Malibu Luxury Home Up for Auction

Unable to attract a buyer with the traditional approach, Malibu real estate investment banker Bill Chadwick will attempt to sell his Carbon Beach mansion through a method usually reserved for homes in foreclosure—an auction. The starting bid for the 10,500-square-foot residence is $22 million.

The home went on the market in 2008 for $65 million, and the sales price was repeatedly lowered in a futile attempt to find a buyer. 

AOL Real Estate writer Teke Wiggin wrote that Chadwick "joins the ranks of a growing number of other frustrated wealthy homeowners who, sick of slashing the price tags on their trophy homes, and seeing no sale, opt for a buzz-stoking marketing method." (Go here to read Wiggin's story.)

Construction on Chadwick's home finished in 2005, four years after a permit was granted by the city of Malibu while the property was owned by . During the four-year period, it was the focus of heated government meetings and courtroom hearings—and even ended the political careers of three city commissioners.

Music and movie producer Lou Adler, who lives next to the home, approached the in late 2003 to get the permit revoked. He said the planning director had improperly calculated where on the beach the home could be positioned. Speaking on his behalf were his attorney Edward Burg, consultant Drew Purvis (a former Malibu planning director) and Pepperdine law professor Doug Kmiec. Land use attorney Alan Block also attended the meeting on behalf of Chadwick.

There was some discussion at the commission table and Assistant City Attorney Gregg Kovacevich said attempts to appeal the permit had been exhausted. The commission disagreed, and voted to consider the matter at a later meeting. This session would never take place.

A few days later, Christi Hogin said the commissioners had violated the Brown Act, the state's open meeting law for local governments, by discussing in-depth and voting on an item that was not on the agenda. There was also speculation that at least some of the commissioners had been briefed about the issue prior to the meeting.

Two weeks later, members Sharon Barovsky and Andy Stern fired their respective Planning Commission appointees Robert Adler (no relation to Lou) and Deirdre Roney during a special morning meeting. A large number of people criticized the firings at a Planning Commission session that took place that night. Also at that meeting, Commissioner Richard Carrigan resigned to protest the council members' actions.

Some people alleged the firings actually happened because Barovsky and Stern were upset that Robert Adler and Roney had taken a neutral stance during the Measure M campaign that had taken place in the preceding months. Measure M was a referendum supported by all five council members on a plan for various properties owned by the Malibu Bay Co. (including what is now ).

The conflict continued in the courtroom with the lawyers for Adler and Chadwick battling over the legal technicalities of permit approvals and positioning of homes on beachfront properties in Malibu. The dispute quietly concluded with no adjustments made to the permit.

The auction will take place Sept. 18. It is being handled by Malibu Realtor Carol Bird and Manhattan Beach-based Premiere Estates Auction Company. Go here for more information.