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HomeMy WebLinkAboutF-3b - Balboa Yacht Club LeaseC; , Council Meeting Ag_.ida Item -F-3(b) CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER April 25, 1988 TO: MAYOR AND CITY COUNCIL FROM: EXECUTIVE ASSISTANT SUBJECT: BALBOA YACHT CLUB LEASE jY THE CITY COUNCIL CITY OF NEWPORT BEACH A P R 2 5 1988 A P -PRO ED ACTION: If desired, authorize Mayor and City Clerk to execute lease with the Balboa Yacht Club. BACKGROUND: The Balboa Yacht Club (BYC) occupies uplands and tidelands along Bayside Drive (see map attached to lease). Most of the property belongs to and is leased from the County of Orange except for a portion of uplands (4,021 square feet) which belongs to the City. For many years, (see recitals of the lease) the County collected rent for the City. However, when the County recently negotiated a new lease, the City parcel was not included. The proposed lease is between the City and the BYC directly. The terms of the proposed lease parallel those of the County lease, and include the same termination date, the same rental rate, and the same periodic rental adjustments. The County's independent appraisal was determined to have equal applicability to the City's parcel. The County's appraisal established an annual rental rate of approximately 53� per square foot for uplands to be escalated periodically proportionate to the Consumer Price Index. Consistent with the appraised rental value and an intervening CPI adjustment, the City's 4,021 square foot parcel will rent for $2,371 for the initial year. Further CPI adjust- ments will be made periodically until 1999 when both the City and County leases expire. The City Attorney has determined that because this land has been leased since 1941, no election is required under Section 1402 of the Charter. K NNETH DELINO KJD: atf MEMORANDUM OFFICE OF THE CITY ATTORNEY April 13, 1988 TO: Ken Delino, Executive Assistant FROM: Robert H. Burnham, City Attorney RE: Balboa Yacht Club Lease You have asked if an election is required pursuant to Section 1402 of the City Charter prior to Council approval of a lease, to the Balboa Yacht Club, of a small parcel of bay front property. According to information you have provided, the Balboa Yacht Club has leased this property since 1941. In my opinion, the election provisions of Section 1402 of the Charter do not apply since the property was under lease as of the effective date of the Charter. Please call if you have any question,%. bl5eft H . - Bbtnham ity Attorney RHB/jc