HomeMy WebLinkAbout20 - Balboa Bay Club LeaseAGENDA ITEM NO. 20
• CITY OF NEWPORT BEACH
Office of the City Manager
August 12, 1996
BY THE CITY COUNCIL
CITY OF NEWPORT BEACH
AUG 12 is
TO: HONORABLE MAYOR AND COUNCILMEMBERS
FROM: Kevin J. Murphy, City Manager C)jq
SUBJECT: BALBOA BAY CLUB LEASE
Following the City Council action approving the Balboa Bay Club Option and
Lease Agreement on June 24, 1996, the documents were forwarded to the
State Lands Commission legal staff for their review and approval prior to
consideration by the State Lands Commission. This matter has been
scheduled for consideration by the State Lands Commission on August 21,
1996.
• The State Lands Commission legal counsel has requested two minor
amendments to the Lease Agreement which have been reviewed and approved
by the City Attorney, the City's Special Counsel on this matter, Lowell
Martindale, and the Balboa Bay Club. The language from the Lease approved
by the City Council is attached as Attachment 1, with the proposed language
from State Lands attached as Attachment 2. A full copy of the lease is available
upon request; however, full and complete copies haven't been duplicated for
the City Council since you acted on this entire matter earlier this year.
If the City Council acts to approve these amendments and the State Lands
Commission approves the Lease and Option Agreements on August 21st then
the City and Bay Club can execute the documents.
RECOMMENDATION
The City Council approve the amendments to the Lease Agreement with the
Balboa Bay Club recommended by the State Lands Commission.
•
ATTACHMENT 1
such number of guest rooms or related facilities is not as economically
advantageous as some other permitted use, Tenant shall be entitled to reduce the •
number of required guest rooms or related facilities to allow for such other
permitted uses so long as there Is no material reduction In economic benefits
accruing to Landlord or the City from the Project by reason of such change in use;
provfded, however, In no event may the number of hotel rooms be reduced below
one hundred twenty-five (125) without the prior written consent of Landlord.
which consent shall not be unreasonably withheld or delayed.
3.9 Renovation and Maintenance of Apartments. Tenant shall maintain the
apartment component of the Project, and each rental unit therein, and the
furniture, fixtures, appliances and personal property used In connection therewith,
in a condition of repair and maintenance comparable to other quality apartment
rentals In the Newport Beach area; provided, however, that Tenant shall not be
required by this Section 3.9 to make any material capital investment In the
apartment component of the Project to upgrade facilities, systems and equipment
which are not included In the apartment component of the Project as of the date
of Landlord's approval of the Final Plans as provided in the Option Agreement.
Tenant shall, from time to time as each apartment unit is leased, but not less
frequently than once every five (5) years during the Term hereof, renovate each
apartment unit to maintain such quality by cleaning and/or replacing the carpeting,
floor coverings and/or window coverings as reasonably required and painting the
unit Interior walls. Subject to Sections 10.4 and 10.5. Tenant shall maintain and
operate the Terrace Apartment Building
as apartment units available for rental at
all times during the Term in a mannetMhlch will not result In termination of the •
authorization of such use as an apartment compleA under Paragraph 8(b) of
Assembly Bill No. 3139 effective September 22, 1994.
3.10 Maintenance of Acarina Operations. Tenant shall maintain the marina
facilities. and the fixtures, appliances and personal property used In connection
therewith, In a condition of repair and maintenance at least comparable to
comparable quality of marina operations In the Newport harbor throughout the
Term; provided, however, that Tenant shall not be required by this Section 3.10 to
make any material capital investment in the marina component of the Project to
upgrade facilities, systems and equipment which are Included In the existing
marina as of the date f Landlord's approval of the Final Plans as provided in the
Option Agreement. Tenant shall maintain and operate not less than one hundred
forty (140) slips suitable for boats of up to one hundred (100) feet in length or
rental throughout the Term to the general public who are members of the a oa
Bay Club, and shall make such slips available for rental at comparable rental rates
for comparably sized and maintained marina facilities in the Newport Harbor from
time to time during the Term. Tenant shall not enter Into rental or leasing
agreements for boat slips (1) for a term of longer than one (1) year unless such.
agreements have provision for adjustment of rent to full fair market rental value
not less often than each year, or (11) with any person for a discounted or reduced
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BALBOA BAY CLUB LEASE
PARAGRAPH 3.9 (pg. IS) -(last sentence)
ATTACHMENT 2
Tenant shall maintain and operate the Terrace Apartment Building
as apartment units available for rental at all times during the Term
in a manner consistent with the provisions of Chapter 74, Statutes
of 1978, as amende4 including but not limited to See. 4.5 (b) as
added by Chapter 728, Statutes of 1994.
PARAGRAPH 3.10 (pg. 15)
...Tenant shall maintain and operate not less than one hundred forty
(140) slips with a reasonable number suitable for boats of up to
one hundred (100) feet in length