Encinitas vote helps anchor purchase of boat houses

ENCINITAS -- With contributions from the city and a developer, the landmark "boat houses" will remain as a fixture on Third Street.

The Encinitas City Council voted 5-0 Wednesday to accept a developer's contribution of $631,538 toward the $1.6 million purchase of the two boat-shaped houses, as well as an adjoining four-unit apartment building on the same lot.

The vote also releases $209,666 from the city's affordable housing fund to help buy the property and refurbish the apartments, which would add to the city's state-mandated inventory of low-cost housing.

"I really support what is an innovative approach to preserving the boat houses through a public-private effort," said Councilwoman Teresa Barth.

The private contribution would come from the developers of The Lofts at Moonlight Beach, a residential and commercial project under construction on North Coast Highway 101 at B Street. The project includes 18 condominiums.

The developer agreed to pay the equivalent of $35,088 per unit -- the low-cost housing fee Encinitas charges developers of large projects -- toward the boat house purchase.

Evan Stone, manager of The Lofts, sweetened his offer Wednesday.

He said The Lofts would immediately pay $25,000 to the Encinitas Preservation Foundation, a newly formed group that is buying the 80-year-old, boat-shaped houses to preserve them.

"We can write the check now," Stone said.

Beyond that, he said, his company would match contributions to the foundation of up to $1,000 from buyers of The Lofts' 18 residential and 15 commercial units.

The council rejected offers from two other developers.

John DeWald, whose Pacific Station project would bring 47 residential units to South Coast Highway 101 at F Street, made a $15,319-per-unit offer.

To meet city requirements, he must pay the $35,000-per-unit fee or set aside four units for low-income households. The fee, DeWald said, would nearly equal the sale price of one of the units.

"We're still interested in trying to find a way to contribute," DeWald told the council.

Cyrus Raoufpur of Pacific Canyon LLC, a company proposing 10 homes on Sage Canyon Drive, proposed a $125,000 contribution, about one-third of the required fee.

"I respectfully request your help in acceptance of my offer of $125,000 in cash, payable immediately, for preservation and improvement of the boat houses," Raoufpur told the council. The council declined.

Peder Norby, the city's Highway 101 coordinator and a leader of the preservation foundation, said a 60-day escrow on the boat house property would open immediately.

He said the Encinitas Preservation Foundation is securing its status as a tax-exempt, nonprofit foundation. In the meantime, private contributions will be processed through the nonprofit Encinitas Historical Society.

The boat houses themselves will be rented at market rates to finance the property purchase. Eventually, at least one of them will be made accessible to the public, possibly as a museum, Norby said.

About 80 years ago, a boat builder from the Great Lakes area of Michigan salvaged timbers from the Moonlight Beach Dance Pavilion to build the structures bearing the names S.S. Moonlight and S.S. Encinitas.

The boards were too short for a standard building, so Miles Kellogg drew upon his ship-building experience to construct the boatlike houses.

-- Contact staff writer Adam Kaye at (760) 901-4074 or akaye@nctimes.com