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Repair or sell? A multimillion-dollar question looms over a city’s iconic property

On Tuesday, the Pismo Beach City Council discussed the necessary repairs at Chapman Estate.

According to officials, the cost of repairing the building will be several million dollars.

Clifford Chapman purchased the Chapman Estate in 1962. After his death, the estate was donated to the City of Pismo Beach.

The property is intended to be used as an event center, but has incurred over $2 million in operating, maintenance and capital costs over the years and still needs repairs before reopening.

Now the city is trying to decide whether to take on the necessary repairs and maintenance or sell the property.

“The decision is and always has been: Is the city willing to pay for the basic repairs that need to be done and get this back up and running for special events?” said Pismo Beach City Councilwoman Marcia Guthrie. “But in my opinion, the city would have to subsidize it because I don’t think it’s fair to the neighborhood to have more large events.”

The basic repairs cost $6.8 million.

Chapman Estate Basic Repairs.png

City of Pismo Beach

The basic repairs cost $6.8 million.

The city also considered two other options. The first is called “no change” and only provides for repairs to the seagull house that are covered by the current insurance claim.

Chapman Estate, no change.png

City of Pismo Beach

The city also considered two other options. The first is called “no change” and only calls for repairs to the seagull house that are covered by the current insurance claim.

The second option is to sell the property for between $13 million and $17 million, subject to repairs and upgrades.

Chapman Estate Financial Analysis.png

City of Pismo Beach

The second option is to sell the property for between $13 million and $17 million, subject to repairs and upgrades.

“I think it would be worthwhile to see if we can find a way to keep it going. And if we don’t reach a certain point, we have to keep going,” said Ed Waage, mayor of Pismo Beach.

The sale of the property would generate a one-time proceeds of $2.2 million, which would cover all previous operating and maintenance costs.

“If we want to keep it, we have to find a way for the city to support it without putting a huge burden on the neighbors, and I just don’t know how to do that,” said Pismo Beach City Councilman Scott Newton. “All together, we’re going to have to raise at least $6.8 million, on top of the $2.3 million we’ve already spent while asking the public for a sales tax increase and building a $50 million security center. That’s a lot of debt.”

If the city sells the property, the Chapman Estate will become city property and will no longer be available to the public.

Some Shell Beach residents believe repairs should be made.

“It would be absolutely amazing to bring more attention to this property,” said Mylee Beckstrand, a Shell Beach resident. “It’s such an incredible place and really brings a lot of attention to ecotourism.”

“Chapman was very generous in leaving the property to the city, so I hope they preserve it in a condition where the people here can enjoy it as intended,” said Dave Stornetta, a Shell Beach resident.

Pismo Beach City Council members voted to give the city and the Chapman Estate Foundation six months to raise funds for the repairs.

If no solution is found within this period, the members of the city council will reconsider whether the property should be sold.

By Olivia

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