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CITY OF NEWPORT RF #Hfhe CITY COUNCIL
Y r Y' Mu,,,,DnM, RGACH
:ti�N �r_i iy /U
OFFICE OF THE CITY MANAGER
By fhe CITY COUNCIL
CITY or #,MWPgPIT REACH September 25, 1970
TO: MAYOR AND CITY COUNCIL
FROM: City Manager
SUBJECT: CITY'S SANITARY LAND FILL PROPERTY h�
DISCUSSION:
In January, 1966 the City had a consultant study prepared by Engineering -
Science Inc. for the purpose of determining whether the City should continue or
abandon the practice of dumping refuse at the subject site. The summary and con-
clusions are to be found under Appendix'I. In August, 1968 the City had a second
study conducted by Wilsey & Ham to determine the development potential of the
Newport Beach abandoned refuse disposal site The summary and conclusions are to
be found under Appendix II. In April, 1970 the City had an appraisal made by
Cedric A. White, Jr., M.A.I., to determine the fair market value and the highest and
best use of the property. The results'of-this'study are to be found under Appendix
III. The results of these combined studies led to the conclusion that the City
should lease the property for a limited period.-of time with determination of ulti-
mate disposition to be made at some future date. This was the position assumed by
the City Council and so stated in September, 1968. At that time the City staff was
instructed to obtain a lessee for the property under conditions specified by the
Council.
Considerable interest has been expressed over the last two years by real -
tors and developers in the City's sanitary land fill property.located at the west-
erly extension of 19th and Whittier Streets. Most`of the interest has been in the
form of verbal and written expressions of interest in the purchase or lease of the
subject site for a mobile -home park. This interest substantiates the findings of
both the August, 1968 Wilsey and Ham planning and engineering study of the property
as well as the April, 1970 Cedric White appraisal, both indicating a mobile -home
park to be the highest and best development for the property at the present time.
Recent attendance by Assistant City Manager James P. DeChaine at a mobilehome con-
ference, sponsored by the California Real Estate Association in Los Angeles, brought
to light an additional alternate method of utilizing this property -- by the City
developing and operating the site in a manner similar to the City's Marinapark
mobilehome facility. Mr. Norbert Reinhardt, the City's Marinapark Manager, has had
extensive experience in the development and operation of mobilehome parks, and strong-
ly shares the belief that City development and operation of the park has a great deal
of merit and would be the most profitable alternate for. the City.
It is the intent of this report to discuss the advantages and disadvant-
ages of each of the alternative approaches insofar as disposition and /or develop-
ment of the property as .a mobilehome park is concerned -- sale, lease or City de-
velopment.
I. SALE-OF PROPERTY:
The advantages of the City selling the subject site are:
1) A one -time windfall of from $500,000 to $800,000 would be
, . ,
Page -2-
2 0
I. SALE OF PROPERTY - Continued
received which could be used for construction of needed
facilities such as parks, a new corporation yard and /or
other municipal improvements;
2) Selling the property would relieve the City staff of the
responsibility and time required to oversee the property,
and
3) Disposition of the property, which could possibly be deemed
surplus, would allow the land to be completely restored to
the tax rolls in perpetuity.
The disadvantages of selling the property at the present time are:
1) The City would be giving up a valuable natural asset which
will likely not only continue to appreciate faster than the
cost of living index, but which may be needed in the future
for use with a public marina or as a sanitary land fill
operation;
2) Sale would provide an initial windfall, but would not provide
the maximum net profit for the City; and
3) The City would have less opportunity to control any future
land use and development.
II. LEASE OF PROPERTY:
The advantages of City leasing the property are:
1) The City could potentially gain lease income ranging from
$36,000 to $54,000 per year, assuming a leasing value of
$450,000 at a rate of return on this value of from 8% to
12% per year;
2) Tax income from the leasehold possessory interest on the
land and improvements could be realized;
3) Any development burdens for the mobilehome park would be
assumed by the lessee; and
4) Leasing would allow the City to retain title to this valuable,
rapidly appreciating natural asset.
The principle disadvantages of leasing the property are:
1) Under current market conditions, the property would have to
be leased for a minimum of a 25 -year period of time. There is
some feeling that even a longer lease than 25 years would be
required at the present time. Any lease of 25 years or longer
(which would necessitate voter approval) would limit the City's
flexibility in converting the property to any alternate use
deemed desirable by the City;
Page -3-
II. LEASE OF PROPERTY: - Continued
2) There would be substantial administrative problems in
ensuring that the lessee develops and maintains the mobile -
home park in a high quality manner, and
3) There would be a lower continuing net annual revenue than
what would be derived from the third alternate method of the
City's developing and operating the park.
III. CITY DEVELOPMENT AND OPERATION:
The primary advantages of the City's developing and operating the mobile -
home park in a similar manner to that of the Marinapark operation are:
1) This would produce the highest return of the alterna-
tives. Conservatively, it is likely to yield approximate-
ly $93,000 in net revenue per year over a 15 -year period
after all operating expenses. This assumes an average
rental of $95 per month (current rental value), a 95% oc-
cupancy factor once rented, and a 6 1/2% cost of money on
a utility bond which would be issued for development pur-
poses, with amortization of the entire investment made ove
2) This approach would allow the City to retain title to this
valuable and rapidly appreciating asset;
3) The alternate would also allow the City to maintain optimum
control over the use of the property;
4) Greater flexibility would be realized insofar as terminating
at the City's option any such interim use of the property if
the City needs to convert the park back to a sanitary land
fill site or wishes to develop the park into some higher and
better use such as ancillary uses to a marina; and
5) Tax income from the possessory interest on the land and im-
provements could be realized.
The principle disadvantages of the City's developing and operating a
mobilehome park are:
1) The City would be assuming the burden of developing and
managing the subject property;
2) The City would incur long -term (15 years) indebtedness in
conjunction with the development of the park, and
3) The City would, in effect, expand its role in real estate
management for private residential development.
Page -4-
IV. DO NOTHING:
A fourth alternative would be to allow the property to remain dormant
for a while longer. It may have some future interim use such as a storage facility
for City equipment and materials, or for some other undefined purpose. This alter-
native is disregarded in view of the expressed sentiment of the City Council to
take some positive action on the property.
SUMMARY AND CONCLUSIONS:
Of the three alternatives summarized above, the staff feels that City de-
velopment and operation has the most merit. One of the most compelling reasons
for this conclusion has to do with the potential ultimate use of the property, that
being a public marina development. The U.S. Corps of Engineers is conducting a
feasibility study and has already led them to tentatively conclude the development
of a marina through the Banning and City properties could become a reality during
the next ten to fifteen years. Development of the property accordingly would be
quite difficult and pose more problems for its success if it were encumbered with
a lease which greatly exceeded the fifteen -year interim period which the City would
utilize the property for, or if it were sold in fee to a developer interested in
constructing a mobilehome park. With the probable abandonment of the existing
County land fill operation within the next eight to eighteen years, it is unknown
at this time what additional costs would have to be assumed by the City if refuse
were to be transported to a distant point such as San Bernardino County. It could
become more economically feasible for the City to utilize its site for a period of
up to ten years in a manner compatible with the surrounding residential development.
City development and operation of the mobilehome park would require City
Council approval (by reference under the Revenue Bond Act of 1941) for the issuance
of approximately $875,000 in tax free utility revenue bonds supported completely by
revenues from the property. This matter has been reviewed with the City's finance
consultants, Stone and Youngberg, and, pending a favorable opinion by their cor-
porate bond counsel, would in all probability provide for a very marketable 6 1 /2Y
interest bond issue for.this development. A more detailed summary of the develop-
ment and operation expenses which would be incurred through this approach is sum-
marized in Appendix IV to this report. If the City Council is interested in pursu-
ing this third alternate method of developing the property further, the staff will
immediately follow through with a refinement of the detailed procedures required to
move ahead with such a project.
HLH:mm
HARVEY L. HURLBURT
. I
The ground will not support ordinary building foundations adequately
and methane production in the fill may make closed structures on this
property dangerous as potential collectors of this explosive gas. It
is therefore rationalized that this portion of the fill, about 17 acres,
is relatively worthless to a developer. (Due to the potential odor
problem it is not recommended that any attempt be made to remove the
fillea rubbish.)
After mining operations have been completed, the Owner would have
approximately 23 acres of flat graded site (E1 105) available for
development, comprising 19 acres on the northwest and 4 acres on the
southeast at 19th St. The value of the mined site then should be
approximately:
$18,000 x 23 = $414,000.
The material mined (1,100,000 cu yd) would have a total value
of approximately $443,000 at the estimated value of $0.30 per ton. If
the site were sold at this time an estimated sales price of $860,000
does not seem unreasonable.
IV. SUMMARY AND CONCLUSIONS
The study of the refuse disposal situation at Newport Beach shows
that four alternative possibilities are feasible:
j1. Continue as presently operating.
J 2. Abandon the fill and continue to mine gravel.
3• Sell the property as is.
4. Abandon the fill and cease all activity at the dump site.
It has been shown earlier in this report that the City of Newport
} Beach will likely incur no extra costs by abandoning this site and
i
)., hauling all materials (including garbage) to the Orange County Landfill.
Under these conditions the City would collect combined refuse (garbage
and trash) throughout the entire City. This would eliminate garbage
segregation where it is presently practiced.
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20,E
?09
A decision to continue landfill operations should consider the
increased value.in the total land situation. This amount is the final
value of the land plus the funds received for the materials mined during
the operation. If landfilling is continued, some 480,000 cu yd of fill
material must be used to cover rubbish, and the final site will have
little or no commercial value. If landfilling is stopped this material
can be used to replace gravel materials mined.
z
�i
If the City continues to operate as at present, it will complete
filling about 1988 (Figure 6) and the site will be graded out at a final
average Elevation of 145. The site will be usable for a park or small
pitch- and -putt golf course or similar activity. Unless property values
become extremely high (sufficient to offset increased foundation costs)
i it will not be feasible to build on the site, and accordingly the site
J
j will have very little'value for such purposes.
If the City abandons operations immediately and continues to mine
I
the gravel from the site, it will finish grading with the south and east
portions of the site at an average Elevation of about 130 and the north-
vest portion at an Elevation of 105. The final site will be usable as
building sites with the exception of the areas presently filled with
trash (the cross - hatched portions of Figure 2). The finished sites
resulting after this mining have a value of some $414,000. The fill
mined will bring in revenue of some $440,000 for a total net worth to
the city of about $850,000.
CONCLUSIONS
1. It is recommended that the City discontinue using this site
as a landfill. This will:
a. Require the purchase of two new packer -type trucks and
the creating of four new personnel positions.
b. Permit the disposal or redisposition of at least four
open bed trucks and one bulldozer.
? c. Permit the redisposition of three men currently operating
the garbage trucks and the bulldozer.
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,_ I ,
d. Increase the net return to the City for gravel when and
if it is mined.
2. The City may, at its discretion, handle the abandoned landfill
in at least three different ways:
a. Sell the site "as -is" for approximately $850,000.
b. Mine the gravel for a return of some $440,000 or more
and then sell the finished site, taking advantage of
possible price increases in gravel and land appreciation.
c. Hold all action in abeyance so that the fill could be
used in the future if the economic picture should change.
(This involves possible charges for dumping in the Orange
County landfill.)
If the City decides to mine the gravel, it is suggested that a con -
tract be let based on specifications and bid. If the City decides to sell,
it should get a licensed appraiser tb fix the value of the property as
accurately as possible.
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C IY W 9
APPENDIX II
PURPOSE OF THE STUDY
The primary purpose of this study is to assist the City of Newport
Beach in determining the best disposition of property which it now
owns. The property involved is a 40 -acre parcel located in the
West Newport area, the parcel formerly used as a gravel mining site
and for sanitary landfill purposes. Objectives of the City are to
develop the site in a manner compatible with the emerging local urban
pattern and at the same time to provide revenue to Newport Beach. In
this report we will investigate the ways in which the property can be
used for achieving these objectives.
The subject property is currently unused and free of any lease
encumbrances. As recently as 1966 it was used as a sanitary land-
fill site by Newport Beach and as a quarry for sand and gravel exca-
vation by the Sully- Miller Contracting Company. The former activity
was discontinued when it was found to be more economical for
Newport Beach to haul its refuse to the Orange County landfill.
Among the economic factors considered was the development potential
of the subject site. The contract with Sully- Miller to remove base
material from the property terminated in May 1965 since which time
there has been no productive activity at the site. In order to assure
optimum development and revenue production at the property, it is
now necessary to consider both short -term and long -term use
potentials.
SCOPE OF THE STUDY
In order to help the City determine development potential for the site,
we have performed four basic functions. First, we have made
various detailed studies of the site and its environs; second, we have
undertaken some essential on -site testing; third, we have developed
and analyzed various alternatives available to the City; and finally,
we have made recommendations for both short -term and long -term
uses of the subject property.
The nature of the surrounding area is an important determinant of
future development potential. Optimum use of the subject property
can only be attained when it is compatible with nearby urban
activities. Thus, we have analyzed the general location and setting
of the site in order to determine the impact of local land use and cir-
culation patterns on it Both existing and planned development were
studied. Guidance on future development was obtained from the
Huntington Beach Master Plan and the Official Land Use Map of Costa
Mesa. In addition, plans of other jurisdictions such as the Orange
County Road Department and the California State Division of Highways
1
were used. Information on potential development of nearby land
parcels was obtained in interviews with concerned public officials and
private parties. In this regard, we have also studied the values of
these surrounding parcels as a guide to determining land value of the
Newport Beach property.
Future development potential of the subject site is dependent upon the
characteristics of the property itself, as well as on its surroundings.
Thus, we have prepared a topographic map of the site and had borings
taken by Woodward -Clyde and Associates in order to analyze soil
-- characteristics and the availability of extractable material. Site
deficiencies for possible land uses have been evaluated, including the
availability of utilities and the adequacy of storm drainage facilities.
Analysis of alternative dispositions of the Newport Beach property
includes three principal elements. First, the current market value of
the site has been estimated in order to determine the amount of
immediate revenue the City might realize from a sale. This involves
primarily a value comparison of the subject property with similar
nearby parcels.
The second element considered involves short -term uses. These
include a quarry, mobile home park, and 3 -par golf course. Because
of the characteristics of landfill on the property, emphasis in this
period has been turned to uses where a minimum number of structures
would be required. Each of these activities meets that criteria. The
development possibilities have been analyzed with respect to topo-
graphic and soils conditions, utility and drainage needs, compatability
with the emerging local land use pattern, accessibility requirements,
and feasibility under current market conditions. Potential revenue
returns to Newport Beach over the short term have been estimated for
each of the alternatives.
The third element of analysis for this study regards long -term uses.
When structural development becomes economically feasible on the
- landfill site, possibly within ten years, it is conceivable that a more
productive activity may be undertaken there. We have analyzed the
potential for industrial, commercial, and residential development
over the long term. This includes a consideration of the probable
local land use and circulation configuration as well as an evaluation of
the economic feasibility of each alternative.
Finally, based upon the above analyses, we have made a number of
recommendations to the City of Newport Beach. These are in the
form of a phased development program with suggestions to the City on
decisions and actions necessary to implement it.
2
SUMMARY OF FINDINGS
1. The development potential and projected increase in value of the
subject property is such that it should be retained by the City over
the short -term period. Its_ estimated current market value is in
the range of $7Z0, 000 to $880, 000. ' In addition to this. income,
sale to a private party would put the property on the tax rolls and
bring Newport Beach over $2100 per year in tax revenue for the
land alone. _Nevertheless, the emerging pattern of growth around
the site means that significant potential increase in value can be
anticipated in the near future. This may mean a value of as much
as $1, Z00, 000 or $30, 000 an acre by 1980. The City can benefit
from this increase by retaining possession of the land.
Z. Leasing the property for extraction of sand and gravel should be
delayed for the immediate future. Under current'market condi-
tions and cost structure such an operation would bring the City
an average of $7750 per year in revenue. This assumes a rate of
12 cents per cubic yard for 64, 600 cubic yards removed annually.
At this rate of extraction it would take between 3 and 6 years to
remove saleable material. Were a market to develop for soil fill
in the area, appror_imately $42, 000 worth could be sold from the
property. It would probably all be removed from the site in one
1
7Ica . F.• . Xpcctcd onstr- action, of the Pacific Coast a:.d Ne'wpoit
Freeways may create a market for material in, 1973 and 1974.
We recommend that Newport Beach reassess the potential for
quarrying at that time, and if a market exists, the material
should be removed only in conjunction with a grading plan for the
long -term use of the property.
'3. , Sand and gravel mining may be only one method of realizing
revenues from natural resources on the City property. Nearby
production operations and preliminary structural studies indicate
that the site may contain enough oil to be economically exploited.
Although there are ordinances against drilling in Newport Beach
and Costa Mesa, slant drilling from adjacent County land might be
feasible. Investigation of oil production potential is clearly
beyond the scope of this study; however, we recommend that
Newport Beach inquire into this possibility before undertaking
action toward other uses.
4. Short -term development of the property should take the form of
either a mobile home park, or a 3 -par golf course, or possibly a
combination of the two. Both of these conform to the restriction
on construction over existing rubbish fill areas. More precise
engineering and economic studies will be required to determine
9
whether the $1, 072, 000 to $1, 324, 000 investment for a mobile
home park is'justif:,ed and indeed to estimate more accurately the
costs involved. Were such a facility feasible, we estimate that it
would produce a revenue of between $14, 800 and $29, 600 per year
for Newport Beach. This is based on a lease rate of 5 to 10 per-
cent of gross income for 280 spaces'.
5. As with the mobile home park, more detailed engineering and
economic studies would be required to determine the returns and
investment for a 3 -par golf course. The cost for such a facility
would be between $250, 000 and $275, 000. Assuming such an in-
vestment were feasible, the City of Newport Beach could obtain
between $7500 and $11, 250 in revenue annually from a lease for
the golf course operation, This is based on an estimate of
$100, 000 to $150, 000 gross income and a 7 -1/2 percent rental
factor. In addition, we estimate that $6000 to $9600 per year in
revenue could be derived from a clubhouse dispensing alcoholic
beverages. This might be based on a straight monthly rental
charge or a lease for around 6 percent of gross income.
6. Potential for industrial use of the subject property is limited by
economic, engineering, and environmental conditions. We
recommend that this type of development be rejected in both the
ghort and long-term. period's --,. not being of op" nurn benefit to
Newport Beach. Economically, the property is not competitive
with the large supply of nearby industrial reserves which have
flat topography and better highway and freeway accessibility. In
addition, these reserves do not have the building limitations
arising from landfill which are characteristic of the subject site.
Finally, the property is generally oriented toward the west away
from the upland industrial district and toward the proposed resi-
dential areas on adjacent parcels. While prospects for industrial
use appear very limited now, changing conditions may lead to a
reconsideration in 15 to 20 years.
7. In the long run, there appears to be potential for neighborhood or
community- related commercial development along the 19th Street
frontage of the subject site. Nineteenth Street in Costa Mesa is
now essentially a commercial corridor. It could readily be ex-
tended westward when 19th Street is improved for through traffic
across the Santa Ana River Channel. This will add significantly
to the future value of the Newport Beach property.
8: Development trends and plans in the vicinity of the subject site
indicate that some form of residential use will be optimum in the
long run. We recommend that after short -term investments have
4
been amortized the City re,- evaluate to determine whether a more
beneficial use can be made of the property. Estimated costs and
the number of owners and jurisdictions involved probably preclude
development of marina -type residential use around the Newport
Beach property. This being the case, land -based dwelling units
ranging from single family detached, through townhouses or
condominiums, to garden apartments should be considered, The
market for residential development will be substantial by this
time and the topography of the site will be an asset rather than a
liability. At the same time, the Newport Beach property is in a
key location to affect the unified development of adjacent parcels.
Thus, depending upon the needs of Newport Beach at the time, the
site can be sold at a considerable increase in value or the short -
term uses can be maintained to bring in continuing revenues to the
City.
5
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APPENDIA III
E
CEDRIC A. WHITE, JR., M.A.I.
REAL ESTATE APPRAISER
531 SOUTH HARBOR BOULEVARD • ANAHEIM, CALIFORNIA 82805 • (714) 774.0510
April 3, 1970
City of Newport Beach
3300 Newport Boulevard
Newport Beach, California
Attn: Mr. James DeChaine RE: 40.26 -acre Property
Assistant City Manager on 19th Street
Dear Mr. DeChaine:
In accordance with your authorization by letter dated November 3,
1969, I have completed an investigation of the above mentioned
property. The purpose of my inspection and analysis has been to
arrive at the approximate fair market value thereof.
Date of Value:
April 3, 1970
After inspection and analysis, I have arrived at the following con-
clusion:
Approximate Fair Market Value: ±$400,000- 485,000
Or 40.26 gross acres @ $10,000- 12,000 /acre
(This evaluation is to be the basis of a land lease
for 25 years; land to be leased "as is "; all deve-
lopment burdens will be borne by the lessee.)
This opinion is substantially below the bracket of $18 20,000 /acre
in the August 1968 report of Wilsey and Ham. Also, it is below the
March 13, 1970 offer through Mullan Realty at $18,000 /net usable acre.
A portion of this difference may be accounted for by my evaluation
being for a 25 -year lease. The other evaluations are assuming an
outright sale, or at least a lease which would be on a much longer
term. The relatively short duration of your intended lease results
in some reduction in value.
However, the bulk of the difference would seem to be accounted for
by my attitude toward the substantial development burdens on this
property. The most notable of the burdens is the question of useful-
ness of the rubbish areas. My calculations indicate 12.32 acres
make up the rubbish area. As of this date, there is no guarantee
as to the usability of the rubbish areas and /or the substantial
costs that would be incurred in order to make the rubbish area usable.
City of Newport Beach 208
April 3, 1970
Page 2
Enclosed with this letter is a brief, summary -type report. Other
data and analyses are retained in my files.
This is to certify that the undersigned has no personal interest
in the subject property, nor have I in the past; that the fee for
the appraisal is in no way contingent upon the value conclusions
derived; and that the appraisal has been made in conformity with
the 'Rules of Professional Ethics of the American Institute of Real
Estate Appraisers, of which I am a member.
CAW :mt
J
V
J
Very truly yours,
Cedric A. White, Jr., M.A.I.,
PURPOSE OF THE APPRAISAL
t.a
I
The purpose of this appraisal is to estimate the approxi-
mate fair market value of the 40.26 -acre parcel owned by
the City of Newport Beach, and located on the north side
}" of 19th Street, westerly from Whittier Avenue. (Assessor
Parcel No. 115- 36 -39)
Date of Value: April 3, 1970
Note: The definition set forth below must re-
flect that this evaluation is to be the basis
E.
for a 25 -year lease. This becomes an encumbrance
to the land in that fair market value would
normally be for outright sale or for lease over
'r `
a normal period of years -- say 50 years or more.
Fair market value, subject to the understanding noted above,
.
-
is defined as the highest price estimated in terms of money
which a property will bring if exposed for sale in the open
t
market with a reasonable time allowed in which to find a pur-
r
chaser buying with knowledge of all the uses and purposes
to which it is best adapted and for which it is capable of
being used. (Supreme Court of California)
This definition further assumes that neither the buyer nor
the seller are under any undue compulsion to sell or buy.
In addition, "in terms of money" is construed as cash
equivalent. In other words, it is the amount a seller
would cash 'out. This reflects the fact that the face amount
n
of some trust deed encumbrances would be discounted if ex-
posed for sale in the open market.
APPE11DIX IV
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PRELIMINARY COST ESTIMATES FOR DEVELOPNM
AND OPERATION OF SANITARY LAND FILL PROPERTY AS A
MOBILEHOME PARK FACILITY
�ia re) . IS, I: I `Y
Improvement of north half of 19th Street,
including 32' of concrete pavement, curb
and gutter and 18' of additional right -
of -way $ 409000
Development of asphalt local service streets
within park with concrete center for surface
drainage, at width of 33' with rolled asphalt
curbs
509000
Drainage culverts
4,000
Site garding
909000
Rubbish removal
259000
6 acres of landscaping including sprinklers,
ground cover and trees
400000
Engineering - civil„ soils, testing, lot
staking and miscellaneous
40,000
Utilities:
Gas Service with Master Meter
$ 20,000
Water (including hydrants - 6" line)
609000
Sewer line and facilities
1000000
Electricity (100 amp service, including
pedestals, trenching and backfall)
300000
Additional trenching for utilities
15,000
225,000
Porch (pad) development (238 spaces)
240000
Miscellaneous permit fees
1,500
Housing for park staff (Park Manager, etc.)
200000
Recreation Building, Maintenance Shop,
Pool and Furnishings
70,000
Laundry Room (2)
15,000
DEVELOPMENT COSTS (Continued)
Asphalt parking (535 spaces -2.25 per unit
for tenant.and guest parking) $ 200000
Street lighting 120000
Miscellaneous and contingencies (5%) 339500
$710000
ANNUAL OPERATING COSTS
Salaries
Utilities:
Water
Gas
Electricity and Street
Light Maintenance
Telephone
Refuse
Gardening and Maintenance Supplies
Equipment Maintenance
Janitorial Supplies
Uniform .Maintenance
Automotive Service (includes amortization
and operation
Road Maintenance
Miscellaneous Operating Permits
Health and Life Insurance
Workman's Compensation
Retirement Fund Contribution
Miscellaneous Items
10% Contingency
$5,000
1,500
6,000
500
3,500
$ 35,000
16,500
3,300
1,000
800
400
500
1,000
150
3,000
1,000
3,500
2,000
6)815
$ 74,965
(say $ 75,000
209
P
• p 1 s. :._:,
20;?
Development Costs $7109000
Funded Interest (during construction.and
leasing, estimated to take six months
each) 62,000
Bond Reserve (Equal to estimated annual
debt service 103;000
TOTAL BOND ISSUE REQUIRH�ENT• $875,000
AMORTIZING DEVELOPMEW COST
Over 15 years @ 61�% _ $ 90,000 per year, including
principal and interest
ESTIMATED ANNUAL RENTAL INCCME
Less Annual Estimated Operation and
Maintenance Expenses
Less Amortization Cost for Interest
and Principal
$258,000
- 75,000
$1839000 available for debt service
and coverage
- 90,000
$ 930000 Minimum Return to General
Fund after Debt Amortiza-
tion and Operation and
Maintenance Expenses
M U
LLAN
3848 CAMPUS DRIVE . SUITE
121 . P.O. BOX 2271
i'
A06 1 Q 1�17U
By the CITY COUNCIL
CITY OF NEWPORT BEACH
City Council
City of Nevport Beach
Newport Beach, California
Gentlemen:
Acbmift
INDUSTRIAL SPECIAL15T5
DEVELOPERS
INVESTMENTS
NEWPORT BEACH. CALIFORNIA 92660 . (714) 540.2960
July 28, 1970
Ref City Dump Property
Enclosed please find the resubmittal of the proposal
to purchase the "City Dump property.
At the time this was previously brought up, the City
Council had referred this item to staff for a report. Our
clients submit the attached letter to show their continued
interest in this property.
offer.
We respectfully request your consideration of this
Sincerely yours,
REALTY
1
JWM:ed Ja k W. Mullen
enc.
7.
�W 100
CONTEMPORARY MOBILEHOME CORPORATION 4500 Carpus Ji'.ve, Suite ), ..J % -)port 926160
July 27, 1970
AUG i 0 I'dw
3y the CITY COUNCIL
,;Ty OF NEWPORT BEACH
City Council
City of 'Newport Beach
California
Re: Item. #E on the Consent Calendar
Item #2(e) - Oral Communications on March 23
Gentlemen:
An offer from Contemporary Mobilehome Corporation to purchase
City owned property at the end of 19th Street, Newport Beach,
was presented by Jack Mullan of Mullan Realty at $18,000 per
acre for a total consideration of $756,000. Staff had recommended
for continued study and report pending receipt of appraisal now
being made.
The undersigned hereby extends this offer to August 17, 1970
to purchase the City owned 42 acres at the end of 19th Street
for $18,000 per net acre subject to the terms and conditions
stated on the original Deposit Receipt.
Very truly yours,
COVEMPORARY MOBILEHOME CORPORATION
o /w'ard Mill
Asst. Vice President
J -
M U ILAN &
INDUSTRIAL SPECIALISTS.
DEVELOPERS
INVESTMENTS
3 48 CAMPUS DRIVE SUITE 121 • P.O. BOX 2271 • NEWPORT BEACH, CALIFORNIA 92660 • (714) 540 -2960
/C 1
" 7 ) ✓_� i� J,rL�I_.t� March 131 1970
I
City Council
City of Newport Beach, California
Gentlemen;
I;t
F," LneJ
V�s..Y691
CITY OF
NEWFOU BEACH, ,(
CALIF. A
Enclosed please find the offer to purchase on the approximate
fourty —two (42) acres of land owned by the City of Newport
Beach located at the end of 19th Street.
The offer to purchase is at a price of ;756,000 based upon
$18,000 per net acre. The buyer is Contemporary Mobilhomes
Corporation which is a subs "idary of Property Research Corporation.
The attached deposit receipt states the terms and conditions of
the offer to purchase. It is underst6od that if the offer is
acceptable, then a commission equal to 5% of the sales price
shall be paid to Jack % Mullan and Peg Wood Company, liseensed
real estate brokers.
I would appreciate the processing of this offer at the earliest
convenience so that we may advise our clients of the City's
intentions in this matter.
Sincerely yours,
ELAN I':.Pe1LTY
�Lvwlo-�
in ir'. Mullam
JUI Is f c
Enclosure