The URL can be used to link to this page

Home My WebLink AboutMARINA PARKMarina MARINA PARK PROPOSAL 11 Ficker & Stevens 0 February 3, 2000 Ms. Sharon Wood Assistant City Manager City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92658 Dear Ms. Wood: We are pleased to submit this proposal for the Marina Park project. While we shall respond to the RFP as completely as possible, we are proposing a quite different approach to this unique situation. Having been involved with Newport Beach City owned property for many years (The Balboa Bay Club) and a 35 year resident of this community, I am very familiar with the periodic debates over the usage of the Balboa Bay Club, Beacon Bay, American Legion and trailer park sites and all City - owned waterfront. is with of us who love this City have been emotionally involved with regards to what the City should do with all of them. This particular piece of property probably represents the last opportunity for the City to do something to significantly impact the future of our Harbor, other than turning it over to hotel or condo developers. It deserves serious thought and therefore we are submitting this proposal as a "Friend of the City" so when the debate begins everyone can react to more than one concept. To look forward one should first look back. Many good works done by our advisors and citizens simply gather dust on the shelf. The City has wisely referred proposers of this project to past studies. We have carefully read the Keyser Marston Associates Revenue Study and Project 2000 reports and I am currently participating as a member of the Newport Harbor Committee, which is working diligently on the proposed Harbor element of the General Plan. There is a very strong common thread of logic that flows through this body of work and I think that our proposal provides a positive solution to the problems and provides an opportunity for the City to really take some needed leadership in preserving our Harbor. We can all be assured that any major hotel or major traffic generating proposal will set off a negative tidal wave from the community. Our proposal will avoid that, and provide some answers to long-standing problems. Sincerely, • St �� ichard S. Stevens 0 PROPOSAL FOR MARINA PARK DEVELOPMENT Submitted by: Richard S. Stevens and William P. Ficker 301 Shipyard Way Newport Beach, CA 92663 (949) 723-7780 Contact: Richard S. Stevens, (949) 723-7780 INTRODUCTION We submit this proposal, initially as two individuals. if the City embraces the concept we will undertake the leadership role to assemble the formal group to enter into the contract with the City. All to be involved will meet any reasonable criteria established by the City. . Before laying out our plan we would like to quote from the referenced Keyser Marston and Project 2000 reports: The Keyser Marston Report states in part: "It should be noted that the Newport Harbor is clearly lacking a feature that could attract additional visitors to the Peninsula: a visitor -serving marina. Currently, all visiting boats must either anchor (or tie up) to one of the buoys in the Harbor. The concept of a visitor -serving marina allows a place for boats to dock overnight, while providing bathrooms, showers, electricity, and other amenities on site." "With the majority of a visitor -serving marina use being located on the water, only a small amount of land area is required to accommodate this use. KMA has assumed that no more than 1,000 to 2,000 square feet would be required for the necessary on- shore facilities. Thus, to the extent that such a visitor -serving marina is constructed, it should not limit or restrict the development opportunities on the subject properties for other uses. The decision to add such a marina should then be based on the relative merits and cost of such a facility." • The Project 2000 report by the Balboa Peninsula Planning Advisory Committee (BPAC) reports in part: Recreation and Hospitality "Designate the following key sites and locations as special areas that afford opportunities to provide quality residential, recreational and hospitality improvements." Las Arenas and Marina Park Site Opportunity - "Community Recreation Center — Water sports and junior sailing center, visiting -boaters facility and marina, and appropriate marine recreational amenities. (Note: According to outside consultantllegal counsel, current mobile home park use may be in conflict with permitted use under State tidelands regulations; extension of leases is thus assumed to be an unacceptable land use.)" "Due to the recovering local economy and growth in recreation boating, coupled with the City's expanded emphasis on tourism, the growth in competing use of a limited marine resource has placed unprecedented pressure on the Bay." "Open bay front in Central Balboa and selected key areas for visiting yacht facilities to provide access by bay and bring tourists to area by water." "Comprehensive special study to consider marine hospitality/recreational/cultural amenity at Marina Park site." "Manage bay asset; improve boating attraction and visitor access while maintaining harbor quality." Reports such as the above, and a group study currently being undertaken by the Harbor Committee underscore the concern that the things that made Newport great may be • slipping away from us. When a shipyard moves out of Newport, or fails, it becomes cause for great concern. The marine services supplied by hundreds of small firms who struggle to keep up with ever -rising rents can dwindle down and out over time. Yet the City owns or controls sufficient water front property to solve most, if not all of the problems before us. We can no longer look only to private property owners to preserve our environment. Marina Park can be a major solution to these problems. Of course the Council and staff have a legal obligation to maximize income from public property, but we have somehow always found a way to make sure that the American Legion could survive, as well as Beacon Bay and many other parcels that didn't produce market rate returns. We did so because it was the right thing to do in the overall matrix that makes up Newport. Therefore we are submitting that the obvious saving of our 'Harbor Heritage' is of immeasurable value to this City. CONCEPT . We have created a concept that will accomplish our community goals, solve some long- standing problems, make some money — perhaps not as much as a 20 story condo, and keeps the City involved as a partner in the process. Following is the essence of our plan: • Retention of the beach for public use (see later note). • Renewal of the American Legion lease without the slips, or dry storage. • Creation of a major visitors marina along the beachfront and keep the bayside of the beach swimming area. • Creation of a public shipyard. The creation of a facility where individual or commercial operators can rent space on a flexible basis and do light boat repair. They would share a large common concrete apron. This area will be developed for use by individual boat owners, brokerages and dealers to wash, bottom clean, and do finish work on an hourly rental basis. The residue and waste water would • be channeled into a complete recycling facility and re -used, which eliminates any contamination or pollution of the Bay. In other words a zero discharge . environment. This facility will be immensely important to the City in the upcoming environmental battle facing all of the California harbors and upland owners as well as developers. • Development of a village mall of marine service stores and shops at rental prices where they can survive and prosper. • Design the overall appearance of the facility so it takes on a maritime village ambience and, of course, be visually attractive from the road and the bay. • Locate and design several boutique and waterfront restaurant sites providing a Fisherman's Wharf or Cannery Row environment along with providing docking accommodations for bayside access. The visual interaction between real boating activity and the public will be a positive reinforcement of what Newport is all about. • Create a service facility to properly support the boats moored in the Harbor in this area, as they are the source of much visual and actual pollution, and the subject of long standing heated debate. These boaters could be provided: o Showers, Laundry Facilities, & Toilets o Dinghy Storage Area for rent o Parking in the open space behind the American Legion Hall on a paid permit basis. o Garbage Disposal Facility With the proper care, these boaters will make an important improvement for not only themselves, but also a solution to some parking, sanitation and environmental problems that are an on -going issue. • Provide a potential future site for the Newport Nautical Museum if the present facility or location becomes unusable. • Design the facility to be easily utilized and accessed from bayside to minimize any major traffic impact on Balboa Boulevard. LJ • FINANCIAL CAPABILITIES Since our proposal is based upon a concept as compared to one suggesting a specific hotel design, for instance, financing needs are uncertain at this time. However, both Mr. Stevens and Mr. Ficker have a long history of pulling together talent, and financing to make major projects a reality. Unless the City embraces the concept, costs cannot be clearly defined. Mr. Stevens and Mr. Ficker are not serving as agents on a commission, but as general partners waiting to select the best mix of local partners. A review of the personal histories will reflect their ability to fulfill the obligations of the project. PARTNERSHIP WITH THE CITY We propose that the City take an on -going role in the execution and ownership of this concept as a co -venture with the developer. The City will receive 50% of the net profits of the project on an on -going basis as well as rent. The managing developer would be responsible for obtaining: • Funds to complete the planning and permit process • Provision of loans to pay for all improvements • Providing day-to-day management and promotion of the project under terms of a management contract with the venture The venture would operate under a 50-year lease from the City. The minimum rent will be determined from the economic valuation of the various elements that become part of the overall plan. BASIC QUALIFICATIONS OF THE DEVELOPER/OPERATOR The principals involved have many decades of success in all of the elements that make up this plan: • Marinas • Property Planning Development & Management o Long-term commitment and knowledge of Newport Harbor The attached resumes and history will provide detailed support for our qualifications. • THE TEAM BACKGROUND Dick Stevens and his associate will serve as Managing Directors and coordinate all administrative and financial matters, including the promotion and marketing as well as participation in the attainment of necessary permits. Bill Ficker will serve as the Planning Coordinator. He will select and supervise the consultants, engineers, and architects who will support him in his interfacing with the City, Coastal Commission and partners. As the need for a pollution -free Harbor keeps increasing, we view this site as a perfect opportunity for the City to showcase solutions to what were once deemed simple needs of boat cleaning, bottom cleaning and surface run-off. We are well aware of the City Qharter restrictions placed upon the beach and feel we can provide access for visiting boaters and service yard users without violating the • charter or impeding public usage of the public beach. SUMMARY Following are the reasons we feel our proposal should be selected and expanded: • it follows the advice and counsel of the cities own consultants and the extensive work done by the affected public. • It provides the City with a vehicle by which the environment and ambience of our Harbor can be perpetuated. • It provides the City with -on-going income and participation in the project over a long-term basis. • It affords the American Legion a basis for continued occupancy of their site. • It protects the future of the marina service industry for this Harbor. • it minimizes auto traffic problems. • it provides an attractive destination for visiting boaters. • Designed to be a visual attraction, it will be a waterfront jewel for utilization by • residents and visitors alike. • It 'showcases' state-of-the-art environmental processing of marine pollutants, which will reflect positively upon the various agencies policing this growing problem. • It solves most of the problems with the local mooring users who use some 708 city owned offshore cans. • It provides the City with a team of proven leaders who can mobilize all of the elements needed to make this project a reality. • 0 BIOGRAPHY Richard S. Stevens Dick Stevens is one of the world's leading authorities and executives in the resort, club, marina, and hospitality industries. His more than 35 years experience in creating and operating some of the most prestigious clubs in America is a testament to his vision and skills as both a manager and entrepreneur. Dick is credited as being the key creative force behind the development of the urban private club when he expanded the world- famous Balboa Bay Club in Newport Beach, CA, in a unique exclusive recreational and residential complex. • Richard Stevens served as President, CEO and Director of Fisher Island Club & Resort, Fisher Island, Florida. This $500 million project includes 700 apartments, 200 hotel rooms, spa, 7 restaurants, 2 marinas, a golf course, a tennis club, ferry service and•a land development program. (1993-1996) Richard Stevens developed, managed, and co -owned the Balboa Bay Club from 1963 until 1972 and then again from 1974 until 1976, including all aspects of the project. • • Richard Stevens has also owned or managed major properties throughout the United States including the $100 million Marina City Club, Marina Del Rey, CA., The Jockey Club, Miami, FL, and the Disneyland Hotel, Anaheim, CA. • Since 1981 Mr. Stevens has been associated with Peter V. Ueberroth at different times, first as Vice President and Commissioner of the 1984 Olympic Games and later as a member of the Contrarian Group, an investment and management company, and most recently as co-owner and Chairman of the BellPort Group, together with Mr. Joseph J. Veberroth. • BellPort Group Chairman • The Contrarian Group Principal • Balboa Bay Club, Bay Clubs International, related companies President, Director, Co-owner, Developer, Operator • Wrather Corporation (Amex) and related companies Sr. Vice President, Director, COO, Hotels and Real Estate President, Wrather Hotels • President, Disneyland Hotel President, Wrather Development President, Wrather Port Properties (Queen Mary, Spruce Goose) . • Irvine National Bank Founding Director, Chairman • Marina City Club and related companies President, COO • The Jockey Club, Miami, Florida President, CEO, Owner • Cabin Bar Ranch (495,000 acre operating cattle ranch) Owner • Fisher Island Club and Island Developers, Inc. President, CEO, Director • Los Angeles Olympic Organization Committee, 1984 Commissioner, Modern Pentathlon Vice President, External Affairs Dick's community involvements have included: • Presently serving as a member of the Newport Beach Chamber of Commerce Marine Division • Presently serving as a member of the Newport Beach Chamber of Commerce Marine Division • Twice past President of the Newport Harbor Chamber of Commerce • • Citizen of the year, Newport Beach • Past President of The Orange Coast Association • Founder of the Chancellors Club, University of California, Irvine • Recipient of Citation for Merit, University of California, Irvine 0 • BIOGRAPHY William P. Ficker, AIA William Ficker has been in private practice for architectural planning and consulting for over thirty years. He founded the firm of Ficker Architects and Planners, which later became Western Architects Collaborative, dba: Ficker & Ruffing. In the 1970's the firm was merged with the International Architecture & Planning firm of William L. Pereira and Mr. Ficker was a principal of the firm. He directed and assembled multi -disciplinary teams for major redevelopment projects such as the 650-acre City view project in Queens on the East River in New York, the new town of Vacia Talega in Puerto Rico, and the Eastern Airlines Terminal at La Guardia Airport in New York. Other major projects include planning a yacht harbor for the Kapalua resort on the island of Maui, and other waterfront recreational projects as Old Port Cove in North Palm Beach, Florida; the Queen Mary and Spruce Goose sites in Long Beach, California; Port Sonoma, San Francisco; and Westlake Village, California. Mr. Ficker most recently master planned the 12,000-acre Cap Farina destination waterfront resort situated on the Mediterranean coast of Tunisia and the master planner for Signal Landmark's Bolsa&Chica. He was the keynote speaker at the 1998 World Marina Conference. He has also addressed the Orange County Forum of Town Hall on "Pacific Ocean Access for California's People". • Mr. Ficker has been a consultant to the Segerstrom family and South Coast Plaza since its inception almost 25 years ago. He has written extensively on the effects of the urban environment on merchandising and selling. Mr. Ficker is a world -class sailor, having won the America's Cup in 1970. He is frequently invited to deliver lectures on organization and teamwork. He has traveled broadly, and he is uniquely qualified to evaluate destination waterfront resorts and yacht harbor facilities. • His list of clients include such premier institutions as BMW, Citibank, Hughes, IBM, Mitsui Bank, Signal Oil, The Irvine Company, Time, Inc., University of California, and the Wrather Corporation. • Mr. Ficker is highly skilled in environmental and physical planning, and organizing and directing multi -disciplinary team efforts in establishing the process of programming, evaluating and implementing major planning and redevelopment efforts. • University of California, Bachelor of Architecture, 1951 • Harvard University Graduate School of Design — continuing education • Registered Architect: State of Arizona, California, Colorado, Connecticut, New Jersey, New York, North Carolina, Rhode Island, and Texas • National Council of Architectural Registration Boards (NCARB) Certification • Member of the American Institute of Architects (AIA) • . AIA National Committee for Regional and Urban Design • AIA Advisory Council on Historic Preservation Bill's community involvements have included: • City of Newport Beach Planning Commission (Vice Chair) • Orange County Coast Association, President • Newport Harbor Yacht Club, Commodore 1968 • Newport National Bank, Founder & Director • Orange County Coast Association, Past President • California Marine Parks & Harbors Association, Director • Marine National Bank, Founder & Director, Member of Executive Committee • Orange County -North County Local, Coastal Plan Advisory Committee (member) • "Certificate of Achievement", Orange County Chapter of A.I.A. • "Citizen of the Year", Newport Chamber of Commerce • "Citizens for Ocean Access", Development of New Harbor for Orange County, (Chair) • CJ I nn: The American Legion NEWPORT HARBOR POST 291 215 15th Street Newport Beach, CA 92663 (949)673-5070 HAND DELIVERED February 4, 2000 City of Newport Beach 3300 Newport Boulevard P, O. Box 1768 Newport Beach, CA 92658-8915 Attn: Sharon Wood, Assistant City Manager Re: Proposal for Future Use/Development Dear Ms. Wood, Enclosed is our Proposal for Future Use/Development of the real property located at 215 East le Street, Newport Beach, the present site of The American Legion Newport Harbor Post 291, Inc. We thank you for the opportunity to submit this proposal. We reiterate our position with regard to future use of this property by indicating our strong interest In remaining at our present location and couple it with our desire to work in concert with the City of Newport Beach in its efforts to improve the quality of life for its citizens and visitors. Your consideration of this proposal is sincerely appreciated. If there are any questions or a need for further clarification, please contact the undersigned and anticipate a timely response. Very truly yours, �o PAUL N. CURTIS Commander PNC1ms 1 I The Newport Harbor American Legion Post 291, Inc. Proposal for Future Use/Development Of Real Property February 4, 2000 Response to Request for Proposals City of Newport Beach, California Dated November 1999 The Newport Harbor American Legion Post 291, Inc. Lease Renewal Committee 216 East 151" Street Newport Beach, California 92663 19 (949) 673-5070 (] (949 673-9555 http:iiwww.calegionpost291.orn 1 Table of Contents Title Page Executive Summary ...............................................3 City Project Goals ................................................ 4 Form of Disposition...............................................6 Basic Qualifications ............................................... 6 Financial Qualifications ............................................ 7 Project Description ................................................ 8 Development Costs and Operating Pro Forma .......................... 9 Implementation Schedule .......................................... 9 Consultant Team.................................................9 City Council Policy F-7 ............................. ..............10 Other Considerations.............................................10 California Military and Veterans Code ................................ 11 Comment.....................................................11 Reference Material Appendix A — Copy of Existing Lease Appendix B — Aerial Photograph of Site Appendix C — Community Organizations that use the Legion Post 291 Facility I1 2 Executive Summary It is the desire of The American Legion Newport Harbor Post 291, Inc., ("Post 291") to renew the existing lease with appropriate economic adjustments for the longest possible term consistent with the needs of its members, the City of Newport Beach and the State of California. The real property referenced by this proposal is commonly known as 215 East 15t' Street, Newport Beach, California, 92663. It covers of approximately 58,677 square feet or 1.35 acres and is presently occupied by Post 291. It consists of three buildings, a parking lot, dry storage for small boats, a marina, and necessary support elements. The American Legion Newport Harbor Post 291, Inc., is a 501 (c)19 Corporation. It consists of Post 291 with approximately 2,000 members, the Auxiliary with approximately 500 members, the Sons of the American Legion with approximately 400 members and the American Legion Yacht Club with approximately 750 members. Because of dual memberships, we estimate that the facility serves the needs or approximately 3,200 individual members.and, their families. Approximately forty percent of these people live within the City of Newport Beach. 1 3 City Project Goals High Quality Design The structures present at 215 East 15" Street have been in place in excess of twenty years and have withstood the test of time with regard to appearance and sensitivity to views of the bay by our neighbors and the present tenants. Public Visitor -Serving Access The Post 291 facilities are regularly and frequently made available to a long list of community groups for meetings and other public events. A list of these groups is ' attached as Appendix C. The operation of the marina specifically includes members of the public who are ' not otherwise members of The American Legion or one of its four organizations. Under this provision, members of the public are allowed and encouraged to sign up on the waiting list for wet or dry boat storage space as it becomes available. ' No preferential treatment is provided to anyone on the waiting list. The liquor licenses presently held by Post 291 are a type 58 license otherwise 1 known as a Veterans Club license and a type 57 license otherwise known as a Catering License. These licenses prohibit the sale of alcoholic beverages to members of the public who have unescorted access to the facility. Tidelands Regulations and State Lands Commission Determinations The renewal of the existing lease conforms to all such regulations and determinations. City Plans, Policies and Regulations The renewal of the 'existing lease conforms to city plans, policies, and regulations. Coastal Commission Regulations and Policies The renewal of the existing lease falls conforms to all such regulations and policies. 4 ' Respect for property enjoyment rights ' Post 291 has occupied the present facility since 1979 when it was rebuilt because of a fire. To the best of our knowledge there have been no complaints ' regarding our use of the facilities or their presence in the neighborhood. We and welcome contact with have enjoyed good relations with all of our neighbors them on a regular basis. We believe that the burden on city resources has been ' kept to a minimum based upon the number of calls for service to the various city the lease. departments over the period of existing ' Strong Market Support ' We have experienced membership growth at the rate of approximately five to ten percent per year for the past five years and perhaps longer as a direct result of our efforts to involve ourselves in the community and involve the community in ' our activities wherever possible. We have received written recognition and expressions of gratitude and appreciation from a variety of community organizations because of our efforts and believe there is genuine interest in ' having Post 291 in the community at its present location. ' Provision for a secure revenue stream to the City Post 291 has had a relationship with the City of Newport Beach since 1924, a period of 75 years. To the best of our knowledge, the Post 291 has never been in arrears in any of its obligations to the city or any vendor. Post 291 is blessed with sufficient cash flow from membership and operations to meet its obligations and has sufficient reserve for such obligations. There is no basis upon which to speculate that our history might not continue as it has with regard to financial performance. Catalyst for future improvements to Balboa Peninsula Post 291 does not contemplate any changes in facility, organization, or operation that would have an adverse impact on future improvements to Balboa Peninsula. Maintaining the existing facility will not increase the number of vehicle trips on the peninsula or otherwise adversely affect the peninsula community. 1 Form of Disposition Post 291 does not believe it is in the best interests of its membership or the City of Newport Beach to attempt to purchase any portion of the land it currently t leases. This belief is based on the fact that a good portion of the property may be designated as tidelands and therefore held in trust and not for sale. This proposal contemplates the renewal of the existing lease between Post 291 and the City of Newport Beach and does not envision joining with any other entity in an effort to secure such lease renewal. I' I' Basic Qualifications Since the renewal of the existing lease does not contemplate further development of the real property, no significant information regarding development experience would be of value. However, Post 291 is operated as a 501(c)19 corporation and as such is a California Corporation with rights to ' conduct business on behalf of its members. Post 291 operates under a Constitution and By -Laws that conform to The American Legion Department of California and National Headquarters. Post 291 has been in existence since ' 1924 and'has been incorporated since 1936. The American Legion has been in - 1919. existence since Post 291 originally operated west of its current facility at 10t' and Bay Streets. In. ' 1940, Post 291 leased the current site at 215 East I5P Street from the city and operated out of temporary buildings until after World War II. In 1949, construction started on the current hall and Post 291 has operated from its site to this date. present Improvements such as a larger marina, bulkheads, restroom and shower ' facilities, restoration of the Great Hall after the fire, and dry boat storage have been made since 1949. On May 30, 1969 the Great Hall was dedicated as a Veteran's Memorial Building, in honor of "All those who fought for freedom." On May 18, 1995, the Newport Beach Historical Society designated The American Legion Newport Harbor Post 291, Inc., facility as an Historical Site and presented Historical Marker #11 to the Post. A President, Secretary and Treasurer as well as Vice -Presidents operate Post ' 291. The President also acts as Chief Executive Officer and receives his or her authority from the general membership by written ballot annually. The CEO is responsible to the Executive Committee consisting of all elected and appointed ■ officers and six Directors. 1 6 Financial Qualifications The city has a copy of the latest financial statement for Post 291. Post 291 is completely self-supporting from membership dues, gifts, and rental income from its operations as represented in its financial statement. The American Legion Newport Harbor Post 291, Inc., has a long standing relationship with: 1. Bank of America at 3475 Via Lido, Newport Beach, CA 92663 2. Washington Mutual Savings Bank at 196 East 17th Street, Costa Mesa, CA 92627 3. Morgan Stanley Dean Witter at 800 Newport Center Drive, Suite 700, Newport Beach, Ca 92660, Each of these institutions can vouch for the long-term financial stability and liquidity of Post 291. Any questions may be addressed to the Branch Manager of each firm listed above. Post 291 has sufficient resources to engage in and meet the commitment of a long-term, renewal of its property lease. 1 7 Project Description The enclosed Site Plan (Appendix B) depicts the existing structures and' uses of the property. The only construction contemplated for this site is that which is necessary to bring it into compliance with the governing codes and ordinances. This would include among other things, the installation of a Wet Standpipe System for fire protection in the marina and the maintenance and rehabilitation of existing facilities. Parking availability and public access would not be changed if the existing lease were renewed. The existing relationships with the neighbors would not change as a result of any contemplated action on our part. The facility consists of. 1. Large meeting hall (Great Hall) for members of the Legion, Auxiliary, Son's of the American Legion and American Legion Yacht Club, and many community groups, a list of which is attached as Appendix C 2. Stage, lighting, sound, and audio-visual facilities. 3. Board Room (Trophy Room) for small business meetings, board meetings, private parties, dinners and small luncheons. 4. Administrative Office Spaces 5. Storage space for chairs, tables, and equipment. 6. Dining Room, Bar and Cocktail Lounge. 7. Marina with 49 wet slips, side ties,, and a guest dock sufficient to accommodate the U.S.C.G. Cutter Point Stuart, boat hoist, lighting, water, Cable TV, firefighting equipment, and a pump out station. S. Dry storage for 47 trailorable boats. 9. Forty-two Dinghy racks. 10.Thirty-four personal property lockers 11. Shower and restroom facilities for slip renters. 12. Machine Shop for small equipment repairs. 13. Full Service commercial kitchen. 14. Walk-in cold storage 15.Small retail logo sales display cabinets 16. Reserved parking for slip renters and members. 17. Patio for bar-b-que grills, refrigeration units, tables, and chairs to accommodate up to 150 people. 18.Small beach for weddings, luaus, and children. 19.A small building (former one room schoolhouse) which is used by the yacht club, the Son's of the American Legion and various neighborhood groups from time to time to conduct meetings. ' Development Costs and Operating Pro Forma ' There are no estimated land or development costs under this proposal. The enclosed Pro Forma is based on existing historic figures and the conditions of the lease we have operated under for the past 24 years. Projections of revenue to Beach include services and usage by public be realized by the City of Newport entities in lieu of payment in cash where appropriate. The Great Hall, parking lot and marina will require in excess of $500,000.00 to remodel, repair and bring up to code requirements. Post 291 has the resources necessary to have this work performed. The financial statement reflects ' accurately revenues, expenses, and rent payments to the city. Post 291 is ready, willing, and able to pay the city an appropriate sum as determined by an appraisal of the facilities consistent with your City Council Policy on Income Property, F-7 and California Military and'Veterans Code Section 1261. Absent a ' current appraisal, Post 291 can give no specific figures but will commence new rent payments upon acceptance of an approved appraisal by the city and Post 291. Our past record of payment to the city over a 50-year period illustrates the ability of Post 291 to pay on a prompt basis. Implementation Schedule If the existing lease is renewed in a timely fashion Post 291 does not ' contemplate any interruption in existing operations and there will be no interruption in the revenue stream. General Plan amendments, zoning changes, approval by the State Coastal Commission, Environmental Impact Reports, and ' very time consuming and emotional public hearings are not required. Building in will be sought as soon as plans and permits, which are administrative nature, engineering are completed and the lease is renewed. Consultant Team Post 291 has retained Wynn and Associates to assist in the process of renewing I' the existing lease. Additionally, a qualified and approved Real Estate Appraiser will be retained. Post 291 has retained no additional consultants or other experts for this transaction. 7 L 1 9 City Council Policy F-7 City Council Policy F-7 appended to the Request for Proposal and entitled "Income Property" provides that whenever the City Council considers a new lease, factors other than monetary may be included. Section E (2) permits the City to consider a finding regarding the length of time for implementation of a plan. It states, "Redevelopment of the property would require excessive time, resources and costs which would outweigh other financial benefits." In this regard, it is a given that redevelopment to another use may require General Plan, Zoning, Environmental Impact Report, Costal Commission permits and approvals which could take months if not years to obtain. Section E (5) of Council Policy F-7 recognizes public or community benefits that would be provided by a proposed plan. It states, "The property provides an essential or unique service to the community that might not otherwise be provided were full market value of the property to be required." It is a matter of public record and common knowledge that The American Legion Newport Harbor Post 291 has a long and illustrious history of participation in civic affairs, community events, youth activities and has shared use of it's facilities as much or more than any other facility in the City. Community organizations that have used the Post 291 facilities are identified in Appendix C. Other Considerations Because the City of Newport Beach conducts a Youth Sailing program on the beach adjacent to Post 291, and because the American Legion Yacht Club also conducts a Youth Sailing program, it would be our privilege to entertain or co - develop a proposal for facilities necessary for the storage and operation of city assets related to this program. The needs of the two programs are identical in nature and such facilities could leverage value and economy for all concerned. Post 291 is interested in increasing the capacity of the existing marina to help meet the anticipated growth in recreational boating in Newport Harbor. Post 291 would agree to continue to manage and operate the marina as it has in the past if such expansion were to take place. 10 Military and Veterans Code In support of our request for long-term renewal of our existing lease, we cite Sections 1260 through 1266 of the California Military and Veterans Code and - incorporate them herein by reference. In addition, we cite GRIDLEY CAMP NO. 4nd v ROARD OF SUPERVISORS (BUTTE COUNTY) 98 Cal App. 585 Comment As stated previously in this response to the City's Request for Proposal, Post 291 would prefer to remain in its current location. However, if the City of Newport Beach finds it necessary to redevelop the area between 15t' and 18t' Streets, Post 291 will cooperate with the city to the extent that the city will make Post 291 whole in consideration of any replacement property or facilities. It is the desire of The American Legion Newport Harbor Post 291, Inc., an organization that has served the needs of local disabled and hospitalized veterans for over 75 years, to work in concert with the City of Newport Beach in its efforts to create a more desirable community. The American Legion Newport Harbor Post 291, Inc. Lease Renewal Committee Mr. Thomas R. Cooper Mr. Paul Curtis, Commander Mr. Earl Fusselman Mr. Henry Santo Mr. John V. Tarwater, Second Vice Commander 11 II L E A S E_ THIS LEASE, made and -entered into this /p �.�, day of 1975, by and between the CITY OF NEWPORT BEACH, a chartered municipal corporation, hereinafter referred to as "Lessor"; and-NEWPORT HARBOR POST NO. 2,91 OF THE AMERICAN LEGION, a California corporation, hereinafter referred to as "Lessee": n RE CIVALS: A. Lessor holds title to certain harbor frontage and tidelands, together with certain uplands abutting thereon located at 15th Street and West Bay, City of Newport Beach, County of Orange, State of California, hereinafter more particularly described. B. "Lessee has constructed substantial improvements upon the property consisting of certain buildings, boat anchorages, moorings, slips, docks, ramps, launching facilities, parking lot, and dry•boat storage which Lessee presently operates and maintains pursuant to a lease•�between Lessor and Lessee dated -February 26, 1951. The 'term of the existing lease expires on January 31, 1976. Lessee V i has requested Lessor.to.'extend the term of the lease for an additional twenty-five (25) years. C, It is the judgment -of the-'City'Council of the City of Newport Beach that the uplands cannot be used without the tidelands, nor can said tidelands be used,without the uplands abutting thereon; and it is further the judSrment of -Lessor that the leasing of the whole of said landa hereinafter described as one parcel is necessary for the proper development and use of said lands, water frontage and tidelands for recreational, public, civic, beaches, commerce, navigation and fishery purposes..: ,Ifi is the judgment of :the .Cityy Coun::.i S of the City of New eosut'Beacfi that the, ls:ci iiig of said,lands to Xaeasls:s, upon the conditions in thi's agreement specified, is••fat inconsistent with :the trust imposed upon 'such portion of the lands hereinafter described, which may constitute tidelands, and it is further the judgment of the City Council of the City of Newport Beach that the leasing of said uplands as hereinafter described upon the conditions In this agreement specified, is for a public purpose and does not violate'the'Constitution of the.State of California and is permis- sible under State law. E. Lessor proposes to lease to Lessee the premises described hereinafter, and Lessee is willing to accept said lease on the terms and conditions hereinafter set forth. This lease does not violate Section 1402 of the Newport Beach City Charter in that this lease constitutes a releasing of property --under lease at the effective date of said -Charter. NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING RECITALS AND THE MUTUAL COVENANTS set forth below, Lessor and Lessee hereby agree as follows: I. •DESCRIPTION OF LEASED PREMISES Lessor hereby leases, and Lessee does hereby.accept a lease of the property, buildings and related parking and boat facilities located at 15th Street and West Bay, as more particularly described in Exhibit "A", which is attached hereto and made a part herein by this reference. II. TERM ' In order to comply with Section 420 of the Newport Beach x City Charter which restricts the leasing of property for a period ' of more than twenty-five (25) years without prior voter approval, 'the existing lease between Lessor and Lessee dated February 26,•1951, may be extended for a period of twenty-four (24) years -and two (2) months, which would constitute a total period of twenty-five (25) ' years from the expiration date of the existing lease, to wit, - January 31, 1976. The term of this lease will commence on March 15, •1975, and expire on -March 15,2000. III. USE Lessee shall use the demised premises, together'with the b.mildings, parking and boat and marine facilities located thereon for the purposes of managing, operating and conducting the activi- ties of t,he American Legion. In and - as a part of its duties in rmanaging annd operating said American Legion Post, Lessee shall not discriminate as to race, color, creed or the civil rights and rliberties of individuals subject to the normal rules and operating procedures of the American Legion. Lessor retains the right to rlocate an Acquatic Center in the area formerly used by the ' Newport.Harbor Lawn Bowling Association, as more accurately depicted on'Exhibit "B"attached hereto and'made a part herein ' by this reference. Lessee covenants and agrees to permit Lessor ' to use its boat launching facilities in•cofinection with said Acquatic Center. IV. USE AS A COMMUNITY CENTER BY OTHER ORGANIZATIONS When the demised premises and buildings are not in use by the Lessee, the premises and buildings shall be available for the use as a community, center and 'recreation instruction facility by the City Parks, •Beaches -and Recreation Department on a first - priority basis, and.by local.organized community, civic related organizations - in accordance with reasonable rules,• regulations,' fees and scheduling to be established by Lessee with the approval Df the City Manager. �•. V. TYPE OP BUSINESS ACTIVITY Lessee shall not grant any concession, license, permit >r privilege for the conduct of any business or other operation .or profit or alter the use or type of service on the demised 1remises without the prior approval of the City Manager:, e M. VII.`--, TAXES AND UTILITIES L' Lessee shall promptly pay for all utility services luynished to it and shall pay before delinquent any general and special taxes or assessments or other governmental charges, if any, which may be levied on the demised premises or furnishings therein, or improvements thereon, or any possessory interest therein arising out of or based upon the leasehold interest throughout the term hereof, or may be imposed upon Lessee as a result of its operations under the lease. Satisfactory -evidence of such payments f shall be delivered to Lessor upon demand therefor. VIII. MAINTENANCE OF LANDSCAPING AND 'IMPROVEMENTS Lessee covenants and agrees that during the term of this lease it will, at its own cost and expense, maintain.the grounds, landscaping, and all buildings, and any other improve- ments of any kind'in existence or nature•constructed or. installed. on 'the demised premises by the Lessee-, at a high standard of maintenance and repair. Maintenance -shall include painting of all buildings and boat facilities..- If in the judgment of the Lessor, such standards of maintenance and.repair•are not being maintained, Lessor may at its option; after'written notice thereof to the Lessee and Lessee's failureito commenge in good faith ta'remedy ' the same within the time Herein provided and thereafter diligently prosecute -the same to completion, elect to correct any deficiency, whether it be in reference to grounds, landscaping, buildings or improvements. Lessee covenants and agrees to pay to the Lessor on demand any and all sums expended by it in correcting any such deficiency. If, in the judgment of the -Lessor; the disrepair'or lack of maintenance constitutes an emergency, the notice herein provided shall be a 24-hour notice to"remedy; in all other•cases M ' lift shall be, a 5-day notice. U IX. ,,,•,INSURANCE - HOLD HARMLESS +a -Lessee shall save and keep Lessor, its officers, agents and employees free and harmless from any and all claims or demands of any name or nature whatsoever arising out of, or incident to, the use and occupancy of the premises herein described by Lessee. In partial performance of this obligation by Lessee, Lessee shall Procure and at all times during the term of this Lease maintain in full force and effect a policy, or policies, of public liability and property damage insurance protecting the City of Newport Beach, its officers, agents and employees from all•'laims or demands for damages. The policy, or policies,.shall provide for not less than Two Hundred Thousand'Dollars ($200,000.00) for injury or death of one person; Five Hundred Thousand Dollars,($5001000.00) for injury ok death of•two or more persons; and Fifty Thousand Dollars ($50,000.00) for damages to property. -The,City-Manager may require an increase in the amount of insurance from time to time in accordance with changes in economic conditions. Attached to said Policy shall be an endorsement which shall provide as.follows: "Within the limits set forth in this policy, to•indemnify and save the City.of Newport Beach, its ..Of *. ficers, agents and employees, free and harmless from all damage, claim, loss or liability of any name or nature whatsoever which the City of Newport Beach, its officers, agents or employees may hereafter sustain or' incur; or may'be)imposed-upon•:them, arising out of, or in any way connected with,.the use or -occupancy by the insured, its servants, agents and employees, of the Premises described in a lease granted to insured by the City of Newport Beach." Lessee shall furnish, and maintain with the Lessor, either the original policy, or policies, or a certified copy, or'copies, thereof. The policy, or policies, shall be approved as to.sufficiency by the Pity -manager and as to form by the'City. Attorney. X. LESSOR'S RIGHT OF.INSPECT ION• Lessor reserves the.right'by its authorized agents, employees or representatives to 'enter.*he'leased:premises to inspect 4 the same or any part thereof at any time and to attend to or 14 protect the Lessor's interest under this lease. •XI. COMPLIANCE WITH LAWS Lessee covenants and agrees to comply with all rules, regulations, statutes, ordinances and laws of the State of California, County of Orange, the City of Newport Beach or any other governmental body or agency having lawful jursidiction over the leased premises or the business, enterprises or activities conducted thereon. XII. ASSIGNMENT Except as provided in paragraph IV hereinabove, Lessee shall not assign, transfer, sublea3e or give any grant of control of this lease or demised premses, or any part thereof, either voluntarily or involuntarily, unless first approved by the City Council. XIII. 'NON -COMPLIANCE - If the Lessee fails to comply with any of the terms and conditions of this Lease,•the Lessor.may give'to the Lessee a notice in writing of such failure and -specify therein the particu- lars in which Lessee has .failed :to comply with the provisions of this Lease. If,the Lessee fails for a period of -thirty (30) days after' the giving - of such -.notice -to comply: with the provisions of this Lease, the Lessor may; at -its option,.terminate'this-Lease, and all rights 'of' the Lessee.therein•shall cease• and- terminate and the Lessee shall immediately thereafter deliver possession of the premises to the Lessor. XIV. SURRENDER OF PREMISES UPON EXPIRATION OR TERMINATION: Upon the expiration of the -term of this lease or sooner termination thereof as herein provided, Lessee shall deliver possession of said demised premises to Lessor in-the'same condition as delivered to Lessee, reasonable wear and tear excepted,'and __also excepting any changes or alterations authorized or approved in writing by the City Manager or City Council. -upon the expiration ier termination of. this lease, any additions, or improvements made I upon the,demisea premises shall become the property of the Lessor. XV. DEFAULT AND TERMINATION OF LEASE A. Default Time and each of, the terms, covenants and conditions hereof are expressly made the essence of this Lease. If the Lessee shall fail to comply with any of the terms, covenants, or conditions of this Lease, including the payment of rental herein reserved, at the time and in'the amount herein required•,.and shall fail to remedy such default within thirty (30) days after service of a written notice from Lessor so to do if the default may be cured by the. payment of money, -or to commence in good faith.to remedy any other default within thirty. (30) days and thereafter diligently prosecute the same to completion, or if Lessee shall abandon or vacate the leased premises, Lessor may, at its option, and without further notice or demand, terminate this Lease and enter upon the leased premises and take possession thereof, and.•remove any and all.persons therefrom with or without process of law. a 'B. Surrender of Possession Upon Termination Lessee covenants and agrees that upon the expiration or sooner termination of.this Lease, the Lessee will peaceably surrender -the `leased premises with all,•buildings and improvements, in the same condition as when received or constructed, reasonable use -and wear thereof, and damage by..fire, Act of God, or by the elements excepted.: Lessee expressly waives any right which it may have to relocation assistance'' or costs in vacating the demised premises. Any improvements built, constructed or placed upon the leased premises by the Lessee, or anyone holding by, under, or through it, shall remain on the leased premises and become the property of the Lessor ,without any cost to Lessor upon she termination Of -this Lease, whether by lapse of•time'•or'by. season of default. ' C. Remedies Cumulative The rights, • :..,.�, g powers, elections and remedies of the Lessor contained in this Lease shall be construed as cumulative and no one of them shall be considered exclusive of the other or exclusive of any rights or remedies allowed by law, and the exercise of one or more rights, powers, elections or remedies, shall not impair or be deemed a waiver of Lessor's"right to'exercise any other. D. No Waiver No delay or omission of the Lessor .to exercise any right or power arising from any omission, neglect or default of the Lessee shall impair any•such right or power or shall be construed as a waiver of any such omission, neglect or default on the part of the Lessee or any acquiescence therein. No waiver of any breach of any of the terms, covenants, agreements, restrictions or conditions of this lease shall be construed as a waiver of any succeeding bre.ach'of .the same or of any of the terms, covenants, agreements, restrictions or conditions of this lease. E. Holding Over. ' Et is mutually agreed that if the Lessee shall ' hold over after the expiration of this lease for any cause, such '/holding over shall be deemed a te'nahcy•from month to month only, pon•the same terms, conditions and provisions of this lease. II II I1 XVI. NOTICES It is mutually agreed that any notice or notices provided for by this lease or by law, to be given or served upon the Lessee, may be given or served by mail, registered or certified, with Postage prepaid, and.if intended for the City of Newport Beach, -addressed to the City Manager, Newport Beach, California 92660,- or at such other address as maybe hereafter furnished to the Lessee in writing, and if intended for the Lessee, addressed to'its'Director at 211'15th Street, Newport Beach, California, 92660 or at such oher.address as may be hereafter furnished to the Lessor in writing; I .,e U or it may be svnved personally upon any corporate officer of Lessee or person charged with general management responsibilities in connection with the leased premises; and that any notice or notices provided by this lease or by law to be served ,upon Lessor may -be served personally upon the Mayor of the City of Newport Beach or the City Clerk of said City. Such service shall be deemed complete at the expiration of forty-eight (48) hours from and after the deposit in the United States mail of such notice,. demand or' communication. XVII. RBCORDS•AND ACCOUNTS A. Bookkeeping Lessee covenants and agrees that it will, at all times during the term of this lease, keep or cause to be kept true and complete books, records and accounts of all financial transactions in the operation of all businesses, concessions, services and activities of whatever nature conducted on or from the demised premises. B•.• Inspection of Records All books', records and accounts of every kind and nature kept by Lessee, its agents or employees relating to the operation of any business, concession,'service or activity conducted on or from the demised• premises shall; at all reasonable'times, be.' open -arid made available for inspection or audit; by the Lessor, its agents or employees,.upon request: C. Audit Lessee covenants and agrees to furnish to Lessor annually, anon -certified statement -showing the annual gross income derived•from the marina ".slips, the'dry;boat storage " facilities, the parking lot, and any other business activity con- ducted on the demised premises, and the disbursement of -said annual gross income. Said statement shall be furnished to Lessor within thirty'(30) days following the completion of Lessee's fiscal year. The cost, of said - audit shall be' borne, by Lessee. ' XVIII. 'RENTAL ' A. Building Facilities •.-tea , Lessee covenants and agrees to pay•to Lessor :a -,minimum rental for the use and occupancy of the building facili- ties located'on the leased premises in the sum of Three Hundred ' Dollars ($300.00) per month, payable on the first day of each ' month commencing with the effective date of this lease. B. Parking Lot ' Lessee covenants and agrees to pay,to Lessor one hundred percent (100%) of the revenues derived from the parking ' lot, payable monthly. Lessee shall purchase a minimum of twenty-six (26) parking spaces at a fee consistent with City parking lot charges. It is further agreed that thirty-six (36) parking stalls shall be made available for use.at no cost to Lessee or by those persons renting,a boat•slip from Lessee. ' C. Marina Slips ' Lessee covenants and agrees.to pay to Lessor the sum of forty percent' (40%) of the gross revenues received from ' the marina slips, payable monthly. If it is mutually. determined by the parties hereto that additional•boat slips are required, ' Lessee will finance their construction with the additional revenue ' derived from the rents,being•used.to retire -the debt incurred for•the costs of the new slip construction. Upon payment of -the ''. entire debt incurred for'the'costs of new slip construction, Lessee shall pay to Lessor the_sum of.forty percent'(40%) of the ' gross revenues derived from the new marina slips.. D. Dry Boat Storage 4• tLessee covenants and agrees to•pay to Lessor' the sum of fity percent.(50%) 'of the revenues received from the ' dry boat storage -facilities and lockers, payable monthly. If it is determined by the parties hereto that'additional dry boat storage and locker facilities are required, Lessee will finance their'con- struction with the additional revenue derived from the rents being•used to retire the debt incurred for the new dry boat storage and locker. .10 facilities. Upon payment o£'the entire debt incurred for the cost of the new dry boat storage and locker facilities, Lessee shall pay to Lessor the sum'of fifty percent (50%) of the gross revenues derived from the new dry boat storage and locker facilities. XIX. RENEGOTIATION OF RENTS 1 If either party deems it,necessary at the end . ' of the yearly audit, all rental rates may be renegotiated and ' adjusted by mutual agreement of both parties:• XX. MISCELLANEOUS 1 A. Inurement Each and all of the covenants, conditions and agreements herein contained shall, in accordance with the context, ' inure to the benefit of Lessor and apply to and bind -Lessee, its respective heirs, legatees, devisees,'executors; administrators, 1 successors,'assigns, licensees, permittees, or any person who may come into possession or occupancy"of said premises or any part. thereof in. any manner whatsoever.. Nothing in this paragraph shall '." in:any way alt'er'the provisions herein contained against assignment . or subletting or the granting of licenses or concessions. tB. Caption$ •t The captions of paragraphs and subparagraphs of this Lease are for convenience only and do not in any way limit ' or'amplify the terms and provisions hereof. ' IN WITNESS WHEREOF,'the parties hereto have executed this ' Lease as of the day and year first above written. VP0, CITY OF NEWPORT BEACH ' Or" a municipal.*corporation Af By: *�41po... -,*, APPROVED AS TO FORM-- ' yor 'CiATTEST: ty Attorney By arty Clerk NEWPORT'HARBOR POST NO. 291 OF:'THE ' ' AMERICAN LEGION a•California corporation. ' BYp/%� resident' ., •' � �;• :A:i`M `1 aryl. .. • •, .. .. .. .•,s;: a'.r ,y�� * PPP t. • .,� fi II A parcel of land situated in the City of Newport Beach, California, being a portion of Lot 41 Section 33, Township•6 South, Range 10 West, S.B.B. & M., a portion of Lot 41 Section 34; Township 6 South, Range 10 West, S.B.B. & M., and certain filled,tidelands described as follows, to wit: Beginning at a point'•in the northerly prolongation of the Westerly line of 15th Street, as said 15th Street is laid out and shown upon a map of Tract No. 234, recorded in Book 13, pages 36 and 37, Miscellaneous Maps, Records o£' Orange County, California, said point of beginning being 160 feet northerly from the northeasterly corner of Lot 4, Block 115 of said Tract No.,234; running thence North 9° 43' 30"•East along the Northerly prolongation of the Westerly Line of said 15th Street, a distance of 109.79 feet to an intersection with the United States Government Bulkhead line between Station No. 118 and Stati.ori No. 119, as said bulkhead line is shown upon a map entitled "Harbor Lines -Newport Bay, Newport Harbor, California", approved May 2nd, 1936, by the Secretary of War and on file in the office of the U. S. District Engineer, 751 South Figueroa Street, Los Angeles, California; thence westerly along said bulkhead line a distance of 349.9 feet to an intersection with the northerly prolonga- tion of the easterly line of Lot 13, Block 115 of said Tract No. 234; thence south 90 43' 30" West along the said northerly prolongation of the Easterly line of Lot 13, a distance of 249.79 feet to an intersection with a line 20 feet northerly of and parallel with the northerly line of said Block 115; thence south 800 16' 30" East along -the said line 20 feet northerly of and parallel with•the northerly line of Block 115, a distance of 203.9 feet, thence North 90 43' 30" East•a distance of 140 feet; the south 800 16' 30" East, a distance of 146 feet to the point of beginning. RESERVfNG'for street purposes a strip of land 50 feet in width, lying 25 feet on each side of the following described center line: Beginning at a point in the northerly prolongation of the easterly line of Lot 13, Block 115, as shown on a map of Tract No. 234, recorded in Book 13, pages 36 and 37, Miscellaneous Maps, Records of Orange County, California, -said point of begin- ning being 135 feet northerly -of the -northeasterly corner of said Lot 13; running -thence south 80' 16' 3011'East-along�a line parallel to the northerly line of said Block 115, a distance of 203.9 feet to a point which is 146 feet westerly of the westerly line of 15th Street. 1: 4 Alm-- II Appendix C Community Service Events (Waived or Reduced Facility Fees) Alcoholics Anonymous — Small Group Meetings American Flag Retirement Ceremonies American Legion Auxiliary — Girl's State Competition American Legion Boy's State Foundation — Boy's State Competition American Red Cross — Blood Drive Americanism Essay Contest —Awards Dinners "Anonymous Anonymous" — Charitable Benefit Balboa Power Squadron — Navigational Classes Balboa Ski Club — Membership Meetings (3x per year) Bob Henry - Scholarship Benefit Boy Scouts of Orange County - Dinner BPPAC Meetings Cal Vet — Regional Meetings California Republican Hispanic Committee - Dinner California Secretary of State — Polling Place (Elections) Central Newport Beach Homeowner's Association — Meetings Children's Easter Egg Hunt (Neighborhood) City of Brea — Police Department Meeting City of Newport Beach — Employees League Meetings City of Newport Beach — Fire Department Retirement Banquets City of Newport Beach — Planning Committee Meetings City of Newport Beach — Police Department Retirement Banquets City of Newport Beach — Police Department Youth Football Banquet City of Newport Beach — Police Explorers Dinner Congress of the United States — Congressman Rohrbacher's Consultation Visit Congressional Medal of Honor Day — Commemoration and Banquet Costa Mesa High School — Band Awards Banquet County of Orange District Attorney Investigators — Retirement Banquets County of Orange District Attorney's Office — Retirement Banquets County of Orange Harbor Department — Retirement Banquets County of Orange Harbor Department — Volunteer's Dinner County of Orange Probation Department (Juvenile Hall) - Banquets Daughters of the American Revolution - Annual Awards Banquet Estancia High School — Football Awards Banquets Freedom Foundation - Luncheons Friday Anglers Club — Luncheons (monthly) Girls Junior Jamboree (4 days) Girl Scouts of Orange County — Father/Daughter Dinner Dance High School Oratorical Contests International Order of the Blue Gavel — Association Benefit Banquets Knights of Columbus - Banquet Law and Order Awards Banquets 12 I 0 1 Leadership for Tomorrow — Full Day Activities Los Angeles Scots Bagpipers — Rehearsals 1 Marina Park Homeowner's Association — Meetings Memorial Day Services (Community) 1 Memorial Services National Child Welfare — Annual Benefit Banquet/Dance National Lifeguard Association - Meetings Newport Beach Alliance Committee - Meetings 1 Newport Beach Historical Society - Dinner Newport Beach Lifeguards Association - Meetings 1 Newport Harbor High School — Baseball Team Fund Raiser Football Team Awards Banquets Newport Harbor High School — Newport Harbor High School — Girl's Volleyball Awards Banquet 1 Newport Harbor High School - Soccer Team Awards Banquets Newport Mesa Unified School District — Retirement Banquets OCC DMS Department— Graduation Dinner 1 Newport Mooring Owner's Association - Meetings Old Glory Character Boat Parade — Host Site Philippine POW Camp Survivors - Reunion Luncheon & Dinner 1 PHRF Mid -Winter Race Committee - Meetings and Races Polynesian Dance Troupe — Youth Rehearsals Saddleback College — Law Enforcement Seminars 1 Santiago High School — Golf Tournament Award Banquets St. James Episcopal Church - Annual Business Meetings Soroptimist International - Dinner 1 The Trojan Guild — Meetings U.S.C.G. Cutter Point Stuart— Change of Command Ceremonies 1 U.S.S. Windham Bay (CVE 92) — World War II Reunion VA Hospital Long Beach —Veteran's Luncheons and Bingo (bi-monthly) Women's Ocean Racing Sailing Association — Sail for the Blind 1 YMCA - Annual support Campaign (5 nights per year) 1 1 1 1 1 1 13 1 /• Report of American Legion Post 291 Tidelands Lease 1 (Substantiated by Documents) f Introduction 1 On January 28, 1924, Newport Harbor Post No. 291 of The American Legion 1 was chartered by the National organization of The American Legion which is chartered by the Congress of The United States of America. ' In April 1924, American Legion Post 291 was incorporated under the laws of the State of California in order to enter into leases and other contracts. 1 History September 8, 1924: The American Legion leased land, between 9th and loth 1 Streets at Bay Avenue, from the City of Newport Beach for 25 years. (See item 1, page• 4•. ) 1 September 11, 1924 (3 days later): The City of Newport Beach sold to The American Legion a parcel of approximately six (6) lots, adjoining the leased property, for the sum of $1500. 00. (See page 5 and item 2, page 4 ) 1 November 1930: The City of Newport Beach wished to extend Bay Avenue from Ninth Street to 15th Street, creating the El Bayo Tract, taking a portion of the Legion property for Bay Avenue and separating their leased portion from the - , portion they owned. April 20, 1936: A new lease was granted to the American Legion for a site on the North side of Bay Avenue. 1 September 2, 1940: The 1936 lease was cancelled by mutual agreement and a new lease was granted for a permanent "home" on 15th Street. The American Legion moved two small buildings, which they had built, from the loth Street site to the 15th Street site and used them until the present civic and American Legion hall was constructed. 1 October-1:949:'••Ground• breaking- ceremonies, were.,held and.c4nstructton was..•,7>. begun on the present hall. The materials for construction were paid for by the sale of the Legion 1 property at loth and Bay; the labor, for the most part, was donated by mem- bers and friends of The American Legion. The hall and facilities separated the Tent City that occupied the site of the 1 present Marina Trailer Park from the El Bayo Tract of fine homes that fronted the bay on Bay Avenue from 15th to loth Street. ' February, 1951: The lease on the 15th Street property was renewed until January 31, 1976. July 1958: Phase 1 of construction of the bulkheads and marina was started, j under agreement with the City of Newport Beach, with Trautwein Brothers YMac e "•*" of Newport Beach doing the construction and financing which the American i« Legion repaid on the installment plan over a period of ten years. rIA Phase 2, construction of toilet facilities, paving of the parking lot and the addition of more slips was executed by The American Legion. July 1968: The American Legion made final payment to Trautwein Brothers and started paying, to the City of Newport Beach, 1076 of the gross revenue from the marina docks as per agreement. May 30, 1969: During the 50th Anniversary of The American Legion, the main hall was dedicated as a Veterans Memorial Building in honor of "All Those Who Fought For Freedom". 1973: The Lawn Bowling green. on City Fee Property will be vacated. The American Legion would like to explore the possibility of leasing that parcel for conversion to a Legion parking lot, allowing additional dry storage on the present parking lot for approximately 50 boats, at a monthly income. of - approximately $1, 000. 00 which could be paid to the City of Newport Beach . to offset some of the loss of income from the Marina Trailer Park of Special Note 1. The American Legion has been wholly responsible, financially and physi- cally, for all developments and improvements on the subject lease land and had the foresight, 15 years ago, to construct a marina in the best interest of The Tidelands Act. The marina consumes approximately 6010 of the leased area. (Cost of construction of marina, toilet and shower facilities, parking and dry boat -storage area and boat hoist was $74, 049. 40 -- not to mention costs of the other buildings and improvements.) 2. Also, in keeping with The Tidelands Act, all of the facilities are used, not only by Legionnaires, but by many people of the City of Newport Beach and a number of inland cities --- approximating a 507o, controlled public use. (Refer to pages 7, Fa,,- L 3. Use of subject Tidelands is in keeping with the density trend on the penin- sula. 4. The American Legion pays to- the, County •,of - Orange -.all unsecured property taxes ($6, 365. 41 in 1972), to the City of Newport Beach 10% of the gross revenue from the docks ($3, 678. 70 in 1972), all repairs, maintenance, in- surance, etc. A City boat is moored in the marina at no charge to the City. 5. The American Legion Post 291, Incorporated has the ability, personnel, location and community spirit to assist the City in development of the Marina Trailer Park site into some form of public marine activity as outlined in the Tidelands Act. 6. Development of tidelands as executed by The American Legion is what Tideland leases are all about -- no expense to the City or State. The State of California has spent billions of dollars constructing harbors and marinas and then leased them to private operators, e. g. Dana Point. 3 7. The American Legion has rendered a service to the Community, State and Nation; is grateful for the opportunity to be of service and desires to continue serving the public. Summary The economic facts are that: The American Legion did cancel a lease with the City and did quit claim a portion of Legion Fee property to allow Bay Avenue development. The American Legion did sell the Fee property and move to 15th Street as their permanent "home" as indicated by attached letters from former Mayors, Councilmen, City Managers, etc.; and did use the moneys from the sale to improve the 15th Street lease land. The American Legion did have the foresight to develop the marina. No one would consider removing the Marina facility or hall for some other use. Someone has to operate this facility and The American Legion has proved their ability to do so. The American Legion wants to continue to operate the facility in cooperation with the City. Yours truly, Donald R. Donaldson Chairman of The American Legion Corporate Board Ll CITY OF COSTA MESA CALIFORNIA 92626 P.O. BOX 1200 FROM THE OFFICE OF THE CITY CLERK January 22, 1908 Honorable City Council CITY OF N�;:iPOn.T BEACH Newport Beach, California Dear Madam and Gentlemen: I was City Clerk of the City of Newport Beach at the time the lease to Newport Harbor Post ,'291 of the American Legion, covering the tidelands property at 15th and Bay Streets, was extended. As 1 recall, it was the desire of the City Council at that time to extend the previous lease in such a manner that the Legion would have a permanent location for a Legion and Civic Hall at that location. This was carrying out the wishes of previous City Councils. It would be in accordance with the long -expressed desire of the City Councils of the City of Newport Beach to extend this lease. Yours very truly, III 1 C. K. Priest 1 1 / JOHN J. SAILORS 333 NVUST YAL32 AVENUE EL REGUNUO, CALIFORNIA �.XUA4 ili r /I ('1(iJ(l.'L: L✓•IVL, ((!�!; !J!(ILG I. nr•, /if r'.h/Ill r/A7. �!'/ru^.••o7N•C: :✓ !(47.1 %.i,// l"1147110A U�. ;&'Ic U� 4'.7-ww/cJ 171PCLch laliw2 alle .if:.<bL• r ' IPtr 1 r•,\.it'/4 (A/ C.uv(v(.i/rrL .�: r(: „)/CU:h All/1 /7(.11(' U(•0l;J.(:L:1! 6V:C L.i;((t ,,r:"'/WLZ: 1 J Ilvd-JI( i'una ,'_/ o` J/w /(mrl;i.•rur �t ✓.i .i.l bill /(ear.%(.e•a%i.u;r .ii4,.. i:f nt.s ,:`r✓ .illttvd. u/• .tit rib! (1.�ur111cil 4U 11n1,.ClrA '64.9 Uib: CU'(.G Cd.i.01/ WUA ,1 .CMA-4:(U" AOVLu4'7J �l<2r,/ T1Jl(/).LSI(Cu .ii fl: 1RU/fCY 110/4 .1itc GILLu ILlL•. ✓/( l/lf opijaiuR III lJUfLG.. be .in UccOIU1Dl7ce u:ith .the L?x'el-d. v.•`...,Yla LUUnc-U U,' Acit old. UP�ttlL .tU e-VA'f nd AA.,5 t,b JCL7/LUbi &!'d Jr/ �UWL 1 IULL'(b V(Vl f, tAULi ^7 ' Ju(rri `C-UO)&6 II (Retyped for easier reading) ' Honorable City Council City of Newport Beach ' Newport Beach, California January 31, 1968 Dear Madam and Gentlemen: 1 I was City Manager of the city of Newport Beach when the lease was extended covering the property now occupied by the Newport Harbor Post #291 of the American Legion. I' It is my recollection that it was the intent of the City Council to furnish this organization with a permanent location providing they furnished the money for the building. my opinion it would be in accordance with the intent of the City Council of i'Kewport Beach to extend this lease as requested by your local post. ' Yours very truly, John J. Sailors IS©ELL, 11t,,nrwh) "EVERYTHING FOR THE PLASTERER" 3104 WLt!T NE A0,S"t SLVO NEWPORT BEACH. CALIFORNIA October 12, 1967 %tty Council Newport Beach, California Dear Madam and Gentleman: I the undersigned who was .Mayor of the City of Newport Beach :nd Stgner of the last lease to the Newport Harbor Post #291, of the American Legion on the tidelands property located at 15th and , Bay Streets, would like to make the following statement. I This ;ease was passed; extending the previous lease to the Legion carrying out committments of the City of Newport Beach; that this property was being leased to the Legion for a permanent ,ot atlun 'for- a:Legion:and,Civiu Hall.._ ., 1 would like to see the City Council extend this lease per the request of the membexs of the Newport harbor Post #291 of Ute American 'i Legion. LI:lf Yours truly, / Mt: L. Isbell January 26, 1968 honorable City Council City of Newport Beach Newport Beach, California Dear Madam and Gentlemen: I the undersigned, was on the City Council and present at the ground breaking ceremonies on October 13th, 1949 at the start of the American Legion and Civic Hall Building. The City Council at that time deemed this tideland property would be set aside for a Veteran Hall for World War I and World War II and for the use of all future veterans of all wars. I think the present City Council should extend this lease because it would be carrying out a moral obligation of the pre- vious City Councils u Yours truly, O. obertson ,2G YES � - YOUTH EMPLOYMENT SERVICE OF THE HARBOR AREA • 642-0474 tLOCATED IN THE BOYS CLUB • 594 CENTER STREET, COSTA MESA, CALIFORNIA i March 1, 1973 ' American Legion Hall 215 15th Street Newport Beach, California 92660 Dear Sirs; ' The Board of Directors of the Youth Employment Service are very grat-e£ul-for your -participation in our first "A ' Roman beast" benefit. The facilities at the American Legion Hall were ideal and everyone we had contact with there were so h.blpful. Our volunteer chef, Mr. Lew-Yantorn of the Boys Club enjoyed the conveniences in your kitchen. ' Y.E.S. is a non-profit organization that provides free employment serice for youth and seeks employers who want to help young people. We can become a better service ' to the community when organizations like the American Legion give us such fine support. Very sincerely, Mrs. Edward H. Kelly ' Recording Secretary 1 "Help Youth Help Themselves" [1 SECRETARY -TREASURER PRESIDENT NEWPORT HARBOR LAWN BOWLING CLUB GREENS AT 15TH STREET NEWPORT BEACH. CALIF. 92660 March 3, 1973 American Legion Post No. 291 15th and Bay Streets Newport Beach, California 92660 Gentlemen: The following resolution was adopted at a meeting of the Board of Directors of the Newport Harbor Lawn Bowling Club on January third, 1973: Resolved: That the Members of the Newport Harbor Lawn Bowling Club extend to the Officers, and through them to the Members of the American Legion Post #291 our sincere gratitude for the wonderful cooperation over the past many years between both organizations. YVe appreciate the kindness and hospitality shown by your employees, who have been so helpful to us. The use of the parking lot has served us as a tremendous help to all our Members and guests, as well as the Club House. It was regularly moved, seconded, and was unanimously -carried -that this resolution.. be,,,__,., _ made a part of the minutes of the Meeting, and a copy be forwarded to the American Legion Post No. 291, Newport Beach, California. Yours very truly, Leo. J. yn Sre ary 1 First American Title Insurance & Trust Company 421 NORTH MAIN STREET SANTA ANA,CALIFORNIA • KIMBERLY 7-7371 1 ROY V. SHAFER ' Senior Vice President and Chief Counsel 1 1 March 19, 1968 Mr. Harry•Estus 610 Tustin Avenue Newport Beach, California 92660 Dear Mr. Estus: ' In re American Legion Lease A portion of the property involved is owned in fee by the City ' of Newport Beach, it having acquired title from Pacific Electric Land Company by deed recorded September 22, 1919. I The remaining portion of the land is held by the City in trust under the Legislative Grant from the State which was effec- tive July 25, 1919. ' That is to say, the land consists of upland together with abutting tideland. ' From a title standpoint I can see no objection to the City executing a new lease provided its term does not exceed 50 years and that the consideration therefor is deemed adequate by.the City_ Council.,.. I see no point in my company making a search of title and thereby incurring expense to the Legion Post as the City has ' owned the pro, r4 for over 48 years. Roy Vfhafer Senior Vice President ' and Chief Counsel ' RVS:amm 11 t•"r . First American Title Insurance & Trust C'Ontp111y 421 NORTH MAIN STREET • SANTA ANA, CALIFORNIA • 547-5002 TTrft,T�ORm 11A1 TZ:J' R POET NO. 291 OF TIM Atfc^UCAN LEGION % IJi. Hi RRY ES^J US 610 vusiI:'t AVEmJE NFI.IPORT B=,CH, CALIPORPTIA 92660 Your No. Our Order No.. OR 105'VA4. The following is a report of the title to the land described in your application for a Policy of Title Insurance and is made without liability and without obligation to issue such' policy. In addition to any exceptions shown herein, and not cleared, the policy, if issued, will contain conditions and stipulations and also exceptions from its coverage as may be embodied by the particular form of policy issued. Dated as of March 19, 106a at 7:30 a.m. T— TITLE OFFICER , Ed Brouillard VESTEE: CITY OF NETlip-OR9.., BapACH� a 14unicipal;'Corporation: 1, ;-The Trusts' for the uses and purposes tard,upon the ex'prass conditions -e3 provicTed"iri ;"Arc`,eA'at �Grantin� 'certain' tidelands 'arid: id -submerged., Zazds of the }''''S: State of Caclifo:7nia 11 "to the City -of Newport, Beach, upon certain trusts and conditions,"•approved May 25, 1919 as amended by "An Act relatira to the ' G,canting of krenchises ucon, and leases of, certain tidelands heretofore„ ti granted to the City of NeiIport Beach 'Ly the State of. California," approved YF�y.;29) 1929,and"the rigats reserved therain,to the people of the State, of California, and the'tnusts for the uses and giiToses and upon the express '"-conditions as':provided•in••1'An-Act•"grantinG certain.tidelanis arlc.•subrrMrfed-�,• lands of thr:""State of. Cclifornia to 'the City of Newport Beach upon"certain trtists'and conditions," approved April 5, 1927 as atcendea by "An Act relating ;0:o he granting of franchises upor-, ant leases of certain tid.ela ds'heretofore granted to the:;City'of TTe,port Beach by the State of Calfforizie.," approved M2y; 29, '19 9 ,exid the rights 'reserved therein "to .the people' of the State -of ::x• •California. " �`�- ,.'ij: DNA,: �•. r, •' '•. Said Trusts affectendthat portion of said l'thereof tiniah"lie s Northerly rod' the Northerly line•of Lot !p of'Section 33;' �'oi'-1sitip 6 South, Ra.nge:10 Nest,'S. B.,B.`& M. according to Government Survey. (continued) ' .. iit". t • DESCRIPTION 1 0a 1057444 . All that certain lard situated in the State of California, County of Orange, City of Newport Beach, described as follows:...* r. �,rkatGel;•a ,landituated'in•the:,City,q NRv'gyt�Beach�s¢a13fgxztiai;ll a'portion"of Lot 4; Section 33,'Township•.6"South�t;i7aiige 10�West, S;'•B. B.?"" & M., s. portion of Lot 4, Section 34, Township-6 South) -Range 10 I'lest, S., B. B. & M.; and certain'filled tidelands described as follows: Beginning at'a point in the Northerly prolongation of the Westerly line of 15th Street, as said 15th Street is laid out and,showm upon a map'of Tract No. 234•, recorded in book l3s pages 36 and 37; Miscellaneous Maps records of Orange County,.California; said point of beginning being 160 feet North- erly from the Northeasterly corner of Lot 4,:'B1o6k 115 of -said Tract No. 234; running thence.Norbh 9° 43' 30" East along the- Northerly prolongation of the Westerly line of said 15th Street a distance of 109.79 feet to u No'. 118 and Station 119, as said bulkhead line is -shown upon a map entitled "Harbor Lines - Newport Bsy,-Newport Hnrlior; California," .:reproved May 2y 1936, by the Secretary of Wsr and on -file in the "office.of the U. S. District - Engineer;'751 South Figueroa Street, Los Angeles;_California; thence Westerly ,.along said bulkhead line a distance of 349,9,7eet Mersection with the Northerly prolongation of the Easterly line of Lot 13; Block 115 of said Tract PTO. 234; thence South 9° 43' 33" West along the said Northerly prolongation of the Easterly line of Lot:l3,•,a..distance;of•249.79 feet to. %' • -an intersection with a line 20 feet Northerly of,and parallel with the Northerly•lin_e of said Block 115; thence South 80°,.16! 30" East along the' said line 20:feet Northerly of and parallel with the Northerly line of .'.+ Block 115, a distance of 203.9 feet; thence North 9.° 43' 30" E-st, a dis�- •? ' ta.nce of 140,feet; thence South W 161.30" East, a distance of 146 feet ;• to the point of'beginning. F, EB:vld Plzts enclosed; The information' herein •set forth is,supplemental to Preliminary Report No,. ,. OR 1057444 'and is made' a part � th..reof. 4ccordinn to the public records there have . • ;�• been no deeds eonveyin the property described in this report recorded wiThin & period o s x mon:ias prior the date o this report except as follows: None Page 2 * MPUkl=ft on f%te Tal6oa - eninsufu 1=osa[c5u6milledlo.- Cii%y of Yewporl 113eac/? 3300 xewporl ir3oufeoarcf xewporl JJeaCll, G°al forma 92658-8915 1411enhon: cSllaron Dood, 2ssislanl G-,l ( Xanayer J ronosaf csu6mifled 6� T-7[c Gommunilies 20201 c5 b. J. hvf? cSlreel, cSuile 250 �ewporl 71eacl Gafrfornia 92660 J-lone.• (949) 224-0222 conlacL &.. Zellaro(.%falf 7e6ruary 4111, 2000 on tle Tal6oa Jeninsula Introduction n response to the Request for Proposals (RFP) for the Marina Park future use/ development plan, RHC Communities (RHC) is pleased to present the following Marina Park Reuse Plan. RHC began this process with the intention on creating a win -win opportunity for all involved stakeholders, including the City of Newport Beach, the residents of Marina Park estates, the Girl Scouts of America, the Legionnaires and the Balboa Peninsula community. Features of the Plan Features of the plan are intended to reflect the goals and policies of the City's General Plan, key provisions of the City's Local Coastal Plan, California Coastal Act and community and stakeholder interests. Retention of the Marina Park mobile home community with improved hardscape, landscape and limited reconfiguration, to accommodate open space and recreation areas. ❑ The incorporation of a visitor -serving use including a boutique hotel not to exceed 100 rooms. The hotel would maximize the Newport Bay location and views of the water. Construction of new, like size and shape facilities for the American Legion, Girl Scout house and Balboa Community center. `fWC Cammani(ie193ro)aaho Ise Cfy Ofxmpord-Veac/i Page r Marina Park Reuse Plan on Me lial&a PP msa/a ❑ The improvement of year-round visitor parking opportunities with the creation of on -site parking facilities through the construction of a two-story parking structure. ❑ The provision of roof top tennis courts and basketball courts on the parking structure available for public use. The parking structure's visual impact would be lessened through the use of a stone facade and ivy or similar vegetation. ❑ An increase of visitor access to New ort Ba through the Performance Indicators The performance indicators for the project are identified below: ❑ Land uses would increase the view corridor from Balboa Blvd. to Newport Bay. ❑ New public open space/recreation areas adjacent to the Bay. ❑ Visitor serving, revenue generating bay front accommodations. P J creation of public recreation ❑ Tidelands mitigation space, including a children's achieved and consistency with playground and scenic view the California Coastal Act of 1976, area, from Balboa Boulevard. ^4, �/ et. seq. w ❑ The rehabilitation of the existing : ❑ Neighboring property uses boating facility and limited expansion to complemented by project results. include options for a community marine recreation center. ❑ Additional revenues, direct and indirect to the City of Newport Beach. ❑ If desired by the City, the creation of affordable housing opportunities in ❑ Architectural styles modeled after the conjunction with the Marina Park mobile historical significance of the Balboa home community. Peninsula's early period. XHG i'io .nilies 94n Jalle &e C,6e of xea�p-,I Owes `Faye 2 The Stakeholders RHC has identified the following parties as stakeholders in the project: =� Residents of Marina Park mobile homes =� The American Legion and veterans living in Newport Beach => Girl Scouts of Orange County ==> Residents of the Balboa Peninsula => Current and future businesses of the Balboa Peninsula => Visitors and recreational users of the Balboa peninsula Marina rPTJark Reuse Plan on /lie.'TSagoa .%ninsu%a Marina Park Reuse Plan RHC considered each of the three scenarios described in the RFP and proposes a modified option number two. This concept presents the best land use plan for all involved parties. Key considerations: ❑ Re-use/future development consistent with surrounding land uses ❑ Long term economic benefits to the City of Newport Beach ❑ Significant community support ❑ Increased recreational opportunities ❑ Eliminate issues of parking deficiency ❑ The desire to avoid displacing long term residents ❑ State Lands and Coastal Commission acceptance of re -use plan =� City of Newport Beach residents and tax payers Recognizing the issues still pending with regard to the Tidelands boundary determination and the State Lands Commission, of equal importance is the strong support of the residents in Marina Park as well as the surrounding residential areas. Architectural and Design Issues Tn considering this RFP, RHC desires to plan, design and construct a project of 1 significance both architecturally and historically. Efforts are being made to research the 2XG GommuniGes 5�vposaho I e Guy of xemporI-T{eacv� %aye 3 Marina Park A8aS8 Plan an /le 7Sa/Goa `J�611)Yak early period of the Peninsula and prevalent architectural styles. Building exteriors would incorporate the use of natural materials and where possible, mature landscaping would be used to maximize the appearance of the project as having been in place for an extended period of time, rather than appear as new in -fill development. he project team has been carefully assembled for the Marina Park Reuse Plan. Some of the key members are listed below: Developer. Marina Park Partners LLC, to be formed General Partner: RHC Communities Financial Adviser: Paramount Realty Advisers — Mr. Steve Whyte Project Accountants: Novogradac & Co. Tax Consultant: Riordan & McKinze General Counsel: Disposition Cox Castle Nicholson (Gary Downs) referred lease term to be no less than 55 years. Marina Park Partners LLC, will be the principal and retain project ownership and operation of all facilities, except the hotel. The hotel operator will be carefully selected in consultation with the City of Newport Beach. The purchase of uplands, cost adjusted for deed restrictions of certain uses, is to be considered. TJ/G Gr.mmumhes 2ropora/!o /6¢ Ci/� n%?�rmp u! J caclt Atye 4 Marina Park Reuse Plan an !12e ✓zagoa _&P'n"la Marko Park Retie "art 111�lemttt�liion 1'rt� Community Forurrts..... .», ..... _.». ............... ......... t arct 9 —Molt 2050 Project site pions aneValevanans corroete.,..... ......... ... ».» June 2000 Community Review__... .. .. ....... ».... ..... ».. ; June 2000 --Judy 2000 Project Application to City....... .... .»»............. ......... August 2000 Mitigated Negative Declaration or Ent ........ .. .. .......... August - September 2000 Planning Commb*n Hearings .................. ...... I ..... . ........I. September 2000 City Council Approval ......: .... ..... ...I....:. .. .......... October 2000 Coo" Commission .......... ...... ............ .....„.., January 2001 Construction Drowings.... .......................................... : ...... February 2001 Port check and building permits Issuance ............. ........... May 2001 Site PreparaHori -pending approvals. »»........ ......I.... June 2001 Hotel & parking structure construction .................... ......... July 2001- Dec 2001 American legion, Girt Scout house & Community CenterconsteucHon......... » ..... »..»». ..» »......... July 2001-Jon 2002 park boat slip and vis w serving areas rdwh Htuliort ... » ... iunumlt 2001- March 2002 B jlectCQMRMQ ***April 20O •' Marina Park Reuse Plan: Project Description he Marina Park re -use plan includes a mix of land uses intended to balance economics, land use and community issues. The primary components of the plan are: ❑ A 100-room boutique hotel and 5-star restaurant with outdoor dining ❑ Retention of the Marina Park mobile homes ❑ Provision for relocation of the American Legion Club and Girl Scout Club on the property ❑ Increased parking, with the construction of a two-story, non -obtrusive parking structure ❑ Limited expansion of the boating marina ❑ Relocation and expansion of the family park on the property ❑ View and pedestrian corridor from Balboa Blvd. into the property ❑ Public tennis and basketball courts on top of the parking structure It is intended that the basic components proposed by RHC Communities represent a concept for the site and that additional refinements will be made during the planning process. .%t{%f� �iommund�es �znPosaito tiea Lily o�xezporf _/�eacit �ayCJ Marina Park Reuse Plan on lfie-Za(6oa �en:n.ru/i Marina Park Existing Conditions Aerial Photograph and Approximate Project Boundary AMERICAN LEGION CLUB- 1 2.800 SQ. FT r VETERAN'S MEMORIAL MOBILE HOME PARK GIRL SCOUT/COMMUNITY �— CENTER-3,900 SQ. FT FAMILY PARK- BALBOA BOULEVARD Marina Park Land Use Diagram of the Proposed Project MARINA VIEW AND PEDESTRIAN CORRIDOR INTO THE PROPERTY 23Y , Ca anllleJ Mpwaho /6e c//y of `JCew,0 r1 &aofe ?a9e 6 BALBOA BOULEVARD ------------- MARINA PARK ILLUSTRATIVE SITE PLAN Financial Impact Summary Marina Park Reuse Plan on/so,`, .90a51ninsuia Contingencies: summary the proposed lease terms Approvals form all regulatory agencies and conditions are provided below for the City's consideration: Lease Term: 55 years Lease Payment Schedule: Phase I — Prior to certificate of occupancy for hotel: $100,000 down payment and annual pay- ments of $700,000 paid in equal monthly installments, due on the 151h of each month, Phase II — Following Project Completion Annual lease payment of $1,100,000 paid in equal monthly installments, adjusted annu- ally in accordance with the Consumer Price Index (CPI) as published in the Wall Street Journal, no cap to CPI adjustment. Additional revenues include: Transient Occupancy Tax: $280,000 Restaurant Sales Tax: $ 80,000 Total New Project Revenues: $11460,000 General Terms: RHC Communities will: ❑ Underground all power lines within the project envelop ❑ Construction and establish of an assess- ment district for maintenance of public recreation areas, except tennis courts, adjacent to the hotel and marina facili- ties. ❑ All site preparation, demolition, and surveys to be completed by RHC City of Newport Beach will: ❑ Approve all plans and specifications and will not reasonably withhold such ap- provals. ❑ Publicly support the reuse plan and represent such support to other regula- tory agencies. ❑ Indemnify RHC against all claims arising from any misuse of public facilities, including but not limited to; marina, tennis courts, public playground and recreation areas. Jai' COMManl(ieS ✓",POSW(o (le Gi e of `Kempor(ZeaaS .%aye 9 Marina Park Reuse Plan on /tic Tall"a Anineula (,qualifications and Financials complete brochure outlining RHC Communities qualifications and a financial statement is attached to this proposal. HC is positioned to deliver a superior quality reuse project for Marina Park. In summary, the project's benefits are listed below: ❑ The project is sensitive to all stakeholder interests ❑ The project is consistent with Coastal Act's emphasis on visitor serving land uses ❑ The project is of financial benefit to the City of Newport Beach ❑ The project is sensitive to the Marina Park mobile home community, with no displacement of residents ❑ The project provides additional active and passive recreational open space opportunities ❑ The project affords significant new parking opportunities ❑ The project will gain support from the surrounding community We work forward to working with the City of Newport Beach on this exciting project. Contact: Mr. David E. Rose RHC Communities 20201 S.W. Birch Street Suite 250 Newport Beach, CA 92660 Phone: (949) 224-0222 Fax: (949) 224-0223 Additional references available upon request 271O C%ommundret T vpomlla llc Oily of Yedporl A,ael Tayo 16 RHC 4 RHC C O M M u N I T I E 5 February 3, 2000 City of Newport Beach Attn: Sharon Wood 3300 Newport Blvd. Newport Beach, CA 92658-8915 Re: Marina Park Reuse Plan Dear Ms. Wood, RHC Communities is pleased to present the following Marina Park reuse plan. RHC's intention is to create a win -win opportunity for all stakeholders through insuring consistent land use with the adjoining community and future development of the Balboa Peninsula. We achieve this through the following: • Reconfiguration of the Marina Park Mobilehome Estates. • Relocation of the American Legion Hall to a comparable bayfront location and construction of a new facility. • Construction of a new Girl Scout house and community center. • Development of a boutique hotel containing approximately 100 rooms, including a five star restaurant with outdoor patio dining and banquet facilities. • A 2 story unobtrusive parking facility with rooftop tennis and basketball courts, located on Balboa Blvd. • Creation of a bayfront park and playground encumbering approximately one acre of land, with view corridor from Balboa Blvd. • Renovation and upgrade of existing marina facilities, including the construction of additional boat slips. Our project goals were intended to be consistent with the objectives defined in the RFP by the city. We do however believe a successful project is dependent on community support and involvement. RHC intends that the basic components of this proposal represent a concept for the reuse of Marina Park and adjacent lands. We believe that additional refinements will be made or suggested through the public planning process. We are excited about the opportunities that the Marina Park reuse plan presents. RHC believes that a partnership between itself, the City and community of Newport Beach will insure a successful reuse of this vital coastal asset. ' Sincerely, ' David E. Rose Chief Operating Officer DER:tc 20201 S.W. BIRCH STREET, SUITE 250 0 NEWPORT BEACH, CALIFORNIA 92660 0 949.224.0222 0 FAX: 949.224.0223 11 CREDIT I FIRST SUISSE BOSTON I' February 2, 2000 City of Newport Beach 3300 Newport Blvd. Newport Beach, CA. Re: Marina Park, Newport Beach, CA. Ladies and Gentlemen: Credit Suisse First Boston ("CSFB") has received a financing request from RHC Communities ("RHC") to finance their acquisition and construction of the above referenced property referred to in that certain Request For Proposals ("RFP") that was solicited by the City of Newport Beach. Over the last 18 months CSFB has funded in excess of $50,000,000 to RHC, consisting of fixed rate permanent loans, interim loans and structured mezzanine financing. Over the last 15 years RHC has carved a niche in the California manufactured and multi- family housing business. They have proven to be extremely successful in the development and management of high visibility properties. RHC and its principals have a proven track record of owning and operating institutional type assets. CSFB is very excited about being given the opportunity to work with RHC on this project. In the event you have any questions or need any additional information, please do not hesitate to call my colleague Mark Zytko at (310) 481-2881 or myself at (310) 481-2$80. cc: Mark J. Zytko E7H/aay s � T M 41 TAW 4$0 y.. TABLE OF CONTENTS Executive Summary Section I RHC Portfolio - Section Il Industry Publications & Articles Section III RHC COMMUNITIES Company Profile RHC Communities (the "Company") is based in Newport Beach, California. The Company is one of the largest owner/operators of manufactured housing communities in California and is a significant developer of affordable housing in the State of California. Over the past 15 years, the Company has developed a reputation for creating exceptional values in both manufactured housing communities and apartment complexes. Since its inception, the Company has acquired and managed nearly 2,000 apartment units and 4,000 manufactured home spaces. Founded by Richard A. Hall in 1979, the Company initially focused on the brokerage of apartment properties in Los Angeles and Orange Counties. Four years later it began acquiring apartment complexes in conjunction with institutions such as Fidelity Federal and Valley Federal. These properties, primarily located in Southern California urban areas, were purchased at prices based on value added opportunities where the company's market and operating expertise could enhance value quickly. Between 1983 and 1985, The Richard A. Hall Co. acquired approximately 2,000 apartment units in 13 projects for more than $70 million. It later sold all of these properties for more than $95 million between 1984 and 1987, thereby realizing net profits in excess of $23 million in 4 years. In 1985 the Company expanded its focus and acquired its first manufactured housing community, located in San Juan Capistrano, California. RHC Communities quickly recognized the investment opportunities unique to manufactured housing communities and began to concentrate exclusively on the acquisition of communities which met certain acquisition criteria. Since 1985 the Company has purchased 25 manufactured housing communities with approximately 3400 spaces in California at an approximate cost of $150 million. Investment partners and lenders have included wealthy individuals as well as major financial institutions such as Merrill Lynch Hubbard, John Hancock Life Insurance Company, Heller Financial, Boston Financial and Credit Suisse First Boston. In 1997, the Company developed a strategy to acquire, rehabilitate and own apartment properties in California financed with tax exempt bonds with equity provided from low income housing tax credits. In 1998 and 1999, the Company acquired five properties totalling 672 units with bond purchases and/or credit enhancement provided by U.S. Bank; Municipal Mortgage and Equity; and ARCS Commercial Mortgage for Fannie Mae. Equity for all of the projects has been provided by Boston Financial Group. RHC's affordable housing team also includes the San Francisco accounting firm Novogradac & Company; the Los Angeles law firm Cox, Castle & Nicholson; and the Seattle affordable housing consultants Pacific Housing Advisors. Over the next three years, the Company expects to acquire three to four new affordable housing projects per year. CORPORATESTRUCTURE RHC Communities has approximately 70 employees. The Company typically employs one manager or a two -manager team to oversee the on -site management of each manufactured home park. Assistant managers, clerical and other support staff are also hired to aid the managers in addressing the needs of residents and in maximizing cash flow from property operations. Three regional property supervisors are responsible for all on -site management and report directly to a Director of Property Management. Complementing the field management staff are 10 corporate employees, supervised by the Chief Operating Officer. The Company's employees pool their significant experience and knowledge to locate and analyze current and prospective projects, as they work to maximize value in each investment. The Company has engaged third -party management companies to manage its affordable housing portfolio. KEY PERSONNEL RICHARD A. HALL Founder and President Richard Hall graduated with a B.S. degree in finance from The University of Southern California and began his career in 1970 selling residential real estate for Forest Olsen Homes, Inc. In 1975 he became a partner at JLM Realty where he personally handled several million dollars of annual home and apartment revenues in the Los Angeles area. In 1981, Mr. Hall formed a partnership specializing in apartment properties in Orange County, where from 1981-84 he represented more apartment sales than any other broker. In 1983, Mr. Hall formed a partnership with the Lincoln Financial Group and in the next three years joint -ventured over $95 million of real estate with two major Savings and Loan Associations. His success in each of the 13 joint ventures enabled Mr. Hall to begin acquiring investments as a principal and in 1985 he purchased his first manufactured housing community in San Juan Capistrano. Mr. Hall began concentrating exclusively on the acquisition of these communities and established The Richard A. Hall Company in 1979. RHC Communities, LLC was formed in 199, of which Mr. Hall is the Managing Member. Mr. Hall is a member of the Manufactured Housing Educational Trust (MHET), Wester Mobilehome Association (WMA) and Mobilehome Park Alliance. He actively participates in the local government of several cities, particularly the Chambers of Commerce is Laguna Beach and La Habra. DAVID E. ROSE Chief Operating Officer Mr. Rose brings seventeen years of diversified real estate experience to the company, in the areas of finance, development and management. He began his career with Shearson American Express as a real estate analyst. He later became the Vice President, Director of Real Estate for a savings & loan where he was responsible for overseeing a portfolio of both existing and to -be -built projects and operate a diversified real estate portfolio with properties in California, Oregon and Washington. Mr. Rose oversees operations of RHC Communities and all related companies and affiliated entities, as well as creates acquisition and financing opportunities. I 1 1 U 1 1 1 L OPERATIONS AND CONTROLS Project Selection and Acquisition Process In its search for suitable acquisitions, RHC Communities conducts extensive market studies of each targeted geographic location. Key employees participate in professional affiliations and industry organizations in order to target possible investments and to stay abreast of all factors affecting the future of the industry. Once a potential property has been identified, the acquisition team internally performs a complete Level I due diligence and marketing study which is subjected to a detailed review process. This review includes a survey of local rental and housing costs to determine market rent, exploration of local politics, review of the books and records, utility review, development of a pro -forma economics, preparation of a tenant profile and a physical inspection. A decision will also be made regarding the anticipated holding period and the likely residual outcome. If the Company chooses to proceed, the financial partner is approached with a proposal. After the partner becomes involved, Level II due diligence commences which includes finalizing the marketing, pro -forma and management plans, contracting the environmental, structural and engineering reports, and conducting the survey, appraisal, lease audit and legal research prior to the closing of escrow. Value Creation Process RHC Communities enhances value through management in a number of ways. First, it stresses the importance of homeowner relations. Each property has a manager living on -site who responds to residents' concerns. In addition, the Company holds regular parties and meetings to encourage homeowner participation and to communicate plans for the community. Second, the Company utilizes its extensive experience and skill in negotiating leases. Management carefully structures each rental increase program with the specific needs of the homeowners in mind, such as physical improvements to the property. Further, RHC Communities aggressively maximizes higher rents through tenant turnover, charging the highest rents to new tenants rather than existing ones. Fourth, the Company's knowledge and application of the legal and legislative issues assures helpful advice and intelligent decision - making. Fifth, an in-depth understanding of the entitlement process enables the Company to choose from a menu of exit strategies including dispositions to tenant groups and 501(c)(3) Non -Profit Corporations or redevelopment. Sixth, RHC Communities is structured to provide adequate and detailed accounting and management information in a timely fashion. COMPANY STRATEGY After acquiring its first manufactured housing community in 1985, RHC Communities recognized the unique opportunities existing in this property type. The Company developed a detailed acquisition, management and exit strategy which seeks to maximize the superior returns attainable through manufactured housing. Under its acquisition plan, RHC Communities purchases only those communities which meet specific criteria. First, the Company targets manufactured housing communities where the cost of the property is less than the value of the land if vacant. Second, the supply of vacant land or other housing communities in the area must be limited. Third, the costs of alternative housing such as apartments, condominiums or single-family homes must be significantly more expensive than both the coach payment and the land rent combined at that community. Under the Company's management strategy, the returns on each investment can rise dramatically after close of escrow at carefully chosen properties. This strategy includes an aggressive program of maximizing rental increases well above the rate of inflation while maintaining 100% occupancy. The rental income stream is secured by the cost of a tenant's home, because manufactured homes lose value if removed from a community, the tenants will always make the ground rent payment in order to preserve the equity in his coach. In each property there is no depreciation on the land, capital improvements are limited to minor items such as clubhouses and streets, and vacancies or concessions are rarely incurred. Therefore, the advantages of the Company's management program include the creation of predictable annual rental increases and expenses that are easy to estimate and control. While the community is held for future appreciation or redevelopment opportunities, RHC Communities earns a very high yield on its initial investment. At the end of the investment holding period, the Company has several exit strategies. The first option is to sell the property to another investor. Due to the secure and rising income _stream discussed earlier, the Company realizes a substantial profit. The second alternative is to sell to a homeowners associations or non-profit corporations. Because a tenant will pay more to own his land than a third party, this can be a more profitable alternative than the first. The third option is to convert the property to its highest and best use. OTHER MANAGEMENT ACTIVITIES Other management activities of RHC Communities and its affiliates include the following: Affordable Housing Resources, Inc.: Affordable Housing Resources, Inc. (AHR) was founded by Richard A. Hall in 1992 to assist RHC Communities in selling several of its housing communities to cities within California. Recognizing the growing need and demand for cities to preserve affordable housing by acquiring existing communities, AHR recently expanded its operation to assist cities and other property owners with the cities' acquisitions of communities. Entirely owned by RHC Communities, AHR's unique operation includes several RHC Communities employees, manufactured housing community managers, former city officials, tenants conversion experts, bond underwriters and governmental affairs specialists. AHR has assisted in the sales of nine communities totaling $52.6 million. In addition to providing substantial, low -risk fee income to its parent company, AHR is also an invaluable source of up-to-date market information, industry contacts and potential acquisitions. PROJECT LOCATION PROPERTYTYPE MHP-SPACES APT UNITS YEARACOUIRED STATUS Capistrano Terrace San Juan Capistrano M-P 154 0 1985 View Park La Habra M-P 143 0 1986 Sold 1993 Cherryfield Paramount M-P 117 0 1987 Sold 1992 Park La Habra La Habra M-P 107 0 1987 Sold 1993 Buena Park Manor Buena Park MHP 85 0 1988 Towne and Country Concord M-P 166 0 1988 Sold 1998 Bayscene Chula Vista M-P 126 0 1989 Dana Point Marina Dana Point M-P 91 0 1989 Sunrise Terrace Arroyo Grande M-P 300 0 1989 Sold 1995 Treasure Island Laguna Beach M-P 266 0 1989 Country Piece Fullerton M-P 78 35 1989 Mulberry Santa Clarita M-P 109 0 1990 Sold 1999 Continental Hayward M-P 198 0 1990 Bahia Garden Grove M-P 176 0 1991 Sold 1993 Santiago Estates Sylmar M-P 303 0 1991 Sold 1995 Chatsworth Imperial Chatsworth M-P 184 0 1991 Mountain View Estates Upland M-P 68 0 1992 Sold 1995 Westminster Apts Westminster APT 0 55 1992 Adobe Mobile Lodge Concord MHP 77 0 1994 Diablo Mobile Lodge Concord MI-P 73 0 1994 Club Marina Baypoint M I` 156 0 1996 Orangevale Townhomes Orange APT 0 64 1997 Copacabana MHP La Verne M-P 173 0 1998 Del Nido Apartments Santa Rosa APT 0 206 1998 Paradise Ranch Casteic M-P 94 0 1998 Seal Beach Trailer Park Seal Beach M-P 127 0 1998 Park Trailer Homes Long Beach M-P 87 3 1998 Mcbride Apartments Santa Rosa APT 0 80 1999 Woodside Court Apts Fairfield APT 0 129 1999 Shadowbrook Apts Selma APT 0 192 1999 Santa Rosa Gardens Santa Rosa APT 0 111 1999 COE 4/2000 Total Number of Spaces/Units; 3,458 875 "�R J �f J LOG _ � ',f•� _ cGf / Siii Diego (51.. Fr_wy ..] ` _ i J` +ix..?, � I'�=+�x� � •l�� ham- '""*�M*1 � 26. JR it All Awl - � �r.�.JC ,.i" ,. rrF s_- ` - .. 4CCf`�'S •� '7�s-. -._ y 1�4' •r � _ i. ^ ��e a yO Y�[�--s -- - 1.+ y'�� Al. P-�_. -- ;,'.. V�rs`i �J }�_ .s.•r y*' 1C y¢`��'�r" w ♦ - ?1q Y .r'� � pY /' f •j'/ 1F N Xrr lowAR G e��y� TT 1 1 •>1r i s �r IRS • ., �. ,M imam Rug ecojix �. nrA�Ar .'AR4"r1 41 r � ��.'.. _. c� � �• a 'r�j�`iG..r '^^s' '#w _�+]'w + !4! 4r . /w� .-- .. Kit 77, ■ lee. � �.yr : � •� trr AO r.; 4 i■IMC'IM ��JIIIM�n'�."yr" ,i�� W� _ ., - . _ ._ ., �s� - - k Oiangethorpe Avd ai�l•� T .° °tee ,..� F`��" J 9Aj 71 F tMei f��/. l w 'f �� jail: l c sMMK �.�.. ♦ r ;.' �._ dw I♦ I CLUB MRR I NR MOBILE HOME PARK I 1 I 1 1 Bay Point, California SUBJECT PROPERTY I THE KEY TO EXCELLENCE Ulan Monday thnt Friday 9:00 to 6.00 SanlftbV 10:00 to 2:00 1100 N. Shatter • 0, anve, CA on acre,, un, , • Newly Renovated KItCIMIS • New Carpeting • New Landscaping • Swimming Pool & Playground Under Construction • Central Air & Heat • Cable Ready • Fireplaces In All Units • Refrigerators In All Units • Generous Closet Space • Patios & Balconies* • Caring On -Site Staff • Water At Trash Paid • Garages wlStorage Available • Assigned Parking • Laundry Facilities • On Buslinc • Near Orange Mall • Close To Anaheim Pond • Minutes From The 55 Frecwav • Close To Schools Townhomes ._.........,..,, "V S Coll ©� 1-800-864-3558 and Enter C.& © 1383 Siw ©® .iJa�malNn l�Four, vJuY i.i. ua,owio to�Ao.,., (714) 639-6286 II II The Apartment Report - CRITTENDEN PUBLISHING, INC. • P.O. BOX 1150 • NOVATO, CA 94948 • CUS'roMER SERVICE: (800) 421-3483 Vol. 8, No. 14 July 19, 1999 WEST COAST INVESTOR EYES AFFORDABLE HOUSING RHC Apartment Properties Inc. makes a bigger move into the affordable housing market by closing three separate deals totalling $16.85M for a trio of market -rate California complexes with 450 units that will be renovated and converted to affordable housing. The deals include the $4.5M purchase of the 80-unit McBride Apartments in Santa Rosa, the $6.6M purchase of the 129-unit Woodside Court in Fairfield and a $6.9M deal for the 193-unit Shadowbrook Apartments in Selma. RHC financed the purchases with a combination of taxable and tax-exempt bonds, and 4% low-income housing tax credits. Occupancy in all three properties will be restricted to tenants who earn no more than 60% of the area median income. RHC began investing in affordable housing last year when it bought two other California complexes. The company raised $6.475M for its latest round of acquisitions through the sale of $8.14M in tax credits to Boston Financial. It raised another $4.5M from the sale of bonds through a private placement to Minneapolis -based U.S. Bank and $6M through the sale of bonds to MuniMae. The bonds were issued by the California Statewide Community Development Authority. The McBride Apartments in Santa Rosa is around the corner from the 209-unit Del Nido Apartments that RHC bought last year. The McBride complex includes four two-story buildings with a mix of eight studios, 41 one -bedroom apartments, 23 two -bedroom and eight three -bedroom layouts. Amenities at the Class B property include a swimming pool. RHC Properties will spend $1.14M on a rehab of the fully occupied complex. This includes the construction of an office, plus roof and stucco repairs, and exterior paint. The Woodside Court complex in Fairfield was 89% occupied at closing. RHC expects renovation costs to average about $603 per unit. RHC will spend about $1,500 per unit to rehab the Shadowbrook Apartments in Selma. The 98% occupied complex includes a mix of 32 one -bedroom apartments, 149 two -bedroom units and 12 three -bedroom layouts. Planned renovations include new appliances and flooring, interior and exterior paint, stucco repair, the replacement of balconies and other wood, and renovations to the clubhouse and office. Average monthly rents will drop from $454 to $425. II II II II 1 Crittenden's Manufactured Housing Community Report RHC Takes Sole Ownership Through Two Refis A leading investor in manufac- tured housing communities takes out a loan from Solomon Smith Barney to refinance two South- ern California communities so it can buy out the interests of two separate partnerships. RHC Communities put $5.6M debt on the 91-site Dana Point Marina manufactured housing community in Dana Point. Calif., and $7.5M on the Lassen West community in Chatsworth. Calif. with 184 sites when it took out a 10-year loan that amortizes over 30 years. The loan on the Dana Point Marina was fixed at a 7.5% interest rate and represents 80% of the value of the property. Dana Point Marina sits on 8.82 prime acres of land in a tony Orange County coastal commu- nity where stick -built home prices average around $300T. The community has just 91 homesites. But most of the homes are doublewides and RHC Communities plans to transform the property to a higher quality community over time. The company installed the first two- story Lido Cottage at the Dana Point community last year. The property on 8.82 acres is just one block from Doheny State Beach. Residents have access to the beach from a private pathway owned by Dana Point Marina. Other amenities include a swim- ming pool and a clubhouse. The 100% occupied community was built in 1972 and acquired by RHC Communities as a 50% partner in 1989. Rents range from $680 a month to $750 a month. Tenants pay their own ' water, sewer and trash bills. The owner submeters gas and electric utilities. RHC Communities bought out Lassen West Partners to take over sole ownership of Lassen West community in Chatsworth with $7.5M. Solomon wrote the loan to 80% LTV at a 7.8% interest rate for a 10-year term that amortizes ovdr 30 years. The 1967-built community about two miles from the 118 Freeway was acquired by the RHC Com- munities -led partnership in 1991. The 19-acre park suffered signifi- cant damage in the 1994 Northridge earthquake and $1.2M has been spent to replace the totally demolished clubhouse and swimming pool area and to redo streets and landscaping. RHC Communities will spend another $600T to install a new 10 amp electrical system. ' The park falls under Los Angeles county's rent control ordinance and rent increases historically run 3% to 10% on turnover. They now average $440 a month, not including utilities. Cashflow from rent supports a 1.20 DSC. 'W ationnotpennitted. marewlmayno rep in wholeor npa nany wha II II Buyer Picks up Two California Communities Newport Beach, Calif. -based RIiC , Inc. scores two acquisitions with the December closing of its purchases of California manu- factured housing communities with upside potential. RHC's strategy is to invest in manufactured housing communities and apartments exclusively in California where it finds that local rent control ordinances are generally not a hindrance to profitability. RHC expects to be able to nearly double rents at the four -acre, 127-site Seal Beach Trailer Park it purchased for $3M from the estate of the park's developer. The 30-year- old park is the only one in Seal Beach and is about two blocks from Orange County beaches at the border between of Orange and Los Angeles counties. RHC's other acquisi- tion is of the 97-site Paradise Ranch in Castaic through a distress sale. The $1.7M cash purchase of the northern Los Angeles County property includes 300 acres that RHC bought while the seller was in foreclo- sure. Only 80 of the 300 acres are develop- able because of largely hilly terrain. RHC will expand Paradise Ranch by 25 sites as soon as its receives county approvals. The remaining developable land may be turned into other manufactured housing communities or stick -built housing subdivisions. RHC usually finances its acquisitions with Credit Suisse First Boston (CSFB) but turned to Tokai Bank of California since CSFB was out of the market when RHC made the acquisition. Tokai Bank provided a three-year, $2.4M interim acquisition loan for the Seal Beach Trailer Park. The loan represents 80% of the property's value (LTV). The bank based the interest rate on Prime plus 1% for an effective rate of 8.75%. Rents that average $300 a month support a 1.12 to 1 debt service coverage (DSC) ratio. RHC intends to take rents to between $500 and $600 a month because they are far below market. The park's developer and the city of Seal Beach recorded an agreement to keep 80% of the homesites affordable but the agreement has never been executed to set rents at an affordable level for the Orange Continued on Page 4 Buyer Gets California Communities... Continued front Page 3 County MSA, and the affordable rate was not calculated. Occupancy at the family park is 100%. Seal Beach Trailer Park's only amenity is a 2,500 s.fclubhouse with a kitchen and entertainment space. RHC plans no improvements because the park is in tip-top condition. It does plan to make $1 M in renovations at Paradise Ranch beyond expenditures to expand the community. Renovations will include upgrades to water and septic systems, road resurfac- ing and the installation of lighting and landscaping. Paradise Ranch includes a clubhouse, swimming pool, tennis courts and hiking trails. The property has two quarter -horse race tracks, 60 stables and equestrian trails. Paradise Ranch will have 35 homesites available for rent after expansion because 10 existing sites are vacant. Crittenden's Wall Street Mortgage Report The Insider's Weekly Briefing yn 9or7girgeConduits & Securillzalion First Boston Books Big Mobile Home Park Deal Credit Suisse First Boston funds a 10-year, $40M mortgage for RHC, Inc. to finance the investor's purchase of three California mobile home parks and to refinance five of its existing communities. The commitment includes a $2M cashout. The investment banking giant fixed the rate on the loan at 7.5%. RHC's payments are based on a 25-year amortization. RHC's three newly -acquired properties include the 34 year - old, 198-site Continental to Havward• the 38- ear -old 109 site Mulberry Mobile Home Park in Santa Clanta; and the 34-year- old, 173-site Copacabana commum in the eastern Los Angeles ounty town of La Verne: RHC already owned partial interests in the Hayward and Santa Clarita properties. It used $10M of the loan proceeds to buy out joint venture partner John Hancock Life. The Hayward park occupies a 17-acre site near a Bay Area Rapid Transit station. The 9.7- acre Santa Clanta park is near Interstate 5'north of Los Angeles. ' RHC paid $3.85M to buy the 13-acre La Verne property from the Hendricks Trust. 1 CITY OF ORANGE 1 CA •. �o OFFICE OF MAYOR PHONE: (714) 744-2200 • FAX (714) 744.5147 1 March 29, 1998 1 1 Mr. Richard A. Hall President 1 RHC Communities 20201 S. W. Birch Street, Suite 250 1 Newport Beach, CA 92660 REGARDING: Orangevale Townhomes 1 1300 North Shaffer Street Dear Mr. Hall: 1 It was a pleasure to meet with you and David Rose to tour the Orangevale Townhomes. Having seen the deteriorated condition of the former Town and County Apartments, I am pleased to see 1 the project's transformation into clean, attractive, affordable housing. On behalf of the City Council, I would like to express our appreciation for your commitment to 1 the project and to the City. We are glad that we could facilitate the renovation by approving the issuance of bonds by the California Statewide Communities Development Authority. 1 The City values private/public partnerships such as ours. Please let us know if we may be of assistance to you in the future. 1 Sincere y, / /�. )'panne Coontz J 1 6 Mayor 1 #ccondcv/mel/Ir mayor -hall 1 1 ORANGE CIVIC CENTER 300 E. CHAPMAN AVE ORANGE, CA 92666-1591 P.O. BOX 449 I 4 RHC CO MM1sN Ir1 Ef Given the economic ups and downs of the '90s, today's investment professionals have been forced to scrutinize their "report cards" when examining real estate performance, Time and again, despite dramatic market fluctuations, manufactured home communities continue to score higher than other investment property types. 1 Buying Communities Not Buildings A New Decade For Upside Opportunity or uvvy m esrons in search of stable Finvaunent with in yield; it shouldn't come as too much of a surprise that 1995 to 2005 has been dubbed the 'Decode of the Manufactured Home Community.' Although they lack the ghmou; sizzle and allure of other investment categoric; these propertiesluve long been recognized as rewarding investments. The real question i; what is driving this sudden surge of interest in a property type that his been around for years? one sign cant reason is performance Given the economic ups and downs of the'90; today's investment professionals have been forted to scrutinize their'report cards' when examining real estate performance Time and again, despite dramatic nutlet fluctuation; manufactured home communities continue to score higher when compared to other investment property types. These communities consistently exhibit the lowest national loan default rate and, during the worst real estate cycle of the decade, sustain continued rent increases without lost occupancy That is why, now more than eve; manufactured home communities are coming into their own as the investment of choice The Impact of Institutional Recognition Smce 1993, four major manufactured home community owners have gone public as REM Since that time, public interest by would-be investors of the RM existent and growing property portfolios have shed new light on this less 2u-Shmorous property type The resultµ after three years of dramatic portfolio growth and perfomtancq these REM are still going after smnnfactuted home communities with a vengeance wall Streets; interest in manufactured home communities is unprecedented Even though acquisition activity has slowed this yca� these new owners are maximizing profitability with their large portfolios through enhanced property management Activity is expected to resume its former pace later this year While the highly -touted REM have commanded the capital source spotlight during the last two year; syndicators and private investors have been right on their heels taking advantage of the growing availability of capital from commercial bank; life companies; credit companies and pension funds. Mote importantly, these private investor groups have a distinct advantage over the R13M Due to years of experience in the manufactured home community industry, they not only We a keener ability to recognize opportunity but can provide highlyexpenenced and specialized professional property management that can drive maximum value incenses. Why Manufactured Home Communities Make Sense rrll=arc a number of compelling reason; 1 matrufa<mred home communities stand out as an investmrcnt RHC Communitic; a leader in the manufcturd home community industry, has identified fine key furors that warrant a closer look at this investment niche HIGH OCCUPANCY tram in major metropolitan area; manufactured home communities experience very high occupancy rates when compared to any other investment type In t'alifornia, many regions boast occupancy levels ranging from 98 to too percent National resident turnover for apartments exceed 55 percent per yen By comparison, once manufactured home communities are installed, 90 to 95 percent are never moved This stabEity is due to prohibitive: transportation and CRT frosts These coats can average stoma per unit, a considerable portion of a residents equity in the homy In addition, the homes value is largely attributed to its location within an established community. Given today's shortage of alternative home sits, there are few paces a ttwtufactured home could be moved that would allow it to sustain is valua Instead, residents looking to Ideate will sell their home in -place to new residents before considering a rcloation of the entire structure The growing popularity of manufactured home as a housing choice an be linked to several fitters Arraawestre According to recent studies by the Manufactured Housing Institute (MIUJ, 82 percent of manufactured home buyers pumlased their home because it was an aBordable alterriatite to traditional stick -built single family home& Changing demographic pattern; changing lifestyles and high housing omits hm crated sera stronger consumer demand for a new affordable variety of housing choke Simply put manufactured home communities are this country's only true form of a(6xdable housing Buying in a manufactured homecortimunity is one of de few options a family his to apartment living Ibdax a family an purchase a manufactured home including mortgagq space rent and personal property toes for less than the neat most 2&dablealternative —apartments or cohdominiurim The down payment is Iowa; its easier to qualify for financing and, on the ave agg, the monthly costs ate lower In fact for most region; the monthly housing costs associated with home ownership in a manufactured home community are the same as or has than apartment rent FA MMONHoasOwxratmiv. MHIstudies indicate that 58 permit of manufactured home buyers purchased a horse because they dashed the qualm and fait= inheerrt in home ownership, M factory -built housing product in Many ways equals the advantages of traditional stick - built housing but at far ku cost to the consumer and would-be homeowner In terms of h'fatylq manufactured homes dosely resemble single family communities They provide privacy, stability, pride of ownership opportunity for individual apression, a sense of community and detachment despite the fact the land is rented Bon Meets Manufactured homes currentiy repraetit It wide spectrum of architectural sq* inntam decors and amenities and come an sizes ranging from 600 to well over 2,500 square feet This diversity mans manufactured homes mat the demands of a wide range of homeowners from first-time buyers to retirees and 'empty nesters.' There is also an increasing number of young singles and families choosing this affordable housing option. Limn COI1> MITITON The high demand and limited supply of manufactured homes in major metropolitan area will continut MO=Ve; it is unlikely new manufactured home communities will appear in these areas due to existing shortagy Zoning barriers and pricing of land Since conventional housing cannot be produced at a comparable cost to manufactured home commundthe; it is aim eliminated as competition. LOW DELINQUENCY When a [want is granted occupancy in the community, they have committed to make a significant apical i vesture a to acquire the home that is situated on the lased home ftte While the home remains the personal property of the rwant the value of their property is only preserved if it remains on situ As noted, once the home is proved off the pnopai , it loses most of its value in Calif xni . state civil codes provide that if a manufactured home tenant dos not pay art in a timely Mannar the landowner may cause the removal of the home from the community. For obvious reason; tomes are unlikely to jeopardize the equity in their home As I futtha Mp gap to dditiquene} unless the tenant owns the home withoutdabt the Turco o; rdened w as t he "legal owns", with an interest in the home studs behind the o laterA If a tenant should fail to pay lent the lender will cure the def ult rather dun lose the co htcrA securing the ban. LAW OPERATING EXPENSE RATIOS Manufactured home communities typically enjoy 110 to 15 percent operating expense ratio advantage ova compuably-sized apartment projects In 1990, the national average operating expense ratio for manufactured home communities was 57.8 percent For garden apartment& the ratio was 515 percent The manufactured home community ratio is even lower in major metropolitan arcs due to higher home site rents in these areas With virtually no costs associated with interior or exterior unit taintenatnoq operating coats are not only much lower but are easily controlled and projected with grater precision. ion. Since manufactured home communities have better income and expense leverage than other property type; their break-even levels are lower than apartment and office propertic; bringing more yield to the bottom lint Therefory manufactured home communities increase in value faster than most other property type& GREATER UPSIDE POTENTIAL. Home site rental income accounts for about 95 percent of an owner's revenue steam Rental income growth comes from two tnajor near yearly adjustments in rents of existing taunts and rent increases accompanying tenant turnover At a mindmunt the standard home site lase provides for annual rent adjustments that take into account inflation increases in park expenses In some communide; where there arc no long-term kasa (rental agreements in excess of one year), rents may be escalated at the discretion of the landowner In the event of tenant turnover rents an be adjusted to recoup any disparities between current rent kvds and rent paid by previous tenants 'Disparity' is the operative word in this product type No other leased investment type has as much rent disparity from project to project or in some case; within the same community. This disparity is a function of two unique conditions. Fist rents are not always market driven, instead, they am landowner dtrvea The level of rent that is charged is Largely dictvted by the type of property owner In an industry tint is still dominated by'mont and pop' ownet& the lack of investor and management sophistication has resulted in undermuket rents. Sewed, low turnover within each park mans space rents usually fall behind the market long before an opportunity to re -rent arises. Investors an always count on rental storms that will outperform inflation levels even in a down economic cycle Moreovc; since them is no apace offset to a tumove; such as paint carpet caning,, advertising, any increase to the rent level goes directly to the bottom lint Other project specific opportunities for achieving additional upside in a manufactured home community include filling vaancie; development and expansion opportunitie; renovation and passthrought long-term lase negotiation; implementation of social and recreational programs and instituting new Management poUck& 1 1 1 1 1 1 1 1 1 1 TIM BENEEIT OF TENANT TURNOVER Tenant turnover is randy viewed as a benefit for most investment types In a manufactured horse community, when a tenant sdh their hot»; new tenants move in at a higher rent kvd This market rate adjustment can range from to to loo percent depending on the disparity of the previous rent from current market keels Since the homes are purchased and sold by the resident; the landowner is only responsible for approving the prospective resident Otherwis; tnmagement is not involved and no additional costs are incurred by the landowner The sale is handled through a traditional escrow prows; with the rent proration occurring within the escrow. AN APPRECIATING ASSET While the goal of purchasing any col estate investment is appreciation, a gnat majority of the traditional investment dollar is invested in a depreciating asset.. buildings In manufactured home communities because the units ate owned by the tenant; you are essentially investing the majority of the investment dollai in an appreciating asset.. land RENT CONTROL Pot apartment building; rent control can be a death knell. For manufactured home communities however rent control more often creates opportunity One of the primary :awns these communititks perform so we14 even in rent oontro4 is their ability to produce Positive operating leverage by increasing rents faster than increasing expenses Savvy hweston view tent control as a guarantee for an inflation -proof teal estate investment Under specific condition; buying in rent -controlled cities can offer more signifiant upside to the owner There are many @attires that distinguish rent control in this product type from multi -family tent control. • Ordinances are in place that guarantee annual minimum inflationary natal adjustments. • Unlike multifamily property, rent control does not result in unit deterioration. Since the units are owned and maintained by the resident they are more likely to apply their 'rent savings' on unit upgrades and improvements • Most ordinances provide for a recapture of funds used for Capital repairs and Improvement to the common area • When home site tent are restricted, homes beoome mote valuable; tlerefor4 the collateral securing the payment of sent' tenant home equity, is Steady enhanced • The alter of tenant remains high because while the rents are lower homes in these communities rude at much higher prices than non -controlled communities of comparable quality. • A IM report by Real Estate Consulting Group stated that rent control can incense the resale price of a manufactured home by as much as Soo 000. Buyers pay up front for anticipated savings in space rent when they chose to purchase a home in a rent- controlled community. • Expenses rarely increase at a higher rate than the controlled rents because of the limited nature of operating expenses such as non- existent unit maintenance • These ordinances are more apt to be removed or moderated by political action or court mandate than multi.family rent control. • The lower acquisition prices of properties in rent controlled jurisdictions an generate much higher future sale profits depending on the investor's exit strategy. COMMUNITY MODERNIZATION In any leased investment' these coma a time when the leased unit requires modernization to keep up with market conditions This renovation work is usually performed, at no small cost' by the property owner in order to keep occupancy high and tents at market kvd In manufactured home communities however the tenants bear the port and responsibility of all upgrades to the dtrclBng units There is an ongoing modernization process tirat occurs in these communities as residents seek to maximize the value of their own investment This means the Landowner enjoys the modernization of the community at no cost. pREDE OF COMMUNITY Because manufactured home community residents lave considerable equity invested In the community, they take grater responsibility for maintaining their homes and common areas than an apartment tenant As in any residential neighbodwod, the residents recognize that the appearance of the common areas and amenities ditectly of xt the value of their homes This pride of community signifeantiy reduces the prospects for vandalism or disregard of public arcs within the project which in turn, keeps expenses at a minimum PEW "BRICK AND MORTAR" IMPROVEMENTS As discussed, manufactured home communities have very few improved structures to maintain, operate and insure This translates into reduced operating cost and lower risk This risk can include catastrophic events such as fir; wind -driven rain or flood, loss and obsolescence MANAGEMENT EPPIClENCIES Prior to reaching institutional investment aodalm, the manufactured home community industry was predominantly a mom and pop' industry with kw multiple property investors As such, there is fat grater opportunity in newlyacquired properties for the impkmentation of management efficiencies which an signWmittiy minimize expenses and maximize revenue opportunities These efficiencies include buying power vendor reladomhip; billing systems cost controls local government rdation4 construction expettis; collation audit procedures and implementation of community policies SUBMETERING OF UTILITIES in almost all manufactured or mmunl* gas and electric are submetered to the homeowner In a growing number of communities the submetering of water; sewer and trash is also implemented Accordingly, the landowner is only responsible for paying utilities for the common area In the case of gat and decW; tine landowner actually ralizes a profit on the distribution of these utilities because the landowner is billed at the commercial rate while the residents are billed at the residential rate CAPITAL IMPROVEMENT PASSTE ROUGFIS It is common ptactke in the industry and usually included in lase agreements and rent control ordinaneesi that costs associated with espial repairs or improvements to the common arcs are passed through to the residents in monthly installments added to the rent until the cast and associated finance charges are recaptured EXIT STRATEGIES In comparison, when examining exit strategies for manufactured home communities there are other unique options that an exceed the market price paid by a private investor These include Tstwcrr Cone OR Soeorvrmorx Resident put&= of manufactured home eommunitk& either through the subdivision ptoccu or a tenant 000g live generated the highest sales prices for these investments typo In this cue, the =Ucnt; committed to protecting or enhancing their equity, will efkcdvdy'overpay' for their home sites For this reason, appraisers safely if ere; use the sale prigs of resident purchase as comparative sales in appraising manufactured home communities because the prices are so much higher While projects are not traded to resident otganizuions with great frequency due to limited financing programs them is a strong legislative push underway to appropriate more star funding programs for these conversiom This fact' combined with new private market intetat in resident fmancing will result in increased resident purchases; in the future Mtnvremnt AOVrsrrraNs In Californh, there have been several cities since 1990, that have issued to exempt boards to porch= aisthng manufactured home communities within their jurisdictiom kr the purpose of preserving amstmg aff0 dable housing stuck and mating state' nnndated low income housing ngwmmnts pricing for manufacturod home communities acquired by municipalities luu in all caax exceeded those paid by 1ffiste parties Sinn housing agencies can fmance at lower interest tans and are exempt firm the payment of property tax, pricing can be much higher white still providing exadlent oornage ratios on the tax exempt debt CHANGE OF USE Unlike other property types manufactured home communities are seldom the "highest and bat' use of the bid Most communities in major metropolitan areas throughout California were constructed 20 to 30 years ago before the surrounding at= were built out Now, with the scarcity of undeveloped land in these area; there is far greater demand for other product type; such as single or multi[-funily residential The RMC Communities Difference �Tj}u1e no new REIT or private VV investment groups entered the marketplace in 1995, a longstanding leader in the field stepped up to the -venture plate in 1996. With more than a decade of experience owning and operating manufactured home communities in Californk The Richard A. Ball Company has hunched a new entity, RHC Communi* that combines its expertise and established tract record with I new vision and agtessive capital sources seeking to take down a substantial market sham of new acquisitions RHC Communities is poised to become the dynamic leader in this the The Future -Uvat now current market predictions ndicate this investment niche will continue to grow exponentially to mat demand from senior and young people who cannot afford to live in tradional singlafamily homes or may simply heeler to lice in a manufactured home environment The'D=& of the Manufactured manufactured home community investment arena A privately -held company, RHC Communities owns and operates 22 of its own manufactured home community investments Formerly an apartment investment company, RHC began purchasing manufactured home communities in 1985. Since that time, it has enjoyed unheralded success in its acquisitions over the past 10 years and has developed one of the most respected property mamgement companies in the industry. Unlike other private investment firms in this product type, RHC Communities has vast experience structuring and owning manufactured home properties with Home Community" will be a decade of significant upside potential For investors unfamiliar with manufactured home communities, the time has come to examine opportunities tt outside of traditional office; retail and multifamily markets and explore markets where land and community are the common dm mhtatot or commmercial, other than manufactured home communities When a manufactured home community is situated on valuable land surrounded by more valuable use; there is an opportunity to sell the hnd to a developer looking to convert it's use In this scenario the price for the property will be much greater than one paid by an investor who plans to continue to operate the property Is a manufactured home community. In addition to private developer; some California cities have recently purchased well - located existing manufactured home communities through condemnation for various city muse projects The prices paid for projects in this category also exceeded those paid by the private market According to the California Depattmmn of Housing, more than 600 manufactured home communities have dosed since 1981, the majority, for the purpose of conversion to higher and better use of the land by private and public development entities institutional partners such as Merrill Lynch Hubbard and John Hancock propertie; as well as private partners. The company's goal to structure this planned growth in 1996 is based upon its belief tint with the proven results of its portfoliq the strong management skills of its people and the criteria it has established for recognizing value, it can realize significant investment yields with a large portfolio expansion When compared to RHC Communities' former apartment portfolio as well as other traditional investment type; manufactured home communities dearly stand out as the highest yield for the lowest risk RHC RICHARD HALL • DAVID ROSE 20201 S.W. Birch Street; Suite 250 Newport Beach, California 92660 Phone 714.224.0222 • Pax: 714.224.0223 o•mail: the com®aoLcom r I I I I 1 t such as Santiago Estates in Los Angeles. Developing and Financing in 0 Land -Lease Communities GEORGE ALLEN evelopers of manufactured home land - lease communities provide homebuyers a high -quality affordable housing alter- native and produce a development proj- ect that can, potentially, yield higher - than -average cash flows and appreciate significantly in value. To achieve this potential, the developer must carefully identify a target market for manufactured homes and homesites; locate appropriate, low-priced, optionable and zonable raw land; secure construc- tion and permanent financing; and deliver a market - responsive community design and affordable, attrac- tive manufactured housing products. A land -lease community is one in which home - buyers own and maintain their homes, and the prop- erty owner owns and manages the sites on which the homes are located, as well as common facilities and amenities. Manufactured home land -lease communi- ties are similar to apartment developments in that they are investment properties that are expected to achieve financial returns over time. Land -lease com- munity developers may choose to retain developed communities for their own portfolios or sell them to investors. If the latter is a goal, certain considera- tions, outlined later, should be incorporated into the development process. Land -Lease Communities at a Glance There are an estimated 50,000 to 55,000 communi- ties of manufactured homes nationwide; the vast ma- jority are land lease. ' 3anuary 1996 • Urban Land 35 Barriers to Overcome The developer's first major challenge Is to line up farsighted, patient investors with deep pock- ets and a high tolerance for risk. Allowing for some leverage, internal roles of return of 25 to 30 percent a year are not at all uncommon for newly developed manufactured home communi- ties. However, those attractive returns will not be realized unfil seven to ten years after can- slmction commences. It normally takes several years unfit the cash flow from a newly developed manufac- tured home community turns positive. The de- velopment process for manufactured home communities requires sizable upfront outlays - for example, to acquire the land; install the roadways, sewer tines, and other infrastruc- ture; and build clubhouses, pools, and other common area facilities. Leasing occurs late in the development process. What distinguishes newly built manufac- tured home communities from other types of real estate development is the prolonged lease - up period. The leasing "fill -up" of manufactured home communities typically stretches out over several years. Prospective manufactured home community residents usually are wary of being the first ones to move into an unfinished manu- factured home community. In a fundamentally healthy housing market, developers might ex- pect to lease about ten homesiles a month. If the first phase of an upscale manufactured home community contained 250 to 300 home - Most land -lease communities are relatively small in size. In midwestem states, three -fourths contain 100 or fewer homesites. Size is important because only when communities approach 100 rental sites do they begin to enjoy significant economies of scale in management and operation. Because they rent homesites in an investment property, residents of manufactured home land -lease communities often are compared with apartment lessees. They also are like business owners who rent commercial space in shopping centers or office buildings, because they have an equity interest (their home) that relates to their specific location. Manufactured home land -lease communities typically experience high occupancy rates and little turnover. Most manufactured homes are moved just once —from the factory to the initial installation site. According to the 1996Allen Report, the average occupancy rate (homes installed on homesites) in land -lease communities owned by major investors is 93.6 percent. Once installed, 90 to 95 percent of manufactured homes are never moved. (Residents do move but typically leave the homes behind be- cause it is difficult and expensive to move them. Nationally, resident turnover averages 10 to 15 per- cent each year. Most departing residents sell their manufactured homes on site to new residents before relocating.) By comparison, national resident turn- over rates for apartments exceed 55 percent per year. Development Considerations Community Design, Amenities, and Infrastruc- ture. The design goal is to make the community look and feel like a well -planned conventional housing subdivision. Target market and developer preferences determine what amenities and features are included. Though minimizing brick -and -mortar improvements can help maximize profits, it is vital that improve- ments be adequate, serviceable, and durable. This is sites, it would take two to three years to com- plete the lease -up. At that point, only the first phase will have been completed and leased up, and it probably will not generate enough cash flow to yield an attractive return on the cost of constructing common area buildings and facil- Ities. It is usuallynot until Phase II, when the manufactured home community has been com- pleted and leased up (If at all), that the proj- ecl's investors will begin to realize handsome double-digit rates of return. source: Leonard Sahlmg, the Manufactured Housing CommuNlyrodusfry: )heAmencan Dream,Re-Fngineered (Naw York Merrill Lynch & Co., February a, 1995). especially true for the community infrastructure — streets and water and wastewater connections, which are the source of most common maintenance prob- lems in manufactured home communities. Home Sales. Developers of land -lease communi- ties can decide whether to sell new homes on site them- selves or to arrange for sales through retailers. If the developer opts to work directly with manufacturers to market and sell new homes to buyers who will live in the community, the developer must obtain wholesale financing to purchase homes from the manufacturer; offer the right product selection; direct the buyer to sources of retail (chattel) financing; and hire a capable, experienced, and motivated staff. This approach will likely generate early and ongoing cash flows. Some ex- perienced manufactured home community owners, de- veloping or expanding their own raw land, have al- most financed their construction costs (excluding land) through the rapid sale and placement of new manufac- tured homes and the resulting rental income. While sales income of this magnitude is the exception rather than the rule, it is possible in very strong markets. On the other hand, overpriced or overdesigned homes; expensive or inadequate financing; slow or undepend- able factory delivery; an inexperienced, underperform- ing sales staff, or other planning or performance short- falls may create unnecessary problems and expense for the project. To minimize risk, most developers prefer to work with one or more manufactured home retailers to market and install new homes. With this approach, the developer/owner gives up the potentially signifi- cant home sales profits, but much of the risk of out- right failure is transferred to someone else —some- one who (it is hoped) knows the business better. And, as manufactured housing products have become more popular, they also have become more difficult to db- tain in a timely fashion in some markets. Local re- tailers who have longstanding relations with produc- Urban Land • Yanuary 1996 I 1 1 ers of manufactured housing generally can obtain homes when and where they need them. Most developers avoid designing a new manufac- tured home communityas a mixture of rental home - sites and for -sale or subdivision homesites unless the two sections or phases are clearly separated. Home- owners on "sold sites" generally dislike living among renters and vice versa. Even with a tightly worded set of covenants and restrictions, it can be difficult to ensure landowners' compliance with community rules. Noncompliant lessees always face the possibil- ity of eviction; those who own their own land do not. A manufactured home community developer/ owner should consider buying and siting manufac- tured homes that are rented by the week only as a last resort to fill vacant sites during a critical time in the absorption period, or to help turn around a real estate owned (REO, or foreclosed) property in a heavily blue-collar, low-income area. In these special cases, the cash flow from rental homes literally can save the project, if the units are kept occupied and well maintained, and if rents are collected in a timely fashion. But rental units can also taint the project's image and make the community difficult to market to investors. As soon as possible, the developer should sell the rental units to the occupants —out- right or through a lease/purchase agreement. Operations and Management. Management of manufactured home land -lease communities by pro- fessional property managers is becoming the norm and is a clear indicator of the maturation of the in- dustry. More and more of the Institute of Real Estate Management's Certified Property Manager members are employed at middle -management and corporate levels of firms having portfolios of numerous manu- factured home land -lease communities. The Manu- factured Housing Educational Institute's ACM (Ac- Upside Potential: Romesite Rents Homesite rental income usually, accounts for about 95 percent of the revenue stream from manufactured home communities, and the "same -store" growth in that rental income comes from two major wellsprings: yearly adjustments in the rents of existing tenants and rent jumps accompanying tenant turnover. The standard homesite lease typically pro- vides for annual rent hikes that fully reflect in- flation along with any increases in park operal- Ing costs. Hence, at the very least, park owners can count on a rental stream with constant purchasing power. Bent hikes accompanying tenant turnover are the second major source of same -store revenue growth from existing manufactured home communises. when "market -clearing" rents rise faster than inflation, many experienced manufactured home community owners are re- credited Community Manager) program is graduating trained and qualified on -site managers nationwide. Land -Lease Communities as Investments Income Potential. The tight supply of affordable housing in many residential markets has created a very profitable business for existing manufactured home community owners. Rents for homesites in land -lease communities vary widely by locale and specific market character- istics. In small, rural land -lease communities, home - sites can still be leased for about $100 to $200 per month. The closer the property is to an urban area — and sources of higher -paying employment —the high- er the rent, for example, $200 to 300 per month. And in popular retirement areas where land -lease com- munities offer more amenities, desirable features, and resident services, or in urban areas where there are relatively few manufactured home communities (such as the Cook County/Chicago area), rents may be $300 to $500 per month or higher. Rent is relatively simple to collect. Residents have an equity interest in their homes that they are slow to jeopardize, and it is difficult and expensive for them to move. Furthermore, unless they own their homes, a mortgagor with an interest in the manufactured homes stands behind the residents. As a rule, it takes three rental homesites in a land - lease community to produce the gross rent generated by a single three -bedroom rental townhouse apart- ment. Net operating income (NOI), however, is an- other matter. Since they have fewer brick -and -mortar improvements, land -lease communities typically en- joy a 10 to 15 percent operating expense ratio (OER) advantage over comparably sized apartments. In 1990, the national average OER for land -lease communi- luctant to boost rents in their own properties by proportionate amounts for fear of sparking a tenant revolt. But then, in the event of tenant turnover, community owners often make it a practice to adjust homesite rents to recoup any disparities between the current market -clearing rent level and the rents paid by previous tenants. Many manufactured home community own- ers and operators, however, prefer not to elim- inate these disparities entirety. One veteran op- erator explained that he always likes to "leave something on the table," that is, he sets his rents somewhat below the maximum that the market would allow him to charge, to enable residents to sell their manufactured homes quickly, and at premium prices. In doing so, he is clearly nurturing his franchise. Experienced manufactured home communi- ty owners and operators also routinely keep track of alternative housing costs -apartment rents, sales prices of site -built housing, and homesite rents in competing nearby manufac- tured home communises -in the local area. Armed w th this information, they try to main- tain a parity between the "all -in" cost of living in their manufactured home community versus the costs of living in these alternative forms of shelter. In sating homesite rents, some manu- factured home community owners regard site - built houses as their main compel ton, while other owners view nearby apartment complex- es as Weir primary competitors. Source: Leonard Sahlmg, the Manufactured Homo Commevdy IadcsW. The American Dream, Re-Engkoered (Nm York Merril Lynch & Co„ February 9, 1995). Yannayy 1996 • Urban Land 37 ties was 37.8 percent; for garden apartments, it was 51.5 percent. This advantage is possible only when a manufac- tured home community is full, and managed efficient- ly. In fact, a fully leased manufactured home land - lease community with more than 200 sites, minimum amenities, and operating in a lean fashion, can drive the OER down into the 20 to 30 percent range. How- ever, a mid- to large -sized community that is operat- ing at 75 percent or less occupancy and that cannot charge premium site rent will have higher operating expenses than normal and suffer significant negative OER consequences. A three -to -one ratio also applies to the staffing requirements of the different properties. Because land -lease community residents are responsible for the care of their own homes and yards, there are far fewer brick -and -mortar improvements to be main- tained, turnover is very low, and community man- agers need not prepare vacated apartments for new residents, the staffing requirements (and other main- tenance costs) for land -lease communities are signif- icantly lower than for garden apartments. It takes fewer people to manage and maintain a full 100-site manufactured home land -lease community than a comparably sized 33-unit apartment property. Additional streams of income can be generated, for example, through selling manufactured housing — related products and services (such as foundation skirt- ing materials, front and back steps, awnings, carports, heat tape and wrap, and so forth); selling homeowner insurance; brokering resale homes; offering notary value appraisal services; leasing land or retail space for shops, storage, and services; and providing goods and services such as cable TV and public pay phones. Sales Potential. The market for the sale of man- ufactured home land -lease communities to investors is strong. Inquiries from would-be investors outnum- ber serious sellers nine to one. Existing community owners are reluctant to sell unless the time or cir- cumstances so dictate. A developer building a manufactured home com- munity with the intent to sell it to an investor must consider the needs and preferences of potential buyers during the development process. The most recent portfolio statistics of the 500 major multiproperty owners suggest key planning guidance for would-be developers. In the 1996A11en Report, the average port- folio of 155 of these owner/operator respondents con- tained 15 manufactured home land -lease communi- ties apiece. The largest owner, ROC Communities, Inc., a real estate investment trust (REIT) based in Englewood, Colorado, owns and manages 27,910 rental sites in 110 land -lease communities. The aver- age property size, by homesite count, among these owners is 230 sites. Their average overall OER ranges from 37.8 to 38.6 percent. As a general rule, investors prefer to buy commu- nities larger than 100 homesites. Smaller communities can be profitable, but the larger the property, the greater the investor interest and the potential sale price. To attract serious attention from the five REITs active in the business today, a community must con- tain a minimum of 200 homesites. Prices paid to developers for manufactured home land -lease communities vary widely. A newly devel- oped property in the absorption stage will likely sell for the value of the land and the existing rental in- come, capitalized at between 10 and 15 percent (de- pending on the strength of the local market). A new, fully leased community containing 200 or more home - sites that is charging a market -leading rent and op- erating efficiently in a very good market will com- mand a price of about $20,000 or more per homesite. Investors tend to look for developments with homesites that are designed to handle the larger homes that are becoming increasingly popular —very large single -section (80 feet long by 16 feet wide) and 1,800- plus-square-foot multisection homes. Net homesite densities in developments designed for sale to in- vestors should be closer to four or five homes to the acre rather than the six to ten of years past. While communities with higher homesite density are prof- itable, prospective investors/buyers want to be sure that they can replace existing homes quickly if the need arises. Except in rural areas, investors prefer communities that have access to public water and wastewater sys- tems. Tightened water quality and wastewater efflu- ent reporting standards have also influenced a trend toward use of public utilities and submetering rather than master metering of utilities for billing purposes. Finance Sources Financing Community Development. Money for land -lease community development typically comes from local lenders —usually commercial banks. Some commercial banks may be unfamiliar with manufac- tured home communities and their characteristically low home and resident turnover rate{; others are un- comfortable financing a property that has so few brick -and -mortar improvements. In such cases, the developer will need to provide as much information as possible concerning market demand, the housing product, and past and projected financial performance. Other current finance sources include, but are not limited to, personal funds; joint ventures with landowners; and a variety of other partnership op- tions, including occasional project participation by a manufactured housing producer or local retail sales center owner needing rental homesites for present and future sales. A recent survey of manufactured home commu- nity developers revealed that all but one respondent secured financing from local commercial banks— ' 38 Urban Land • January 1996 ' Financing Manufactured Home Communities Manufactured home community developers pay commercial interest rates, and the borrowed amount typically is 75 to 80 percent of the val- ue of the completed development. Lenders con- sider the occupancy rate and the development's recent and projected financial performance. De- velopers of new communities can expect to carry a deficit during the first several years. As with other types of real estate development, syndications, build -to -suit arrangements, and lender participation deals are common. The Federal Housing Administration's (FHA's)2076N program -though little used - offers a HUD -insured source of capital from commercial lenders to finance the construction of new manufactured housing land -lease eam- munifies and to expand and improve existing MHCs. The 207M program insures loans of up to 90 percent of the projects value for up to 40 years. The loan amount is based on the number of homesites; in areas where land casts are high, loans for up to $18,9DU per homesite are possible. A 207W loan can be used as a con- struction loan and mini -perm, allowing develop- ers to refinance with a new lender once the property is fully occupied and the cash flow is stabilized. When used to produce homes that are af- fordable to targeted Income groups, manufac- tured housing developments may also be eli- gible for financial resources offered by other federal, state, local, and private sources. Exam - and that exception formed a joint venture with a city that sold bonds to underwrite the desired new man- ufactured home community. These local credit loans are characterized by: • personal guarantees with recourse; • amounts at 70 to 75 percent of project cost, in- cluding land at fair market value (80 percent if the borrower is particularly strong); • a variable interest rate tied to a published index; and • 24- to 36-month terms, with a possible extension. As with other types of development, it is easier to secure the development or construction loan if a takeout commitment is secured in advance from a permanent lender. Financing Property Acquisition. To finance the acquisition of existing communities, there are more money -chasing deals today than there are transactions being made. Most regional and national lenders are not interested in underwriting acquisition loans of less than $1 million. For a property with homesites valued at $15,000 each, and a lender willing to un- derwrite loans at a 75 percent loan -to -value ratio (LTV), the property would need to have at least 90 homesites to interest the lender ($15,000 a site x 0.75 LTV = $11,250 a site; $1,000,000 _ $11,250 = 88.89, or approximately 90 rental sites). Local lenders and contract sales or seller financing characterize most manufactured home community acquisitions. Industry observers expect debt service coverage (DSC—which equals annual NOI divided by annual debt service) and property quality/class to be two of the most important lending criteria that will apply to multifamily property acquisition loans during the last half of the 1990s. Debt service coverages vary among types of lenders, but where manufactured home com- munities are concerned, conservative lenders (such as life insurance companies) peg DSC at 1.25/1 or 1.3/1. Commercial banks and savings and loan insti- pies include California redevelopment agencies' setasides of 20 percent of their annual property tax revenue to increase, Improve, and preserve low- and moderate -income housing; housing authorities'substanfial federal resources (such as community development block grant alloca- tions) that must be spent on activities that bene- fit low- and moderate -income persons; tax- exempt bonds that can be used to finance public improvements and land acquisition; and various stale and local programs that exist to encourage production or occupancy of low- and moderate -Income housing. Source: UU Working Paper. "Manufactured Housing, An Affordable Aftemaeve, 1995. tutions that have returned to this niche will work with a DSC of 1.1/1 or 1.2SA. LTV ratios and loan spreads, or yields, are gen- erally considered secondary but still important fac- tors in loan underwriting. Regarding property quality and class, the outlook is gradually improving. In 1992 and 1993, four very large manufactured home community owners went public, and follow-up reporting by researchers and analysts at Morgan Stanley, Merrill Lynch, CS First Boston, and others has lent new respectability and in- creased credibility to this type of investment property. As a result, bankers are becoming more interested. The land -lease manufactured home community is a potentially powerful tool for generating cash flow and a valuable investment annuity. Once the proper- ty is fully leased, it generally enjoys high occupancy with a minimum of turnover. The remarkably low OER gives the developer/owner at least a 10 to 15 percent operating expense advantage over conven- tional apartment communities. Properly managed, this advantage can translate into a higher NOI for servicing debt and a potentially greater cash flow before taxes. That, in turn, can yield a higher cash - on -cash return. Equity buildup and value apprecia- tion over time make the investment even more at- tractive. In addition, a significant -to -outstanding income stream potential can result from the sale of new and existing homes and services to residents. ❖ George Allen, a 7nanufactured bowing industry consultant, is founder and owner of Indianapolis -bared GFA Management, Inc.; PMNPablishing, and Scale Model Homes. He is author of several real estate -related texts, including Development, Mar- keting, and Operation of Manufactured Home Communi- ties, publisbed in 1994 bylohn fl rley drr Sons (available tbrough ULI) and the upcoming How to Find, Buy, Manage and Sell a Manufactured Home Community, scheduled for release by John If rley & Sons this year. .7anumy 1996 • Urban Land 39 1ALTERNATIVE ASSETS MONEY GUIDE 1 You can invest in glamorous real estate or you can invest in bargain real estate. Mobile home parks are a good example of the latter. 1 Real estate for 1 bargain hunters By Thomas Easton 1 IN Rh.{l. F51A17i, as in stocks, there are into the other category. lie in 1985 at $20 a share, people fashionable investments that trade at Which is the better investment? rushed to bur. Then ended up losing 1 high prices, and there are untashion- When Rockefeller Center Properties, most of their capital. able imestme'nts that don't. Rocky- the real estate investment trust that We'll wagerthatmost investors will tiller Center is a fashionable piece of owned the midtown Manhattan of- be better off buying unfashionable real estate. Mobile home parks fall Lice Complex, seas offered to the pub- real estate. Mobile homes are as un- 1 1 1 1 1 1 1 1 1 1 Nate Bendeison, 78 1 Done buildings, done malls. now doing mobile home parks. 1 1 Forbes ■ June 17. 1996 1 1 1 1 1 MONEY GUIDE The REIT stuff Name Recent Yield —Dividend'— Funds —Per site — price total currently from monthly prices taxable operations' rental portion Chateau Properties 22'h 7.1% $1.62 $0.57 $1.79 S283 $24.200 ROC Communities 24 6.8 1.64 0.94 1.96 234 22.700 Sun Communities 261A 6.9 1.82 0.95 2.25 239 23.I00 With one of Manufactured Home Communities ]8'h 6.6 1.22 0.61 1.47 309 27,400 these you United Mobil Homes 113: 5.2 0.60 0.51 0,904 250 17,000 gain liquidity 'Indicated payout for 1996. Nontaxable portion isa return of capital that can ultimately give rise to a capital gains tax. 'Net income plusdeprexciation; and sacrifice IBESestimatesfor]996. roebt outstanding plus market value of common stock. 'Company estimate. return. fashionable as anything we can imag- ine. We event out looking for some- one to teach us the business. We found Nathan Benderson, a wealthy 78-year-old investor in Buffalo, N.Y. Forced to work while bareh• in his teens, after his parents had lost all their money in the 1929 crash, Ben- derson started out recycling beer bot- tles, then moved into breweries. From breweries he got into developing of- fice buildings, strip malls and other real estate, along the way accumulat- ing a fortune likely to be in the nine figures. In today's rather firm real estate market, Benderson says that mobile home parks are among the best buys. Benderson oems six mobile home parks, with spaces for a combined 4,000 homes. He likes to o%%n big ones, large enough to justify a hill - time manager on the site. He devel- ops the sites himself —buying the land, getting the zoning permission and bringing K invv. in aver, dcctricin and sevyage lines. Doing this work himself he expects will enable him to dear 30% a year on the money he has invested in a park. passive investors vXho buy parks that are already developed have to settle for smaller returns, closer to 10% a year for an unlcycraged purchase. But that isn't bad for a stream of rental income that can be jacked up to keep pace with inflation. Benderson says buyers can acquire developed parks for $12,000 per site, often with attractive financing by the seller. But you might be better off paring all cash and getting a better price. 1Lxithout a mortgage, you arc less likely to run afixd of tax laws limiting writcotis fir so-called passive investments. Here's what's in the deal for the park ovi net-. The park tenant typically signs a lease for at [cast one year for $200 a month, with a 5'% annual increase on renewal. The residents have to spend $40,000 to $75,000 for the home. Hauling it elsewhere costs another $8,000 or more, so they are loath to move out. Turnover in a typical park is usually nil, against 50% for an apartment complex. If a mobile home owner sells his ]iome, the new owner automatically assumes the lease. Rent control laws are not a problem except in New Jersey and California, and even in "Once the park is full, there isn't much to do, just pick up the monthly check." these states the\ are tolerable beeanSC you can get cost-of=living increases. Most tenants never even dream of skipping a rent payment. If they do, the lenders assume the home and the rent payments. Mobile home parks require a bit of maintenance, but on]}, a bit: Mow the lawn, plow some snow, maybe do a bit of repaving, collect the rent and pay property taxes. "Once the park is full, there isn't much to do, just pick up the monthly check," says Benderson Contrast that with apartment buildings, where landlords are ex- pected to do continuous maintenance on the paint, the elevators, the plumbing and whatever items fall onto an endless list. George Allen, author of the forthcoming Ham to Find, Rm', Manage, and Sell a Manu- factured Home Community (WileN, $75), estimates that owners of apart- ment buildings spend 52% of their rent roll on operating costs, versus 38% for mobile home park owners. Owners of the smallest parks often live on -site and do all the work them- selves. An ideal park fora nonresident, sacs Allen, would have 20 acres with about 100 developed units and an- other 20 acres that could be devel- oped, bringing the park to a size where it can be resold to a bigger participant. You would pay between $1 million and $1.5 million for such an establishment, depending on the rent roll and location. The smallest and cnttnmiest parks can be acquired for as little as $5,000 a site, but there might not be enough revenue to hire a full-time manager. And selling is a problem. It can be tricky to find direct invest- mcnts. A number of states have regu- s I Eton• agencies for mobile home ark. b I and provide directories of properties on request. Classified ads appear in The fournak The Mngazine_l'ar Manu- ictured Hancir{a Professionals (800- 869-0471, S35 a Near). George Allen sells a newsletter (317-888-7156, $95 annually). Another option, far less lucrative but a whole lot simpler, is to own shares in one of the five publicly trad- ed real estate investment trusts that specialize in mobile home parks (sec table). look for a yield of 6% or so, with good prospects for growth in the payout. As you can see fi-om the effec- tive per -site prices —and from yields well bdov, the 10%you could get on a park owned outright—thc Rt.] rs force you to giyc up a nice piece of change to the middlemen. 140 Forbes 0 June 17, 1996 AWN TERRA VISTA MANAGEMENT VT'• '1 �l <lt� =�1S,:11t In Association With The Marina Park Homeowner's Association February 4, 2000 Marina Park City of Newport Beach • Request for Proposals Submittal Terra Vista Management (TVM), along with its President, Michael Gelfand, having operated mobile home communities since 1969, herein submit a proposal for the continuation of the Marina Park Mobile Home Community. It is proposed that the existing use of the property be continued and that the property, the beach access and the view corridor be enhanced. Upon execution of the lease, TVM proposes to immediately adjust the lease payment to the greater of: 1) 75% of the gross income of the property, or 2) a minimum of $1,000,000 per annum plus annual CPI adjustments tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers, Los Angeles -Riverside -Orange County, CA. In addition, the City will receive 5% of the gross sales price of all mobile • homes sold on the properly throughout the term of the lease. This proposal will provide an existing and in -place, secure, permanent, annually increasing revenue stream to the City of Newport Beach. It would not be subject to uncertainties and delay's such as the lending environment for hotels, environmental review processes, public forums, hotel occupancy fluctuations, relocation and severance costs for residents, other liabilities to long-term residents or the severance of other goals of the City, such as affordable housing. One version of our pro forma (Alternative One) does not address changes to the Girl Scout House or Tennis Court portion of the property. The other (Alternative Two) addresses all but the American Legion property. If TVM were selected as the team to lease and operate the community, it would work with the City to enhance the portions of the site with which the City deems appropriate. The leasehold boundaries, required improvements and economics are open to negotiation to more closely_ conform to the needs of the City of Newport Beach. is Marina. Park City of Newport Beach • Request for Proposals Submittal 1. Basic Qualifications: TVM, its President or affiliated companies and employees have a substantial and successful history owning and managing mobile home communities. Until 1994, when several of the communities were sold in one transaction to Manufactured Housing Communities, a publicly traded real estate - investment trust, 30 properties were managed, with over 11,500 mobile home sites. Currently, TVM manages four communities in California and Nevada, with 1,182 sites, all of which provide positive cash flow. Additionally, TVM manages a golf course and upscale, full -service 600 space recreation vehicle park and campground on Mission Bay in San Diego, California, and ancillary businesses on those properties. Addendum 1 provides specific information on the mobile home communities currently managed by TVM. One of the properties is the De Anza Bayside Village and Marina on the Back Bay, in Newport Beach, California. • Selected operating and other information on the all currently managed communities and properties, expressed on a consolidated basis, can be found on Addendum 2 2. Financial Qualifications: The current financing climate for mobile home community lenders is described in a recent Crittenden Report on Real Estate Financing as "fiercely_ competitive". Although it is not contemplated that the proposed'use of the property will require more financing than TVM currently has available from existing credit facilities, the fact that the climate is good further enhances this proposal and provides for that flexibility. The mobile home communities which TVM or its affiliates have managed have raised $144,000,000 in equity capital through public and private offerings. The mortgages encumbering the currently managed mobile home communities range from $4,135,000 to $25,750,000. Specific information can be found on Addendum 3. These were recently funded and operations have improved since the fundings. 14 Marina Park City of Newport Beach Requesi for Proposals Submittal While each loan is underwritten based primarily on the merits of the underlying operations, the recent financing discussed above and detailed in Addendum 3 as well as excellent banking relationships, clearly demonstrate that TVM would be able to secure additional loans for Marina Park if necessary. The debt shown on our Alternative Two forecast (see Addendum 7) is to be used for upgrades to the public tennis courts, the addition of 12 new manufactured home spaces, and other aesthetic features around the property. Both alternatives include visual improvements and landscaping that will provide greater "curb appeal" for residents and visitors to beautiful Newport Beach. TVM and Marina Park residents would welcome and encourage the City's input and approval for any construction before commencing. One of our current banks has written a letter demonstrating their confidence in and support of our current and future operations. Please see Addendum 4. 3. Project Description: ALTERNATIVE ONE: We propose to retain the existing use of the 58-space mobile home community and offer the Homeowners long term rental agreements. Terra Vista Management and the tenants recognize and appreciate the extraordinary site on which the homes sit, and wish to enhance the aesthetics of the community and increase public access and recreation opportunities around the community. ARCHITECT'S RENDERINGS CAN BE SEEN AT ADDENDUM 5. The mobile home community would be greatly improved. The new entrance would be landscaped. Architectural Standards would be implemented after submission to the City for review and approval. These standards would cover aesthetic requirements for now homes, remodels, improvements, paint colors etc. The beach access points along the bay side of the community would be improved. An arbor could be constructed over the existing • pathway to the beach, with flowering vines. Signage would direct the public to parking and beach access. 3 Marina Park City of Newport Beach • Requesi for Proposals Submittal 0 The number of Public Parking spaces will be significantly increased. The proposal includes a 30-stall, metered public beach parking lot for joint use with the American Legion, 4 new metered spaces at Balboa Boulevard and 6-8 new spaces at the Balboa and 18a` Street lot. The additional spaces will provide the City with enhanced revenue as well as improved public access to the beach. The existing American Legion restroom could be enlarged and improved to provide for public use while maintaining simultaneous private use by the American Legion. The children's play area could be relocated to the beach area west of 18t' Street, or to a portion of the American Legion property. A swim platform could be added to the existing swimming area at 18 Street for enhanced public recreation opportunities. The tennis court area could be beautified with flowering vines planted at the base of the screens facing Balboa Boulevard. Access could be provided to tennis players to the Marina Park restrooms and showers in the center of the Property At the foot of le Street, the non -motorized boat hand launch could be improved to encourage increased usage. The existing views would be maintained for the immediate future. It is possible over time that the single story manufactured homes could be replaced with modern, 2 storyunits. (The placement of 2 story units on the site would be at the option of the City. It should be noted for the decision, that TVM would charge additional rent for a 2 story tenant). This would provide an updated image for the park and additional rent to be passed onto the City. THE SURROUNDING NEIGHBORHOOD HAS EXPRESSED SUPPORT for the current use of the property. The view from Balboa Boulevard would continue to be that of the tennis courts, and of improved landscaping and beach access from other surrounding areas. M Marina Park City of Newport Beach • Requesi for Proposals Submittal Finally, the property would be operated in an ecologically sensitive way. The use would not require significant additional natural resources, and no toxic herbicides, pesticides or fungicides would be used in operations. Also, it would prevent the new runoff and other problems associated from the development or operation of a hotel or other large commercial or dense residential use. ALTERNATIVE TWO: The existing four tennis courts could be replaced with four courts that face the appropriate north -south direction. The financing of the new courts would be provided by Terra Vista and repaid through rent credits. This would provide the public with a much improved facility immediately. Relocation of a couple of existing manufactured homes might be necessary to facilitate this improvement. • If the City maintenance building and Girl Scout House property became available, an additional twelve manufactured home spaces could be created, thereby increasing the City's rental revenue. The homes would be fenced and landscape buffers would shield them from view from Balboa Boulevard. All aesthetic and public access improvements described in Alternative One could also be implemented. ARCHITECT'S RENDERINGS CAN BE SEEN AT ADDENDUM 5. 4. Development Costs and Operating Pro Forma The improvement or development costs associated with Alternative One of this proposal are estimated at approximately $25,000. Alternative Two could cost approximately $400,000. If the City Ands this alternative desirable, Terra Vista intends to seek a rent credit to cover the capital and financing costs. Residents would be responsible for the work at each homesite. Both alternatives put the burden of the ongoing maintenance of the community's infrastructure on Terra Vista, thereby relieving the City of the responsibility. 5 Marina Park City of Newport Beach • Request for Proposals Submittal 0 The lease payment indicated on the pro forma could start immediately. There is no time lost in removing residents, planning and financing a development, holding public hearings, going through the environmental review process, or for any other delay which is almost certain to occur with major redevelopment. Additionally, this proposal does not have as much exposure to an economic downturn, should that occur. As the pro forma indicates, the initial rent to the City with Alternative One (see Addendum 6) will be a minimum of $1,000,000 and with estimated sales should exceed $1,050,000. With Alternative Two (see Addendum 7) after stabilization in year three but before the rent credit, the City would receive in excess of an additional $80,000 per year. The pro forma is based upon increases in rent charges. to the residents of Marina Park. The increased rent amounts are consistent with a recent market study as well as the market rents at De Anza Bayside Village. These rent amounts have been acknowledged and agreed to by the majority of the Homeowners at Marina Park who are indirect parties to this submittal. All of the existing tenants of the community will be offered long term rental agreements which reflect these initial rents. Low income tenants unable to afford the rents will be offered financial assistance from TVM for at least three years. The pro forma conservatively assumes that these subsidies continue indefinitely. 5. Implementation Schedule One of the obvious strengths of this proposal is that the implementation begins as soon as the lease is agreed to and signed. Immediately thereafter, the annual lease revenue increases to $1,000,600 plus 5% of gross sales. The management of the property is taken over by a property management team with nearly 40 years of experience and a strong local presence, and the improvement and beautification program begins immediately, with a timeline expressed in months rather than years. 6 Marina Park City of Newport Beach Request for Proposals Submittal 6. Consultant Team This submittal was prepared by Michael Gelfand and the professional staff at Terra Vista Management. The architectural firm that prepared the plans for Alternatives One and Two as seen in Addendum 5 was Timothy Rhoads Associates, Newport Beach, California. Also involved since before Terra Vista, was the Homeowner's Association of Marina Park, without whom this submittal would be moot. A letter from the Association's President, Stewart Berkshire, confmning their support is attached as Addendum 8. RESPECTFULLY SUBMITTED Michael Gelfan President • Terra Vista Management do Marina Park City of Newport Beach is Request for Proposals Submittal Addendum 1 Mobile Home Communities Currently Managed by Terra Vista Management COMMUNITIES: De Anza Harbor Resort 2727 De Anza Rd. San Diego, CA 92109 Area Mission Bay Mobile Home Sites 510 Total 1999 Revenues (not audited) $5,700,000 Operated Since 1969 Bayside Village and Marina 300 East Coast Highway • Newport Beach, California 92660 Area Newport Beach Mobile Home Sites 270 Total 1999 Revenues (not audited) $3,053,000 Operated Since 1971 De Anza Moon Valley 1001 5" Street West Sonoma, California 95476 Area Sonoma Mobile Home Sites 247 Total 1999 Revenues (not audited) $1,573,000 Operated Since 1977 Tahoe Shores 395 Eugene Drive Stateline, NV 89449 Area Stateline, South Shore Mobile Home Sites 155 Total 1999 Revenues (not audited) $ 861,000 • Operated Since 1989 Corporate Offices San Diego 2727 De Anza Rd. San Diego, CA 92109 Los Angeles 6310 San Vicente Suite 560 Los Angeles, CA 90048 Marina Park n u City of Newport Beach Request for Proposals Submittal Addendum 2 Terra Vista Management and Affiliates Consolidated Information Average Number of Employees Audited 1998 Assets (Rounded) Audited 1998 Revenues (Rounded) 290 $30,376,000 Net of $21,099,000 Accumulated Depreciation $19,228,000 Net of $11,748,000 Gain on Sale 1999 Estimated Operating Revenues (Rounded/Not audited) $20,366,000 2000 Budgeted Operating Revenues (Rounded) $21,762,000 6 Marina Park City of Newport Beach Request for Proposals Submittal Addendum 3 Current Mortgages on TVM Managed Mobile Home Communities De Anza Harbor Resort No Mortgage Debt Bayside Village and Marina Lender: Prudential Insurance Company of America Funding Amount: $25,750,000 Funding Date: August 1997 De Anza Moon Valley Lender: Anchor National Life Insurance Funding Amount: $ 6,600,000 Funding Date: July 1997 Tahoe Shores Lender: Anchor National Life Insurance Funding Amount: $ 4,135,000 Funding Date: August 1997 10 Marina Park City of Newport Beach Request for Proposals Submittal Addendum 4 Banking IMPERIAL BANK 9777 Wilshire Boulevard • Fourth Floor • Beverly Hills, California 90212 • (310) 281-2400 January 7, 2000 City of Newport Beach Gentlemen: Terra Vista Management and its related entities and principals have been valued clients of our organization for approximately ten years. Credit facilities have been available and used over the span of our relationship, however, no requests have been entertained in the recent past. Collective account balances currently average in the low seven figure range. All accommodations have always been handled in an excellent manner. • Over the years of our association with the Terra Vista Management group we have developed a high regard for the ability, integrity, and performance of the management team. We consider Terra Vista Management completely responsible for their commitments. Sincerely, Alan J. Twedt Vice President • MARINA PARK VILLAGE COMMUNITY UTILIZATION PLAN PREPARED BY: 30YNOIS ONORIYd QNY SS300Y HJY333OL10Nd FRI f,A,'�•Ili� �=_y iIPf::P ElJVI'IIA XR`Id .Lll` VTad��rT�VI�IRIVW 1 Y SOd02T-89 SMOV IJXUDV3113MOHS QNY WOOH.153N YOd 30IS-HZ1iON y r`- 1- • " amoo a�NvM ��Nwoy.r4 W m � - ��Odnh9�' ry o.+-�lu>n nwnvaa 3,it��xrt� xa�a�o� XwrT 8IN AWN 5 s•' = ,• - " .• E' - - � - LHOtiilYLQ\t!H.Q3ZlNO itiwU��+ - =-. - �aQ�,Yaava!zY3o�colssmnora �' '• . ^i'�` .. ulxa xoa'saavQnrvu i30YpYd 30tRtIlOON3• �- - - - _. » - - _ � _ SEYQNY SHOfdIiSSLVTT• ..'�,_�. y ,jc mlod M ovmaO21d• - - 'ems . SY2.10d SS3JO,Y�yhf3�QT,Lyy! @iikid ��r % ." .: � e"s �. '•,_„ 30tA0Nd .:p�D'�yy': jvtN`JIx.R•{l7,Si�+'st` i5"- :r yx": Y..a` `2-",-_ ...yam. :..'. ��'9�U.":�' � ' '+'�:�7�.�.'e` �' ��9�/'/�!' Z �/Y�.P '.... -, .'a. - <,..`-.:♦ ..iN,.�• .. - .:'±�v+' ''�;.,riy:. ..yyy,�?If� �i1'.l` "fi��s�','.%'fir.::al:a:w�2{;^^'�`k'«,55.`zz.Lw::.',.,.. �..:'..c':�....> ._��`�.✓^..%'-�� J c.+.r"4-.1 mvrl(I NOIIVZI= lkjjxnw oD ElOV1 1A XUVd VNIUVW IF�SOd02id .LINII-OG SLNHOJ SINNalX03 NOMVJN3fUOa oSHHIOS/Hd.7[ON- Z FINaHDS 1W O.�'VSSaJJYIDVa6SV' ' - - .. - - - ^a.__...�„nv--y�,..;�sM, � �. �ltJ.\'71Y1U\YH�O'd"L1NO101�hO\ :+'. 7:�q"gam •+z"• f LY0J37,CNa0ITYJllkaAH03� -......,......�.w....,a.....,..:..�.,..- . • ... o -v vONVaovn*9rs-sauoad3µi`'-'•!+:;'" •';' 780at{OTOJHIM H01H411 _ __ ....Sn� ♦ _ 'dVAlB.LYd OTIISSIX3A0'' _ p Sa2SOH 0\TISIk3X03S0aYQA'Y.I$ - •' t'�`,,;i _ •. — -r ,:. i'TtrS„�1i �7V.LSt�i � , F ao7a�a.�v.rr��v�:2YHcaaaYJYa3.nvanm:� • - ,.�., �- . � _ g� adVJSQHVT30.I..VilOWV QlIV,[H013HJd2SC[: s,"-- - _ -,• 0.4TLVaSHONa9 U06SrwAkJ%OTSMAOHd• y � VMHJVS9OLSBNOdSS3JJV\3MM. Y.�G1Yllfu4,1' 04 ✓1W♦LS✓YC��ii //,• `,\ ! • • /�.. ,• H'`��-�'= :_,7-_ ��=y'-_•w=w_-`�,�^\'i,_ 30NOL'd, �Y�f' '��`z� _ �rF�`,�jj'i'♦'�,rjt r'_:�:�'.:i� :. ':iY..-'-'�'�:..�`• -: ..r:•. �:'V- ..• -. .✓ l �'V �.n'_ NEW MARINA PARK COMPLEX ENTRANCE PROVIDE NEW STREET TREES AND BLOCK PLANTERS WITH LANDSCAPE MARINA PARK VILLAGE COMMUNITY UTILIZATION PLAIT • INSTALL 6-NEW HOMES 12-TOTAL (�) RELOCATE TENNIS COURTS -PROVIDE ACCESS TO RESTROOM/SHOWER FACILITY -NORTH/SOUTH ORIENTATION FOR COURTS PLANT FLOWERING VINES FOR LANDSCAPE SCREENING AT TENNIS COURT FRONT -SIDE \I'\I'�I \'\ pill, \II\ \III 910M 10M toil 2l I M Mil IIII m I&A I I I�� • n u TRELLIS AWNING ENHANCE EXISTING HOMES PROVIDE DOOR AND WINDOW TREATMENTS -AWNINGS, PLANTER BOXES AND POT SHELVES COMMUNITY UTILIZATION PLAN w �•• �joar�wa.� r6Vij � WIDEN BEACH PROVIDE ATBOARDWALK WALL ACCESS POINTS ENHANCE EXISTING BOARDWALK AREA WIDEN ACCESS POINTS TO BEACH AREA PROVIDE LOW WALLS FOR BENCH SEATING LIMIT HEIGHT AND AMOUNT OF LANDSCAPE ENCOURAGE FACADE ENHANCEMENT AND COLOR STANDARDS FOR EXISTING HOMES 0 COMMUNITY UTILIZATION PLAN • COLORFUL FLAGS FOR VERTICAL IDENTIFICATION REBAR METAL ARBOR WITH FLOWERING VINE: CONCRETE CAST -I -PLACE COLUMNS S' EXISTING "IPATHWAYI INSTALL REBAR METAL ARBOR OVER EXISTING PATHWAY- 14' HIGH WITH COLORED FLAGS FOR VERTICAL IDENTIFICATION AS BEACH ACCESS AND COVER WITH FLOWERING VINES 0 COMMUNITY UTILIZATION PLAN n U INSTALL PUBLIC BEACH PARKING LOT JOINT -USE WITH AMERICAN LEGION (METERED WITH + (30) STALLS PROVIDE STEEL TRELLIS WITH FLOWERING VINES TO SCREEN EDISON SUB -STATION MARINA PARK VILLAGE < O\I ICJ 1 1 1 UTILIZATION • • U x W 0-nn� � V PROVIDE BEACH ACCESS AND PARKING SIGNAGE UTILIZATION PLAN RENOVATE AND ENLARGE EXISTING RESTROOM FACILITY (ONE-HALF PUBLIC USE & ONE-HALF PRIVATE USE) COMMUNITY UTILIZATION PLAN • • PROVIDE SIGNAGE AND AREA FOR NON -MOTORIZED HAND LAUNCH 1 �l�Iy \ 1 Y PAIDI xJ� �1� Y ILL1 J1GE COMMUNITY UTILIZATION PLAN Footnotes Year I DESCRIPTION Projection I Total Income 1,299,656 2 Home Office Expense (170,950) 2 Manager Expense (99.443) Total Expenses (270,393) AddfL 6 Alternative 1 Year Year Year rojcction Projection Projection 1.325,649 1,352,162 1,379,205 (174,369) (177,857) (181,414) (101,432) (103.460) (105.529) Years Year Year Year8 Year Year 10 ,40,789 1,434,925 1,463.623 1,492,896 1.522,754 1,553.209 (135,042) (188,743) (192,518) (196,368) (200,295) (204,301) (107,640) (109,793) (111,989) (114.228) (116.513) (118.343) Cash Flow Subtotal 1,029,263 1,049,848 1,070,843 1,092,262 1,114,107 1,136,389 1,159.117 1,132,300 1,205,946 1,230,064 Capital Improvements (24,000) (24,480) (24,970) (25,469) (25,978) (26,498) (27,028) (27,568) (28,120) (28,682) Itttergt 0 0 0 0 0 Principal 0 0 0 0 0 CapitalfUtility Improvement Reserve (5,263) (5,368) (5,476) (5,585) (5,697) (5,811) (5,927) (6,045) (6,166) (6290) Base Rent to City 1,000,000 1,020,000 1,040,400 1,061,208 1,082,432 1,104,031 1,126,162 1,148.686 1,171,659 1,195,093 3 Resales %to City 53,000 42,340 29,131 22,285 22,731 23,186 23,649 24,122 24605 25097 Total Rent to City 1,058,000 1,062,840 1,069,531 1,033,493 1,105,163 1.127,267 1,149,812 1172808 1196264 1220190 Footnotes: I Year One Monthly Rental Rates: Waterfront-52,300/Waterview S1,800/Te ids View S1,600. Rates are adjusted by CPI each year, assumed to be2%for this pro fomta. 2 Based upon historical operations of Marina Park as appropriate and Ba)side Village as appropriate. Adjusted by CPI each year, assumed to be 2% for this pro foram. 3 S 1,000,000 ninimunt plus CPI each year, assunxd to be 2%, or 75% of Total Income, whichever is greater. 1of12 • Adik e Alte=ative 1 DESCRIPTION Pmrd" Gros Pavuul Rat I.W ift DapuW Ral Rrbale 0 Vamnia 0 Tmnu Alloun. I72.O101 Emplmv Wplm 0 F1reRml 0 NO Bdkbk Ralt Ii%.(W Ottxd C.d Ran 0 Coxb Raw C.rtfmiona 0 Cmrb Raul C." 0 Dtposlu FafnlW 0 OW0.bts Slme Ous 0 Emgk3eeRmt B TVA Raul haars I.2tN•.QU paalkowb hManO 11 Gaace Rog,, 0 Buibmrd Racal 1) Taal OnM Rmul 1. U Cmtll lm rut. Saks 0 C.t OrSzks (I Sak$pmdl S.W. D Sakspason Camnia.. 0 Int wcO Adtmbirg 0 09WSaks E prose U Fkainglnr.m 0 TOW lntmtary Saks 0 R.de CarvnWiola 0 Sakspasmsahria 0 Sakspmon Cmar... 0 Raale AdsWitilg 0 ghaSalaE prose 0 Taal Resale lr m 0 TdalCmrh Saks R.da 0 vrudias tuan. JW Laundry Imun, 90.V T04 V[Wing lru 1,304 Nmpart Sudurve 696 1.1 .1 lnmm 0 hlac t.. bxpne 1.02 Trial Olhab. 2_4M TOW hone I_MM16 ow. SIUIMARY-tEARONE HOME OFFICE E(PE..SE SL t%Y Y ACCT DESCRIPTION PnMman 5IMI021 Lepl Fm 1_AX) .W2021 AWrtTas 2510) 5163021 Atcwnum_'BWge DP 24.667 $U6J021 O1ha Pronmunal Pas 2.701 Sm5021 CmgWnSrpPm (AM .O Ol RcaM \Iameamn 63)(M) SM71121 Onplal. Bmol l p ycolil 1S13 SWIM LryoWiteCmrnbalan U SWIM Cap Tdryhurn Ex rte IIG 507202I Orpnbaliml D. 0 5074021 Cap Olrc E,c ce IN Taal Pmrtuonul Fm 43.412 5110121 Irturame 6,J9V $112.121 V aw Far less. U 512MI intros[-IkrmW 11 5125021 PWM Taa. 49,WW 5131021 T.1d 2,4I0) 5L•O121 4 Eprme-NBBR 0 5MAN121 Manama l Fms41 S,0•. 6J.970 51 i1M1-+I Tam S. Umrua 3AMI 3IS01,21 Total Oltrur Ec se 127AM $191p?1 Total lime Oilice Eymse 170930 01N. 1.1.1-fah B OaeRmt-CryorN troa I,Oq.0M1 2 OF 12 DESCRIPTION Pmiation Obese Sanna 0 MSmaarm5ahna 3LWMI Fund Sarnia 1) Ral \laa< mt Sobrio U91 IIOPa,mlw'oricm sg 1,91.4 Tog Sabha 4419 PamllTma ?.`NW) GrGIQ WInLKe 1 YIMI wrxi, CmP. Ins. 1.441 Onhtr Eap. Mad Ep 0 -101APhn Cmmbutiwn 623 Taal Pa3rd1 Tay. 6.7J3 Warr, 1)"asal 5556 Srpphm 114B LaWscylga I3RW1 0 pa,i Fa .Cauum ParA Palyd U Out CmcO Frm. 0 R[pdo d Ma... 11607 Plunrld,Rgma U PMNI.LCmlmd 0 Pool Rrpio D Trial RVai. A SWpba 3LO4V Tdrphme Comm ni,z6aa LJW DOa Ssl6suipiMM LMB Ow. fb, 0,&Pmage 2199 M.,,1Lmm. Sparse 0 TraiiunrdS. B Taal OW"Epa0e 3.933 Tamu Ill 1.930 Adtaranp 336 Tura S Umv,,s LIW TOW O1ha Epa0e 3*1 Elm. kriv RdnboaW ElmOO 0 Elmrk Slbldal 6300, Gas Lady) RdabuardGra 0 Gassri l 12490 wales 0 Sma 0 Tad Ut al. IS.TO TaWhlanavEpmse _ W.43 8=. • Add4k 6 • Alternative 1 INCOME SCHEDULE DESCRIPTION JAN FEB MAR APR MAY JUN JUL AUG 51•P OCT NOV DEC TOTAL TOTAL UNITS -> 58 TOTAL SQUARE FEET- MARKET RENT I14.000 II1.OW 114.000 I14,000 I14,000 II4.000 II4.000 II4.000 114.000 IM.OW IU.OW IIJ,OW 1368.000 (RENTPERS.FO 0.00 O.W 0.00 0.00 0.00 0.00 0.00 0.00 OW 0.00 0.00 O.W 0.00 LEASE GAIN (LOSS) 0 RENTPOTENTIAL I61.O00 114000 II4.00D II1.OW 114,000 II4000 II4,000 114.000 I14,000 111.00D 114.000 114.000 1368.000 (RENT PER S.F.) 0.00 0.00 O.W 0.00 0.00 000 0.00 0.00 000 0.00 000 0.00 000 VACANCIES (UNITS) 0 0 0 0 0 0 0 0 0 0 0 0 VACANCIES (PERCENT) 0.0% 00•. 00% 0.0°. 0.0°. 00. 0.V6 0.09. 0.0•. 0.0•. 00. 00•. VACANCIES (AMOUNT) 0 0 0 0 0 0 0 0 0 0 0 0 0 TENANT ALLOWANCES (6.O00) (6,O00) (6.000) (6.000) (6.000) (6 WO) (6.OW) (6.O001 (6600) 16,OW) (6.000) (610001 (72.000) EMPLOYEE LODGING MODEL,OFFiCE 0 0 FREE RENT 0 108.000 I08.000 103100 108.O00 103.000 108.OD0 108.000 103.000 108.000 108.000 I03.000 108.W0 1-196.000 DEPOSITS FORFEITED BAD DEBTS/MOVE OUTS 0 0 EMPLOYEE RENT NET RENTAL INCOME 108,000 108,OOD IOB.OW IOS.WO IOS.OW 109.000 108.900 108.000 108.000 I03.000 I08.000 103.000 0 1396.O00 ECONOMIC OCCUPANCY I'. Market Rent) 94.7% 94.71. 93.7% 94.7•. 94.71. 94.7•e 947% 94.7•. 947•. 94.7°. 947% 91.7•. 943'. ECONOMIC OCCUPANCY I° a Rent Potential) 91.7% 947% 9438. 94.7•. 94.7•. 93.7•. 947•e 94X. 937° 997•. 917% 917°. 943% PASSTHROUGH INCOME I Estimate 0 TOTAL PASSTHROUGH INCOME 0 0 0 0 0 0 0 0 0 0 0 0 0 B Garages Rental occupancy 0 Rentperunit I Estimated meome 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL GARAGE RENTAL INCOME 0 0 0 0 0 0 0 0 0 0 0 0 0 BILLBOARD RENTAL INCOME I 0 TOTAL BILLBOARD RENTAL INCOME 0 0 0 O 0 0 0 0 0 0 0 0 0 NEWPORT SURCHARGE I Water Ttt 58 58 58 53 58 58 58 58 58 58 53 53 696 TOTAL NEWPORTSURCHARGE 58 58 58 58 58 58 58 58 58 58 53 SS 696 OWNED COACH RENT 3 of 12 • AdA 6 Altmaativa 3 INCOME SCHEDULE DESCRIPTION JAN FCB SL\R .%PR MAY JUN JUL AUG SEP OCT NOV DEC TOLD. I Inmme Space 0 1 Inmme Space 0 TOTAL 0\4NED COACH RENT 0 0 0 0 0 0 0 0 0 0 0 0 0 COACH RENTAL COSTS 3 4 6 7 8 9 10 11 12 13 14 98 A1i5ce11ancoos TOTAL COACH RENTAL COSTS VENDING INCOME 3 Soda machine TOTAL VENDING INCOME LAUNDRY INCOME 3 Estimate TOTAL LAUNDRY INCOME VENDING COST Of SALES I CostoTSales-Vmding TOTAL VENDING COST OF SALES INTEREST INCOME TOTAL INTEREST INCOME MISCELLANEOUS INCOME I Late/NSFdtmges TOTAL MISCELLANEOUS INCOME 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100 100 100 100 400 100 0 0 IW 0 0 100 0 0 100 0 0 400 58 58 58 58 58 58 58 53 53 53 58 58 638 58 53 58 270 53 58 58 58 58 53 53 58 903 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 138 139 138 138 133 138 138 138 138 138 138 138 1.652 138 138 138 138 138 138 138 138 138 138 139 138 1b52 4 Of 12 # of Sales Waterfront Waterview Tennis View New Homesites Sales Prices: Waterfront Waterview Tennis View New Homesites Revenue Waterfront Waterview Tennis View New Homesites Total Resales % to City Revenue to City Adde9m 6 Alternative 1 Is RESALES SCHEDULE Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection 3 2 1 1 1 1 1 1 1 1 3 2 2 1 1 1 1 1 1 1 2 2 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 180,000 183,600 187,272 191,017 194,838 198,735 202,709 206,763 210,899 215,117 140,000 142,800 145,656 148,569 151,541 154,571 157,663 160,816 164,032 167,313 100,000 102,000 104,040 106,121 108,243 110,408 112,616 114,869 117,166 119,509 540,000 367,200 187,272 191,017 194,838 198,735 202,709 206,763 210,899 215,117 420,000 285,600 291,312 148,569 151,541 154,571 157,663 160,816 164,032 167,313 200,000 204,000 104,040 106,121 108,243 110,408 112,616 114,869 117,166 119,509 0 0 0 0 0 0 0 0 0 0 1,160,000 856,800 582,624 445,707 454,622 463,714 472,988 482,448 492,097 501,939 5% 5% 5% 5% 5% 5% 5% 5% 6% 5% 58,000 42,840 29,131 22,285 22,731 23,186 23,649 24,122 24,605 25,097 5of12 Add* 6 Alternative 1 EXPENSESCHCDULE DESCRIPTION LAY FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL RISK MANAGEMENT SALARIES I Fsbmate 132 132 132 l32 132 132 132 132 132 132 132 132 1.581 TOTAL RISK MANAGEMENT SAL. 132 132 132 132 132 132 132 132 132 132 132 132 I531 H.O. PAYROLLNORK COJIP SAL. I Esdnnwe 86 8b 86 86 8b 86 86 86 Sb 8b 8b 86 1.038 TOTAL 11.0. PAYROLLAVORK COAIP. S6 86 86 86 86 86 8b 86 86 86 86 S6 1.038 OTHER EMPLOY CIS EXPENSE I Holiday pang 0 2 Birthdays U 3 Team building 0 1 Barbecue 0 TOTAL OTHER EMPLOYEE EXPENSE 0 0 0 0 0 0 0 0 0 0 0 0 0 401-K PLAN CONTRIBUTIONS P Estimme 52 52 52 52 52 52 52 52 52 52 52 52 6:3 TOTAL 401-K PLAN CONTRIB. 52 52 32 52 52 52 52 52 52 52 52 52 63 AUTOMOTIVE I Gas Qoil II II 11 11 11 II 64 2 Tmd rcpmrs 64 6 3 Golfcan repmrs 86 51 54 54 _J7 98 blrsceilaneous 11 it II II 11 11 II it it 11 It 11 129 TOTAL AUTOMOTIVE 86 97 75 II _>I bA 21 it 21 64 21 II 505 WASTE DISPOSAL I TrashPickup 463 463 463 463 463 463 463 463 43 463 463 463 5556 98 Miscellaneous 0 TOTAL WASTE DISPOSAL 463 463 463 463 463 467 .W; 463 43 463 .163 463 5556 SUPPLIES I Cle ml.hemi.15 21 21 21 21 21 31 21 21 21 21 21 21 247 2 Plastic/paper 21 21 21 21 21 13 43 43 43 21 43 43 387 3 Flags 69 32 I01 Uniforms 193 195 5 Liglabulbs 28 28 28 28 28 28 28 28 28 2S 38 28 335 6 Trash cans 39 37 75 98 Miscellaneous 0 TOTAL SUPPLIES 265 70 70 177 70 124 92 I'_S 92 70 92 92 1310 LANDSCAPING 1 OhSa Irre spaying 0 2 Floota/grassmedlsod/piants 0 3 Trrelrimming 0 J Trreremmal/replattmrnl 0 98 Camposilc 1.090 1.090 1.090 1.090 1.090 1.090 Lm I.W0 L090 1.090 1.090 1.090 13.080 6 of 12 Add* 6 Alternative 1 E\PENSESCIIEDULE DESCRIPTION JAN FEB MAR APR MAY JUN JLL AUG SEP OCT \OV DEC TOTAL TOTAL LANDSCAPING IA90 IA90 1,090 1190 I.M 1.090 1.090 1.090 IJ90 1090 IA90 1090 13080 I Emimnmovd Care 0 TOTAL GARDENING CONTRACTS 0 0 0 0 0 0 0 0 0 0 0 0 0 PARKPATROL I Petrol One 0 98 hlisMlaneous 0 TOTAL PARK PATROL 0 0 0 0 0 0 0 0 0 0 0 0 0 OWNED COACH EXPENSE 1 Staffhousmg 0 2 Clearcarpets 0 98 Miscellaneous 0 TOTAL OWNED COACH EXPENSE 0 0 0 0 0 0 0 0 0 0 0 0 0 REPAIRS & MAINTENANCE I Plmnbing/sewer 215 215 215 213 215 215 215 213 215 215 215 313 2578 2 Elcanc 38 38 38 38 38 38 38 38 M 38 38 38 414 3 TV antenna repair 9 9 9 9 9 9 9 9 9 9 9 9 111 i Fence repair and transf Omer sheds 129 129 258 5 Cathodic protection 301 301 6 Fnec,ainguishcrs 00 7 Tools I50 21 31 21 21 21 31 ll 31 _'I 21 21 387 387 8 Gas Meters 40 40 40 30 40 40 40 40 40 40 40 40 474 9 Pedestalirisers 107 408 107 408 107 408 107 408 107 408 107 408 3.093 10 Pest central 16 16 16 16 16 16 16 16 16 16 16 16 193 11 Flrst Aidkits 125 12S 12 Beachsand 430 430 13 Shop/storage bin rental 43 43 13 dl 43 43 43 43 33 43 43 13 la Restrap and paint patio f umiture 51616 15 Continue street l ight replattmeat 161 161 161 161 0 611 16 Equipmentrental 31 21 21 21 21 21 21 21 21 21 21 21 258 17 Maintenantt of Fitness Equipment 98 Macellaneo&Materiais 107 107 107 107 107 107 107 107 107 107 107 107 0 1.269 TOTAL REPAIRS & MAINTENANCE 747 1309 618 919 1333 919 618 1381 I143 919 779 919 11607 TELEPHONE I Office phonell ong distance 0 2 Pagers, 3 Anssserfng sen ice 00 J Payphone 0 5 AT&T contract 0 6 Radiobaltedes 0 98 Composite 117 117 117 117 117 ill 117 117 117 117 11] 117 1.404 TOTALTELEPHONE 117 117 117 117 117 117 117 117 117 117 117 117 I dW 70f 12 • AddS 6 Alte=ative 1 EXPENSESCHEDULE DESCRIPTION JAN FEB MAR APR MAY JUN JCL AUG SI'P OCT NOV DEC TOTAL DUES & SUBSCRIPTIONS 1 Berlin Report 0 2 Orange County Register 0 3 Ne..port Beach Dady Pdot 0 a Cnilcodes 100 100 5 Tille25 I50 150 6 Kelly Blue Boot 0 98 Miscellaneous 0 TOTAL DUES &SUBSCRIPTIONS 250 0 0 0 0 0 0 0 0 0 0 0 250 OFFICE EXPENSE I Postage 107 107 107 107 107 107 107 107 107 107 107 107 1]89 2 Federal e[press7delherycharges 9 9 9 9 9 9 9 9 9 9 9 9 103 3 Postagemeterrenwl I8 IS 18 IS IR 18 IS IS 18 18 I8 IS 219 J Water II II II 11 11 11 11 II 11 II II II 129 5 Computer supplies 0 b Stationery 107 107 a_li 7 Businmeards 0 8 Copier paper and Fs[Cartndges 0 9 Copier paper 0 10 Copier maintenance 0 11 Title Searches 21 21 21 21 86 98 Miscellaneous 21 21 21 21 21 21 21 21 21 21 21 21 253 TOTAL OFFICE EXPENSE 166 166 188 274 166 I88 166 166 I88 160 295 166 I99 MISCELLANEOUS EXPENSE I WMA meelmgs 0 2 Training classes 0 3 \YMA Con. enuon 0 98 hlisccllaneous 0 TOTAL MISCELLANEOUS EXPENSE 0 0 0 0 0 0 0 0 0 0 0 0 0 TENANT RELATIONS 1 Birthday cards 43 43 2 Holiday panes 21 21 21 61 3 Christmaspany 923 924 i Julyalh pany 215 315 5 Hominmers inmings II II II II II II II II II II II 11 137 6 Bingo 11 II 11 32 7 Collie 21 21 21 21 21 21 31 21 21 21 21 21 258 98 htiscellaneam 21 21 21 21 21 of 31 nl 21 21 21 21 253 TOTAL TENANT RELATIONS 108 76 54 54 76 54 280 SI 76 51 65 978 1930 ADVERTISING I Yellovpages 28 28 28 28 28 28 28 28 28 28 28 28 336 98 Miscellaneous n 8 of 12 Adde* 6 Alternative 1 ECPE`+SESCHEDULE DESCRIPTION )AN FEB AFAR APR MAY JUN JUL ALG SEP OCT NOV DLC TOTAL TOTAL ADVERTISING 28 28 28 28 28 28 '_8 28 28 28 28 28 33b TAXES k LICENSES I Cmd.checks 10 t0 10 t0 t0 10 10 10 10 10 10 t0 116 2 Troek mgtslm0on 450 450 3 HCDopemting permit 499 499 a Lawdry/tending perm. W 60 5 Mobdehumeregimm0ons 0 6 Mobdehome pmpe.y mtes 0 7 Weights 8cmnsures m.I. pert.. 0 8 Spn/pool pcnnits 0 98 Ahucllaneous 69 69 TOTAL TAXES S LICENSES 529 10 10 509 10 10 10 70 10 10 10 10 1.194 POOL SUPPLIES. REPAIRS I Paolscnice 0 Fowmin sen ice 0 3 Repair/Aiaintenance PoolsS Spas 0 d Condiliontt 0 98 Ahuellaneous 0 TOTAL POOL SUPPLIES/REPAIRS 0 0 0 D 0 0 0 0 0 0 0 0 0 LEGAL FEES I Erietion hc.nlr[I ated 0 2 Olhttlegal 100 Wo 100 IW 100 too 100 too ]Do 100 too [Do 1100 TOTAL LEGAL FEES too too 100 100 1W 100 100 100 100 100 to0 too 1200 AUDIT7FAX FES 1 Estimate 2,500 1S00 TOTAL AUDITlPAX FEES 0 0 2.500 0 0 0 0 0 0 0 0 0 2.500 ACCOUNTING/BUDGET/DP 1 Eatimme 1.697 1.697 1.697 1.697 1,697 1.697 1.697 1.691 1697 1.697 1697 10000 28667 TOTALACCTGf3UDGET/DP 1.697 1.697 1.697 1b97 1.697 L697 1,697 1.697 1697 1697 1697 IOODD 28667 OTHER PROFESSIONAL FEES I Rentsumey 1" 1500 98 Miuellanwus 100 too 100 100 too [Do too too 100 too too too 1200 TOTAL OTHER PROF. FEES 100 100 t00 100 100 1.600 t00 100 100 too too 10D 2700 COMPUTER SUPPORT MRI Support Charges 50 50 50 50 50 50 50 50 50 50 W 50 6D0 TOTAL COMPUTER SUPPORT 50 50 50 50 50 50 So W 50 W 50 50 600 REGIONAL MANAGEMENT i Estimate 500 500 500 5D0 So0 Soo 500 500 Soo Soo 500 500 6000 9of12 Add* 6 , Alternative 1 EXPENSE SCHEDULE DESCRIPTION JAY FEB MAR APR MAY JUN JUL AVG SEP OCT \OV DEC TOTAL TOTAL REGIONAL MI.\NAGEMIENf 500 SO0 SDU 500 S00 Sl0 500 Sw S00 sw Soo SW 6000 LEGISLATIVE CONTRIBUTIONS i C0mm.10SmeProperly RtphB 0 2 WMA PAC 0 TOTAL LEGISLATIVE CONTRIB 0 0 U 0 0 0 0 0 0 0 0 0 0 CORP. TELEPHONE EXPENSE i Enimate 9 9 9 9 9 9 9 9 9 9 9 9 103 TOTAL CORP. TELEPHONE 9 9 9 9 9 9 9 9 9 9 9 9 103 ORGANIZATIONAL DUES I NMA Dues 0 TOTAL ORGANIZATIONAL DUES 0 0 0 0 0 0 0 U U 0 0 0 0 CORP. OFFICE EXPENSE 1 Estimme 11 11 11 11 It 11 11 11 It It 11 11 m TOTAL CORP. OFFICE EXPENSE II 11 II II 11 11 II II II II II II 129 INSURANCE I Esumnte 542 342 542 542 542 542 542 542 542 542 542 542 6498 TOTAL INSURANCE 542 542 542 342 542 542 542 542 542 542 542 $42 6495 REALESTATETAXES I Personal properly 500 500 2 RETax Esmnaie 4.108 4.103 4.109 4.I09 4,103 4.I0S 4.103 4.IU8 4.108 4.103 4103 4108 49300 TOTAL REAL ESTATE TAXES 4.108 4.108 4.108 4.108 4.108 4.108 4608 4.103 4103 4108 4108 4108 49.800 TRAVEL i Estimate 200 200 200 200 200 2D0 200 200 20D 200 200 200 2400 TOTALTRAVEL 200 200 200 200 200 20D 200 200 200 200 200 200 2400 MANAGEMENT FEES I 536ofinenues 5.420 5.410 5.410 5.430 5.410 5.410 5.420 5.410 5.410 5420 5410 SAW 64970 TOTAL MANAGEMENT FEES 5,420 5.410 5.410 5.430 5.410 5.410 5.420 5.410 5410 SAM 54I0 5410 64970 RENT EXPENSE 1 City oFNmpon Beach 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 1000000 TOTAL RENT EXPENSE 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 1000000 TAX AND LICENSE I Mintmmn Tax 800 800 2 LLC Fee 3.000 3A00 0 0 3.800 0 0 0 0 0 0 0 0 0 3 300 10 of 12 • Adde& 6 Alternative 1 SALARY SCHEDULE PARTIAL YEAR TOTAL NEXT OTHER (Ist to Ist) EMPLOYEE CURRENT INCREASE: NEXT PAY ANNUAL START STOP SAUTAXES EMPLOYEE POSITION PAY RATE MO. % PAY RATE (PER MO) SALARY HRSIWK 1,1O MO FTFs R INS SALARIES I Moint. And Asst. Mnnalpr 2,520.00 1 5.0 2,646.00 31.800 40.0 1.00 37,980 2 1 3.0 0.00 0 40.0 1.00 0 3 1 3.0 0.00 0 40.0 1.00 0 4 1 3.0 0.00 0 40.0 1.00 0 5 0.0 8.00 0 0.00 0 TOTALSALARIES 31,800 4.00 37,980 PAYROLL TAXES TOTAL PAYROLL TAXES GROUP HEALTH INSURANCE TOTAL GROUP HEALTH INSURANCE WORKERS' COMPENSATION INSURANCE TOTAL WORKERS' COMPENSATION INSURANCE LIMIT % OSADI $76,200 6.20% MA $130,200 IA5% FUI 57,000 0.80% SUl $7,000 3.60% AT $150 Permonthpm PTE WORK % OFFICE 0.38% MAINT. 454% SALES 024% 11 of 12 2,880 1,800 1,440 Id� S Alternative 1 CAWAL INPROWNIEVTS 03-F64) 01 JF P\i ACCOUNT DF2ICRIPTIDY JAN FED MAR APR NA} JUN ILL ALG SEP OCT NOV DEC TOTAL REMARKS I44p121 DEPRDCL\BLE UIPRO\E01EITS 1 0 2 11 2 D J 0 5 0 6 D T 0 p U Y Il 10 0 11 0 12 12 0 IJ 0 Eslinule im 2,0D11 2Aw 2") 2000 2.000 2.101 2UW 2,Ipp1 Dw 1"91 Zfmm 24000 1450021 TOTAL DEPRECIABLE I\IPROMIENTS 2.000 2UD0 21m 2.900 nuo zm 2.O00 2.Ulu 2,000 i" 2.UOU 2.000 24.004 12 Of 12 Add& 7 Is Alternative 2 Footnotes Year I Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 3 Year 9 Year 10 DESCRIPTION Projection Projection Projection Projection Projection Projection Projection Projection Projection Projex:tioa 1,3 Total Income 1,299,656 1,403,649 1,499,042 1,529,023 1,559,603 1,590,795 1,622,611 1,655,063 1,688,165 1,721,9. 2,4 Home Once Expense (170,950) (179.439) (183,023) (186,689) (190,422) (194231) (198,115) (202,078) (206,119) (210,2, 2,5 Manager Expense (99,443) (104,332) (106,419) (108,547) (110,718) (112,932) (115,191) (117,495) (119,345) (122,2, Total Expenses (270,393) (283,771) (239,447) (295.235) (301.140) (307.163) (313.306) (319.572) (325.964) (332A1 Cash Flow Subtotal 1,029,263 1,119,878 1,209,595 1,233,787 1,258,463 1283.632 1,309,305 1,335,491 1,362,201 1,389,445 Capital Improvements (24,000) (24,480) (24,970) (25,469) (25,978) (26,493) (27,028) (27,568) (28,120) (23,682) Interest (33,320) (27,100) (20,290) (12,830) (4,670) Principal (66,320) (72,550) (79,380) (86,790) (94,950) CapitallUtility Improvement Reserve (5,263) (42,661) (60,344) (61,551) (62,782) (64,038) (65,319) (66,625) (67,953) (69,317) Base Red to City 1,000,000 1,052,737 1,124,281 1,146,767 1,169,702 1,193,096 1.216,958 1,241,298 1,266,123 1,291,446 Rent Credit from City 0 (99,640) (99,650) (99,670) (99,620) (99,620) 0 0 0 0 Resales %to City 58,000 42,840 33,631 26,875 27,413 27,961 28,520 29,091 29,673 30,266 Total Rent to City 1,058,000 995,937 1,053,263 1,073,972 1,097,495 1.121,438 1,245,479 1,270,383 1,295,796 021,712 Footnotes: 1 Year One Monthly Rental Rates: WaterfronbS2,300/Waterview$ 1,800frennis View 1,600. Rats are adjusted by CPI each year, assumed to be 20/. for this pro Inman. 2 Based upon historical operations of Marina Park as appropriate and Bayside Village as appropriate. Adjusted by CPI each year, assumed to be 2% for this pro forma. 3 Year 2 forward revenue increase from 12 new homesits on portion of current tennis court land at $1,000 par spacelmonth, adjusted by2%CPI each year. One space rented each month ofyear 2. 4 Variable Home Office Expenses relative to 12 new spaces are management fees, real state laxs and insurance 5 Variable Manager Expenses relative to 12 nry spaces are repairs and supply and utilities 6 $I,OO ,000 minimum plus CPI each year, assumed to be 2°/n, or 75%orTotal Income, whichever is greater. 1of14 DESCRIPTION Probation Gress Pdauol Ran UMYpW Disported Rmt Rebore 11 V.. 0 Tema Alkttance (72JM)) EmploSmbedgin U Free Rmt 0 Net Bdlsbk Rmt IJ`M.W) Ox7aJCoach Rm 0 Cinch Rawl Cabvrdakm 0 Comh Rmbal Costs 0 Depose Farfmtod (I DadD nlilotc Outs 1) Enyla,.Rmt 0 Total Ritual lncomc 12960X) G.,11mlah B0lboard Renal Total Othe Rmtal iNmle Cinch Immtory Sala Cmtorsala salospersm Saone Salepersm Cammissbm ImmoryAdtedhlne Othmsale EPrme Floorniglmamt Total Immtoa Sales Resale Cammissiom Sakspesm Solana Salepefon Carvnisiwm R.t,Adte00,ng O,he Sala Epeme Taal Real, lawn. Tot.1CN6SalnRmles VmMm lames Uurdry Income Taal Vending Hain. Nmport Surcharge Intact lame Adam .Income Tool Other llxrone Taal lame U 0 U 0 U U U 9 1 a U 0 0 0 U a 0 4W m IJU% 696 0 1.652 2-US I J99hc6 UU•. A.& 7 Alternative 2 SUMMARY HOME OFFICE ENPEV S E SLUNTARY ACCT DESCRIPTION Promlim stiblu l Legal Fees I21M1 50,52021 AuditTan 2J(XI SW2021 Acmumilm BudgeDP 2067 506R)21 Obbn Profeslalal Fen Will 50 1 CollqutorstiT 0 Mi 51M IN Regwal \lawgemmt &WU 5W,021 Emplace Van ll M.11) ISMS SWMl Leg.Who Cmntibmipe U .eWI02I Cap. Tdephone Epmse 103 5UP_021 Organimt'mal Dues 0 SOM21 Carp, Olr. Epase I29 Taal P.r.*,.l Fen MAI ,c11m121 Imumrce 619% 5112021 Absorbed hourma Loa. V SUIM21 Imaat- Defaced 0 SUW21 Tn1d 2.419) 515m)21 L Epcme-NBBR U 5IM121 NI.., cot Fema Xp; 61.970 SIIW21 Tate&Liam. ):,ql 51W. 121 Total O,ha E, a 117AM 5191U21 Totalllome0llkeEpaae 170.950 0V. Bore Rmry Cltyof Newport IAM.WO 2 of ad DESCRIPTION Praarin„ OfIr.salais II Mammon eSalann ll: col PmMSatvks Ir Rat hlamgaatu Aalin 1.541 Ho Paordl Wart Corm sal. LOP, Taal Salarin 54419 P,WITase 2.X.w) Graup l. INXI Wakes' Comp. Imumn¢ Lim O bor Emp Related Ep. 0 41JIRPan Cmmbutiaa 621 Total Papol Tat. 6.745 Amomdne 505 Sulgrla 1-140 Uolapina 120w) Gorden gcoaa. 0 Pad. Patrol n Ottned Comh Eapase Il RMM. & M.N.. I LW7 Plumbbmg Rgaie 0 Pool hlainl Cootram I) Pod Repairs a Total Repars B Svlghm $2.V4V Tdephme Columun,wtiaa UN Baia &Subsailif. M Offim Etpeme& Pool,, 221pp Alaalhnmm E,,e 11 Training&Siarw. 0 Tool Ofrlm Epaae 7.953 Teaont RelaUore 1.950 Adtertislag 356 Taae&Lic. LIN Total OdwEpm 5461 Elmak film) Rei,rbursed Morrie 0 ElatrkSubtail dJUI Gm 12,4X1) Rembursed Gm 0 Gas subtoal Ware 0 sates 0 Tool Uhlnles I4.7w) T.1 XlaNyv E,,i "., A S T Alte native ] INCOMIE SCHFDLLE OLFe I M-14PMI DESCRIPTION JkN FED %m APR MLMI' JLN it% ALG SEP OCT NOV DEC TOTAL REILIRAS TOTTLLNITS— gv.111 5v \IaAn lcymeyld\ Y +I 1t1m BuJ1 TOTAL SQUARE MET., \\al(afaa N ?UX) galalxw 1AM Te IS 16q M IIJ,YX) II 114.00) IIJ IU,OM II INU 1ILOU IIJj IU INI) IUXU V6%PYI NNH.4ls IR IPI RENTPER 5FI M 0w oil, OM) OJU 1)W, Pl OM go 0191 IIMI OIYI Opt LEASE GAIN (LOSSI it RENTPOTENTIAL IN,(M IIA!YYI IRPU IIJPY) IIJ.PXI INPU ILIPU II4.0M, IIJPYI IN.PXI IIJ..P) IIAPX) IJ6v PU NaIkllvUmogon (RENT PER S P) OM OM OPI 41" OP) 1)(9) 910 IIM OPl 0011 OM OPI 1100 O'ata" 0 VACMCIES(LNITSt q 0 0 0 I) 0 0 U q q 0 o T.%u o I.YPI YACANCIESIPERCENTI Olr'. 0W. 916 Dirt. Mr. 'OP4 Wrl. om. qlr. 010. "IM MR. N>.IINXXRes U i.lm YIGWCIES(MIOLNT) 1) 0 0 0 0 0 0 0 0 11 0 11 0 TENTNTALLOI%MCES l IMI IMPU) (60)0) 16,(m) 16 PU) MIMI (61911 16,MKI) I6PU) I6,PU) IMXUI 16JXIU1 ITLPXII EMPLOYEE LODGING 0 MODELOFFICE 0 FREE RENT IM.PU IOR,MI Iklg411 IDI.IXU IIP PFI 116v,PU I0N,PM1 IIIY!nX1 IIpIJXXI Ilq!UI HAMA IIN PU I.296PY1 DEPOSITSFORFEITED 11 EMIPLOI M RENT 0 NET RENTAL INCOME IOS.MI IIIA PU IUA pU Iip IXA IIN PXI IIIA IXMI IIAV PU IIkt PMI NW IXIII IIn IXYI NXLIM IIAY.Px1 1*MPXI ECONOMIC OCCIPANCI I%NaNtt R.) 94 W. w_r: wat. W71. N7% -A7% 9491. w.r.: w.ra wl'c w.r. wr,: wr. ECONOMIC OCCWMCYM Ran PCDn0.H1 w.N.. w.r% wax wr: wr. wT: 947% w'r.. w9% wTS. Nr. 94 r. 94 r. PA HROLGHINCOME' I Elt'.11 TOTAL PASSTHROLGNINCOME 0 0 0 0 0 0 0 0 11 0 U 0 0 GARAGE RENTAL INCOME ucarJDJ Rani., q RmtperlX91 1 ESllmtl(diRplC 0 0 0 0 0 0 D 1) 0 q q q 0 TOTAL GARAGE RENT& INCOME 0 0 0 0 0 0 0 q 0 0 0 0 U BILLBOARD RENTAL INCOME I o TOTAL BILLBOARD RENTAL INCOME 0 I) 0 0 0 II 1) 0 0 0 0 0 0 NE\\PORTSLRCHARGE i ll'ab R< 58 SR Sy 59 59 5n 53 58 58 58 SA 59 MJ6 Sl*whpnemgWMR, TOT,B.NE\IPORTS1ACiMQE 58 58 53 5n 56 5% 58 M 58 59 Ss 59 6% OUNED COACH RENT I Inam Spas 0 1 InmS�tt g TOTAL OgNEDCOX'H RENT 0 0 0 0 0 0 U q p 0 0 0 'q COACH RENTAL COSTS Z J 0 4 5 0 6 0 0 T 0 S 0 0 INCOMESCIIEDLLE W-F&M 1121l PM DESCRIPTION IiN FED NIM APR ANY ILN JUL AM SEP OCT NO% DEC TOTAL REhm" 9 10 0 It 0 12 9 11 0 IJ n 9x Allsalhmm TOT.LL COACH REMAI COSTS 0 0 0 0 U n 0 0 U p 0 n 0 VENDINGINCOME 1 Sahtm . IRO I-M 114 Im ell TOM VENDING INCOAIS 100 0 0 Im, U O Im 0 II 0M1 0 D *11 LAMDRI INCOME 2 W.k SM Sµ SM Yx <µ $M Yx YM Vt YM sY YY 6JA S0`.M1vtlYffagle TOTAL LAUNDRY INCOME Sµ SA SM 271 <µ SM $9 Yµ YM IX Yµ Yy 91IY SI.IpkashaS SO'IO mndy 1 ENDING COST OF SRES I Ca1015M1a•VW,, 0 TOM VENDING COST OFSXES 0 0 0 11 U II 0 II 0 0 0 11 0 INTEREST INCOME 1 _ 1 A S 6 T M 9 In 11 12 0 n TOTAL INTEREST INCOME 0 0 0 0 II 0 0 11 0 0 11 0 0 A16CELLANEOISINCOOAIE I WdNSFdm 139 I'M M ❑Y I18 itµ Uµ I%M I3M Id Ila Itµ 1.02 TOTAL MISCELLANEOIS INCOME Vs Itµ itµ I!x 123 Pµ Itµ Ila Itµ hY PM Ila 102 4O1`14 Add*um 7 Alternative 2 RESALES SCHEDULE Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection # of Sales Waterfront 3 2 1 1 1 t 1 1 1 I Waterview 3 2 2 l I 1 I I 1 1 Tennis View 2 2 1 1 1 I I 1 l 1 New Homesites 0 0 1 l l l 1 1 1 1 Sales Prices: Waterfront 180,000 183,600 187,272 191,017 194,838 198,735 202,709 206,763 210,899 215,117 Waterview 140,000 142,800 145,656 148,569 151,541 154,571 157,663 160,816 164,032 167,313 Tennis View 100,000 102,000 104,040 106,121 108,243 110,408 112,616 114,869 117,166 119,509 New Homesites 90,000 91,800 93,636 95,509 97,419 99,367 101,355 103,382 Revenue Waterfront 540,000 367,200 187,272 191,017 194,838 198,735 202,709 206,763 210,899 215,117 Waterview 420,000 285,600 291,312 148,569 151,541 154,571 157,663 160,316 164,032 167,313 Tennis View 200,000 204,000 104,040 106,121 108,243 110,408 112,616 114,869 117,166 119,509 No View 0 0 90,000 91,800 93,636 95,509 97,419 99,367 101,355 103,382 Total 1,160,000 856,800 672,624 537,507 548,258 559,223 570,407 581,815 593,452 605,321 Resales % to City 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Revenue to City 58,000 42,840 33,631 26,875 27,413 27,961 28,520 29,091 29,673 30,266 5of14 • Ad& 7 • Alternative 2 ECPENSESCIIEDULE DESCRIPTION JAN TEB MAR APR MAY JUN JUL AUG SEP OCT NOV DLC TOTAL RISK MANAGEMENT SALARIES I Estimate 132 132 132 132 132 133 132 132 132 132 132 132 1581 TOTAL RISKMANAGEMENT SAL 132 132 132 132 132 132 132 132 132 132 132 132 ISSI II O. PAYROLL/IVORK COMP SAL 1 Estimate 86 86 8o S6 86 86 86 8b 86 86 So 86 1038 TOTAL If O. PAN ROLUWORKCOMP. 86 86 86 86 86 86 86 S6 Sb 86 86 36 1035 OTHER EMPLOYEE EXPENSE 1 Holidaypany 0 2 Birthdays 0 3 Team building 0 3 Bmbecue 0 TOTAL OTHER E\IPLO1'EE EXPENSE 0 0 0 0 0 0 0 0 0 0 0 0 0 301-K PLAN CONTRIBUTIONS • I Estimate 52 52 52 52 53 52 5' S' S' S' S' S' 623 TOTAL 301-K PLAN CONTRIB. 52 52 52 52 52 52 52 52 5' S' S' 52 623 AUTOMOTIVE 2 Tonck eepmrs 61 3 GolTanrepairs 86 53 53 53 64 237 98 hhseellansous II It II It II II 11 II 11 II 11 11 129 TOTAL AUTOMOTIVE 86 97 75 11 21 61 21 11 21 63 21 II $05 WASTEDISPOSAL I Trish Pickup 363 363 363 363 363 363 363 363 363 363 363 363 5.556 98 Muscellaneous 0 TOTAL WASTE DISPOSAL 363 363 363 363 363 363 363 363 363 363 363 363 5556 SUPPLIES 1 Cleanewchem ials 21 21 21 21 21 21 21 21 21 21 21 21 237 2 PlashHPapec 21 21 21 21 21 33 33 33 33 21 33 33 387 3 Flags 69 33 101 3 Uniforms 195 195 5 Lrghtbulbs 28 28 28 28 28 28 28 28 28 28 28 28 335 6 Trish ana 39 37 75 98 bOseellaaeous 0 TOTALSUPPLIES 265 70 70 177 70 123 92 128 9' 70 92 9' 1.330 LANDSCAPING - I Olhetmespmymg 0 2 Flomers/grassseed/sod/pl ants 0 3 Tmetdmming 0 3 Tree remmaVreplamnenl 0 98 Composite 1.0% 1.090 1.090 1.090 1.090 1.090 1.090 1.090 1.090 1.090 1,090 1090 13.030 TOTAL LANDSCAPING 1.090 1.090 1.090 1.090 1.090 1090 I090 II/0 LINO IA90 1090 1090 13080 6Of 14 • Ad& 7 • alternative 2 FXPENSESCHEDULE DESCRIPTION JAN FEB MAR APR MAY JUN JUL 4LO SEP OCT NOV DEC TOTAL GARDENING CONTRACTS I Emiromnemal Care 0 TOTAL GARDENING CONTRACTS 0 0 0 0 0 0 0 U 0 0 0 0 0 PARKPATROL I Pmrol One 0 98 Miscellaneous 0 TOTAL PARK PATROL 0 0 0 0 0 0 0 0 0 0 0 0 0 I Staffhousing 0 2 Clean earyets 0 98 Mtscelltalwas 0 TOTAL O@NED COACH EXPENSE 0 0 0 0 0 0 0 0 0 0 0 0 0 REPAIRS & MAINTENANCE I Plumbing/serer '_ Electric 3 TVmmmna repair, a peace repair and amnsfonner sheds 5 Cathodic protection 6 Ftreeminguishcts 7 Tools 8 Gas hlelers 9 pedestals/risers 10 Pat cannot II Fost Aidkhs 12 0.hsand 13 Shop/stota8ebintemal LI Restmp and paint patio furniture 15 Continue stmet l ight reptacement 16 Equipment rental 17 Meinmance of Fitness Equipment 98 Miseellanccushmalerials TOTAL REPAIRS & MAINTENANCE TELEPHONE 1 Office phonHlong distance 2 Pagers 3 Ansssering sm ice i Pay phone 5 AT&T commct 6 Radhobanedes 98 Composite TOTALTELEPHONE 215 215 215 215 215 215 215 215 215 215 215 215 2578 38 38 33 38 38 38 33 38 38 38 38 38 414 9 9 9 9 9 9 9 9 9 9 9 9 111 129 129 238 301 301 500 500 150 21 21 21 21 21 21 21 21 21 21 21 387 10 40 40 40 40 40 40 40 40 40 40 40 474 107 403 107 408 107 403 107 408 107 40S 107 408 3.093 16 16 16 16 16 16 16 16 16 16 16 16 193 125 125 430 430 43 43 43 13 13 43 13 43 43 43 43 13 516 0 161 161 161 161 641 21 21 21 21 21 21 21 21 31 21 21 21 258 0 107 107 107 107 107 107 107 107 107 107 107 107 1.299 747 Ir09 618 919 11338 919 618 1381 I243 919 779 919 11.607 0 0 0 0 0 0 117 117 117 117 117 117 117 117 117 117 117 117 IAW 117 117 117 117 117 117 117 117 117 117 117 117 IJW 7 of 14 AA 7 Jflte=ative 2 EXPENSE SCHEDULE DESCRIPTION JAN FED MAR APR M11Y JUN JUL AUG SEP OCT NOV DEC TOTAL DUES S SUBSCRIPTIONS 1 Berlin Repon 0 2 Orange Comiy Register 0 3 Nmpon Beach Daily Pilot 0 4 Cndeodm IDD 100 5 Tulc25 150 130 6 Kelly Dlue DooA 0 98 Miscellaneous 0 TO fAL DUES 3SUBSCRIP710N5 250 0 0 0 0 0 0 0 D 0 0 0 250 OFFICEERPErNSE I Postage 107 107 107 107 107 I07 107 107 107 107 107 107 1.289 2 Federal espressldelisttychxrges 9 9 9 9 9 9 9 9 9 9 9 9 103 3 Postage meter rental i8 IS 13 18 IS IS IS IS IS IS IS IS 219 4 Water 11 II 11 II II 11 II 11 II II It II 129 5 Computersupplies 0 •6 Su0onery 107 101 215 7 Businemeards 0 8 Copier paperand Fae Canndges 0 9 Copierpaptt 0 IO Copitt maintenance 0 II Tide Searches '_I 21 21 21 86 93 Meseellanrous 21 21 21 21 21 21 21 21 '_I 21 21 21 258 TOTAL OFFICE EXPENSE 166 166 HIS 274 166 189 166 166 HIS 166 295 166 2299 MISCELLANEOUS EXPENSE i WMAmectmga D 2 Training classes 0 3 \YMd Comrnuon 0 98 Miiscellaneous 0 TOTAL MISCELLANEOUS EXPENSE 0 0 0 0 0 0 0 0 0 0 0 0 0 TENANT RELATIONS i Bmhdaycards 43 43 2 Hohdaypames 21 31 21 64 3 Christmas Pany 9'_A 924 4 July ath pang '_IS 215 5 I ommmersnseetings 11 II 11 II II 11 II II II 11 II 11 137 6 Bingo II II 11 32 7 Coffee 21 21 21 21 21 21 21 21 21 21 21 21 253 98 Mncelloneoos 21 21 21 21 21 -21 21 21 21 21 21 21 258 TOTAL TENANT R[LA71ONS 108 76 SJ 51 76 51 290 5� 76 54 65 978 1930 ADVERTISING 1 Yell. pages 28 28 28 28 28 28 28 28 28 28 28 28 336 98 Miscellaneous 0 TOTALADVERTISING 28 28 28 28 28 28 28 +8 28 28 ZB 28 376 8 of 14 Ad& 7 Altelcaative 2 EXPENSESCHEDULE DESCRIPTION JAN FEB MAR APR MAY JUN 1LL AUG SEP OCT NOV DEC TOTAL TAXES & LICENSES i Cmdachecks 10 10 10 10 10 10 10 10 10 10 10 10 116 Tsuck mgisumtiw 450 450 3 IICDopemting permit 499 499 4 LmmdryA ending pewil 60 60 5 Mobdehane regi9mlions 0 6 Mobilchame pmpmy Males 0 7 WcigM1ts&measures meett permit 0 8 Spalpwl pennies 0 98 Misttllanw. 69 69 TOTAL TAXES&LICENSES 529 10 10 509 10 10 10 70 10 10 10 10 1.194 POOL SUPPLIESIREPAIRS I Pool sen itt 0 1 Fountain sen ice 0 '3 RepairOlmmenance Paols&Spas 0 Conditioner 0 98 Miscellaneous 0 TOTAL POOL SUPPLIF$lREPAiRs 0 0 0 0 0 0 0 0 0 0 0 0 0 LEGAL FEES I Wetionshenam net aged 0 i Olhesle8al too t00 100 100 IW 100 too 100 100 100 100 100 i2DO TOTAL LEGAL FEES too too t00 100 100 too 100 too 100 too 100 too 1200 AUDITITA.X FES I Estimate ]500 2 TOTAL AUDITRAX FEES 0 0 '_,SOD 0 0 0 0 0 0 0 0 0 :.SWM I Estimate 1.697 1.697 1.697 1.697 1,697 1.697 1,697 1.697 1.697 1697 1.697 10.000 28.667 TOTAL ACCTGRJUDGETIDP 1.697 1.697 1.697 1.697 1.697 1.697 1.697 1.697 1.697 1.697 I697 10.DD0 28467 OTHER PROFESSIONAL FEES 1 Rmesumey 98 Mrseellaneuus too 100 100 t00 t00 1.500 too too too too 100 too too 1" 1.200 TOTAL OTHER PROF. FEES t00 t00 100 too t00 1.60D t00 100 100 t00 t00 100 2700 COMPUTER SUPPORT MRl Suppmt Charges 50 50 50 50 50 50 50 50 50 50 50 50 600 TOTAL COMPUTER SUPPORT 50 50 50 50 50 50 50 50 50 50 50 50 60D REGIONAL MANAGEMENT 1 Estimate 500 Soo Soo 500 500 500 Soo 500 SOD SOD 500 Soo 6.000 TOTAL REGIONAL MANAGEMENT 500 500 Soo 500 Soo 500 500 S00 SOD 500 So0 500 6000 9 of 14 Add& 7 is Altemative 2 EXPENSE SCHEDULE DESCRIPTION JAN FEB MAR APR MAY JUN JUL AUG SCP OCT NOV DEC TOTAL LEGISLATIVE CONTRIBUTIONS I Comm.IOSase Property Rights 0 2 WMA PAC 0 TOTAL LEGISLATIVE CONTRIB. 0 0 0 0 0 0 0 0 0 0 0 0 0 CORP. TELEPHONE EXPENSE I'Estimate 9 9 9 9 9 9 9 9 9 9 9 9 103 TOTAL CORP. TELEPHONE 9 9 9 9 9 9 9 9 9 9 9 9 103 I WMA Dues 0 TOTAL ORGANIC\TIONAL DUES 0 0 0 0 0 0 0 0 0 0 0 0 0 CORP. OFFICE EXPENSE •1 Estimate II 11 II It 11 II II II 11 II II Is 129 TOTAL CORP. OFFICE EXPLNSE II II 11 II 11 II II II 11 11 11 II 129 INSURANCE I Estimate a 542 542 542 542 542 542 542 542 542 542 542 542 6.498 TOTALINSUR.ANCE 542 542 542 542 542 542 542 542 542 542 542 542 6498 REAL ESTATE TAXES I Personal Properly 500 S00 2 RETas Emanate 4.108 4.108 1,10E 4.103 4108 4.105 4.105 4.108 4,108 4.108 4.108 4108 49300 TOTAL REAL ESTATE TAXES 4.108 4.103 4.10E 4.103 4.103 4.103 4.603 4.103 4.108 4.108 4.108 4109 49500 TRAVEL 1 Estimate 200 200 200 200 200 200 200 200 200 200 200 200 2400 TOTALTRAVEL 200 200 200 200 200 200 200 200 200 200 200 20D 2400 h1ANAGEAIENT FEES I 5'aofeesenues 5.420 5.410 5.410 5.430 5.410 5.410 5,420 5.410 5,410 5.420 5.410 5410 64970 TOTAL MANAGEMENT FEES 5.420 5.410 5.410 5.430 5.410 5.410 5.420 5.410 5.410 5.420 5.410 5.410 0.970 RENT EXPENSE I City efNnspon Beach 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 1.000.000 TOTAL RENT EXPENSE 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 83333 1.000.000 TAX AND LICENSE 1 Mmhm,,Tax 800 800 2 LLC Fee 3,000 3.ODD 0 0 3,800 0 0 0 0 0 0 0 0 0 3.800 10 of 14 Main[, And Asst. Manager 2 3 4 5 TOTAL SALARIES PAYROLLTAXES TOTAL PAYROLL TAXES GROUP HEALTH INSURANCE TOTAL GROUP HEALTH INSURANCE WORKERS' COMPENSATION INSURANCE TOTAL WORKERS' COMPENSATION INSURANCE CURRENT PAY RATE Add& 7 Alternative 2 NEXT MEASE: NEXT % PAY RATE 1 5.0 2,646.00 1 3.0 0.00 1 3.0 0.00 1 3.0 0.00 0.0 8.00 LIMIT % OSADI S76,200 6.20% MA $130,200 1.45% PUI $7,000 0.80% Sul $7,000 3.60% AT $150 Per month per FTE WORK % OFFICE 0.38% MAINT. 4.54% SALES 0.24% 11 of 14 SALARYSCHEDULE OTHER PAY ANNUAL SALARY HRSAYK 31,800 40.0 0 40.0 0 40.0 0 40.0 0 31,800 2,880 1,800 1,440 PARTIAL YEAR (Ist to 1st) START STOP MO MO 9 TOTAL EMPLOYEE SALlPAXES F Fs R INS. 1.00 37.980 1.00 0 1.00 0 1.00 0 0.00 0 4.00 37,980 L ACCOLW DBCRWTIOV .145W21 DEPRECNBLE Mil 1 3 3 5 6 1 R 9 IO 11 12 13 IJ Esfnmm 145W21 TOTALDLPRECM 12 Of 14 Ad& 7 Lltamativa 2 DEDTSCIIEDULE 03-FebOD O1-14 PAI LOAN DCSCRIPTIO DESCRIPTION JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL Community Utilisation Pis 400.000 PRINCIPAL -Mo.Amos0 Loan dl 0 0 Innial Principal A00.00000 0 Amanization Years 5 TOTAL PRINCIPAL 0 0 0 0 0 0 0 0 0 0 0 0 0 Inlmest Rate 9.W. DEFERRED INTEREST Loan el 0 Now. Payments 6eSin in yea TOTAL DEFERRED I1, 1. 0 0 0 0 0 0 0 0 0 0 0 0 0 NOOf this r.mnst INTERESTEXPENSE Loan kl 0 0 0 0 TOTAL INTEREST EXP. 0 0 0 0 0 0 0 0 0 0 0 0 0 13 Of 14 Adrm 7 Alternative 2 Tcnnis Courts (4) and llotnesites (12) Construction Costs Tennis Courts # Low Biuli Midpoint Reference Concrete, Posts. Net, Striping 18.500 27.500 23.000 6lnrsball & Swift Section 67 Page 6 Lighting 6.000 8.000 7.000 Marshall& So in Section 67 Page Fencing 1350 7.000 5.875 Marshall& So in Section 67 Race Subtotal 29.250 42.500 35.875 -Local Cost Multiplier 1.17 34.223 49.725 41.974 Marshall S Swift Section 99 Page *Current Cost Multiplier to 6199 1.05 35.934 52,211 44.072 hlarshall& Snin Section 99 Page OAsuumed Cos( Multiplier W99- 1,00 1.01 36.293 52.733 44.513 2+Court Discount(5%) 0.05 (L815) (2.637) (2.226) hlarshall& Ss it Section 67 Page Calculated Cost per Court 34A78 50.097 42.288 #ofCourts 4 4 4 Total Calculated Cost of Tennis Courts 137.91.1 200.187 169.150 l lomesites Marshall & Sit in "Good" Park 5 96 Engineering 705 Marshall& Sa in Section 63 Page Grading 645 Marshall& Snin Section 63 Page Street Paving 1.040 Marshall & Sa in Section 63 Page 3 PatiosWaiks 795 hlarshall& Snin Section 63 Page Sewer 755 Marshall& Swift Section 63 Page Water 690 Marshall& Ss ift Section 63 Page Electric 1.120 Marshall & Sn ifl Section 63 Pagc 3 Buildings 0 No additional buildings projected Misr S25 hlarshall& Ss ift Section 63 Page Water feeslhleter and connection 260 City of Newport Beach Sencr Fecs 455 City ofNew Pon Beach Subtotal 7.700 +Local Cost badtiplier 117 %009 hlarshall& Swift Section 99 Page 'Cumn( Cost Multiplier to 6i99 1.05 9.459 Marshall& Swin Section 99 Page *Assumed Cost Multiplier 7199-IM 1.01 9,554 # of Ilomcsiles 12 Total Calculated Cost of Iionmilcs F714.649 other Costs: Demolition. Removal of Fxisling Courts and Miscellaneous Total Costs 14 of 14 100,000 Estimate 383,799 Before Rounding 0 gcAq�''XA 9?Aq,, • Uomeowner Association Newport Beach 3300 Newport Boulevard Newport Beach, California 92658-8915 Attn: Sharon Wood, Assistant City Manager Dear Ms. Wood: On behalf of the residents of Marinapark, I want it to be known that we have been involved in the preparation of this proposal and therefore accept its elements and contents. I further want it to be known that the Marinapark Homeowners Board has obtained, in accordance with our By-laws, the necessary resident approvals to allow us to endorse this proposal. In addition, Terra Vista Management has assured us in writing that upon receipt of a master lease from the City, they will in tum offer a sub -lease to the current homeowners of Marinapark. Sincerely, l k tew erks e, resident Introduction The City of Newport Beach is seeking qualified parties to propose future use of the City - owned property known as Marinapark. The 10.71 acre site, shown on the attached map, is located on the Balboa Peninsula, bounded by Newport Bay, 15th Street, Balboa Boulevard, and 18th Street. The City uses a portion of the site for Las Arenas Park with a tot lot and four tennis courts, and a metered public parking lot. The remainder of the site is currently leased to the Marinapark Mobile Home Park, an American Legion Post and marina, a Girl Scout House and the Balboa Community Center. All leases will expire on March 31, 2000, except the American Legion lease, which has been extended to March 31, 2001. The City wishes to evaluate proposals from parties, including the current tenants and others, who are interested in reusing the property in a manner that will be a positive addition to the Balboa Peninsula and produce a secure revenue stream for the City. Site Information The site has a General Plan designation of Recreational and Environmental Open Space, which is intended to provide for both public and private open space and recreation uses, such as parks, golf courses, tennis courts, yacht clubs, marina support facilities and private recreation facilities. Similar provisions are included in the City's Local Coastal Program. The City will consider reuses of the site that are not primarily recreation and open space, and which will require amendments to the General Plan and Local Coastal Program. The zoning classification is Planned Community, which is intended to provide for the development of coordinated, comprehensive projects with a diversification of land uses. Planned Community regulations are required to be prepared and adopted to govern any uses that do not exist on the site today. The City has not done any planning or environmental work on the site, as the future land use has not been decided. The City intends to make that decision based, in part, on responses to this request for proposals. The selected party(ies) will be responsible for the land use entitlement and development review processes. The City is awaiting a determination by the State Lands Commission as to the location of the tidelands boundary on the site. Earlier this year, the City Council concluded that the property should be considered "upland" and requested that determination from the Commission. Background The City retained Keyser Marston Associates Inc. to prepare a revenue study of possible reuses of the Marinapark property. That study analyzed the following three scenarios: 1. Baseline, which would retain all existing uses with rents adjusted to market rates, 2. Partial redevelopment, consisting of replacing the mobile home park with a hotel (approximately 85 rooms) and restaurant (approximately two acres), and 3. Major redevelopment, consisting of replacing the mobile home park with hotel and restaurant uses and replacing all other uses except the American Legion with 30 single family residential lots. The conclusion was that the major redevelopment scenario would maximize City revenues. The City Council appointed the Balboa Peninsula Planning Advisory Committee (BPPAC) in 1995 to study issues on the Peninsula, identify solutions and recommend implementation strategies. BPPAC presented its recommendations in 1997 in a report entitled "Project 2000." The vision for the Peninsula is a quality community for residents and businesses; a destination for families, visiting boaters and day users to enjoy the resources of the beach and Bay; and a place with a reputation as a quality environment. Building on this vision, land use policies focus on a balance of residential, commercial and visitor serving uses, and respect for the environmental constraints of the Peninsula. Economic policies focus on covering the costs of visitors with revenues derived from them rather than from local residents and businesses. With regard to the Marinapark site, BPPAC found that it affords an opportunity for a community marine recreation center, including a visiting boaters' marina. In a TOT Enhancement Study prepared for the City by PKF Consulting, the site was considered a potential hotel development site. These studies, and public interest in retaining the mobile home park and City park facilities, demonstrate that there is a range of uses that can be considered for the Marinapark site. In deciding how to use the property after the existing leases expire in 2000, the City wishes to achieve the goals listed below. Copies of the studies by Keyser Marston Associates Inc., BPPAC, and PKF Consulting are available for review in the Newport Beach Planning Department. 2 City Project Goals • High quality design, with sensitivity to on- and off -site views of Newport Bay and appearance of the project from Balboa Boulevard and the Bay. • Provision of a public open space/recreation component and public access to Newport Bay. • Compliance with tidelands regulations and State Lands Commission determinations. • Consistency with City plans, policies and regulations. • Conformance with Coastal Commission regulations and policies. • Respect for the property enjoyment rights of neighboring uses, especially residential uses. • Strong market support. • Provision of a secure revenue stream to City. • Catalyst for future improvements to Balboa Peninsula. Form of Disposition The City would prefer to work with one parry or team on the entire site, but will consider separate proposals for portions of the property. It is currently the City's intent to lease the land on a non -subordinated basis to future user(s) for a period of up to 50 years. However, the City may consider sale of the uplands (non -tidelands) portion of the site if that is shown to be more advantageous for the City. Submittal Requirements Parties wishing to be considered should submit the following information. 1. Basic Qualifications Describe the qualifications of the party or team to undertake the project. Include information on any joint venture or limited partners, and any previous experience the team or partners have had together. Provide addresses, project descriptions and city contacts for similar projects that the party or team has completed successfully, and describe the role of each team member in the projects. K, 2. Financial Qualifications Provide information on the financial status of the party or team members, and their ability to obtain financing for the project. Include references from banks or other sources of financing for comparable, recent projects. 3. Proiect Description Provide a site plan and general description of the proposed project. Include information on land area and facilities to be provided for public and private recreation use, building area to be developed for restaurant or other commercial uses, number of units for hotel or residential uses, and amount of parking to be provided for all uses. The site plan and project description should indicate how views of and access to Newport Bay are preserved, and how the project's design and function will relate to the surrounding neighborhood. 4. Development Costs and Operating Pro Forma Provide a detailed estimate of land and development costs and identify sources of financing. Provide a stabilized year revenues/expenses statement, and a ten-year operating pro forma, including sources and projections of income, and projections of revenue to be realized by the City. 5. Impllementation Schedule Identify timelines for the completion of all project related tasks including financing, pre - development planning, entitlement and environmental review, design development, permit processing and construction. 6. Consultant Team Provide background information, previous projects and references for all lead consultants to be used in development of the project, including architect and other design professionals and traffic engineer. Submittal Requirements Ten copies of the proposal are required. Submittals must be received no later than 5:00 p.m. on February 4, 2000. Submittals should be addressed to: Sharon Wood, Assistant City Manager 3300 Newport Boulevard P. O. Box 1768 Newport Beach, CA 92658-8915 Review Process The City will review all complete and timely submittals, and may interview those parties who appear most likely to achieve the City's goals for the project. The most qualified parties may be invited to submit more detailed development proposals. The City reserves the right to reject all proposals, to request additional information from interested parties, and to select more than one party to participate in a further review process. City Contact Sharon Wood Assistant City Manager 714-644-3222 Attachments: Location Map Parcel Map City Council Policy F-7, Income Property Country Inn & Suites 325 Bristol Street, Costa Mesa, California 92626 714.549.0300 TOLL FREE. RESERVATIONS 800.322.9992 T 4B$ SouthT8' Disneyland' CoastK as 55 Plaza erry Farm. P �O BAKER BT. � ro S a 73 Q 9isr pOo' i JC � O� 0 0o g ¢ m Q, Q Inn ��Qo ooSP sti iie & a� oP N 405 Freeway exit 13n,t.d F.,rtk, Mien 1 mild to the eomer of Bristol and Redhill. 5.5 f leeway exit Bayer, go right, turn left on Bristol. (No exit off Bristol on the 55). HOTEL FFATURES & SERVICES 300 Deluxe Rooms fa Suites Non -Smoking Rooms /'two Line Telephones I Il,Io-Speed Internet Access / Oversized Writing Desk Refrigerators / Wet Bar/'Whirlpool Baths 'Micro Kitchens with Microwave / In -Room Coffee Hair Dryers / Ironing Boards with Iron Award Winning Restaurant and Gardens Meeting Rooms up to 200 Full Service Beauty Salon Two Outdoor Heated Pools / Spas / Fitness Studio Complimentary Breakfast—/ Morning Newspaper Complimentary Beverage' / Fresh Fruit / Homebaked Cookies Pay -Per -Mew Movies / HBO, ESPN, CNN, Disney Channel 5.a..616,.a6- .. 1—h,d.d wth...� COSTA MESA Country Inns & suites 4.-.._ I I SYC4 ` band -painted frescoes of seaside villages . Ontario at the Mills Mall 909.481.0703 Country and be welcomed by the grace and ■ Ontario Airport 909.390.7778 • timeless charm of European elegance, the ambiance of the French . Corona West 909.738.9113 Inn & Suites.. Diamond Bar 909.860.6290 � ,dcountryside. The Country Inn Suites at Newport Beach surrounds • • San Clemente 949.498.8800 g' `"*-- its guests with sumptuously upholstered furniture, classic marble . Cardiff by the Sea 760.944.0427• fireplaces,fr b fl i b all selected d Alpine 619.445.5800 ■ Ontario 909.937.9700 es floral bouquets, sped y se ecte antiques an • Corona 909.734.2140 ■ Orange 714.978.9168 splendid works of ark. ■ Grapevine 805,248.1530 ■ Yorba Linda 714.921.8688 Visit our wchsite at: www.ccuntrysuites.com European -inspired guest rooms and suites are exquisitely appointed with mahogany Queen Acme style furniture television, ceiling fan and refrigerator, all surrounded by the beauty of French inspired floral recreation are part of the formula for the perfect getaway, two heated pools, spas and a fitness studio are available to all guests. For the more outdoor -minded, Newport's scenic jogging and bilging trails are the perfect studio suites add the sensual pleasure of of spa, a four-poster bed and the convenience of a micro-lzitchen. 9he cobblestone garden courtyard is a perfect spot to unwind amidst lush, fragrant = flowers, plants, and the soothing sound and visage of cascading water in our imported the fountain. Enjoy lunch or dinner in our Le Chateau Restaurant, a warm and intimate setting offering a wide variety of continental cuisine, and always, the finest service. o matter what the occasion— business meetings, social gatherings or receptions for up to 200 people — our conference facilities and catering professionals are always ready to care for your needs, large or small. 40 AYRES HOTEL GROUP AYRES SINCE 1905 Marina Park Pronosed Hotel/Residential Development by the Ayres Group COUNTRY INNS & Sums BYAYRHS Alpine Cardiff by the Sea Corona Corona West Costa Mesa Diamond Bar Grapevine Ontario Airport Ontario at the Mills Mall Orange San Clemente Yorbo Linda 355 Bristol Street Suite F Costa Mesa California 92626 Office: 714. 549 0300 Facsimile. 714. 850. 0302 vry vv counlrysuiles.com Ayres Hotel Group http://www.countrysuites.com/ahgroup.html ■ ■ Born of the needs and wishes of actual leisure and business travelers everywhere, the Ayres Hotel Group, founded in 1984, have designed and built an ensemble of European -style boutique and rustic Western ranch -style *� hotels (a suite of suites, as it were), offering homelike comfort and first-rate service to its patrons, all at incredibly reasonable prices. This personal attention and hands-on management style has made the Ayres Hotel Group and its A Y R ER SH V L G o 0 o a signature "Country Inn & Suites" hotels synonymous with ■ ■ excellence in hotel accommodations, offering the perfect blend of cleanliness, service and value. The idea behind the Country Inn & Suites chain is simple -- provide the business and pleasure traveler with the best of all possible worlds. Each and every hotel in the chain offers the elegance and ambiance of Europe's finest hotels and inns, blended with old-fashioned warmth, friendly hospitality and a dedication to personal service. All guests are pampered with classic furnishings, meticulous housekeeping, airport locations perfect for both corporate and leisure destinations, complimentary refreshments and every imaginable modern convenience necessary for a successful and satisfying stay. Many Country Inn & Suites locations also feature fitness and relaxation facilities, such as workout rooms, Jacuzzis and swirmning pools. The Ayres Group has been able to achieve this level of success at providing their guests with these fine hotels by applying four generations of fancily experience and dedication to the task. In the early 1900's, Frank Ayres came to California from Ohio with his wife and son to explore the possibilities of the real estate market. As time passed, Frank and his son, Donald (later to become Donald Sr.) formed their own land development company, focusing on the Los Angeles and Santa Monica areas. Fueled by the post -World War II housing boom of the 1950's, the company grew in leaps and bounds, and, just shy of its Golden 50th Anniversary, took on a new partner -- Don Ayres, Jr. -- who is the chairman of the Ayres Hotel Group today. And Don Jr. has made sure that every division is competently and professionally handled in the true family tradition: his son Don Ayres III is vice president of all hotel group operations; son Doug Ayres is vice president of development for the hotel and residential divisions; son Bruce Ayres handles overall operations of all the Ayres diverse business interests, including the self -storage facilities, land acquisition and processing, commercial centers, as well as hotel and residential real estate divisions; and daughter Allyson Ayres brings her incredible creative talents to bear as interior designer for the entire hotel chain. The Ayres Group strives to be forever recognized for answering the needs of its guests, as well as the communities surrounding the location of each hotel. To ensure this family tradition of service excellence, the Ayres Group maintains its hands-on approach to hotel management by personally visiting every hotel on a constant basis, guaranteeing you, their guest, the finest experience available from a hotel. Come see for yourself the unparalleled level of comfort and service that awaits you at any of the Ayres group of hotels, including the Country Inn & Suites located in: Cardiff -by -the -Sea; Orange; Ontario (next to the incredible Ontario Mills Shopping and Entertainment Center); Diamond Bar; Costa Mesa/Newport Beach (near John Wayne Airport); Yorba Linda; Alpine; Corona; San Clemente; Grapevine; and more to come in the near future. No matter what the reason for your travels, the answer to all your needs will always be provided by the Ayres Hotel Groups Country Inn & Suites, Country Inns and Country Suites -- where the best of the Old World and the New Age meet. California Location Man Home Page Hotel Locations 1 of2 2/4/2000 3:31 PM 1. QUALIFICATIONS Company Name: Ayres Group Company Address: Current Officers: Total Employees: Relevant Experience Project Name: Project Description: Location: Construction dates: 355 Bristol Street, Suite A Costa Mesa, CA 92626 Donald B. Ayres, Jr. Bruce Ayres Douglas Ayres Donald B. Ayres, III Allyson Ayres Chairman of the Board President Vice President of Construction Vice President of Operations Secretary/Treasurer Country Suites — Corona West 115 room hotel 1900 Frontage Road, Corona, CA 91720 Start: 2/98 Complete:2/99 Project Name: Country Suites at the Mills Mall Project Description: 139 room hotel' Location: 4370 Mills Circle, Ontario, CA 91764 Construction Dates: Start: 8/97 Complete: 7/98 Project Name: Project Description: Location: Construction Dates: Project Name: Project Description: Location: Construction Dates: Project Name: Project Description: Location: Construction Dates: Country Suites by Ayres — Diamond Bar 102 room hotel 21951 Golden Springs Drive, Diamond Bar, CA 91765 Start:2/98 Complete: 2/99 Country Inn — Orange Remodel of 131 room hotel 3737 W. Chapman Avenue, Orange, CA 92868 Start:11196 Complete: 6/97 Country Inn — Grapevine 74 room hotel 9000 Country Side Court, Lebec, CA 93243 Start: 8/96 Complete: 3/97 Key Personnel Name: Douglas R. Ayres Address: 355 Bristol Street, Suite A Costa Mesa, CA 92626 Telephone: (714)540-6060 ext. 125 Job Title: Vice President of Construction Job Desc.: Selects subcontractors, oversees onsite construction beginning with foundation, coordinates interior and exterior design, manages construction staff, coordination for city approvals. Years w/Co.: 10 Name: Bruce Ayres Address: 355 Bristol Street, Suite A Costa Mesa, CA 92626 Telephone: (714)540-6060 ext. 128 Job Title: President Job Desc. Facilitates approvals of City and all governing bodies' approvals of plans prior to construction, oversees onsite underground, utility, and grading and all offsite work Years w/Co.: 24 Name: Donald B. Ayres, Jr. Address: 355 Bristol Street, Suite A Costa Mesa, CA 92626 Telephone: (714)540-6060 Job Title: Chairman of the Board Job Desc. Oversees day to day operations of all construction Years w/Co.: 41 Name: Donald B. Ayres, III Address: 325 Bristol Street Costa Mesa, CA 92626 Telephone: (714)429-9372 ext. 149 Job Title: Vice President of Operations Job Desc.: Oversees all hotel operations once opened, in addition to supervising during construction areas that relate to operations. Years w/Co.: 13 Name: Allyson Ayres Address: 355 Bristol Street, Suite A Costa Mesa, CA 92626 Telephone: (714)540-6060 ext. 127 Job Title: Head Designer Job Desc.: Oversees all interior design, decor selection and purchasing. Years w/Co.: 16 Name: Craig Mann Address: 355 Bristol Street, Suite A Costa Mesa, CA 92626 Telephone: (714)540-6060 ext. 126 Job Title: Superintendent Job Desc.: Oversees all on -site trades, employees and operations during construction Years w/Co.: 10 Name: Jana Mahoney Address: 355 Bristol Street, Suite A Costa Mesa, CA 92626 Telephone: (714)540-6060 ext. 132 Job Title: Project Coordinator/Acctg. Job Desc.: Coordinates subcontractor bidding and contract preparation, assists with obtaining pre -construction approvals and facilitates permit approvals and accounting for construction projects. Years w/Co.: 5 Name: Lori Bickel Address: 355 Bristol Street, Suite A Costa Mesa, CA 92626 Telephone: (714)540-6060 ext. 132 Job Title: Assistant Designer/Purchasing Director Job Desc.: Assists Head Designer with interior design and selections, handles all purchasing for interior d€cor. Years w/Co.: 3 References Joanne Coontz, Mayor of City of Orange 300 E. Chapman Avenue Orange, CA 92866 (714)744-2201 Project: Country Inn— Orange StartDate: 11/96 Complete: 6/97 Councilman Al Talbert 815 W. Oh Street Corona, CA 91720 (909) 736-2400 Project: Country Suites — Corona West Start Date: 2/98 Complete: 2/99 Albert Cruz, City of Ontario 303 E. `B" Street Ontario, CA 91764 (909)391-2506 Project: Country Suites at the Mills Mall Start Date: 8/97 Complete: 7/98 Experience Country Inn —Alpine (99 rooms) 1251 Tavern Road, Alpine, CA 91901 Date began operations: 7/86 Country Inn — Cardiff by the Sea (103 rooms) 1661 Villa Cardiff Drive, Cardiff, CA 92007 Date began operations: 5/85 Country Inn— Corona (102 rooms) 2260 Griffin Way, Corona, CA 91719 Date began operations: 9/90 Country Suites — Corona West (115 rooms) 1900 Frontage Road, Corona, CA 91720 Date began operations: 2/99 Country Suites by Ayres — Diamond Bar (102 rooms) 21951 Golden Springs Dr., Diamond Bar, CA 91765 Date began operations: 2/98 Country Inn — Grapevine (74 rooms) 9000 Country Side Court, Lebec, CA 93243 Date began operations: 3/97 Country Inn — Newport Beach (176 rooms) 325 Bristol Street, Costa Mesa, CA 92626 Date began operations: 5/86 Country Suites —Newport Beach (113 rooms) 345 Bristol Street, Costa Mesa, CA 92626 Date began operations: 10/88 Country Side Suites — Ontario (107 rooms) 204 N. Vineyard, Ontario, CA 91764 Date began operations: 4/91 Country Suites at the Mills Mall (139 rooms) 4370 Mills Circle, Ontario, CA 91764 Date began operations: 8/98 Country Suites by Ayres — Ontario (167 rooms) 1945 Holt Blvd., Ontario, CA 91764 Date began operations: 1/95 Country Inn — Orange (131 rooms) 3737 W. Chapman Avenue, Orange, CA 92868 Date began operations: 6/97 Country Inn — San Clemente (100 rooms) 35 Calle de Industrias, San Clemente, CA 92672 Date began operations: 5196 Country Suites — Yorba Linda (112 rooms) 22677 Oakerest Circle, Yorba Linda, CA 92686 Date began operations: 8/90 Key Personnel (operations) Name: Donald B. Ayres, III Address: 325 Bristol Street Costa Mesa, CA 92626 Telephone: (714)429-9372 ext. 149 Job Title: Vice President of Operations Job Desc.: Oversees all hotel operations Years w/Co.: 13 Name: Gregg Kleminsky Address: 355 Bristol Street, Suite F Costa Mesa, CA 92626 Telephone: (714)429-9372 ext. 100 Job Title: Controller Job Desc: Oversees daily financial operations of hotels Years w/Co.: 13 Name: Douglas Ayres Address: 355 Bristol Street, Suite A Costa Mesa, CA 92626 Telephone: (714)540-6060 ext. 125 Job Title: Vice President of Construction Job Desc. Oversees operations jointly with VP of Operations on specific issues, upgrades, or changes. Years w/Co.: 10 Name: Jim Boitnott Address: 4370 Mills Circle Costa Mesa, CA 92626 Telephone: (909)481-7703 Job Title: Regional Manager Job Desc.: Supervise General Managers and daily operations of area hotels. Years w/Co.: 8 2. FINANCIAL QUALIFICATIONS Project will be privately funded by Ayres Group. Financial Info.: James W. Relvas, CPA Controller, Ayres Group (714)540-6060 ext. 130 Financial Statements: Privately held corporation. Please contact: Bank of America — Private Banking Accountant: 3. Attn: Janet Joyce (949)760-4626 or contact Douglas Ayres at (714)540-6060 ext. 125 Bolar, Hirsch & Jennings 18101 Von Karman Avenue, Suite 1440 Irvine, CA 92612 Contact: Dave Hirsch Site plan is included in package Quantity of rooms: 83 Square foot of rooms: 700 sq. ft. Parking: 70 spaces (949)224-3300 We propose an elegant, boutique hotel located on the bay front. This would be a two story Cape Cod style structure including a restaurant. Ayres Hotel Group is qualified to operate an award winning eating establishment, as demonstrated in another of our restaurants, Le Chateau. Our unique, warm interiors is a trademark of our hotels. 4. DEVELOPMENT COST AND OPERATING PRO FORMA Estimated Construction Costs for hotel (not including land): $20,000,000 Land will be leased at a negotiated rate with the City of Newport Beach 5. IMPLEMENTATION SCHEDULE Base on CUP and a recorded map for the residential component, Ayres Group would propose to have the hotel and homes built within a 10 month time frame. Housing Proforma Purchase: Bay Front Lots (14) at $625,000 x 14 = $ 8,750,000 Balboa Blvd Lots (35) at 200,000 x 35 = 7,000,000 Total $15,750,000 Lease: Bay Front Lots at $43,740/year x 14 = $ 612,360/year Balboa Blvd Lots at 14,000/year x 35 = 490,000/year Total $ 1,102,360/year *A more detailed proforma can be provided upon request Newport Beach - Balboa Island Income Summary Projections Room Count Rooms Occupied Rooms Available Occupancy Average Daily Rate Rooms Revenue Per Available Room REVENUE Rooms Telecommunications Total DEPARTMENTALEXPENSES Rooms Telecommunications Total DEPARTMENTAL PROFIT Year 10 Year 2 Year 3 83 83 83 29,689 22,721 24.539 30,295 30,295 30295 98.0% 75% 81% 220.00 180.00 185.00 215.60 135.00 149.85 Amount . Percent PAR POR Amount Percent PAR FOR Amount Percent PAR FOR $ 6,531,602 99.5% $ 215.60 $ 220.00 $ 4,089,825 99.20% $ 135.00 $ 180.00 $ 4,539,706 992a/a $149.85 $ 185.00 30,000 0.5'/6 0.99 1.01 33.000 0.8% 1.09 1.45 36.300 0.8% 1.20 1.48 $ 6,561.602 100.0% $ 216.59 $ 221.01 $4,122,825 100.0% $ 136.09 $ 181.45 $4.576.006 100.0% $ 151.05 $ 186.48 $ 705.116 10.8% $ 23.28 $ 23.75 $ 539,630 132% $ 17.81 $ 23.75 $ 582,800 12.8% $ 19.24 $ 23.75 19,500 65.0% 0.64 0.66 21.450 65.0% 0.71 0.94 23.595 65.001. 0.78 0.96 $ 724,616 11.0% $ 23.92 $ 24.41 $ 561,080 13.6% $ 18.52 $ 24.69 $ 606,395 13.3% S 20.02 $ 24.71 $ 5,836.986 89.0% $ 192.67 $ 196.60 UNDISTRIBUTED OPERATING EXPENSES Administrative & General $ 207,824 32% $ 6.86 $ 7.00 Marketing 166,259 2.5% $ 5A9 5.60 Property Operation & Maintenance 160,321 2A% $ 5.29 5.40 Utility Costs 93.521 1A% $ 3.09 3.15 Total 627,924 9.6% $ 20.73 $ 21.15 GROSS OPERATING PROFIT FIXED EXPENSES Management Fees Property Taxes Insurance Land Lease Total NET OPERATING INCOME $ 3.561,745 86A% $ 117.57 $ 156.76 $ 159,049 3.9% $ 5.25 $ 7.00 127,239 3.1% $ 4.20 5.60 122,695 3.0% $ 4.05 SAO 71,572 1.7% $ 2.36 3.15 480,554 11J% $ 15.86 $ 21.15 $ 5.209,061 79.4% $ 171.94 $ 175A5 $ 3,081,191 74.7% $ 101.71 $ 135.61 $ 196,848 3.0% $ 6.50 $ 6.63 $ 123,685 3.0% $ 4.08 $ 5.44 60,000 0.9% 1.98 2.02 60.000 1.5a/o 1.98 2.64 11.000 02% 0.36 0.37 11,000 0.3% 0.36 0A8 328.080 5.0% 10.83 11.05 206.141 5.0% 6.80 9.07 $ 595,928 9.1% $ 19.67 $ 20.07 $ 400,826 9.7% $ 13.23 $ 17.64 $ 4.613.133 70.3% $152.27 $ 155.38 $ 2.680.365 65.0a/a $ 88.48 $ 117.97 $ 3,969.611 86.7% $131.03 $ 161.77 $ 171,773 3.8a/o $ 5.67 $ 7.00 137,418 3.0% $ 4.54 5.60 132.510 2.9% $ 4.37 5.40 77,298 1J% $ 2.55 3.15 518,999 11.3% $ 17.13 $ 21.15 $ 3.450.612 75.4% $113.90 $ 140.62 $ 137280 3.0% $ 4.53 $ 5.59 60.000 1.3% 1.98 2A5 11,000 02% 0.36 0.45 228.800 5.0% 7.55 9.32 $ 437,080 9.6a/a $ 14.43 $ 17.81 $ 3.013.531 65.9% $ 99.47 $ 122.81 Occupancy Tax Projection $ 653,160 $ 408,983 $ 453,971 Land Lease 328,080 206,141 228.800 $ 981,240 $ 615,124 $ 682,771 Page 1 Newport Beach - Balboa Island Income Summary Projections Room Count Rooms Occupied Rooms Available Occupancy Average Daily Rate Rooms Revenue Per Available Room REVENUE Rooms Telecommunications Total DEPARTMENTALEXPENSES Rooms Telecommunications Total DEPARTMENTAL PROFIT Year4 Year Year 83 83 83 25,751 26.357 27,568 30295 30295 30295 850/u 87% 91% 190.00 190.00 195.00 161.50 165.30 177.45 Amount ' Percent PAR POR Amount Percent PAR POR Amount Percent PAR POR $ 4,892,643 99.3% $161.50 $ 190.00 $ 5,007,764 99.3% $ 165.30 $ 190.00 $ 5.375.848 99.3% $177AS $ 195.00 36.663 0.7% 1.21 1.42 37.030 03% 1.22 1.40 37.400 0.7% 123 1.36 $ 4,929,306 100.0% $ 162.71 $ 191 A2 $ 5,044,793 100.0% $ 166.52 $191.40 $ 5,413.248 100.0% $178.68 $ 196.36 $ 611,580 12.50/u $ 20.19 $ 23.75 $ 625,970 12.5% $ 20.66 $ 23.75 $ 654,751 122% $ 21.61 $ 23.75 23,831 65.0% 0.79 0.93 24.069 65.001. 0.79 0.91 24.310 65.0% 0.80 0.88 $ 635,411 12.9% $ 20.97 $ 24.68 $ 650.040 129% $ 21A6 $ 24.66 $ 679.061 12.5%a 3 22A1 $ 24.63 $4,293,894 87.1% $ 141.74 $ 166.75 UNDISTRIBUTED OPERATING EXPENSES Administrative & General $ 180,255 3.7% $ 5.95 $ 7.00 Marketing 144,204 2.9% $ 4.76 5.60 Property Operation & Maintenance 139,054 2.8% $ 4.59 5.40 Utility Costs 81.115 1.6% $ 2.68 3.15 Total 544,628 11.0% $ 17.98 $ 21.15 GROSS OPERATING PROFIT FIXED EXPENSES Management Fees Property Taxes Insurance Land Lease Total NET OPERATING INCOME $4.394.753 37.1% $145.07 $ 166.74 $ 184.497 3.7% $ 6.09 $ 7.00 147,597 2.9% $ 4.87 5.60 142,326 2.8% $ 4.70 5.40 83,023 1.6% $ 2.74 3.15 657,443 11.0% $ 18AO $ 21.15 $ 3.749.266 76.1% $ 123.76 $ 145.60 $ 3,837.310 76.1% $126.66 $145.59 $ 147,879 3.0% $ 4.88 $ 5.74 60.000 1.2% 1.98 2.33 11,000 0.2% 0.36 0.43 246,465 5.0% 8.14 9.57 $ 465.344 9.40/u $ 15.36 $ 18.07 $ 151,344 3.0% $ 5.00 $ 5.74 60,000 1.2%n 1.98 228 11,000 020/a 0.36 0.42 252240 5.0% 8.33 9.67 $ 474,583 9A%u $ 15.67 $ 18.01 $ 3.283.921 66.6% $ 10BAO $-127.53 $ 3.362,727 66.7% $ 111.00 $ 127.59 $ 4.734,187 87.5% $15627 $171.72 $ 192.979 3.6% $ 6.37 $ 7.00 154,383 2.9% $ 5.10 5.60 148,870 2.8% $ 4.91 5.40 86.841 1.6% $ 2.87 3.15 583,073 10.8% $ 1925 $ 21.15 $4.151,114 76.7% $ 137.02 $ 150.57 $ 162,397 3.076 $ 5.36 $ 5.89 60.000 1.1% 1.98 2.18 11,000 02% 0.36 0.40 270.662 5.0% 8.93 9.82 $ 504.060 9.3% $ 16.64 $ 1828 $ 3.647.055 67.4% $120.38 $ 132.29 Occupancy Tax Projection $ 489,264 $ 500,776 $ 637,585 Land Lease $ 246,465 $ 2SZ240 $ 270.662 $ 735,730 $ 753,016 $ 808247 Page 2 Newport Beads - Balboa Island Income Summary Projections Room Count Rooms Occupied Rooms Available Occupancy Average Daily Rate Rooms Revenue Per Available Room REVENUE Rooms Telecommunications Total DEPARTMENTAL EXPENSES Rooms Telecommunications Total DEPARTMENTAL PROFIT Yea I YearB Year 83 83 83 28,780 28.780 29,689 30,295 30295 30295 95% 9501. 98% 200.00 205.00 210.00 190.00 194.75 205.80 Amount ' Percent PAR FOR Amount Percent PAR FOR Amount Percent PAR FOR $ 5,756,050 99.3% $ 190.00 $ 200.00 $ 5,899,951 99A% $ 194.75 $ 205.00 $ 6.234,711 99.4% $ 205.80 $ 210.00 37,774 0.7% 125 1.31 38,152 0.6% 1.26 1.33 38.533 0.6"/6 127 1.30 $ 5,793.824 100.0% $ 191.25 $ 201.31 $ 5,938.103 100.0% $ 196.01 $ 206.33 $ 6,273,244 100.0% $ 207.07 $ 211.30 $ 683,531 11.9% $ 22.56 $ 23.75 $ 683,531 11.6% $ 22.56 $ 23.75 $ 705,116 11.3% $ 23.28 $ 23.75 24,553 65.0% 0.81 0.85 24,799 65.0% 0.82 0.86 25.047 65.0% 0.83 0.84 $ 708,084 12.2% $ 23.37 $ 24.60 $ 708.330 11.9% $ 23.38 $ 24.61 " S 730,163 11.6% $ 24.10 $ 24.59 $ 5,085.740 87.8% $ 167.87 $ 176.71 $ 5.229.773 88.1% $172.63 $ 181.71 UNDISTRIBUTED OPERATING EXPENSES Administrative & General $ 201,462 3.5% $ 6.65 $ 7.00 Marketing 161,169 2.8% $ 5.32 5.60 Property Operation & Maintenance 155.413 2.7% $ 5.13 SAO Utility Costs 90,658 1.6% $ 2.99 3.15 Total 608,702 10.5% $ 20.09 $ 21.15 GROSS OPERATING PROFIT FIXED EXPENSES Management Fees Property Taxes Insurance Land Lease Total NET OPERATING INCOME $ 201,462 3A% $ 6.65 $ 7.00 161.169 2.7% $ 5.32 5.60 155.413 2.6% $ 5.13 5.40 90,658 1.5% $ 2.99 3.15 608,702 10.3% $ 20.09 $ 21AS $ 4,477,038 77.3% $ 147.78 $ 155.56 $ 4,621,071 77.6% $162.64 $160.56 $ 173.815 3.0% $ 5.74 $ 6.04 60,000 1.0% 1.98 2.08 11,000 0.2% 0.36 0.38 289.691 5.0% 9.56 10.07 $ 534,506 92% $ 17.64 $ 18.57 $ 178,143 3.0% $ 5.88 $ 6.19 60.000 1.0% 1.98 2.03 11,OOD 0.2% 0.36 0.38 296,905 5.0% 9.80 10.32 $ 546,048 92% $ 18.02 $ 18.97 $ 3,942,532 68.0% $ 130.14 $ 136.99 $ 4,075.023 68.6% $ 134.51 $ 141.59 $5.543.081 88A% $182.97 $ 186.70 $ 207,824 3.3% $ 6.86 $ 7.00 166259 21% $ 5A9 5.60 160,321 2.6% $ 529 SAO 93.521 1.5% $ 3.09 3.15 627.924 10.0% $ 20.73 $ 21.15 $ 4.915,157 78.40/6 $162.24 $ 165.55 $ 188,197 3.0'/c $ 6.21 $ 6.34 60,000 1.0% 1.98 2.02 11,000 0.2"/0 0.36 0.37 313.662 5.0% 10.35 10.56 $ 572,860 9.1% S 18.91 $ 19.30 $4.342,297 692% $ 143.33 $ 146.26 Occupancy Tax Projection $ 575,605 $ 589,995 $ 623,471 Land Lease 289.691 296,905 313,662 $ 865,296 $ 886,900 Page 3 Newport Beach - Balboa Island Income Summary Projections Room Count Rooms Occupied Rooms Available Occupancy Average Daily Rate Rooms Revenue Per Available Room REVENUE Rooms Telecommunications Total DEPARTMENTALEXPENSES Rooms Telecommunications Total DEPARTMENTAL PROFIT Year 1 83 21,207 30295 70% 170.00 119.00 Amount - Percent PAR POR $ 3.605,105 98.9% $119.00 $170.00 38.919 1.1% 128 1.84 $ 3,644,024 100.0% $ 12028 $171.84 $ 503,654 14.0% $ 16.63 $ 23.75 25,297 65.0% 0.84 1.19 $ 528,951 14.5% $ 17.46 $ 24.94 $ 3.115.072 85.50/6 $ 102.82 $146.89 UNDISTRIBUTED OPERATING EXPENSES Administrative & General $ 148,446 4.1% $ 4.90 $ 7.00 Marketing 118.756 3.3% $ 3.92 5.60 Property Operation & Maintenance 114,515 3.1% $ 3.78 5.40 utility Costs 66,800 1.8% $ 2.21 3.15 Total 448,517 12.3% $ 14.81 $ 21.15 GROSS OPERATING PROFIT FIXED EXPENSES Management Fees Property Taxes Insurance Land Lease Total NET OPERATING INCOME Occupancy Tax Projection Land Lease $ 2,666.555 73.2% $ 88.02 $125.74 $ 109,321 3.0% $ 3.61 $ 5.16 60,000 1.6% 1.98 2.83 11,000 0.3% 0.36 0.52 182.201 5.0% 6.01 8.59 $ 362,522 9.9% $ 11.97 $ 17.09 $ 2.304,033 63.2"/6 $ 76.05 $108.65 $ 360,511 182,201 $ 542,712 Page 4 Y e PUBLIC BEACH PROPOS-ED'PRIVATE DEVELOPMENT E - 7000 SO. FT, MULTI -PURPOSE COMMUNITY CENTER BUIL TOT LOT LAUNCH RAMP DING U IJ v VETERANS MEMORIAL BOAT STORAGE � BUILDINGS j'U 1 BOULEVARD PLAN PARKING Z I /1� COMMERCIAL • I `r' � � T NORTH SCALE: 1' = 40'-0' - 7000 SO. FT. MULTI -PURPOSE COMMUNITY CENTER BUILDING PUBLIC BEACH TOTLOT ru 20 RAMP BOAT STORAGE BASKETBALL . - .• 49 c�T Hill COMMERCIAL DEVELOPMENT _ `i�• — ;sue... w= .�,`• -Fl � '�,,TEN ■■ �� M� COMMERCIAL MARINA PARK CONCEPT PLAN qv NORTH m scKe r..o-a PARKING I COMMUNITY SERVICES DEPARTMENT Arts it Cultural- Library - Recreation - Seniors Date: February 4, 2000 To: Sharon Wood, Deputy City Manager From: LaDonna Kienitz, Community Services Director/City Librarian Re: Proposal for the Utilization of the MarinaPark Area Attached please find a brief proposal for a proposed future use of the City -owned property known as Marinapark. Since the site has a General Plan designation of Recreational and Environmental Open Space, the Parks, Beaches and Recreation Commission strongly recommend you consider this proposal or some reconfiguration of it. The Parks, Beaches and Recreation Commission approved this proposal and requested that it be submitted for consideration. The Recreation and Open Space Element, adopted in 1997 identified the need to satisfy unmet park needs on the Peninsula by renovating and upgrading the facilities at Las Arenas Park. The majority of parkland in this service area is beaches. The Element also identified the need for small boat launching facilities. CC: Homer Bludau, City Manager D' Proposal for the utilization of the Marina Parl< Area Submitted by Parks Beach & Recreation Commission City of Newport Beach February 4, 2000 VOOOO C.` J Cityof Newport Beach COMMUNITY SERVICES Date: February 4, 2000 P.O. BOX 1768, 3300 NEWPORT BLVD NEWPORT BEACH, CA 92638-8915 To: Sharon Wood, Assistant City Manager From: Parks, Beaches and Recreation Commission Re: MarinaPark Proposal PHONE 949.644-3151 PAX 949.644-3155 In response to the City of Newport Beach's City Council request for proposals for MarinaPark Future Use/Development, the Parks, Beaches and Recreation Commission urges the City Council to consider this project or any similar project that would use approximately one-third of the available property to preserve park and open space on Balboa Peninsula. Should the tidelands boundary be designated as anticipated, the tennis courts in this plan could be moved into that area to make more uplands available for private development. This proposal shows only one concept of how the park could be designed. The same components could be configured in other ways as well. The Recreation and Open Space Element, adopted in 1997 identified the need to satisfy unmet park needs on the Peninsula by renovating and upgrading the facilities at Las Arenas Park. The majority of parkland in this service area is beaches. The Element also identified the need for small boat launching facilities. The primary goal of the Parks, Beaches and Recreation Commission is to preserve park and open space and the recreation facilities currently on the site. The Commission approved the proposal and directed that it be submitted for consideration on February 1, 2000. Basic Qualifications This would be a Public Works Department project coordinated with Community Services and General Services Departments. Financial Qualifications The City of Newport Beach would fund this project through Park -in -Lieu Funds. The City of Newport Beach can ask the developer of the other portions of the property to contribute to the redevelopment of the park. Proposal for the Utilization of the MarinaPark Area Page 2 Proiect Description The primary goal of the Parks, Beaches and Recreation Commission proposal is to preserve open space and park facilities that are similar to those that currently exist, by supporting a plan to use approximately 2.5 acres of the property for a park, recreation facilities and a community center. The Community Services Department retained Architect Bob Pederson to work on concept plans as directed by the Park and Open Space Committee of the Commission. This proposal for the new park includes the following facilities: 1. Four tennis courts (two lighted). 2. One tot lot 3. One full basketball court 4. One Community Center - two story (approximately 7,000 square feet), currently the Balboa Community Center and the Girl Scout House total approximately 5,000 square feet. 5. A boat shelter for storage of city owed sailing boats 6. A small boat dock for temporary docking 7. A public boat launch ramp 8. Parking for 110 cars. This proposal uses approximately one-third of the available area, leaving the America Legion lease area untouched, maintaining Veteran's Memorial Park with some modifications for the basketball court and proposing the area between 18th and 17th Streets and a small parcel that fronts Balboa Boulevard for private development use. This proposal shows only one way this area can be used to preserve park and open space. Should the final determination of tidelands preclude development along the beach, the tennis courts can be moved to the tidelands, leaving the area along Balboa Boulevard for development. Development Costs and Operating Pro Forma It is anticipated that this park development could cost approximately $2 million including design and development fees. The State Department of Boating and Waterways would provide grant money for the construction of the boat launch ramp and possibly the temporary dock. If Proposition 12 — Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000, on the state wide ballot for March 7 passes, there should be funds under (1) the Per Capita I Program of that bond for redevelopment; and (2) rehabilitation of restoration of real property for park purposes; and (3) the per capita rate is $6.29, or $452,880 for cities the size of Newport Beach. Proposal for the Utilization of the MarinaPark Area Page 3 The additional 110 parking spaces would generate revenue from the meters or permits required. At an average of $415 per meter, those spaces could generate revenue of $49,000 per year or more. There are several important recreation programs that operate in this park and would thrive in the new renovated facility. Revenue generated by sailing classes is approximately $60,000 per year. Revenue generated by tennis classes (only at these courts) is approximately $15,000 per year. Revenue generated by rental of rooms in the community center would be approximately $10,000 per year. Groups who currently rent the Balboa Community Center and use the Girl Scout House would be able to use the new Community center. There would be no additional staff required to operate this park, although money would be necessary for maintenance of the landscape and the building. Implementation Schedule Based on City Council schedule, bid openings and public works schedule. Consultant Team To be determined by the Public Works and Community Services Department. Cost Breakdown Demolition and Site Clearing $ 108,750 Construction 4 Tennis Courts 120,000 Lighting for 2 Tennis Courts 20,000 Construction of one Basketball court 18,500 Streets 8t Parking lots 135,000 Construction of Boat Ramp 20,000 Construction of Bulkhead Wall 20,000 Boat Dock 60,000 Concrete Sidewalks 10,000 Resurface and restripe American Legion Lot 16,000 Community Center Building 900,000 Landscape and Irrigation 91,000 Total construction costs $1,519,250 Design and Development Costs 230,000 Contingency 240,000 Grand Total $1,989,250 Attachment