CC SR 20220215 02 - Hatano Farm
CITY COUNCIL MEETING DATE: 02/15/2022
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA TITLE:
Consideration and possible action to undertake a reconsideration of the prior action of the
City Council terminating the lease agreement with Mr. Martin Martinez at Upper Point
Vicente (the “Hatano Farm”).
RECOMMENDED COUNCIL ACTION:
(1) Determine whether to rescind or proceed with the November 24, 2021, City
Attorney's "Notice of Termination of Lease" letter to Mr. Martinez terminating the
agricultural lease agreement effective August 16, 2022, and requesting the
surrender of the premises to the City by that date;
(2) In the event the City Council elects to rescind the termination letter, direct Staff to
work with the City Attorney's Office to allow the continued agricultural operation at
Upper Point Vicente by Mr. Martinez subject to new terms;
(3) In the event the City Council elects to proceed with the termination letter, provide
direction on one or a combination of the following uses to repurpose the site as a
(previously reported and updated uses):
a. Community Garden
b. Native Plant and Seed Nursery
c. Native Habitat Restoration Site
d. Cacti Garden
e. Historic Designation Site
FISCAL IMPACT: None
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Karina Bañales, Deputy City Manager
REVIEWED BY: Same as above
APPROVED BY: Ara Mihranian, AICP, City Manager
ATTACHED SUPPORTING DOCUMENTS:
A. January 18, 2022, Staff Report
B. Thirty-Day Notice of Termination of Lease (page B-1)
C. Email to David Siegenthaler regarding POU Question (page C-1)
D. City Council Policy No. 37 (page D-1)
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E. Public correspondence (page F-1)
BACKGROUND:
On November 16, 2021, after considering information presented, the City Council, on a
4-1 vote (with Mayor Bradley dissenting), directed Staff to terminate the lease agreement
with Mr. Martinez for the agricultural use of the Hatano Farm area at Upper Point Vicente
(UPV) no later than nine months from the date of the Council's decision.
On November 24, 2021, as directed by the City Council, the City Attorney's Office gave
written notice of lease termination to Mr. Martinez (who at this point is now operating on
a month-to-month basis) with the effective surrender of the site date of August 16, 2022
(Attachment B).
On January 18, 2022, at the request of Mayor Pro Tem Ferraro, the City Council moved
to reconsider its November 16, 2021, decision to consider terminating the City’s lease
with Mr. Martin Martinez. As a result of that discussion, the City Council is now being
asked to consider whether it wants to proceed or rescind its lease termination letter to Mr.
Martinez, and depending on its decision, provide Staff with direction on updated options
for the City Council to consider on how the area will be used moving forward.
DISCUSSION:
1. Determine Whether to Rescind or Proceed with the November 24, 2021, City
Attorney's "Notice of Termination of Lease" Letter to Mr. Martinez
In response to the January 18 decision to reconsider its motion to terminate the lease
agreement with Mr. Martinez, the City Council must first decide whether it desires to
rescind or proceed with the termination letter.
Rescinding the Notice of Termination of Lease
In reconsidering whether to rescind the lease termination letter, which would allow Mr.
Martinez to essentially continue his agricultural operation in some form or another at UPV,
the following items should be factored:
• Consistency with The Program of Utilization
• Consistency with Palos Verdes Nature Preserve Public Use Master Plan (PUMP)
• “Gift of Public Funds” Issue
• Land Value Estimate
Consistency with the Program of Utilization (POU):
The Hatano Farm at UPV is located within a portion of the property regulated by the
Program of Utilization (POU), which established land-use restrictions when UPV was
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transferred from the federal government to the City via the Federal Lands to Parks
Program in 1976. The POU is administered by the National Park Service (NPS) and the
General Services Administration (GSA). According to the POU, leasing all or a portion of
the UPV property for commercial purposes, in this case farming, is inconsistent with the
POU. The City has been notified by the NPS that the lease agreement for the use of UPV
is out of compliance with the terms of the POU.
In recent discussions with David Siegenthaler, Regional Program Manager, Federal
Lands to Parks from the National Park Service, Interior Regions 8, 9, 10, and 12 , he
confirmed that if the City were to allow the farming operation to continue, and thus remain
out of compliance with the POU, the federal government may have the option of taking
the land back. Mr. Siegenthaler responded to Staff addressing the exact language found
in the deed (Attachment C):
"In the event that there is a breach of any of the conditions and covenants
herein contained by the Grantee, its successors and assigns, whether
caused by the legal or other inability of the Grantee, its successors and
assigns, to perform said conditions and covenants, or otherwise, all right,
title and interest in and to the said premises shall revert to and become
the property of the Grantor at its option which in addition to all other
remedies for such breach shall have the right of entry upon said premises,
and the Grantee, its successors and assigns, shall forfeit all right, title and
interest in said premises and in any and all of the tenements, hereditaments
and appurtenances thereunto belonging; provided, however, that the failure
of the Secretary of the Department of the Interior to r equire in any one or
more instances complete performance of any of the conditions or covenants
shall not be construed as a waiver or relinquishment of such future
performance, but the obligation of the Grantee, its successors and assigns,
with respect to such future performance shall continue in full force and effect
. . . ." (Emphasis added.)
Further, Mr. Siegenthaler informed Staff that the federal deed for the property overrides
uses identified in City planning documents.
Consistency with Palos Verdes Nature Preserve’s PUMP:
The Palos Verdes Nature Preserve (Preserve) was formed by the City, for the most part,
in response to the Natural Communities Conservation Plan/Habitat Conservation Plan
(NCCP/HCP). A component of the NCCP/HCP is the Public Use Master Plan (PUMP)
that identifies the permitted public uses and activities within the Preserv e. The City's
NCCP/HCP and PUMP allows the continued operation of any farming activities in the
Preserve, provided that such activities are not expanded.
Farming is currently conducted as an existing agricultural use at the Alta Vicente Reserve
(Upper Point Vicente/Civic Center) on the southeastern slopes along the Prickly Pear
Trail consisting of approximately 5½ acres in size. According to the PUMP, this farming
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operation can continue provided no habitat restoration is scheduled for the site, and all
agricultural practices and improvements are not expanded and remain consistent with the
NCCP/HCP. No other agricultural activities are allowed in the Preserve.
Notwithstanding, as previously noted, commercial use and receiving property use fees by
Mr. Martinez remain out of compliance with the POU.
“Gift of Public Funds” Doctrine:
At the November 16 and January 18 meeting s, the City Council discussed whether
continuing to lease the 5.5 acres at UPV for $100 a month for commercial use by Mr.
Martinez may be construed as making a prohibited gift of public funds. Staff has discussed
this item with the City Attorney. In the discussion below, a gift of public funds is described
as the City allowing the use of public property for little or no revenue to the City and for
private or individual gain without public benefit.
The City Attorney provided the following legal opinion:
Our state Constitution provides that “[t]he Legislature shall have no power to give or.
. . to make any gift or authorize the making of any gift, of any public money or thing of
value to any individual, municipal or other corporation whatever . . . .” Cal. Const. Art.
XVI, § 6. (Emphasis added.) “However, ‘expenditures of public funds or [use of public]
property which involve[s] a benefit to private persons are not gifts within the meaning of
the Constitution if those funds are expended [or the use of public property is] for a public
purpose’ [Citation.]” (Preston v. State Board of Equalization (2001) 25 Cal.4th 197, 225.)
In determining whether a legislative body has made a gift of public funds, the courts will
look first at “whether the money [or property] is to be used for a public or private purpose."
(Oakland v. Garrison (1924) 194 Cal. 298, 302.) "If it is for a public purpose within the
jurisdiction of the appropriating board or body, it is not, generally speaking, to be regarded
as a gift." (Id.)
As the California Court of Appeal explained in Board of Supervisors v. Dolan (1975) 45
Cal.App.3d 237, 243, "if a public purpose is served by the expenditure of public funds , [or
use of public property the Constitution] . . . is not violated even though there may be
incidental benefits to private persons." However, to avoid violating the constitutional
prohibition, the expenditure of public funds or use of public property is allowed only if a
"direct and substantial public purpose is served and nonstate entities are benefited only
as an incident to the public purpose." (California Housing Finance Authority v. Elliot
(1976) 17 Cal.3d 575, 583.)
Thus, the use of public property that does not directly further a proffered public purpose
may be found to be an unconstitutional gift. Courts defer to the legislative body's
determination of what constitutes a "public purpose." (County of Alameda v. Carleson
(1971) 5 Cal.3d 730, 746.) The concept of public purpose has been "libe rally construed
by the courts," and a city council's determination of public purpose will be upheld "so long
as that determination has a reasonable basis." (Id.)
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Mr. Martinez has farmed on UPV, a public government-owned property by growing plants
to sell for personal, commercial purposes. He has shared with Staff and the public that
farming on UPV is his only source of income.
Land Value Estimate:
At the January 18 meeting, a question was raised as to what the current market value of
the farm area is. In response, Staff discussed the matter with Kosmont Realty (KR)
regarding the potential value of the 5½ acre Hatano Farm area at UPV. Based on a prior
review of agricultural land in Southern California by KR, they suggested that under a
ground lease, the property value for agricultural use could be in the range of roughly
$2,000 to $4,000 per acre, per year. This range would be equal to $11,000 to $22,000
per year for the entire 5½-acre site. For an abundance of clarity, this range is not based
on a specific analysis of the Hatano Farm site, but rather a sampling of agricultural land
in Southern California. KR is available to complete an analysis specific to the Hatano
Farm site if desired by the City Council.
As previously noted, the City continues to lease the Hatano Farm site to Mr. Martinez for
$100 per year. When the City Council considered what to do about the Hatano Farm lease
in the past, rent was not increased due to , among other things, the City’s long-standing
relationship with Mr. Martinez’s former employer and the original lease holder, Mr. James
Hatano. For background, the $100 annual rent rate was established in Septembe r 1993
via an informal agreement between Staff and Mr. Hatano.
The oldest lease agreement for the farm site that the City has on file is from December
1973 between Mr. Hatano and the U.S. Department of the Army, which set annual rent at
$500. At that time, the lease area was larger, at 13 acres. When the City took over UPV,
Mr. Hatano entered into a new lease agreement with the City in December 1974 through
September 1979 under the same terms as the Army lease. After the lease expired, Mr.
Hatano continued to farm the site without a new lease agreement and without paying rent
until the informal agreement was made in 1993. A formal lease agreement was executed
in March 2001.
Based on the information provided above, Staff seeks direction from the City Council on
whether to rescind the November 24, 2021, City Attorney's "Notice of Termination of
Lease" letter to Mr. Martinez thereby terminating the agricultural operation by August 16,
2022. If the termination letter is rescinded and no other direction is provided on how Mr.
Martinez could use the property, this would mean that the farming would continue as
status quo for a period determined by the City Council. If continuing indefinitely, the City
would remain at risk for potential action by the federal government for failing to comply
with the POU and potential claims filed against the City alleging a gift of public funds.
That said, if the City Council desires to continue leasing the site to Mr. Martinez in spite
of these risks and liability, the Council may also consider establishing new terms of
agreement including adjusting the rent to better reflect the market rate based on further
analysis provided by KR for the City Council’s consideration at a later date.
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2. Proceeding with the Lease Termination
The City Council may also consider upholding the notice of termination of lease issued to
Mr. Martinez. If this is desired, the City Council can consider one or a combination of the
following options, some of which were presented at the November meeting, and some of
which are based on new information obtained by Staff for repurposing the site.
Option A - Community Garden
A community garden remains an option for potential use of the site. The City Council is
aware that the POU that controls this portion of the site prohibits commercial leases.
However, the PUMP allows for continued farming or agricultural uses at this site provided
that, among other things, the area is not expanded, no pesticides or herbicides are used,
and invasive plants are not introduced. This option could potentially include elements
such as:
• A community garden with individual plots available for public, non -commercial use;
• A demonstration farm with an open shade structure, bench seating, and
interpretive information regarding the history of local farming.
This programming remains consistent with the POU, General Plan, and Palos Verdes
Nature Preserve, including the NCCP/HCP and PUMP. Should the City Council consider
this option, NPS indicated it would need to be offered by the Recreation and Parks
Department as community garden demonstration programming. If a City-operated
community demonstration garden is selected as a preferred use, the City would incur
costs for developing programming, allocating funding for new hires, and amending
existing job specifications for several Recreation and Parks Department positions to
include farming expertise.
A classification and compensation study would have to be performed to ensure that the
rate of pay meets the level duties being performed and if the current job titles align with
the duties and tasks with this option. The City would also incur costs for maintenance and
the construction of a small storage structure and composting facility. Some grading may
be necessary to improve access and usability, and roadway improvements may be
required to improve site accessibility to Americans with Disabilities Act-compliant levels.
At this time, Staff has not evaluated the exact cost associated with this option. However,
if the City Council selects this option, Staff will return with estimated costs. It should be
noted that the City may not be able to assess any fees to avoid a potential commercial
operation and that in recent conversations with the NPS, this use option would most likely
be consistent with the POU. Still, Mr. Martinez would no longer farm the site for
commercial purposes. However, if interested, Mr. Martinez, may apply for a Recreation
and Parks a position to manage the community garden or could be retained as a contract
employee with specialized skills to manage the community garden.
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Option B - Native Plant and Seed Nursery
The PVPLC continues to have an interest in using the site for growing native plants and
seeds to be used in its habitat restoration projects throughout the Palos Verdes Nature
Preserve. As the City's Habitat Manager for the Preserve, and as stipulated in the
NCCP/HCP, the PVPLC must restore at minimum 5 acres of habitat each year. To ensure
proper seed material is available for this endeavor, a native seed farm in the footprint of
the current lease site within the Alta Vicente Reserve (also known as UPV) boundary
would serve to fulfill those obligations.
Locally sourced seeds provide the necessary genetic material for plants that have evolved
to the particular climate of the Peninsula and provide the best opportunities to support
Peninsula wildlife, including the endangered Palos Verdes blue butterfly. Additional
benefits could include providing seed material for City revegetation projects and local
residents to bring local pollinator species to their home gardens, schools, or local
businesses.
PVPLC Staff has met with Mr. Martinez and shared with him that the PVPLC would be
interested in working with him as a contractor or employee (depending on Mr. Martinez’s
preference) to oversee the operation of a native seed farm due to his expertise with
cultivating the property. This is a mutually beneficial option that would allow Mr. Martinez
to continue farming the land, but with a substitute “crop” that would support the land
restoration work performed for the direct benefit of the City. Mr. Martinez expressed
interest in this option, pending the outcome of his commercial lease agreement and if the
City Council ultimately agreed to pursue this option at UPV.
The PVPLC has offered to manage the land consistent with land-use requirements of the
POU, NCCP/HCP, and PUMP in accordance with the RPV/PVPLC Management
Agreement (Attachment C). Furthermore, at the November 16, 2021, City Council
meeting, Staff was directed to work with the PVPLC regarding an appropriate placement
of the native seed farm in other areas within the City including UPV. Staff and the PVPLC
are currently working on this directive for consideration by the City Council at a future
date.
Option C - Native Habitat Restoration Site
Pursuant to the NCCP/HCP and the PUMP, the Hatano Farm lease area could be
restored with native habitat. This could be achieved as a future restoration project in
partnership with the PVPLC as its habitat manager or some other contracted entity (i.e.
Mr. Martinez as a contract employee). Staff believes this option is consistent with the
POU, General Plan, and the Palos Verdes Nature Preserve, including the NCCP/HCP
and PUMP.
Option D – Cacti Garden
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To assist with the City's fuel modification program and planting cacti in open space areas
designated as high fire hazard zones, the City Council could enter into an agreement with
Mr. Martinez to grow and maintain the cacti to fulfill the City's initiative of planting cacti in
high fire hazard zone. Placing cacti in a fuel modification zone can reduce fire risk and
provide wildlife habitat. The City could retain the services of Mr. Martinez as a consultant
to manage the cacti for the City and perhaps including replanting certain areas. Such a
contract would have to go before the City Council for consideration if desired.
Should the City Council decide not to enter into a contract with Mr. Martinez, the City may
consider creating a part-time, permanent part-time or full-time job of a “farmer” to maintain
the cacti garden at UPV. This position would also require a compensation and job
description study to ensure the level of work meets the time spent and meets the needs
of the City, and that the duties are clearly outlined in the job description and analysis. Mr.
Martinez and others could apply for this position and undergo the employment eligibility
process.
The role of a farmer at UPV would be to preserve current cacti, cultivate native plants,
irrigate farm soil and maintain ditches or pipes and pumps, operate and service farm
machinery and tools, among other responsibilities. This may be a viable option since the
City is conducting a classification and compensation study and an organizational review
of its current City operations. It is important to note that if the City Council chooses to
create a new job description to maintain UPV, filling the position would need to align with
City policies and state and federal fair employment practices.
This option would not require a lease as the City owns the land. It will, however, need
someone with experience and knowledge of the land to ensure it can be applied toward
the City’s fuel modification program. This would also comply with the POU as it is not
used for commercial purposes. However, this option would need to include a recreational
component to comply with the POU.
Option E – Historic Designation Site
Staff has received inquiries from members of the public regarding preserving the farm
through historical site designation. On January 31, 2022, Staff met with Elaine Jackson-
Retondo, Ph.D., the Regional Preservation Partnerships and History Programs Manager
and Mr. Siegenthaler to discuss the site and for information regarding the historic
designation process. In addition, Staff inquired as to whether historical designation could
allow for commercial operation.
Below, Staff has outlined a summary of three historic designation options. It is Staff’s
understanding that the process for some of these designation options may be lengthy and
involve a high standard of evidence for designation. Without further exploration, the
likelihood of whether the site meets criteria for national designation is unknown at this
time. The following are possible historic preservation designations:
a. National Register of Historic Places
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b. National Historic Landmarks Program
c. Local Designation pursuant to City Council Policy No. 37
Of the three possible designations, only the National Register of Historic Places and local
designation would be applicable to the Hatano Farm site (not the National Historic
Landmark Program).
National Register of Historic Places
The National Register of Historic Places is the official Federal list of districts, sites,
buildings, structures, and objects significant in American history, architecture, archeology,
engineering, and culture. Properties curren tly listed have significance to the history of
their community state or the nation. The process to initiate this process begins with a
nomination. Nominations for listing historic properties come from State Historic
Preservation Officers, Federal Preservation Officers for properties owned or controlled by
the United States Government and Tribal Historic Preservation Officers for properties on
Tribal lands.
In addition, private individuals and organizations, local governments, and American Indian
tribes often initiate this process and prepare the necessary documentation. Once a
nomination has been submitted, a professional review board in each state will consider
each property proposed for listing and recommend its eligibility. To ensure the application
is considered, a property must meet the National Register Criteria for Evaluation:
Age and Integrity: Is the property old enough to be considered historic (generally
at least 50 years old), and does it still look much the way it did in the past?
Significance: Is the property associated with events, activities, or developments
that were important in the past? With the lives of people who were important in the
past? With significant architectural history, landscape history, or engineering
achievements? Does it have the potential to yield information through
archeological investigation about our past?
For National Register of Historic places consideration, a nomination begins with
contacting the State Historic Preservation Office. In Rancho Palos Verdes, the Point
Vicente Lighthouse, Wayfarers Chapel and Villa Francesca are on the National Register
of Historic Places. It should be noted that National Historic Landmarks are a separate
designation (see below), but National Historic Landmarks (NHLs) are listed in the National
Register of Historic Places if not already listed upon designation.
Historic Surplus Property Program
The City received public inquiries as to whether a program through the National Register
of Historic Places designation could allow for the continued commercial operation of the
farm, and hence, a pathway for Mr. Martinez to continue his business at the site. Staff is
aware of one program through the General Services Administration (GSA) and NPS that
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could potentially allow some form of revenue-producing activity through the federal
government’s Historic Surplus Property (HSP) Program. However, for reasons discussed
below, staff has been informed that this option is not viable.
The HSP Program is a partnership program that includes the GSA and NPS to preserve
and reuse Federal Historic Properties. The program enables state, county, and local
governments to obtain historic buildings once used by the federal government at no cost
and adapt them for new uses. There is some latitude in the HSP Program (also known as
the Monument Program) for revenue-producing activities. Dr. Jackson-Retondo provided
the following pertinent excerpt from the Real Property Disposal Regulations that GSA
includes on its website:
§102-75.455 - May historic monuments be used for revenue-producing activities?
The disposal agency may authorize the use of historic monuments conveyed under 40
USC 550(h) or the Surplus Property Act of 1944, as amended, for revenue -producing
activities, if the Secretary of the Interior—
(a) Determines that the activities, described in the applicant’s proposed program of
use, are compatible with the use of the property for historic monument purposes;
(b) Approves the grantee’s plan for repair, rehabilitation, restoration, and
maintenance of the property;
(c) Approves the grantee’s plan for financing the repair, rehabilitation, restoration,
and maintenance of the property. DOI must not approve the plan unless it provides that
all income in excess of costs of repair, rehabilitation, restoration, maintenance, and a
specified reasonable profit or payment that may accrue to a lessor, sublessor, or
developer in connection with the management, operation, or development of the property
for revenue producing activities, is used by the grantee, lessor, sublessor, or developer,
only for public historic preservation, park, or recreational purposes; and
(d) Examines and approves the grantee’s accounting and financial procedures for
recording and reporting on revenue-producing activities.
Based on the above, if the farming operation were to continue as a commercial enterprise
and happened to eligible for the HSP program, any revenue generated would have to be
used to support the program and not used for personal income by the operator (i.e. Mr.
Martinez). Furthermore, the site is not considered a historic building once used by the
federal government. Therefore, despite public inquiries, it is Staff’s understanding that
this is not a viable option for Mr. Martinez to continue his farming operation in compliance
with the POU.
National Historic Landmarks Program (most likely not applicable according to the
NPS)
For informational purposes only, the National Historic Landmarks Program includes
historic properties that illustrate the heritage of the United States. NHLs include historic
buildings, sites, structures, objects, and districts and represent an outstanding aspect of
American history and culture. A few NHLs include Mount Vernon, Pearl Harbor, the Apollo
Mission Control Center, Alcatraz, and Martin Luther King's birthplace as landmarks that
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illustrate essential contributions to the nation's historical development. The National
Historic Landmarks Program is a federal designation program. Designation as an NHL:
• Preserves the stories of nationally important historic events, places, and people
for all Americans.
• Helps to protect the historic character of the property from any federal action.
• Might facilitate eligibility for grants, tax credits, and other opportunities to maintain
its historic character.
This process takes approximately two to five years for a property to become an NHL. It
also requires a nomination by a State Historic Preservation Officer (SHPO), a Tribal
Historic Preservation Officer (THPO), a Federal Preservation Officer (FPO), a scholar, a
private owner, or an interested member of the general public who writes a letter of inquiry
to the NPS.
Prior to submitting a nomination, the National Parks Service, Cultural Resources Office
must be contacted to ensure the property meets the criteria. According to Dr. Jackson-
Retondo’s preliminary understanding of the past Hatano farm operation, it is unlikely to
be eligible for NHL designation.
Local Designation Pursuant to City Council Policy No. 37
Under this option, the City Council may exercise its authority to recognize Mr. Hatano and
his family as a monument under City Council Policy 37 - Naming of Public Facilities and
Placing of Monuments and Other Memorials (Attachment D).
Monuments in honor or in memory of persons may be permitted, in rare cases, on City
property with permission of the City Council under the following conditions:
1. The person memorialized is closely associated with the area where the monument
will be located. The person memorialized is known to and revered, by a significant
number of City residents.
2. The monument design is discreet and unobtrusive and designed to blend into the
surrounding area. A small plaque on a large rock (4 cubic feet) would be
appropriate. The location of the monument will be determined by City staff with
approval of the City Council.
3. Costs of design, installation and maintenance of the monument will be determined
by the City and borne by the requestor at the discretion of the City. Only City
personnel or City contractors may perform work on City property.
4. The monument is only a marker and is not a place of worship, a cemetery or official
gathering place. Flowers, and other memorabilia are not permitted and will be
removed by maintenance personnel.
5. The City is not responsible for damage or deterioration of the monument and may
remove it at any time for any reason with permission of the City Council.
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Presently, there are three small, designated memorials in RPV, all of which honor persons
who died prematurely: one near Ladera Linda Community Center, one at the Point
Vicente Interpretive Center, and the other near Inspiration Point.
Based on the above policy, the City Council may designate the Hatano Farm area as a
monument recognizing Mr. Hatano, the Hatano family, and the fact that the farm at UPV
is the last vestige of the Japanese-American truck farms that once dominated the Palos
Verdes Peninsula, particularly before World War II. As mentioned by members of the
community and City Council, historical continuity is something of interest to the City
Council.
Should the City Council consider this option, Staff could come back at a later time with
ways the City can commemorate Mr. Hatano and his influence on the Japanese-American
truck farm tradition. In addition, Staff can include additional methods to honor the site's
agricultural history and educate users about the Japanese-American truck farm tradition.
For example, in the November 16, 2021, staff report, Staff provided the following
suggestions: a) commemorative plaque alongside a seating area with flowers that were
grown in this location, b) collaborate with Los Serenos and their guided tours of areas
within the City and/or c) interpretive signs along the public trail that traverses the area to
honor the site’s history.
In the event the City Council determines to proceed with terminating the lease agreement
with Mr. Martinez, Staff seeks City Council direction on which option or a combination of
options to pursue in repurposing the site. It should be noted that Mr. Siegenthaler recently
affirmed to Staff that proposed options for future use of the Hatano Farm lease area were
still viable and that the NPS would support those efforts. See the November 16 staff report
for his comments (embedded in Attachment A). It should be noted that as of the writing
of this report, Staff has not discussed Option D (cacti garden) with NPS. If a response is
available before the February 15 City Council meeting, it will be included as late
correspondence.
ADDITIONAL INFORMATION
Public Correspondence
Public correspondence received after the January 18, 2022 City Council meeting is
Attached (Attachment F).
CONCLUSION:
Given the complexity and compliance issues associated with the current lease agreement
for the Hatano Farm and given the feasibility of use options presented in this report, Staff
seeks City Council direction on whether to rescind or proceed with terminating the Hatano
Farm lease based on the November 16, 2021, City Council decision. Based on that
decision, Staff will either:
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• Work with the City Attorney’s Office on rescinding the letter and allowing Mr.
Martinez to farm the property; or
• Proceed with terminating the lease agreement based on the November 16, 2021
City Council decision and direct Staff to pursue a Council-selected repurpose
option(s).
ALTERNATIVES:
In addition to the Staff recommendations, the following alternative action s are available
for the City Council's consideration:
1. Take no action at this time and direct Staff to return with further analysis.
2. Identify other options for the City Council to consider.
3. Take other action, as deemed appropriate.
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William W. Wynder
wwynder@awattorneys.com
(310) 527-6667
2361 Rosecrans Ave., Suite 475
El Segundo, CA 90245
P (310) 527-6660
F (310) 532-7395
01203.0001/753389.2
November 24, 2021
SENT VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED &
VIA FIRST CLASS MAIL
Mr. James Hatano
c/o Mr. Martin Martinez, Foreman
1079 West 25th Street, Apt. D
San Pedro, CA 90731
Subject: Thirty-Day Notice of Termination of Lease
Messers. Hatano & Martinez:
We are the City Attorney for the City of Rancho Palos Verdes. Based on the recent public
action of the City Council we write to give you thirty (30) days’ advance written notice of the
City’s intent to terminate that certain “LEASE AGREEMENT BETWEEN THE CITY OF
RANCHO PALOS VERDES AND JAMES HATANO AUTHORIZING THE LEASE OF CITY
PROPERTY AT POINT VICENTE PARK/CIVIC CENTER FOR AGRICULTURAL
PURPOSES” (the “Lease”), dated May 16, 2006, and extended as a month-to-month tenancy by
letter dated July 2, 2014.
Notwithstanding the foregoing, we are authorized to advise you that the City Council has
agreed that the effective date of the termination of the Lease is, by this letter, extended to August
16, 2022. By that deadline, you are requested to remove all trade fixtures, farming equipment,
other personal property, and formally surrender possession of the leased premises so that, on the
effective date, the City can re-take possession of the same and take such actions as may be
warranted to secure the leased premises.
Thank you for your anticipated courtesy and cooperation. Should you have questions about
the foregoing notice, please contact the Deputy City Manager, Ms. Karina Bañales, at
kbanales@rvpca.gov. Please coordinate the formal surrender of the premises with Ms. Bañales as
well.
Very truly yours,
William W. Wynder
of ALESHIRE & WYNDER, LLP
B-1
November 24, 2021
Page 2
01203.0001/753389.2
Copies: Mr. Ara Mihranian, AICP
City Manager
Ms. Karina Bañales,
Deputy City Manager
Mr. Ken Rukavina,
Community Development Director
Mr. Ramzi Awwad,
Public Works Director
Elena Gerli, Esq.,
Assistant City Attorney
B-2
1
Karina Banales
From:Megan Barnes
Sent:Tuesday, February 1, 2022 8:24 AM
To:Karina Banales
Subject:FW: [EXTERNAL] POU question
FYI
From: Siegenthaler, David <David_Siegenthaler@nps.gov>
Sent: Monday, January 31, 2022 9:36 PM
To: Megan Barnes <mbarnes@rpvca.gov>
Subject: RE: [EXTERNAL] POU question
CAUTION: This email originated from outside of the City of Rancho Palos Verdes.
Hi Megan,
Yes, that’s right. Here’s the language contained in the deed:
“In the event that there is a breach of any of the conditions and covenants herein contained by
the Grantee, its successors and assigns, whether caused by the legal or other inability of the
Grantee, its successors and assigns, to perform said conditions and covenants, or otherwise, all
right, title and interest in and to the said premises shall revert to and become the property of the
Grantor at its option which in addition to all other remedies for such breach shall have the right
of entry upon said premises, and the Grantee, its successors and assigns, shall forfeit all right,
title and interest in said premises and in any and all of the tenements, hereditaments and
appurtenances thereunto belonging; provided, however, that the failure of the Secretary of the
Department of the Interior to require in any one or more instances complete performance of any
of the conditions or covenants shall not be construed as a waiver or relinquishment of such
future performance, but the obligation of the Grantee, its successors and assigns, with respect to
such future performance shall continue in full force and effect;”
I’m sorry I was dropped from our call this afternoon. I lost all internet and network access for a while and I think it
happened in the middle of my talking – so I’m not sure what came through to you. I’d be glad to discuss this further
and/or answer any other questions that come up.
Thanks,
David
David Siegenthaler
Regional Program Manager
Federal Lands to Parks
National Park Service
909 First Ave, Suite 500
Seattle, WA 98104
C-1
2
(206) 220-4083
From: Megan Barnes <mbarnes@rpvca.gov>
Sent: Monday, January 31, 2022 5:32 PM
To: Siegenthaler, David <David_Siegenthaler@nps.gov>
Subject: [EXTERNAL] POU question
This email has been received from outside of DOI ‐ Use caution before clicking on links, opening attachments, or
responding.
Hi Mr. Siegenthaler,
Thank you for taking the time to meet with us today. I have a quick question. The POU states that “Title to the property
transferred shall revert to the United States at its option in the event of non‐compliance with any of the terms and
conditions of disposal.” In other words, if the City were to allow the farming operation to continue, and thus remain out
of compliance with the POU, the federal government has the option of taking the land back. Is that correct? Just wanted
to clarify that as we work on our staff report.
Thanks again,
Megan Barnes
Senior Administrative
Analyst
mbarnes@rpvca.gov
Phone ‐ (310) 544‐5226
City of Rancho Palos Verdes
30940 Hawthorne Blvd.
Rancho Palos Verdes, CA 90275
Website: www.rpvca.gov
This e-mail message contains information belonging to the City of Rancho Palos Verdes, which may be privileged, confidential and/or protected from
disclosure. The information is intended only for use of the individual or entity named. Unauthorized dissemination, distribution, or copying is strictly prohibited. If
you received this email in error, or are not an intended recipient, please notify the sender immediately. Thank you for your assistance and cooperation.
Due to the current surge of the COVID-19 Omicron Variant, Rancho Palos Verdes City Hall will be closed to
walk-in visitors through January 31, 2022, unless further notification is provided. Several members of the City’s
workforce are being asked to work remotely during this time. Inquiries will continue to be reviewed on a daily
basis. Please be patient with us as there may be delays or minor inconveniences in responding to your inquiry.
C-2
CITY COUNCIL POLICY
NUMBER: 37
DATE ADOPTED/AMENDED: 01/07/03 (Amended 9/15/09, 12/20/11, and
4/20/21)
SUBJECT: Naming of Public Facilities and Placing of Monuments and Other
Memorials
________________________________________________________________
POLICY:
I. City Facilities
It shall be the policy of the City Council to name City facilities in the following
manner:
▪ General
The policy of the City is to name facilities in a manner that w ill provide an
easy and recognizable reference to the City’s residents and visitors.
▪ Geographic Location
Whenever possible, City facilities will be named for their geographic
location. The geographic location may be based on the identification of the
facility with a specific place, neighborhood, street, topographic or other
natural feature, such as a drainage course, tree or plant species, or
historical precedent.
▪ Individual/Organizational Recognition
The naming of City facilities in honor of individuals or community
organizations will be a rare event, and will be considered under the following
conditions:
1. The individual, a family or a community organization has made
exceptional contributions to the City, including one or mo re of the
following: a) financial gifts, b) public service as an elected official, c)
public service as a community volunteer, or d) long term sponsorship
agreements.
2. There should be a well-defined connection between the contributions
of the individual or community organization and the City facility.
3. The significance of the contribution from the individual/organization
needs to be evaluated in relation to the impact of the City facility.
Individuals and organizations that have made contributions of
regional or community-wide significance may be considered for
naming of facilities that serve the entire City. Individuals and
D-1
City Council Policy No. 37 for Naming Public Facilities
Last Amendment: December 20, 2011
Page 2 of 4
organizations that have made significant contributions to a particular
area or neighborhood may be considered for the naming of facilities
that serve these areas or neighborhoods within the City, including
recreational and other amenities within City parks.
4. When considering naming a City facility after an individual, a period
of at least three (3) years shall have passed following the death of
such person to allow perspective and an appropriate period of
reflection.
5. Only a current Mayor or City Council Member may nominate an
individual to have a City facility named in his or her honor, and the
determination will be made by the City Council.
City policy does not preclude additional opportunities for recognition that
may be created in the future. For instance, the Point Vicente Interpretive
Center is planned to include exhibits that may be funded by individual or
corporate donations. Recognition of such donations may include a donor
wall within the Interpretive Center, or recognition of a contributor’s
sponsorship of a specific exhibit.
II. Monuments and Other Memorials
It shall be the policy of the City Council to allow the plac ing of monuments and
other memorials on City properties under the following guidelines:
▪ Monuments
Monuments in honor or in memory of persons may be permitted, in rare
cases, on City property with permission of the City Council under the
following conditions:
1. The person memorialized is closely associated with the area where
the monument will be located. The person memorialized is known
to, and revered, by a significant number of City residents.
2. The monument design is discreet and unobtrusive and designed to
blend into the surrounding area. A small plaque on a large rock (4
cubic feet) would be appropriate. The location of the monument will
be determined by City staff with approval of the City Council.
3. Costs of design, installation and maintenance of the monument will
be determined by the City and borne by the requestor at the
discretion of the City. Only City personnel or City contractors may
perform work on City property.
4. The monument is only a marker and is not a place of worship, a
cemetery or official gathering place. Flowers, and other memorabilia
are not permitted and will be removed by maintenance personnel.
D-2
City Council Policy No. 37 for Naming Public Facilities
Last Amendment: December 20, 2011
Page 3 of 4
5. The City is not responsible for damage or deterioration of the
monument and may remove it at any time for any reason with
permission of the City Council.
▪ Benches or Trees
Benches or trees in honor or in memory of deceased persons may be
placed in City parks, or other City spaces, at the discretion of the City
Manager under the following conditions:
1. The bench design, or tree species, will be determined by the City and
the location of the bench or tree will be selected by the City.
2. A relatively small plaque (5” x 8”), with inscription or other written
memorial information may be placed on the bench or near the tree.
3. Costs of design, installation and maintenance of the bench or tree
will be determined by the City and borne by the requestor at the
discretion of the City. Only City personnel or City contractors may
perform work on City property.
4. The bench, or tree, is only a marker and is not a place of worship, a
cemetery or official gathering place. Flowers, and other memorabilia
are not permitted and will be removed by maintenance personnel.
5. The City is not responsible for damage or deterioration of the bench
or tree and may remove it at any time for any reason without
replacement.
III. Wall of Honor
It shall be the policy of the City Council to establish a “Wall of Honor” under the
following guidelines:
▪ Wall of Honor
The Wall of Honor will memorialize the names of distinguished
community leaders who have made substantial contributions to the City
of Rancho Palos Verdes under the following conditions:
1. Persons nominated for the “Wall of Honor” shall have been dedicated
community leaders who have contributed significantly to the quality
of life offered by the City and realization of the vision expressed in
the original General Plan. The honoree must have had a significant
presence in the community throughout a good portion of their life and
should have made notable impacts on sustaining the quality of life of
the residents of Rancho Palos Verdes.
2. Persons nominated for inclusion on the “Wall of Honor” will be
deceased and will not have been previously honored by other actions
of the City such as facilities named in their honor or other memorial.
D-3
City Council Policy No. 37 for Naming Public Facilities
Last Amendment: December 20, 2011
Page 4 of 4
3. When a person is nominated for inclusion on the “Wall of Honor” staff
should consult with the Palos Verdes Peninsula Library District, local
historical society or other appropriate sources to determine the
significance of the individual’s contributions to the community and
report these findings to the City Council.
4. Only a current Mayor or City Councilmember may nominate a citizen
to be included on the “Wall of Honor.” The determination of the
persons who will be included will be made by the City Council.
5. The location of the “Wall” and the format of names and inscriptions
shall be established by the City Council.
BACKGROUND
The City of Rancho Palos Verdes has lacked a uniform policy to assist the City
Council and to guide staff in the naming of City facilities, including parks and open
space areas, buildings, streets and other public amenities. In addition, there have
been no formal policies or guidelines for honoring City leaders, nor for
memorializing persons whose loved ones simply want to provide a remembrance
in the form of a bench or tree.
Although the City has had no formal policy for naming public facilities and sites in
honor of persons, there are precedents. Fred Hesse Park and Community Center
is named for a City founder, Robert Ryan Park is named for a former Mayor and
Councilmember and Vanderlip Park is named for an original Peninsula landowner.
There is a GPS monument at Portuguese Point named in honor of Dr. Perry Ehlig.
There is a trail below Ocean Terrace Drive known as the McBride Trail in honor of
the man who constructed it. There are also three small memorials, one near
Ladera Linda Community Center, one at the Point Vicente Interpretive Center and
the other near Inspiration Point that honor persons who died prematurely. Finally,
there have been numerous requests from individuals to install park benches or
plant trees in memory of deceased loved ones, many of which have been granted.
The development of a Policy to guide the naming of City facilities, the permitting of
monuments, benches and trees is intended to enable these processes to be
conducted in an equitable, objective and consistent manner. In addition, the
establishment of a “Wall of Honor” will offer a new formal opportunity for honoring
community leaders.
D-4
file:///C/Users/terit/Desktop/FW%20Keep%20the%20Japanese%20gardener%20in%20RPV.txt[1/31/2022 11:24:23 AM]
Subject: FW: Keep the Japanese gardener in RPV
-----Original Message-----
From: lewis chineseaccent.org <lewis@chineseaccent.org>
Sent: Friday, January 14, 2022 8:15 AM
To: CityClerk <CityClerk@rpvca.gov>
Subject: Keep the Japanese gardener in RPV
CAUTION: This email originated from outside of the City of Rancho Palos Verdes.
Hello,
The Japanese and their gardens are part of the Palos Verdes Peninsula’s history. I implore you to keep
it.
Cheers,
Carol A. Lewis
3200 LaRotonda Drive 408
RPV
3478197761
E-1
From:David Bradley
To:Lori Chong Eurich
Cc:Barbara Ferraro; Ara Mihranian; Karina Banales; Cory Linder
Subject:RE: Please Save Hatano Farm!
Date:Thursday, January 20, 2022 8:01:07 PM
Attachments:image001.png
image003.png
Lori,
Thank you for your note. The city is endeavoring to craft a true win-win solution. Please tune in for
our City Council meeting on2/15/22 when we will be readdressing the lease, and various other
options for the Farm and how to recognize, memorialize and highlight the contributions to the
Peninsula from the historic Japanese Farmers.
Regards
Dave
David Bradley
Mayor and Councilmember - Rancho Palos Verdes
david.bradley@rpvca.gov
(310) 487-2418 Cell Phone
City of Rancho Palos Verdes
30940 Hawthorne Blvd.
Rancho Palos Verdes, CA 90275
From: Lori Chong Eurich <lace167@hotmail.com>
Sent: Thursday, January 20, 2022 8:50 AM
To: David Bradley <david.bradley@rpvca.gov>; John Cruikshank <John.Cruikshank@rpvca.gov>; Eric
Alegria <Eric.Alegria@rpvca.gov>; Ken Dyda <Ken.Dyda@rpvca.gov>; Barbara Ferraro
<barbara.ferraro@rpvca.gov>
Cc: Lori Chong Eurich <lace167@hotmail.com>
Subject: Please Save Hatano Farm!
CAUTION: This email originated from outside of the City of Rancho Palos Verdes.
Dear RPV Mayor Bradley and City Council Members,
I’m writing in support of saving Hatano Farm, an important part of our city’s rich agricultural
heritage.
I think the farm should be used as a place to educate the community by offering public education
programs on the historical significance of the site, vegetable and flower gardening programs for
youth and adults through school visits and educational programs. There are experts and community
E-2
volunteers from the PV Land Conservancy and the South Coast Botanic Garden that can facilitate
and/or lead education programs.
The Japanese American National Museum in downtown Los Angeles has connections with experts
who can help facilitate a public education effort about the once-thriving farming community that
existed here until the forced removal and relocation of Japanese-American citizens. The legacy of
James Hatano and the estimated 200 farmers who devoted their lives to the land should not be
tossed aside.
Could Hatano Farm be converted to a nonprofit foundation?
Thank you for your consideration,
Lori Chong Eurich
RPV resident and PVPHS volunteer
E-3
From:Richard Ishibashi
To:CC
Cc:CityClerk
Subject:Hatano Farm
Date:Thursday, January 20, 2022 3:12:33 PM
CAUTION: This email originated from outside of the City of Rancho Palos Verdes.
Honorable City Council,
Like many in the community, I have been following with great interest the Daily Breeze and
the Peninsula News articles regarding the Hatano Farm & Mr. Martinez’s situation.
Admittedly, I am not intimately knowledgeable about the specific terms regarding the the
land use agreement between the Coast Guard & our community, but my cursory understanding
is that the land use is predicated on use of the land for recreational use, such as a park. Could
it be possible to designate the Hatano Farm as a park with historic significance to our
community, designating Mr. Martinez as the managing overseer, continuing the use of the
Farm in its current capacity as a revenue generating entity as a means of funding for self-
sustenance (rather than categorizing it as profit)? Perhaps the revenue generated by the farm
could be classified as consideration for Mr. Martinez’s efforts, as the overseeing park
manager, an independent contractor, separate from City payroll, to simplify & segregate
administrative cost & liability burdens, if a legal/administrative carve out can be established.
To satisfy the recreational requirement, a set aside pathway overlooking the farm, without
interference or interaction with the farm itself, with a fence or border to preclude visitors from
crossing into the farm for their safety, will also serve to minimize liabilities, while at the same
time hopefully satisfy the terms of the Coast Guard agreement. The Japanese American farms
& community of the Peninsula represent its first residents on the Peninsula (beyond ranchers
who worked, but not dwelled on the land). The farms represent the pioneering roots of the
PV community that spanned the 20th century, and the history of that community shows a
history of struggle, acceptance, and the compassion of the residents, of Japanese ancestry or
otherwise, that our community and civic leaders can be proud of. I earnestly hope that a
resolute solution for Mr. Martinez, the Coast Guard, and the community can be found.
Thank you,
Richard Ishibashi
Resident, RPV
rtishibashi888@gmail.com
cell: (310) 935-5048
E-4
From:Noel Park
To:CC; Ara Mihranian; Cory Linder
Subject:Hatano Farm
Date:Friday, January 21, 2022 5:42:08 PM
CAUTION: This email originated from outside of the City of Rancho Palos Verdes.
I support continuing the existing lease. It is very important remember the Japanese farming history on the Peninsula
and also the sad story of what happened during the WWII internment. God forbid that such a thing should ever
happen again. I think that Councilman Dyda summed it up very well in the last paragraph of this week’s PV news
article.
The National Park Service operates the Manzanar site, which speaks to the same issue. I have visited there and it is a
somber and thought provoking experience. I am very optimistic that they would find a small recognition of the issue
here to be appropriate.
Thank you for your consideration, and for your wise decision to reconsider this issue.
Noel Park
6715 El Rodeo Road
Rancho Palos Verdes CA 90275
562-413-5147
Sent from my iPhone
E-5
1
Karina Banales
From:SUNSHINE <sunshinerpv@aol.com>
Sent:Saturday, January 22, 2022 4:04 PM
To:CC
Cc:CityClerk; s.philipp777@gmail.com
Subject:Re Hatano Farm. Fwd: Non-natives can be beautiful. Re: Mother Nature's Surprise Gift
Attachments:Ishibashi flowers 20220121_113747.jpg; Hatano Farm pumpkins by Steve Mirish.jpg
CAUTION: This email originated from outside of the City of Rancho Palos Verdes.
Dear Mr. Mayor and City Council,
I have not seen where Staff has shared the fact that the preponderance of the Hatano Farm was at
Lower Point Vicente Park (still not in the Preserve) and that James Hatano had agreed to participate
in the Los Serenos Docent's proposed "Living History Museum". Staff killed that whole concept in
support of the Annenberg Foundation's big building.
Do understand that under the NCCP/HCP, Los Serenos has been reduced to PVIC Tour
Guides. Any notion of having hands-on educational programs and volunteer efforts which Staff and
the PVPLC are not totally in charge of is never going to make it into an Agenda Report for your
consideration.
As usual, you are welcome to come talk about it further. Without the following unsolicited email and
the attachments, I would not have bothered to weigh-in, again, on the access to passive recreation
open space issue. Simple question for Staff... Since the Hatano Farm has never blocked public
access for passive recreation purposes, how could using the land as a native plant seed farm
improve the situation? Neither are endangered species habitat. ...S 310-377-8761
From: sunshinerpv@aol.com
To: s.philipp777@gmail.com
Sent: 1/22/2022 2:50:55 PM Pacific Standard Time
Subject: Non-natives can be beautiful. Re: Mother Nature's Surprise Gift
Paper Whites were one of the Ishibashi Flower Farm's regular crops. Status, too. The bulbs
remained behind when the developers evicted the farmers. They are a "dry crop" in that they
do not need to be irrigated. With the right amount of rainfall at the right time of the year, they
put on a show. Imagine what the field looked like before the acacias began taking
over. Eventually, the Land Conservancy will be required to dig them out. ...S
In a message dated 1/21/2022 3:51:38 PM Pacific Standard Time, s.philipp777@gmail.com writes:
Sunshine,
I've only heard about the wild garden.
I was told Daffodils but I believe they are Paper Whites. The smell of their bouquet was so beautiful. I
imagine you have seen this in the past so I thought to share with you.
Enjoy!
E-6
2
Susan and Charlie
E-7
JAMES R ZUPKE
Exultant Drive, Rancho Palos Verdes, CA.,90215
Jrzupkeins@sbcglobal.net 310-37 7 -2621
January 27t',2022 $lilot Bancho patos Verdes
To: City of Rancho Palos Verdes
Yo: City Mayor & Council
Re: Hatano Farm
JAN 3 1202?
City Managefs Office
As a 45 year resident ho"me owner in Rancho Palos Verdes, CA., I strongly request
that this historic land mark be protected as a symbol of the ethnic and rural history that is
the foundation of RPV aka: " The Hill".
We settled here and still enjoy the open rural atnosphere that now seems to be being
eliminated. Over these past years the City has pushed commercialism like golf courses,
resorts and other commercial developments. This causes a lot more traffic, pollution,
noise, crime and The Hill will eventually become a major residential dinosaur like the
city of Torrance has become. Reason we moved from there 45 years ago.
Take a strong stand for ttre future of our pristine community and not for the greed of
it. In closing I remind you that 8l years ago the USA, for reasons of security, confiscated
Japanese property on the west coast which was never returned to them.
,
/7
RZupke
o/o : various.
E-8