The biggest piece of undeveloped land in Redondo Beach — 51 acres of prime waterfront property — has been sitting idle since the AES power plant shut down on New Year's Eve 2023. What happens next with this site will reshape the city for generations. But after years of lawsuits, bankruptcy proceedings, and political battles, the path forward remains deeply uncertain. Here's what residents need to know.
What the AES site is
The AES Redondo Beach Generating Station was a gas-fired power plant that operated for decades at 1100 N Harbor Drive, on the city's waterfront near King Harbor. The facility sat on roughly 51 acres — making it one of the largest single parcels in the entire South Bay. To put that in perspective, the site is about 20 times the size of a typical city block. It stretches from the harbor area up toward Pacific Coast Highway and 190th Street.
After years of activism by residents — including current Mayor Jim Light, the late Mayor Bill Brand, and the South Bay Parkland Conservancy — the plant finally shut down permanently on December 31, 2023. The closure was a milestone that residents had fought for over more than a decade, driven by concerns about air quality, environmental impact, and the belief that this waterfront land could serve a higher public purpose.
Who owns the land
This is where it gets complicated. The majority co-owner of the site is Leo Pustilnikov, a Los Angeles–based real estate developer who controls the property through a company called 9300 Wilshire (also connected to an entity called New Commune DTLA). In early 2023, Pustilnikov's company filed for Chapter 11 bankruptcy to stave off a foreclosure auction on the property. That bankruptcy case remains active.
The bankruptcy complicates everything. Until it resolves, no major development can proceed. And there's a separate dispute between Pustilnikov's company and AES over who bears responsibility for environmental remediation — the cleanup of decades' worth of industrial contamination that a power plant leaves behind. Both sides have been pointing the finger at each other, and that question remains unresolved.
What Pustilnikov wants to build
In 2022, Pustilnikov filed applications with the city proposing a massive mixed-use development: approximately 2,700 housing units, an office complex, a hotel, and 22 acres of green space. The vision is essentially a new neighborhood on the waterfront — one of the largest residential development proposals in South Bay history. In a September 2025 interview with the Beverly Hills Courier, Pustilnikov framed the project in terms of housing as a fundamental right, citing his background as an immigrant from Odessa (now Ukraine).
The city has not approved — or even formally considered — this proposal. The bankruptcy proceedings and ongoing litigation have effectively frozen the permitting process. But the application exists, and it looms over every discussion about the site's future.
The legal battles
Redondo Beach is currently entangled in at least six separate lawsuits filed by Pustilnikov's ownership group. The most consequential involves the city's Housing Element — the state-required plan that identifies where future housing can be built.
In October 2025, a California appellate court ruled unanimously that Redondo Beach had failed to identify “realistic” locations for a sufficient number of new housing units to satisfy the city's state-mandated allocation of 2,490 homes by 2029. The ruling was a significant blow. Without a valid Housing Element, the city becomes vulnerable to something called “Builder's Remedy” — a state law that allows developers to bypass local zoning entirely.
City Attorney Joy Abaquin-Ford petitioned the California Supreme Court to review the decision, but the court declined. The case was sent back to the trial court, and as of spring 2026, the city is negotiating with Pustilnikov's attorneys to try to resolve it.
The Housing Element fix
In response to the legal setback, Redondo Beach moved quickly to revise and re-certify its Housing Element. The city's planning department adjusted the plan, which the City Council approved earlier in 2026. On May 20, 2026, the California Department of Housing and Community Development certified the revised plan as compliant.
The updated Housing Element eliminates the “overlay” zones that had been criticized in the court ruling. Instead, it increases allowable density on four of the city's five designated housing sites and requires that new development on these sites include at least 50% residential floor space. A sixth site was removed entirely.
“The city is not subject to Builder's Remedy with the newly certified Housing Element,” City Attorney Ford has stated. This is a critical point: the new certification means developers cannot currently bypass city zoning rules. But the underlying court case remains active, and the legal landscape could shift again.
What the city wants
Mayor Jim Light has been clear about his priorities for the AES site: maximize wetlands and public parkland, and eliminate the high-voltage power lines that run along 190th Street. Light was part of the original activism to close the plant, long before he held office, and he has described his vision as a “Green Belt to the Sea” — a continuous corridor of parks and open space from the hilltop above 190th Street down to the waterfront.
A small step toward that vision is already underway. In early 2025, the city confirmed plans for a 2.5-acre park on Southern California Edison land adjacent to the AES site, near the intersection of PCH and 190th Street. This pedestrian park will feature walking paths and native plants, with design guidance from the South Bay Parkland Conservancy. It's on a five-year lease from SCE and is being partially funded by a state grant.
But this park is a small fraction of the overall site. The 51-acre power plant property itself remains in legal limbo.
Why this matters for Redondo Beach
The AES site is not just a piece of land — it's the single largest opportunity Redondo Beach will have to shape its future in the 21st century. What gets built on these 51 acres will determine traffic patterns, tax revenue, school enrollment, housing costs, environmental quality, and public access to the waterfront for decades to come.
The stakes are enormous. If Pustilnikov's 2,700-unit vision proceeds, it would increase Redondo Beach's housing stock by roughly 10% in a single project. That means thousands of new residents, hundreds of new cars, and a transformed waterfront. If the park advocates prevail, the city gains an extraordinary public amenity — but forfeits potentially billions of dollars in development and the tax revenue that comes with it.
The most likely outcome is somewhere in between: some development, some open space, and years of negotiation and compromise. But until the bankruptcy resolves, the environmental cleanup questions are answered, and the litigation plays out, the site will remain what it has been since the plant closed — a 51-acre question mark on Redondo's waterfront.
Timeline of key events
December 31, 2023: AES Redondo Beach Generating Station shuts down permanently after decades of operation.
Early 2023: Pustilnikov's 9300 Wilshire files for Chapter 11 bankruptcy to prevent foreclosure on the site.
2022: Pustilnikov files development applications with the city for 2,700 housing units, offices, a hotel, and 22 acres of green space.
October 2025:California appellate court rules unanimously that Redondo Beach's Housing Element failed to identify realistic housing sites.
Early 2025: City confirms plans for 2.5-acre native plant park on adjacent SCE land near PCH and 190th Street.
May 2026:California HCD certifies the city's revised Housing Element, restoring Builder's Remedy protection.
Spring 2026:City negotiates with Pustilnikov's attorneys to resolve pending litigation.
What to watch for
Several developments could break the stalemate in the coming months and years. The bankruptcy proceedings are the most critical — their resolution will determine who controls the property and under what terms. The outcome of negotiations between the city and Pustilnikov's legal team will shape whether the Housing Element litigation ends in settlement or drags on. And the question of environmental cleanup — who pays, how long it takes, and what it reveals about soil and groundwater conditions — will set the timeline for any construction.
The city's budget is also a factor. Redondo Beach is managing tight finances heading into FY 2026–27, with the city manager presenting 32 decision packages to avoid deficit spending. Any legal settlement or land acquisition related to the AES site would have significant budget implications.
For more background on the site, see our AES Power Plant landmark page. For context on the housing requirements driving the legal dispute, read our Housing Element explainer. We'll continue covering this story as it develops.