The URL can be used to link to this page

Home My WebLink AboutLido Marina Village_Farmers' Market Staff Report 12-1 NEWPORT BEACH City Council Staff Report COUNCIL STAFF REPORT CITY OF June 25, 2019 Agenda Item No. 12 ABSTRACT: Lido Group Retail, LLC (“Licensee”) with the assistance of the Orange County Farm Bureau has operated the Lido Marina Village Certified Farmers’ market under a Special Event Permit in the public right-of-way at Via Oporto and Central Avenue since May 2018. The Licensee is seeking the City Council’s consideration for a revocable license agreement (“Agreement”) to use Via Oporto, from Central Avenue to Via Lido for a farmers’ market. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve a waiver of City Council Policy F-7 – Income Property based on the findings contained in this staff report and the license agreement, that conducting an open bid process or changing the licensee would result in excessive vacancy, and the use of the property provides an essential or unique service to the community and is of a statewide benefit, and might not otherwise be provided were an open bid or full fair market value of the property be required; and c) Authorize the City Manager and City Clerk to execute a five-year Revocable License Agreement for Temporary Use of City Property for a Certified Farmers’ Market at Lido Marina Village with Lido Group Retail, LLC, in a form substantially similar to the agreement attached to the staff report. TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Seimone Jurjis, Community Development Director - 949-644-3232, sjurjis@newportbeachca.gov PREPARED BY: Lauren Wooding Whitlinger, Real Property Administrator, lwooding@newportbeachca.gov PHONE: 949-644-3236 TITLE: Revocable License Agreement with Lido Group Retail, LLC to Operate a Certified Farmers’ Market Located in Lido Marina Village Revocable License Agreement with Lido Group Retail, LLC to Operate a Certified Farmers’ Market Located in Lido Marina Village June 25, 2019 Page 2 12-2 FUNDING REQUIREMENTS: Revenues collected pursuant to the proposed Agreement, $4,200 per year, which shall be adjusted annually by the percentage change in the cost of living as indicated by the Consumer Price Index, will be posted to the General Fund in a Real Property account in the Community Development Department (010-01050505). DISCUSSION: Background The Lido Marina Village Certified Farmers’ Market (“Market”) operated in the public right- of-way on Via Oporto at Central Avenue each week, from 2010 through 2014. Redevelopment of the Lido Marina Village area by the Licensee, and its parent company DJM Capital Partners, Inc., over the last several years necessitated street closures and other work in and near the rights-of-way. The previous Market operator agreed to suspend the Market during construction, and subsequently relocated the Market to McFadden Square at the base of the Newport Pier in 2015. With construction completed and the stores in Lido Marina Village now open, the Licensee requests to re-establish a weekly Market in the Via Oporto right-of-way. The Licensee obtained special event permits beginning in May 2018, to operate the Market on a trial basis, while the terms of the proposed Agreement were being negotiated. The current special event permit is valid through June 26, 2019. Operation Under the terms of the proposed Agreement (Attachment A), the Market will run every Wednesday from 1 p.m. to 5 p.m., but no later than 6 p.m., with set-up starting no earlier than 11 a.m. and tear-down and clean-up completed by 7 p.m. The license area is limited to the right-of-way on Via Oporto, from Central Avenue to Via Lido, and includes use of twelve un-metered parking spaces occupied by the Market set-up. Vendor loading and unloading and parking of vendor vehicles will be limited to the license area and the private alley off of Via Oporto. No more than 25 vendors will be spaced throughout the Market, as shown on the site plan exhibit (Attachment B). The Licensee has separately contracted with the Orange County Farm Bureau (“Manager”), who has extensive experience managing and operating certified farmers’ markets throughout Orange County. They possess the qualifications and experience necessary to manage a successful operation. The Manager will be responsible for daily Market operations, overseeing set-up and clean-up of the license area, and sourcing and managing the vendors. Twelve on-street parking spaces will not be available to the public while the Market is operating. Parking is available at a parking structure at 3434 Via Lido, and in the public parking lot at Central Avenue. Metered street parking is also available on Central Avenue, on Via Lido, and Via Oporto between Via Lido and 32nd Street. Revocable License Agreement with Lido Group Retail, LLC to Operate a Certified Farmers’ Market Located in Lido Marina Village June 25, 2019 Page 3 12-3 City Council Policy F-7, Income Property Due to the Licensee’s adjacent real property interests, staff determined the Licensee has a unique interest in meeting the community expectations, and in seeing the Market succeed. Therefore, staff did not conduct an open bid process to solicit proposals from other market operators. Fair market value rent for the license area is estimated at $8,000 per year. Staff believes the following findings can be made, as required by City Council Policy F-7, Income Property (Attachment C): 1. Converting the property to another use or changing the licensee of the property would result in excessive vacancy, which would outweigh other financial benefits; 2. The Licensee provides an essential or unique service to the community that might not otherwise be provided were full market value of the property be required; and 3. With the Market located in the public right-of-way and rent charged at less than fair market value, the use provides a public benefit to the people of California by providing affordable access to healthy and sustainable food, and is therefore a matter of statewide benefit that might not otherwise be provided if full market value or an open bid process be required. Summary of Terms The proposed terms of the Revocable License Agreement are summarized below: 1. The initial term is five years, with one (1) five-year extension option, unless terminated earlier as provided by the Agreement; 2. Operating hours of the Market are limited to Wednesdays from 1 p.m. to 5 p.m. but not later than 6 p.m., with set-up no earlier than 11 a.m., and clean-up activities completed by 7 p.m.; 3. Rent shall be set at $4,200 per year, due in monthly installments of $350 on the first day of each month. Rent shall be adjusted annually, upon the effective date of the Agreement, based on the percentage change in the Consumer Price Index (CPI); 4. The Licensee shall obtain and maintain during the term of the Agreement all appropriate permits, licenses, and certifications that may be required by any governmental agency to operate a Certified Farmers’ Market; a. Certified producers (farmers) are exempted from the requirement to obtain a City of Newport Beach business license pursuant to the hardship exemption under Section 5.04.025 of the Municipal Code; Revocable License Agreement with Lido Group Retail, LLC to Operate a Certified Farmers’ Market Located in Lido Marina Village June 25, 2019 Page 4 12-4 5. The Licensee shall provide certificates of insurance to the satisfaction of the City’s Risk Manager, naming the City as additional insured. Additionally, the Licensee shall provide a liability release statement completed and executed by each vendor; 6. The Licensee shall not allow more than twenty-five (25) vendors to display and/or sell products at the Market, and shall verify that all individual vendors are “producers” or “certified producers”; 7. The Licensee shall require its selected manager to manage and oversee the regular on-site operations of the Market pursuant to the California Code of Regulations; and 8. Weekly set-up and clean-up of the Market shall include placement of traffic control bollards and signage around the perimeter of the license area, and the Licensee must comply with traffic regulations and other conditions provided by the City’s Public Works and Fire Departments. The Agreement has been reviewed by the City Attorney’s Office and has been approved as to form. ENVIRONMENTAL REVIEW: Staff recommends the City Council find approval of the Agreement is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A – Revocable License Agreement with Lido Group Retail, LLC Attachment B – Site Plan Attachment C – City Council Policy F-7, Income Property