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HomeMy WebLinkAbout14 - Harbor Island Leases(73) TO: FROM: SUBJECT: CITY COUNCIL AGENDA ITEM NO. 14 CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER MARCH 22, 1993 MAYOR AND CITY COUNCIL DEPUTY CITY MANAGER HARBOR ISLAND LEASES BY THE CITY COUNCIL CITY OF NEWPORT BEACH MAR 2 2 1993 ACTION: If desired, authorized Mayor and City Clerk to execute leases for City -owed tidelands abutting residential lots at 16 Harbor Island and 36 Harbor Island. BACKGROUND: Last year, the County of Orange and the State Lands Commission completed lengthy negotiations regarding the lease of tidelands surrounding Harbor Island. Two tidelands parcels adjacent to 16 and 36 Harbor Island are owned by the City. TERMS AND CONDITIONS: The proposed leases are identical in all respects with those negotiated between the County, the State Lands Commission and the other Harbor Island residents with the exception of the commencement date. Special State legislation enabled lease of the Harbor Island tidelands for a period of 49 years. The County leases commenced the 49 years in 1988, and the proposed City leases commence the 49 year period in 1993. Also, the County entered an interim lease with residents in 1981 which would allow for collection of back rent for a ten-year period. The City entered no such agreement, and the proposed leases call for payment of back rent only for the period since the current occupants took possession of the property. Number 16 is owned by Mr. William Powers and involves 1,125 square feet. Number 36 is owned by Philip and Mary Lyons and involves 6,540 square feet. Annual rent as negotiated amounts to $1.55 per square foot per year. Thus the rent for 16 Harbor Island will be $1,616.21 per year and the rent for the tidelands abutting 36 Harbor Island will be $10,161.82 per year. As called for in the County lease, rent will be revised every three years in proportion to the Consumer Price Index and the rent will be reappraised every ten years beginning in 1998. Page 2 A map of the proposed lease area is attached. Copies of the full lease identical to the County's lease are available for review in my office. The State Lands Commission must approve the City's leases, but this is a routine matter which should be handled expeditiously. JKenneth J. li. tjA:I� no KJD:mb Attachment EXHIBIT A M v m C7 4-1 N L C i e b � a Cl + E z L L C 3 L O � y1 , ozX �. LOCATION MAP