On Tuesday, the Pismo Beach City Council discussed the repairs needed for the Chapman Estate.
Officials say the cost of repairing the property will be millions of dollars.
Clifford Chapman purchased the Chapman estate in 1962. After he died, the property was gifted to the City of Pismo Beach.
The estate is supposed to operate as an event center, but over the years has incurred more than $2 million in operating, maintenance, and capital expenses and still needs repairs before it can be re-opened.
Now, the city is trying to decide whether to cover needed repairs and maintenance or sell the estate.
“The decision is and always was: Is the city willing to pay for the baseline repairs that are needed for this and get this thing up and running for special events?,” said Marcia Guthrie, Pismo Beach City Councilmember. “But the city would have to subsidize it as far as I'm concerned because I don't feel it's fair to the neighborhood to have increased larger events.”
The baseline repairs cost $6.8 million.
City officials also looked at two other options. The first is called "No Change" and would only make repairs to the gull cottage covered by the current insurance claim.
The second is to sell the property valued between $13 million and $17 million contingent on repairs and improvements.
“I think it'd be worthwhile to try to see if we can find some way to keep it going and if we can't reach some point, we have to move on,” said Ed Waage, Pismo Beach Mayor.
The benefit of selling the property would create a one-time revenue amount of $2.2 million, which recovers all past operations and maintenance costs.
“If we're going to keep it, we have to find a way for the city to support it without incurring a big burden on all the neighbors and I just don't know how you do that,” said Scott Newton, Pismo Beach City Councilmember. “All raising $6.8 million minimum, on top of the $2.3 we've already spent, while we go out and ask the public for a sales tax increase, and as we're building a $50 million safety center. That’s a lot of debt.”
If the city sells the property, it removes the Chapman Estate from the city and it would no longer be available to the public.
Some Shell Beach residents feel that the repairs should be made.
“Giving more attention to this estate would be absolutely amazing,” said Mylee Beckstrand, a Shell Beach resident. “It's such an amazing place and really does provide a lot of attention towards the eco-tourism.”
“Chapman was very generous to hand off the estate to the city, so I would hope they would maintain it at a level that the people here can enjoy it as intended,” said Dave Stornetta, a Shell Beach resident.
Pismo Beach City Councilmembers decided to give the city and Chapman Estate Foundation six months to find funds to assist with the repairs.
If a solution is not made within that time frame, city council members will reevaluate whether to sell the property.
