City Council Approves $34 Million Sale of Pacific Park

Around midnight, the  unanimously approved the $34 million sale of , which is the main draw on the Santa Monica Pier and one of the city's biggest attractions overall.

The decision had been anticipated. But, contrary to expectations, there was no public comment over the sale, the staff report was not read and no questions were asked by council members.

CNL Lifestyle Properties—the Orlando, FL company that will ultimately take control of the park from Santa Monica Amusements, LLC (SMA)—is a non-traded real-estate investment trust that also owns Arrowhead Golf Club, Mountain High Ski Resort, WaterWorld and other lifestyle-oriented properties.

According to the staff report, the assignment of the lease will result in the city receiving a one-time transfer premium payment of approximately $1.4 million from the asset purchase agreement. An independent auditor will review the transaction once it is completed, at which point the exact amount of the payment will be finalized.

Under the terms of the lease, the city is the landlord. In September 2002, the city and SMA entered into the lease agreement, which was recommended by the Santa Monica Pier Restoration Corporation (SMPRC). The staff report says the lease set forth "the requirements for obtaining the city's consent to transfers or assignments of the lease."

Management will remain the same, a point that  underscored after the 7-0 decision was reached.

"Lest anyone think that the Pacific Park has been sold and is leaving the community, rest assured [that while] there will be new ownership ... management that runs the day-to-day operations will be staying in the city, and operations will continue as before," he said.

Pacific Park CEO Mary Ann Powell, and Director of Marketing and Sales Jeff Klocke, are highly engaged in the community of Santa Monica.

(For more coverage of Tuesday night's City Council meeting, go to this story about the official beginning of the debate over Santa Monica Airport, this story about the Council's virtual stroll through Palisades Garden Walk, and this story about the Council approving backyard beekeeping in Santa Monica.)