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Home My WebLink About09 - Approval of an Exclusive Negotiating Agreement with Lido House Hotel, LLC for the Lease of Property at 475 32nd Street (PA21-00712) - CorrespondenceReceived After Agenda Printed July 27, 2021 Item No. 9 July 23, 2021 Response in "red" 7/26/21 Mayor and City Council Members City of Newport Beach Via email to citycouncil(anewportbeachca.gov SUBJECT: July 27, 2021, City Council Meeting, Agenda Item #9 -Exclusive Negotiating Agreement with Lido House Hotel As you know, we own the Via Lido Plaza (APN: 423-111-01), which consists of approximately five -acres and is bounded by Newport Blvd, Via Lido, Via Oporto and the Lido House Hotel. Current uses within Via Lido Plaza include West Marine, Fable & Spirit restaurant, Via Lido Drugs, and the iconic Lido Theater. Via Lido Plaza includes the following addresses: 3415 - 3475 Via Lido, Newport Beach. We understand from the posted City Council meeting agenda for this Tuesday, Agenda Item #9, that the City is considering entering into an exclusive negotiating agreement with the owners of the Lido House Hotel to lease them the adjacent Fire Station site. In this matter, as the adjacent landowner to the City property that the Lido House Hotel is leasing from the City, we respectfully request that you consider modifying the agreement to include us in the design planning and negotiation of the Fire Station site repurposing. To refresh on our efforts to date, after we found out unofficially that Lido House had submitted a proposal for the Fire Station site, we engaged WHA land planning (who was the lead planner in the Lido Village Design Guidelines) to look at alternate uses for the Fire Station property. We wrote a letter to Council on March 23rd, we met with Staff on April 15d', and we wrote a second letter to Council on June 4th, all to request a "seat at the table" to discuss several options beneficial to all parties. In the absence of any response, we reached out and were able to meet with Councilwoman Dixon and with the RD Olson Company, the developers of the Lido House Hotel, to show them our concepts and to invite collaboration. We received positive responses from both meetings. Even though our preference is to work directly with Staff, the RD Olson Company, and Council in collaboration, as we have stated in our previous efforts to date, given Item #9 before Council this Tuesday, we wish to share with you one of WHA's concepts for the Fire Station site —please take a look at the enclosed slide deck. Conceptuallyprovides: ■ Approx. 33 additional parking spaces for public and private use. Response: The additional parking increase is not as stated, based on City guidelines for Valet stacking spaces, accounting for trash area, and when evaluating the layout in CAD ... when compared to the existing hotel "on -site" parking counts. The Ex. Hotel has 148 on -site painted spaces + 9 valet spaces (157 total). The FD 3425 Via Lido • Suite 250 • Newport Beach, CA 92663 www.FritzDuda.com proposal would reduce the total on -site parking by (8) spaces (FD Proposal = 138 painted spaces and 11 valet =149 total on -site spaces). (See WATG markup and study CAD plan). As far as the off-street parking. (10) additional spaces on Via Oporto would be added; however, the RDOD contemplated plans would also add 10 to 14 off -site parking spaces on Via Oporto. Secondly, please refer to WATG Study #2 plans and comments. Parking is further reduced by (6) additional painted spaces when you align the plans of the proposed (4) Cottages with the existing (5) Cottages. This is the optimum design solution for the design of the cottages and facade impact from 32" d St. ■ Potential to add an additional Villa for the Lido House Hotel and improved site usage. Response: Six Cottages are not possible due to how the Cottages are designed to function, required building separations, window (code required light and air to bedrooms), balconies, decks, and electrical easement. (See the WATG mark-up and study CAD plan showing that only (5) cottages can accommodated). Additionally, the east side of the existing hotel is compromised by having (6) rooms look directly into the new cottages proposed in the FD plan, not to mention the (4) new cottage will be looking directly into the side of the 5th cottage; thus, reducing the value due to less than best views. ■ Better traffic circulation to relieve the current excessive congestion with additional 32"d Street access for Via Lido Plaza. Response: A Traffic consultant should review this claim, as the FD plan appears to place a significant right and left turn exit and curb -cut onto 32°d. St., right between Via Oporto and Villa Way, which also includes the Lido House Hotel service access ... (See WATG markup and study CAD plan). ■ Increased revenue to the City (an estimated $30-40,000 per Villa in bed taxes and additional parking revenue) Response: As noted above, only (5) Cottages can be accommodated due to design, function, and site constraints. Additionally, because one cottage would have to be isolated, it impacts the remainder of cottage views and existing hotel guestrooms ....(See WATG markup and study CAD plan). 3425 Via Lido • Suite 250 • Newport Beach, CA 92663 www.FritzDuda.com The concept shown in the enclosed slides uses a lot line adjustment that effects a land swap of equal square footage between the City property, leased by the Lido House, and Via Lido Plaza. It essentially squares off the property line between the City property and the Via Lido Plaza property, so the parking becomes more efficient for both properties. The Lido House Hotel would still lease the swapped land from the City maintaining the same proposed lease income from the fire station with the ability to add an additional Villa. As owners of Via Lido Plaza for over 40 years, we have a long history of successfully working with the City of Newport Beach. We believe this concept delivers a win -win for all parties: the City, the citizens and visitors of Lido Village, the Lido House Hotel, and Via Lido Plaza. We thank you in advance for your consideration and we look forward to your response. Paul Tanguay Vice President Enclosures: 5-page Slide Deck: Conceptual Fire Station Swap 3/23/21 Letter to City Council 6/4/21 Letter to City Council 3425 Via Lido • Suite 250 • Newport Beach, CA 92663 www.FritzDuda.com Lido House Hotel [Ground Leased from City] Before Legend Via Lido Plaza STUDY #1: `i_ WATG REVIEW 1~ � After 5 new villas for Lido House Ix - 157 onsite parking - Lido House (148 marked spaces + 9 valet) d • 30 public parking - 32r1 St. & Via Oporto on 32pd st. + 14,on Vi po to - 3 onsite parking - Ea �i o Plaza • 489 total parking spaces To Lido House ►/Reduced costs (driveway & Via Oporto improvements) 1v^1-9,spaces of additional onsite parking Only 5 new cottages are feasible To City - 5'6,new villas - Lido House No Change .149 M onsite parking - Lido House �].,�.� +1 (138 marked spaces + 11 valeD j • 40 public parkinE 32 St. & Via Oporto (+10) (16 oh 32nd st. + 24 onWia Oporto f 10 NE ) • 307 onsite parking - Via Lido Praza (+5) r total parking spaces (�-� +12 ADVANTAGES V10 More public parking spaces VMore revenue (re: additional $30-40,000 per Villa in bed taxes, parking spaces, & ground lease) et&-er trafAre rim a Q. c.QAg@stii@A roliof Traffic Consultant and City should study the curb cuts and access along 32nd St that are now very close to each other with added guest and truck service traffic all turning right and left onto 32nd. St. To Via Lido Plaza f 32nd Street access for loading trucks and customer access 5 spaces of additional onsite parking Better traffic circulation & congestion relief ,(32nd Street access) Is "p S rr STUDY #1: WATG REVIEW Lido House Hotel & Via Lido Plaza Land Swap Alternative S 5 New Villas + la r Event Lawn PARKING ANALYSIS Existing parking to remain bkspaces 138 New parking added Nkspaces Valet X spaces 11 Subtotal spaces 149 32"d Street parking 16 spaces New Via Oporto Parallel 10 spaces Total Parking 175parking spaces ws only C aQ-Q The proposed "staggar" in the new Cottages to gain parking compromises the design intent and aesthetic of the new rash area ust be k placed s Significant add'I service truck _,and retail guest traffic loading --32nd St. between curb cut and Via Oporto? `� Buda - stuc I �6) BICYCLE RACKS FOA (121 BIKES ------------ -- -- ------------ ------------ ----- -- -- --------- ilvSi a er St r U mo0 ,,, and AirpollserviQQ,,� (1) ADA parking space - - (1) Parking space removed r (8) Parking space added _ The 'blue' dashed line represents the back of the exist Cottages sidewalk. This alignment is imperative to maintain for the proposed new Cottages. The staggare Cottages are not cons istenfwith the design ent_ 1 OLO ga 'larking entrance and are shifted to the west s "roperty line is adjusted accordingly % 3 0. 0 0 + j IN fikoueu va d-t;� Pay >1 I ac�Transf -rmer and Capa to IL :able and telephone � F unitary 11 Cettaae_ C10 cannot be placed dire 4) Cottages [10') no build ele ��ew,ehf 1 I I I I I I I I I I I I i I I I I it I II I � 32ndist Ok 10 P lazz 1n Added PUb1EC Parking r Lot B curb cut competes with car; truck service from Lido house, Vill Oporto and Villa way. The truck service , access in front c Cottages is also not nreferred_ Lido House Hotel [Ground Leased from City] Before Legend Via Lido Plaza STUDY #2: `i_ WATG REVIEW 1~ � After 5 new villas for Lido House - 157 onsite parking - Lido House (148 marked spaces + 9 valet1 ) d • 30 public parking - 32r1 St. & Via Oporto on 32pd st. + 14,on Vi po to • 3 onsite parking - Ea �i o Plaza • 489 total parking spaces To Lido House ►/Reduced costs (driveway & Via Oporto improvements) 1v^1-9,spaces of additional onsite parking Only 5 new cottages are feasible To City 5*6,new villas - Lido House No Change .143 M onsite parking - Lido House �].,�.� -5 (132 marked spaces + 11 valej)d p • 40 public arkinE 32 St. & Via Oporto (+10) (16 oh 32nd st. + 24 onWia Oporto f 10 NE ) • 307 onsite parking - Via Lido Praza (+5) total parking spaces (�-� +6 ADVANTAGES V10 More public parking spaces VMore revenue (re: additional $30-40,000 per Villa in bed taxes, parking spaces, & ground lease) et&-er trafAre rim a Q. c.QAg@stii@A roliof Traffic Consultant and City should study the curb cuts and access along 32nd St that are now very close to each other with added guest and truck service traffic all turning right and left onto 32nd. St. To Via Lido Plaza f 32nd Street access for loading trucks and customer access 5 spaces of additional onsite parking Better traffic circulation & congestion relief ,(32nd Street access) Is "p S rr STUDY #2: WATG REVIEW <: ; x The proposed 11staggar11 in the new Cottages to gain parking compromises the design intent and aesthetic of the new Lido House Hotel & Via Lido Plaza Land Swap Alternative S 5 New Villas + la r Event Lawn PARKING ANALYSIS Existing parking to remain New parking added Valet Subtotal 32"d Street parking New Via Oporto Parallel Total Parking 3i Y ws Cottages. In Study 2, the i Cottages are moved = -....�._a• forward. .,.._ spaces `1 k spaces 132 spaces 11 spaces 143 16spaces 10spaces 169parking spaces only rash area ust be k placed Significant add'I service truck and retail guest traffic loading --32nd St. between curb cut and Via Oporto? `� I FROM STUDY #1: The proposed Service Trucks are in the guests line of sight from the entry. Back up truck noise will be audible from the drop-off. PORTE COCHERE i > (9) BICYCLE i RACKS FOR (18) BIKES I.L IN 12-1 in — =- miii I u - -u 0 0 0 o � 0 00 0 0 0 0 Eln n n n J�J � 1 Fritz Duda - Stud W 2� PROPOSED NEW PROPERTY LINES +/- ■-m ■-m i-rr r■ N rrf ■ r ■-m rrrm -ii rrra mi r ■ to . rM rIM I -rr E■ r7 12 nn mi i � �. Added Via Lids Plaza Parking IV �50 SF Publ'Ec sm • Added FVENT ' �% a , �..�. i 4•',- _ �� IIIIIIIIII k-kii- VO) RACKS FOR (12) BIKES .. / ■ � �� _ Id 91 \ --- --- — — -- ---- --- 0 (1) ADA parking pace (1) Parking space removed Parking entrance and gate e - 12" min. setback Property line is adjusted _ Lot B curb cut competes with cars and The blue dashed line represents the accordingly. truck service from Lido house, Villa back of the existing Cottages sidewalk. Oporto and Villa way. This alignment is imperative to maintain for the proposed new (8') water easement The truck service access in front of Cottages, therefore parking is not Cottages is also not preferred. possible. u 0 25' 50' 100' WAT G 7-19-21 Received After Agenda Printed July 27, 2021 Item No. 9 July 23, 2021 Mayor and City Council Members City of Newport Beach Via email to citycouncil(&,newportbeachca. -og_v SUBJECT: July 27, 2021, City Council Meeting, Agenda Item #9 -Exclusive Negotiating Agreement with Lido House Hotel As you know, we own the Via Lido Plaza (APN: 423-111-01), which consists of approximately five -acres and is bounded by Newport Blvd, Via Lido, Via Oporto and the Lido House Hotel. Current uses within Via Lido Plaza include West Marine, Fable & Spirit restaurant, Via Lido Drugs, and the iconic Lido Theater. Via Lido Plaza includes the following addresses: 3415 - 3475 Via Lido, Newport Beach. We understand from the posted City Council meeting agenda for this Tuesday, Agenda Item #9, that the City is considering entering into an exclusive negotiating agreement with the owners of the Lido House Hotel to lease them the adjacent Fire Station site. In this matter, as the adjacent landowner to the City property that the Lido House Hotel is leasing from the City, we respectfully request that you consider modifying the agreement to include us in the design planning and negotiation of the Fire Station site repurposing. To refresh on our efforts to date, after we found out unofficially that Lido House had submitted a proposal for the Fire Station site, we engaged WHA land planning (who was the lead planner in the Lido Village Design Guidelines) to look at alternate uses for the Fire Station property. We wrote a letter to Council on March 23rd, we met with Staff on April 15th, and we wrote a second letter to Council on June 4th, all to request a "seat at the table" to discuss several options beneficial to all parties. In the absence of any response, we reached out and were able to meet with Councilwoman Dixon and with the RD Olson Company, the developers of the Lido House Hotel, to show them our concepts and to invite collaboration. We received positive responses from both meetings. Even though our preference is to work directly with Staff, the RD Olson Company, and Council in collaboration, as we have stated in our previous efforts to date, given Item #9 before Council this Tuesday, we wish to share with you one of WHA's concepts for the Fire Station site —please take a look at the enclosed slide deck. Conceptuallyprovides: ■ Approx. 33 additional parking spaces for public and private use. ■ Potential to add an additional Villa for the Lido House Hotel and improved site usage. ■ Better traffic circulation to relieve the current excessive congestion with additional 32" d Street access for Via Lido Plaza. ■ Increased revenue to the City (an estimated $30-40,000 per Villa in bed taxes and additional parking revenue) 3425 Via Lido • Suite 250 • Newport Beach, CA 92663 www.FritzDuda.com The concept shown in the enclosed slides uses a lot line adjustment that effects a land swap of equal square footage between the City property, leased by the Lido House, and Via Lido Plaza. It essentially squares off the property line between the City property and the Via Lido Plaza property, so the parking becomes more efficient for both properties. The Lido House Hotel would still lease the swapped land from the City maintaining the same proposed lease income from the fire station with the ability to add an additional Villa. As owners of Via Lido Plaza for over 40 years, we have a long history of successfully working with the City of Newport Beach. We believe this concept delivers a win -win for all parties: the City, the citizens and visitors of Lido Village, the Lido House Hotel, and Via Lido Plaza. We thank you in advance for your consideration and we look forward to your response. a an Paul Tanguay Vice President Enclosures: 5-page Slide Deck: Conceptual Fire Station Swap 3/23/21 Letter to City Council 6/4/21 Letter to City Council 3425 Via Lido • Suite 250 • Newport Beach, CA 92663 www.FritzDuda.com Owport Beach at El ------------ Legend r Ziet #- 2 % t vp —9 tl I .•� • CONCEPTUAL , P _ I Nv- p ***Equal Square Footage*** AREA "A" (from Via Lido Plaza to City) fI 1 - t 6 ..raph Call tia' in exchange f. AREA B" (from City to Via Lido Plaza) +t- _1001,k 7I _- + Isaw 1P G CONIti 1= * 1 i r — IRA' r Lp }T IJ r I r y+ I4,F V-•i , # itFire Station Ad 4 TL JU I it o• �2001t ~ 47 + �Y, . INC z aIN T Y k I ' — L - - - - • � _ Ly � IF �� r I J, i — i Imo_' � �.I ' _ L� 1 m _ dbL -♦e7 f } r it � • .��' a. -j j. TTTF i 41- 14 Y 3 5 s hfi _ � t _ Added Lido House Parking New Loading D; ¢ a,: Lido House Hotel I •1 [Ground Leased from City] .,.i PT ■ • •ine lve hp Added Via Lido Plaza .h. Parking i t -- yAll I FMW y 4 SAS f � t&. iCCl> ity MIN r •� � I k l 3 --rbd : a. '- 1 Rv I-Y.'M Via Lido Plaza Legend D; Lido House Hotel [Ground Leased from City] ' 5 new villas for Lido House • 157 onsite parking - Lido House • 30 public parking - 32nd St. & Via Oporto 302 onsite parking - Via Lido Plaza • 489 total parking spaces I y U' After • 6 new villas - Lido House (+1) • 175 onsite parking - Lido House (+18) • 40 public parking - 32nd St. & Via Oporto (+10) • 307 onsite parking - Via Lido Plaza (+5) • 522 total parking spaces (+33) ADVANTAGES To Lido House To C To Via Lido Plaza ✓Reduced costs ✓10 More public parking spaces ✓ 32nd Street access for loading trucks (driveway & Via Oporto improvements) ✓More revenue and customer access ✓18 spaces of additional onsite parking (re: additional $30-40,000 per Villa in bed taxes, ✓ 5 spaces of additional onsite parking ✓Potential to add another villa parking spaces, & ground lease) ✓ Better traffic circulation & congestion relief ✓Better traffic circulation & congestion relief (32nd Street access) ATi s .c June 4, 2021 VIA EMAIL citycouncil(a newportbeachca.gov Subject: June 8, 2021 City Council Agenda, IV. CLOSED SESSION, Item B. Conference with Real Property Negotiators Mayor Avery and Members of the City Council, Given the posting of the above referenced agenda item, it appears that the City is once -again entering into, more -or -less, a sole -source disposition of the old fire station at 3300 Newport Blvd. This parcel shares the same parcel lines to our Via Lido Plaza development, which we have owned since the 1980's. Apparently, my previous letter dated March 23, 2021 to you, now public record regarding this matter, has been misplaced or discarded without any response yet to date from either Staff or any Council Members (I have attached another copy of the letter for reference). In the letter, on behalf of Fritz Duda and our ownership group, we requested that the City involve our team, as a longstanding adjacent property owner, in future discussions regarding the disposition of the old fire station and that we have professional planners and other consultants we are willing to contribute to a joint effort of planning viable solutions that benefit all parties including the Lido House, Via Lido Plaza, the City, and the general public. Why would this approach not be considered? The appearance that the City is attempting to rush through the price and terms of payment on a sole -source ground lease greatly concerns us, especially since it seems to violate the State's surplus land laws, which apply before the sale or lease of any city property may be consummated. Surplus land law requires that the City declare at a public meeting that the old fire station property is either (1) surplus land, meaning it is not necessary for the City's use, or (2) exempt surplus land. Assuming that the old fire station property is not exempt, the City must comply with various requirements before disposing of the land, including potentially marketing the property to the general public. I think that the City already knows this, which is why it undertook a RFP process in 2013 when disposing of the adjacent city hall property. As you may also know, we recently submitted an application for a General Plan Amendment, Zone Change and other approvals (Case No. PA2101-102) in order to redevelop the Lido Village property into a mixed -use project with retail, office, and residential uses. The centerpiece of this mixed -use project would be a rejuvenated Lido Theater. Several options of that planning may also incorporate the old fire station at 3300 Newport Blvd that can also mutually benefit all the above -named parties! So again, please accept this letter as our repeated request that the City first engage our firm, Mr. Olson's firm, and the City to all meet jointly to discuss mutually beneficial land planning for a more comprehensive solution. We stand ready and thank you in advance for your reply. Since , Paul anguay Vice President 3425 Via Lido • Suite 250 • Newport Beach, CA 92663 • 949.723.7100 • Fax 949.723.1141 Dallas, Texas I Newport Beach, California I Reno, Nevada www.FritzDuda.com March 23, 2021 Mayor and Members of the Newport Beach City Council RE: Lido Fire Station Site Negotiations with 3300 Newport Blvd, Closed Session Item on 3/23/2021 City Council Meeting — Agenda Item IV. A Dear Mayor and Councilmembers: We understand that the City of Newport Beach is negotiating with the owners of the Lido House Hotel to lease the old Lido fire station located on 32"d Street which abuts our property at Via Lido Plaza (3415 - 3475 Via Lido). We are concerned about several issues involving this property and its history. While we are not informed relative to the details of the Council proceedings, we are surprised that an adjoining property owner has not been included. We believe there are several important considerations that should be vetted in public which include traffic circulation, public parking access and parking issues relative to the existing hotel. We believe there are several options that would be beneficial to both properties and the Lido core area. With the moving of City Hall to Newport Center, we worked with the City to relocate the decades old existing access to the shopping center from 32"d Street through the City Hall site to a new access on Via Oporto in order to help the City allow for the development of the Lido House Hotel. This access from Via Oporto required us to reconfigure our parking lot and required the City to remove multiple parking spaces on Via Oporto plus made a section of Via Oporto a two-way street so trucks could get in and out of the shopping center to replace the access we used to enjoy from 32"d Street. While this was not a perfect solution and did result in the loss of both public and private parking spaces, it did allow for the limited access to our Via Lido center from 32"d street. During this period we allowed fire station personnel to park on our lot as an accommodation to their needs and the lack of parking alternatives. With the relocation of the fire station there are several options including a public parking component; improved access and circulation from the 32"d Street and Via Oporto intersection; as well as revisiting the City proposal (made some years ago) to trade certain portions of the City property in exchange for portions of the Via Lido property to better align parking and access. 3425 Via Lido • Suite 250 • Newport Beach, CA 92663 • 949.723.7100 • Fax 949.723.1141 Dallas, Texas I Newport Beach, California I Reno, Nevada www.FritzDuda.com As you know, we are finishing design work on a multi -million dollar restoration of the iconic Lido Theater. This will become the centerpiece of the ultimate redevelopment of the Via Lido property in future years. Those plans will be shared during the general plan review that is currently underway. This planning has been delayed due to the pandemic but we are now well along in this major undertaking which will benefit all of the retail and hotel elements in the area. We would urge the Council, Staff and all interested parties to meet jointly and consider the various planning options that are now presented; these can mitigate the current challenges as well as afford longer term benefits for the Lido core area. We are standing by to contribute in discussions and planning as needed with Staff and we appreciate in advance your consideration. Sincerely, Pa a17 Vice President Fritz Duda Company 3425 Via Lido • Suite 250 • Newport Beach, CA 92663 • 949.723.7100 • Fax 949.723. l 141 Dallas, Texas j Newport Beach, California I Reno, Nevada www.FritzDuda.com