HomeMy WebLinkAboutSS7 - City Owned Lots Between 18th and 19th on Bay AvenueCITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER
April 26, 1976
STUDY SESSION No. 7
TO: MAYOR AND CITY COUNCIL
FROM: Administrative Assistant to the City Manager
SUBJECT: CITY OWNED LOTS BETWEEN 18th and 19th ON BAY AVENUE
The City of Newport Beach owns two surplus parcels of land, approximately
50 feet by 25 feet each on Bay Avenue between 18th and 19th Streets (see
attached exhibit). Each parcel is now leased to adjoining property owners.
An unsolicited offer was made by a private party through the City Manager's
Office to purchase both of these parcels for $50,000 in May of 1972. The
City Council referred this offer to the Parks, Beaches and Recreation
Commission for review and comment. The Commission recommended in 1972
that rather than sell the property, the City retain the parcels, purchase
additional adjacent lots and establish a municipal sailing center, as
contemplated in the Newport Peninsula Tennis and Aquatic Center (Marina -
park area) study plan. The City Council accepted the Parks, Beaches and
Recreation Commission's recommendation at that time.
In 1974, a recommendation to reconsider the possible sale of these parcels
was again referred to the Parks, Beaches and Recreation Commission, and
their recommendation at that time was that the two lots be retained until
the outcome of the Marinapark was determined. The City Council again
accepted the Parks, Beaches and Recreation Commission's recommendation.
Recently, the City has completed negotiations of the extension for the
Marinapark Mobile Home leases. Also, at the Parks, Beaches and Recreation
Commission meeting of April 6, 1976 they adopted a new master plan for the
Marinapark area which deleted the possible use of these two lots for a
sailing center or any other use.
Authorization for Sale. Section 1402 of the City Charter entitled "Waterfront
Property" provides, in part, that "The City Council shall not sell or convey
any waterfront or beach property excepting to the State or to the County for
use as a public beach or park." Although Bay Avenue separates the properties
from Newport Harbor, they were held to be "waterfront" properties within the
meaning of the Charter.
The City Charter was amended by a vote of the people on May 4, 1964, to
authorize the City Council to sell the two pr"rcels. Various discussions
were then held with the two parties now leasing the parcels. These negotia-
tions were not fruitful and no action has been taken regarding the sale
since 1966.
Existing Leases. Marginal older structures are located on both of the parcels
under authority of a lease agreement cancellable without cause upon 30 days
written notice. Each lessee pays the City a modest $15 a month for utiliza-
tion of this bay front property. The City had the lessee's improvements
appraised on April 6, 1965, and the appraiser concluded that "It is our
MAYOR AND CITY COUNCIL -2- 4/26/76
Subj: City Owned Lots Between
18th and 19th on Bay Avenue
opinion that the present improvements are of no value and that a cost of
approximately $350 will have to be absorbed by either the seller or the
buyer of the subject property. These improvements consist of a small
beach cottage partially on the easterly portion of subject and partially
on adjoining Lot 8 to the south. A small detached single car garage is
on westerly portion of subject."
Summary. It is staff's opinion that these two lots are surplus parcels to
the City and that in view of the size of these two lots, and the relation-
ship to the adjacent public property, it would appear that future public
use would be only problematical without the acquisition of a number of
additional adjoining parcels. In view of the pressing demand for other
open space and recreational facilities in the City, the feasibility and
priority of such a plan should perhaps be reassessed.
If Council were to consider selling these parcels, staff would suggest in
order to maximize the utility of the land and to preserve a lot size in
keeping with the neighborhood, that the two parcels be combined through
the resubdivision process and sold as one to the highest responsible bidder.
Council should be advised that if these parcels were sold, Council Policy
F-8 states, "Revenues from the sale of City property or the sale of
material from City property will be placed in the Capital Improvement
Fund."
Recommendations. If Council desires to sell these two parcels, staff would
ask that Council consider the following actions:
1. Instruct staff to prepare the necessary application
for resubdivision of the subject parcels and proceed
through the Planning Commission; and
2. Instruct staff to prepare specifications for a sealed
bid sale of subject parcels to the highest responsible
bidder.
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CITY OF NEW PORT B"-ACH
PUBLIC WORKS DEPARTNIEl"4T
BAY AVEINUE" PROPERTIES EASTERLY OF 19TH STR,'----,c_'T
(FULTON AND STRAUB LEASES)
AROW7*
DRAWN-!! DATE
APPROVED
DRAWING NO. M - -.4