SEAL BEACH : Refinancing Could Speed Pier Repair

The much-needed repair and extension of a wall that runs beneath the Seal Beach pier to stop beach erosion may be a bit closer as a result of a City Council action last week.

The council voted unanimously to refinance a Redevelopment Agency debt of $2.8 million. The city will probably refinance $4.8 million, reducing the interest rate from 7.1% to 6.7%, City Manager Jerry Bankston said.

The action is similar to refinancing a mortgage on a home to take advantage of a lower interest rate, Bankston said. By refinancing, the city not only lowers the interest rate, but also generates extra money, he said.

About $750,000 of the money recouped through refinancing will be used to repay an outstanding loan to the city’s general fund, Bankston said. The remaining $1.25 million will be used for a redevelopment project, he said.

Although it is not certain what the project will be, the most likely candidate is the pier project, Bankston said.

“Without that, there’s just no way the city would be able to proceed with the project,” Bankston said. “We were only able to put about $30,000 to $40,000 a year into the fund for it.”

The cost of the project, which is needed because the wall--also known as the pier groin--is in a state of disrepair, is estimated at $800,000 to $900,000, Bankston said.