settlement referenced a September 1, 2022 date subject to excusable permitting delays).

City attorneys told the committee that the developer has put the city on notice that delays are attributable to governmental permitting processes and that the developer expects a building permit to issue before the end of the year. Under the settlement and underlying agreement, the city would need to issue a formal notice of default and give the developer an opportunity to cure (90 days) before taking enforcement steps. Because the developer represents that it is diligently pursuing permit issuance and has substantially completed required steps, staff recommended against issuing a notice of default at this time.

Committee members asked for the transcripts of prior closed‑door settlement sessions to be provided for context; staff agreed to share the relevant records with committee members. The administration said it will track the permit process and return with status updates; staff stated they expect to have clarity on permit issuance within the next 60 days.