HomeMy WebLinkAbout17 - Rent for Commercial Tidelands Uses in Newport Harbor - PowerPointJuly 25, 2017
Item No. 17
City Council —July 25, 2017
Update to
Commercial Tidelands Rates
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•
ALL RENTS ARE BEING REDUCED
• Rents are based on Fair Market Value
• Reduction in Rent to ALL Categories
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History and Actions Taken
2012-2
2012— City Council increased rent 367% ($0.36/sf to x1.68/sf)
2013 —Program implemented March s
2014 —Index calculated rent at $1.74/sf (i/stn _ $0.35 / sf)
2015 — Further Discussion at City Council Study Session
2015 — Staff paused rates at $0.35 / sf
2o16 —Appraisal by George Hamilton Jones, Inc.
2017 —City Council Study Session presentation
4
Large Commercial Marinas
(greater than 30,000 sf)
Small Commercial Marinas
(less than 13,00o sf)
Medium Commercial Marinas
(13,000-30,000 sf)
Fuel Docks (*greater of Base or Percentage)
Shipyards
HOA Marina (Member Only)
HOA Marina (Non -Member) (Based on sf)
Guest Slips @a Yacht Clubs
Free Public Access Dock
Vessel Rental (Boat Rentals)
Vessel Charters
Sport Fishing Charters
Restaurants (Guest Slips)
All Others
$1.46 $1.1
$1.10 0$0.76
$0.50
$0.50
$0.76
$0.49
$0.62
1�
$1.17 (20%)
$0.76 (31%)
$0.76
$0.38*
$0.38*
$0.38
$0.38
$0.38
Charged at Residential
Rate
$0.76-1.17
$0.49-0.76
$0.76-1.17
$0.38
$0.38
$0.38
(24%)
(24%)
(20-31%)
(24%)
$1.02 $0.76
$0.49
$0.76
(25%)
$1.02 $0.76
$0.49
$0.76
(25%)
$1.02 $0.76
$0.49
$0.76
(25%)
$1.02 $0.38
$0.38
$0.38
(63%)
$1.02 $0.76
$0.49
$0.76
(25%)
Large Commercial Marinas
(greater than 30,000 sf)
NB Mariner's Mile, LLC (formerlyArdell Marina)
Large Marina — 55,999 sf
Savings of x16,239.71/year
Current Rent: $1.46 @a 55,999 sf = 681,758.54/Year
Proposed Rent: $1.17 @ 55,999 sf = x65,518.83/year
0
Large Commercial Marinas
(greater than 30,000 sf)
■■ '►�
Bulkhmd/'Pierhead Lines N B Mariner's Mile LLC
YJ4MY ¢f-ewn+i_SSSISFI_x.1S.—
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Permit# CP12921011
Oh -;V- 2013 {Per aesekRiaY 7012-9a i
Standard Marina Rate (large I
1W999 sq. Ft, x Current Rate).
tidelands over Private Proprr:,
{NoCharge • Area = 24,459
Large Commercial Marinas
(greater than 30,000 sf) X1.46
Small Commercial Marinas
(less than 13,000 sf) $1.10
Medium Commercial Marinas
(13,000-30,000 sf)
1
P rt Calypso (Parker)
Small Marina — g,000 sf
MWr
$0.76
$0.76
$0.49
$1.17
$0.76
1�
(20%)
(31%)
so.89 so.62 so.89 -
,... �IP
RREF II-WPG Waterfront, LLC
MediumMarina — 29,453 sf
Port Calypso - Savings of $3,o6o/year
Current Rent: s9,goo/year 8
Proposed Rent: s6,84o/year
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11
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4�
F ,u
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• 5,989 sf
J
f
9.000 Sf
r
Ile
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EFFcd:=ve 291 s leer R-1 viivn 2012-ABJ
Port Calypso (9,00 rss Marx rfer [Srn?@j
(9,06[7 SP{. f}. R'CIWPf@rli RoTB}
a�( Tidelands over Private Property:
r ke r) (N` o Charge - Rr®a = 5,989 sq.fT.)
Fuel Docks $0.50 $0.76 so.38* $0.38* (24%)
Shipyards $0.50 $0.38 $0.38 $0.38 (24%)
Boat Service, Inc. (Hill's Fuel Dock)
Fuel Dock — 6 sf
South Coast Shipyard- Savings of $435/year
Current Rent: $1,815/year
Proposed Rent: $1,379/year
,793 �.•.��
Boat Service, Inc.- Savings of x815/year
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rrent Rent: $3,396/year -
o osed Rent: $2,581/year
South Coast Shipyard
Shipyard —3,630 sf
HOA Marina (HOA Member Only) Charged at Residential Rate
HOA Marina (Non -Member) $1.10- $0.76- $0.49- $0.76-
(Based on sf) 1.46 1.17 0.76 1.17 (zo-31%)
'1 41
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Lido Park Place Condominium
HOA Non -Member -12,534 sf
Savings of $4,262/year 11
Current Rent: $13,787/year Proposed Rent: $9,525/year
I
Guest Slips @a Yacht Clubs $0.50 $0.38 $0.38 $0.38
Free Public Access Dock - - - -
ti jl
. ►t'
y
a
(24%)
Balboa Yacht Club
Guest Slips — 8,541 sf
Savings of $1,025/year �3
Current Rent: $427o/year I Proposed Rent: $3,245/year
Vessel Rental (Boat Rentals) $1.02 $0.76 $0.49 $0.760mo (25%)
Vessel Charters $1.02 $0.76 $0.49 $0.76 (25%)
Sport Fishing Charters $1.02 $0.76 $0.49 $0.76 (25%)
Mariner's Mile LLC (VMA Hornblower)
Vessel Charter -12,000 sf
t _ Savings of $3,3-2o/year
. Current Rent: $1.2,24o/year
;, _
Proposed Rent: $9,1.2o/year
10
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14
Restaurants (Guest Slips) $1.02 0.38 $0.38
All Others $1.02 $0.76 $0.49
$0.38
$0.76
Woody's Wharf
Restaurant -4,5-10 sf
Savings of $2,887/year
Current Rent: $4,600/year I Proposed Rent: $1,713/year
.p
(63%)
(25%)
16
Large Commercial Marinas
(greater than 30,000 sf)
Small Commercial Marinas
(less than 13,00o sf)
Medium Commercial Marinas
(13,000-30,000 sf)
Fuel Docks (*greater of Base or Percentage)
Shipyards
HOA Marina (Member Only)
HOA Marina (Non -Member) (Based on sf)
Guest Slips @a Yacht Clubs
Free Public Access Dock
Vessel Rental (Boat Rentals)
Vessel Charters
Sport Fishing Charters
Restaurants (Guest Slips)
All Others
$1.46 $1.1
$1.10 0$0.76
$0.50
$0.50
$0.76
$0.49
$0.62
1�
$1.17 (20%)
$0.76 (31%)
$0.76
$0.38*
$0.38*
$0.38
$0.38
$0.38
Charged at Residential
Rate
$0.76-1.17
$0.49-0.76
$0.76-1.17
$0.38
$0.38
$0.38
(24%)
(24%)
(20-31%)
(24%)
$1.02 $0.76
$0.49
$0.76
(25%)
$1.02 $0.76
$0.49
$0.76
(25%)
$1.02 $0.76
$0.49
$0.76
(25%)
$1.02 $0.38
$0.38
$0.38
(63%)
$1.02 $0.76
$0.49
$0.76
(25%)
Revenue Corn
arison
1r 443, 827
$111001000
• CPI Adjustment starting Zosg.
• Market Analysis after:Lo years.
IN
Revenue Use
Not used in General Fund
All revenue to Tidelands Funds
$470,3.0o each year to Tidelands — Operating Fund
General operations, maintenance of beaches and marinas
All additional revenue to Tidelands — Harbor Capital Fund
Finances critical in -Harbor capital improvements like seawalls,
public piers, and dredging
ig
Questions ?
20
•� d � Y �'R
5 [
5
,
z. , .a.
8,541 sf
1 i
Aj
I�
w -r a r-
Caeni`}r iiclell ands '
s�
1
D 25 `so°
Permit#CP10418011
rues — -- r �� Ir..r� EftecNye 20i3 (Aer Restslutian 2012-9Rj
f� r YarhtCIub- GoestRate:
Bulk heutilPierhe rd Lines Balboa -Yacht CIGb ° {8, 541 s�. ft. x Current Rate)
S t v� 11
F S -
Revenue Comparison
$38:L,556
$ 1/443/827 $ 1/100/000
23
24
Large Commercial Marinas
Small Commercial Marinas
Fuel Docks*
Shipyards
HOA Marina (Non -Member)
Guest Slips @a Yacht Clubs
Any Free Public Access Dock
Vessel Rental (Boat Rentals)
Sport Fishing Charters
Restaurants (Guest Slips)
,)sel Charters
Others
$2.27
$1.70
$0.50
$0.50
$1.70-2.27
$0.50
$1.02
$1.02
$1.02
$1.02
$1.02
$1.46
$1.10
$0.35
$0.26
$0.50 $0.35
$0.50 $0.35
$1.10-1.46 $0.26-o.35
$0.50 $0.35
$1.02
$0.35
$1.02
$0.35
$1.02
$0.35
$1.02
$0.35
$1.02
$0.35
201.7 Index
Rates
*Fuel Docks to
pay Base Rent
or Percentage
Rent.
25
Large Commercial Marinas
Medium Commercial Marinas
Small Commercial Marinas
Fuel Docks
Shipyards
HOA Marina (Non -Member)
Yacht Clubs
-Guest Slips @Yacht Clubs
Any Free Public Access Dock
Vessel Rental (Boat Rentals)
Sport Fishing Charters
aurants (Guest Slips)
el Charters
►thers
$0.35
$0.26
$0.35
$0.35
$0.26-0.35
$0.26-0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$1.17
so.8g
$0.76
x0.38
x0.38
$0.76-1.17
$0.76-1.17
x0.38
$0.76
$0.76
x0.38
$0.76
$0.76
26
Large Commercial Marinas
Medium Commercial Marinas
Small Commercial Marinas
Fuel Docks
Shipyards
HOA Marina (Non -Member)
Yacht Clubs
-Guest Slips @ Yacht Clubs
Any Free Public Access Dock
Vessel Rental (Boat Rentals)
Sport Fishing Charters
Restaurants (Guest Slips)
Vessel Charters
All Others
I�
$0.35 $1.17
- $o.89
$0.26 $0.76
$0.35
$0.35
$0.26-
0.35
$0.26-
0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.38*
$0.38
$0.76-
1.17
$0.76-
1.17
$0.38
$0.76
$0.76
$0.38
$0.76
$0.76
$0.76
$0.62
$0.49
$0.38*
$0.38
$0.49-
0.76
$0.49-
0.76
$0.38
$0.49
$0.49
$0.38
$0.49
$0.49
2017
Phase -In of
Fair Market
Rates
*Fuel Docks to
pay Base Rent
or Percentage
Re nt.
27
Large Commercial Marinas
Medium Commercial Marinas
Small Commercial Marinas
Fuel Docks
Shipyards
HOA Marina (Non -Member)
Yacht Clubs
- Guest Slips @ Yacht Clubs
Any Free Public Access Dock
Vessel Rental (Boat Rentals)
Sport Fishing Charters
Restaurants (Guest Slips)
Vessel Charters
All Others
We
$0.35
$0.26
$0.35
$0.35
$0.26-
0-35
$0.26-
0-35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
$1.17
$0.89
$0.76
$0.38*
$0.38
$0.76-
1.17
$0.76-
1.17
$0.38
$0.76
$0.76
$0.38
$0.76
$0.76
NOV. 2017
$0.76
$0.62 I
$0.49 I
$0.38* I
$0.38 I
$0.49-
0.76
$0.49-
0.76
$0.38 I
$0.49
$0.49
$0.38
$0.49
$0.49
• 2018
I $1.17
I $0.89
I $0.76
I$0.38*
I $0.38
$0.76-
1.17
$0.76-
1.17
I $0.38
$0.76
$0.76
$0.38
$0.76
$0.76
2017
Phase -In
of Fair
Market
Rates
*Fuel Docks
to pay Base
Rent or
Percentage
Rent.
m
How Many Marinas.?
6o Commercial Marinas
Large Marinas — Zo
Small Marinas - 30
Other Uses -20
Fuel Docks
Shipyards
Yacht Clubs
HOA < 15,0005F
Boat Rentals
Restaurants
Vessel Charter
All Other
zg
November 1-�, 2012
City Council approved Resolution Nos. 2012-96 and 2012-98:
• Rent Calculated using Index of 9 Marinas in Harbor
—16.o% of Gross Slip Revenues
Rent Increases Phased -In over 5 years
Static rates in 2013 at $0.36/sf
Phase -In started March 1, 2014
Full fair market value reached March 1, 2018
Next Appraisal in 2o18, and every 5 years
30
2017 Recommendations
*Appraisal conducted by George Hamilton Jones, Inc.
New appraised rate is $1.17/sffor large marinas
(no longer indexed)
Two -Phased approach to raise the rent:
- November 2017 - raise to $0.76 / sf
- August 2018 - raise to $1.17 / sf
Establish Medium Size Marinc category (13,000 to 30,000 sf)
Adjust every year by Consumer Price Index(CPI)
Re -Appraise the marinas every ten years (2026)
31
Large Commercial Marinas (greater than 30,000 sf)
Medium Commercial Marinas (13,000-30,000 sf)
Small Commercial Marinas (less than 13,000 sf)
Fuel Docks
Shipyards
HOA Marina (Docks for Non -Member Use)
Yacht Clubs
-Guest Slips @Yacht Clubs
Any Free Public Access Dock
Vessel Rental (Boat Rentals)
Sport Fishing Charters
aurants (Guest Slips)
el Charters
►thers
$1.17
x0.89
$0.76
$0.76
x0.38
$0.76-1.17
$0.76-1.17
x0.38
$0.76
$0.76
x0.38
$0.76
$0.76
32
2012 A
raised Rent for Commercial
Tidelands Uses in Newport Harbor
Category -ow- _U -T- -M=q
Commercial se
Large Commercial Marinas (greater than 15,000 sf) s1.68
Small Commercial Marinas (less than 15,000 sf) $1.26
Fuel Docks* $0.50
Shipyards $0.50
HOA Marina (Docks for Member Use) $1.02
*Fuel Docks to
pay Base Rent
or Percentage
Rent.
Yacht Clubs x1.68
- Guest Slips @a Yacht Clubs $0.50
Any Free Public Access Dock -
Vessel Rental (Boat Rentals) $1.02
Sport Fishing Charters $1.02
Restaurants (Guest Slips) $1.02
Vessel Charters $1.02
All Others $1.02 33
Current
Commercial Use Category
A
IL
Large Commercial Marinas (greater than 15,000 sf) $0.35
Small Commercial Marinas (less than 15,000 sf) $0.26
Fuel Docks $0.35
Shipyards $0.35
HOA Marina (Docks for Non -Member* Use) $0.26-o.35
Yacht Clubs
-Guest Slips @Yacht Clubs
Any Free Public Access Dock
Vessel Rental (Boat Rentals)
Sport Fishing Charters
Restaurants (Guest Slips)
Vessel Charters
Others
*Definition of Commercial
HOA Marina updated per
Resolution No. 2013-88.
$0.26-o.35
$0.35
$0.35
$0.35
$0.35
$0.35
$0.35
Current
Rates
34