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HomeMy WebLinkAbout15th Street adjacent to Newport Bay• NEGATIVE DECLARATION. . for THE RENEWAL OF AMERICAN LEGION POST NO. 291 LEASE prepared by THE CITY OF NEWPORT BEACH 1. PROJECT LOCATION. The American Legion Post No. 291•facilities are located on the west side of Fifteenth Street adjacent to Newport Bay. 2. PROJECT DESCRIPTION. The project consists of the amendment and renewal of the existing lease between the City of Newport Beach and American Legion Post No. 291. The amended lease will provide for increased public use of .the facilities and for increased revenues•for the City.' 3. DISCUSSION OF ENVIRONMENTAL IMPACTS. The existing facilities on this site are in conformance with the General Plan. The renewal of the lease will not involve any changes to the physical environment and will provide for the use of the facility by public. groups. :The renewal of this lease will not have any adverse impacts. 4. BASIS FOR NEGATIVE.DECLARATION. The proposed project has been reviewed in conjunction with Sections 15081, 15082, and 15083, Chapter 3, Guidelines for Implerhentation of the California Environmental Quality Act of 1970. Review of the criteria set forth in these sections indicates that the proposed project will not have a significant environ- mental impact. . q 400A comic JtJM. N SHEET •FL'R SUNG ADMINISTRATIVE flEt IONS . ram THE SzC:ZSrARY Oe" STA rL� (Pursuant to Saverrannt Coda Secnon 11300,1) TO: n-•.?E;tnlr 1: . NOTICE OF D TEEMIXATZON • C- Q Secretary for Resources FP,Oi4: (Lead Agency) ' 1416 Ninth Street, Room 1311• , Sacramento, ;California 95814 City•of Newport Beach • • William E. Si. John 'County Clerk . ' County of 0ranoe • P.O. Box 838 Santa Ana, Calif. 92702 3300 Newport Blvd. Newport Beach, CA '92660 • SUBJECT: Filing of _Notice of Determination in' compliance with Section. 21108 •or-21152 of the PubliciResources- Code Project Title. . - .--.. American -Legion, -Post No. 291 Lease - - State Clearinghouse Number (If submitted to•State Clearinghouse) - - Contact Person • - W.R. Foley .. ._ Telephone Number- (714) 673-2110 - Ext. .262 .••( • Project Location • - • Balboa Pentnsuta ' . - . • • ' Project Description; - - Renewal of•existing lease . _. - • - - - This is to advise that the City' of New ort Beach • (Lead Agency has made the following determinations regarding the above described project& 1. •The project has been Q approved by the Iead•Agency. disapproved 2. The project will have a significant effect on the environment•. will not 3. L% An Environmental Impact Report was prepared for this' .the provisions of CEQA. A Negative visions of project pursuant to Declaration was prepared for this project pursuant to the prn- CEQA. A copy of the Negative Declaration•is attached. Date Received for Filing (016.41 R F�e.1 "999 Signature .0 nOr Iiv� -C2n .p�,n,..2.r.�GF-C Title CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER February 24, 1975 STUDY SESSION NO. 6 TO: MAYOR AND CITY COUNCIL FROM: American Legion Lease Committee SUBJECT: AMERICAN LEGION POST NO. 291 LEASE HISTORY: The history of the American Legion Lease goes back to September 8, 1924, when the original lease between the City and the American Legion Post 291 was signed. This lease, for a period of twenty-five years, made a parcel of property available to the Legion located at 10th Street and East Bay. On the same date as this lease, the City deeded a parcel of property to the Legion which was located between the property covered by the lease and another parcel of property which the Legion owned in fee. Following this original lease, according to the records in the City Manager's and Clerk's office, six additional transactions between the City and American Legion have been approved by Councils. A summary of these transactions are listed as follows: 1. Resolution No. 638, November 3, 1930 The City Council adopted Resolution No. 638 which provided in sub- stance that the City desired to extend Bay Avenue across the property leased to the Legion. Subsequently, the Legion agreed to allow the City to extend Bay Avenue through said property and reserve its use for street purposes. The Legion released its leasehold interest to allow development of the street and paid $1,500 for the fee interest from the City in the property northerly of Bay Avenue. Page -2- 2. Lease dated April 20, 1936 The City leased tidelands fronting on the Bay easterly of 10th Street for a term of 25 years to the Legion. 3. Lease dated September 2, 1940 The lease of April 20, 1936, was cancelled by mutual agreement of both parties and a new lease was executed for the present American Legion property at 15th Street and Bay Avenue for a term of 25 years ending on August 31, 1965. The lease did not provide for any money to be paid as rent, but stated that as consideration to the City the Legion would construct a building on the property to be used for civic, educational and recreational purposes. 4. Lease dated February 26, 1951 The principal change accomplished by this lease was to extend the termination date of the lease for 11 years to January 31, 1976. It also included a new provision requiring the Legion to provide public liability insurance at its expense and to reimburse the City for fire insurance premiums. Rental was set at $1.00 per year. 5. Agreement for construction of boat slips dated February 24, 1958, between the City, the American Legion Post, and Trautwein Bros. The principal terms and provisions of this agreement are as follows: a. Trautwein Brothers agreed to construct slips, docks and ramps in accordance with an approved drawing. b. The Legion agreed to pay Trautwein $35,000 with interest at the rate of 8% per year in monthly installments. c. The residents of the City's Marinapark have the right of first refusal with respect to renting the boat spaces (both dry and wet storage) for a period of one day on all vacancies. Page -3- d. Upon payment by the Legion of its entire obligation to Traut- wein, the City shall receive 10% of the gross monthly revenue. 6. Agreement dated November 13, 1961, between the City, the Legion, and Trautwein Brothers. The principal terms and provisions of this agreement are as follows: a. The improvements to be constructed by Trautwein had been com- pleted. b. Additional improvements had been constructed by Trautwein cover- ing items not included within the original improvement agreement. c. Beginning July 1, 1968, 10% of the gross revenue and income from the improvements will be paid to the City as rent for the entire premises leased to the Legion. d. A11 other revenues derived from the improvements may be used by the Legion as it sees fit. The preceding agreement is the last formal transaction relating to the property currently under lease to the Legion. Attached as Exhibit "A", is a Fact Sheet, outlining general information, lease.provisions, and agree- ment provisions for the lease dated February 26, 1951. This lease and the last agreement dated November 13, 1961 expire January 31, 1976. There are no provisions within either the current lease or the associated agreement for automatic renewal. The American Legion, in a letter to the City Council dated December 4, 1973, has now petitioned the City for a twenty-five year extension of the present lease. This letter is attached as Exhibit "B". As a result of this letter, the City Council formed an ad hoc committee comprised of Mayor Pro Tem Dostal, Councilman Barrett, and the City Manager to review the existing lease and make specific recommendations to the City Council concerning the future of this property. • • Page -4- DISCUSSION AND CONCLUSION: The Committee has met on a number of occasions and reviewed three basic alternatives as follows: 1. Permit the lease to expire and operate the marina and parking lot with municipal employees. 2. Renew the lease for 25 years requiring greater gross payments to the City and greater• use of the facility by the public. 3. Combination of 1 and 2 above, with the Legion lease being re- newed for the building area only. Attachment "C" gives a financial comparison between Alternate 1 and 2 above. This attachment indicates that the City could receive an estimated $31,200 per year if it became a City operation, or $31,450 if the new lease is consumated. The Committee, after considerable study, rejected Alternate No. 1 for the following reasons: 1. It would require additional City employees at a time when the City is attempting to minimize municipal expenses. 2. The City could receive a higher estimated annual return by utilizing another alternate. 3. Historically, the American Legion has occupied and managed this site. Alternate No. 2 is being recommended by the Committee subject to the following conditions: 1. That the new contract will stipulate that public groups will have the right to use the building and facilities at a rental fee acceptable to the City and the Legion. 2. That the Acquatic Center, long sought by the Parks, Beaches & Recreation Commission, be located in the area vacated by the Page -5- Lawn Bowling Association with Legion facilities such as the launching hoist available for placement of boats into the water. 3. That the dry boat storage area be increased to accommodate the boating public, if necessary, and required permits are obtained. 4. That the payments be increased as follows: \v/f/a) Marina slips from 10% to 40% of gross. (b) Dry boat storage and lockers from zero to 50% of gross. v<c) Parking from zero to 100%. V(d) Building rental from zero to $300/mo. 5. That if additional boat slips are required, the Legion will finance their construction with revenues from rents being used to retire the debt, after which the gross will be divided with City receiving 40%. 6. that if additional dry boat storage and locker facilities are re- quired, the Legion will finance the construction with revenues from rents being used to retire the debt, after which the gross will be divided with City receiving 50%. 7. That the parking lot be a controlled parking lot by using a bumper sticker system with the bumper stickers costing $60.00/yr. and pro- rated for each quarter. The American Legion shall purchase a minimum of 26 parking spaces. 8. That 36 parking stalls be made available for use at no cost by those renting a boat slip. The Committee reviewed extensively the authority that the City has to lease the premises to the American Legion. It was determined that the City has the power to lease the subject lands pursuant to the general authoriza- tion provided to cities by Government Code Section 37385 and Civil Code Page -6- Section 718. Section 37885 of the Government Code, which is similar to Civil Code Section 718, provides: "A City may lease tide and submerged lands, the wharves, docks, piers, and other structures or improvements on these lands, and as much of the uplands abutting upon them as the legislative body deems necessary for the proper development and use of its waterfront and harbor facilities As to that portion of the leased lands which consists of tide and submerged lands, the City has been specifically authorized to lease them pur- suant to the 1919 Statutory Grant which provides that the City may lease all "tidelands and submerged lands within the present boundaries of said City, and situated below the line of mean high tide of the Pacific Ocean . . . for a period not exceed 25 years . . ." With respect to limitations on the power of the City to lease lands, Section 1402 of the Charter of the City of Newport Beach provides that the City shall not lease "any waterfront or beach property" until the leasing of such lands have been approved by a majority of the electors voting on such proposition at any general or special municipal election. However, this restriction by the terms of said section does not apply to "the future leasing or releasing of such property under lease at the effective date of this Charter." The Charter became effective in 1955 and the property covered by the lease renewal was under lease pursuant to the 1940 lease on the effective date of the Charter. Accordingly, said restriction is not applicable. Page -7- Pursuant to Section 21151 of the Public Resources Code "all local agencies shall prepare or cause to be prepared . . . an Environmental Impact Report on any project they intend to carry out or approve which may have a significant effect on the environment." Public Resources Code Section 21065 defines "project" for purposes of the Environmental Quality Act to mean acti- vities involving the issuance of a lease. The American Legion lease renewal is, therefore, subject to the requirements of the Environmental Quality Act. To satisfy the requirements of the Act, the City Council may consider pre- paring a Negative Declaration in accordance with Title 14, Section 15083 of the California Administrative Code. This section provides that an Environ- mental Impact statement is not required if the City Council finds that a project will not have a significant effect on the environment. If the City Council so finds, a Negative Declaration would be an appropriate procedure to follow in satisfying the requirements of the Environmental Quality Act. It is the Committee's opinion that Alternate No. 2 (Release) would provide the maximuth benefit for the public and the greatest return to the City of Newport Beach. Attached, members of the City Council will find a plot map showing the proposed lease area and the area to be utilized as an Acquatic Center. If the City Council concurs with the recommendation made herein, the following action should be taken. 1. The City Attorney should be directed to prepare the lease document for formal presentation to the City Council and the American Legion. 2. The Parks, Beaches & Recreation Commission should be directed to prepare conceptual plans for an Acquatic Center adjacent to the leased premises. Page -8- 3. The City Manager should be directed to prepare and process a Negative Declaration for the subject lease. The Committee looks forward to ditcussing this report with the City Council. Attachments: EXHIBIT "A" - EXHIBIT "B" - EXHIBIT "C" - LEASE COMMITTEE MAYOR PRO TEM MILAN DOSTAL COUNCILMAN PETER BARRETT CITY MANAGER ROBERT WYNN General Information (Yellow) Letter from American Legion (White) Cost Effective Comparison Study (Blue) Plot Plan