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Home My WebLink AboutF-9a - Correspondence - Lido Mobile Home Park•• TO: FROM: City C~uncil Meeting Agenda Item No. CITY O~ NEwPORT BEACH City Council Planning Department October 9, 1984 F-9 (a) . SUBJECT:.. Lido Mobile Home Park -Results of meetings and the conclusion of lease negotiations between the Lido Park Homeowners Association and the Curci-Turner Company. Suggested Action If desired, approve report and order f i led . Background At the City Council meeting of July 1 1 , 1983 , a request of the Lido Park Homeowner.s Ass9c_iation to establish a Mobile Park Overlay Zone was presented .to the City Council. Following a discussion a motion was made to refer the mat~r to the Planning Department for initiation of meetings between representatives of the Association and the property owner. On August 1, 1983, the City Attorney and the Planning Director met with the Lido Park Homeowners Association, represented by Thomas J. Towle, President, Sol Baron, Treasurer, and Beryl Melinkoff. The Circi-Turner Company was represented by John Curci, Sr., L.A. Turner and Jim CUimno, Park Manager. At this meeting the Association representatives indicated their concern regarding the fact that they were on a year-to-year lease, that they felt there was some uncertainty regarding the future of the Park, and that they would feel more comfortable with an overlay zone. On the other hand, the Cornpany·was concerned that the imposition of an overlay would force them to plan for the phaseout of the Park and put them, and most of their tenants, in an undesirable position. Following substantia.l discussion it was agreed that the .Association and the Company would pursue further discussions along the lines of a longer lease (five years), moving expenses ($7,000.00 prorated over a period of time), and rent increases (tied to a cost of living with a lid for any one year). During the past twelve months the Association and the Company have made considerable progress in their negotiations to the point where a long-term lease agreement has now been accepted and executed by 95\ of the Park tenants. Attached for the review of the City Council is an informational outline prepared by the Curci-Turner Company and a copy of the long-term lease agreement which: TO: City Council -2. 1. Commits that the Company stay in business and maintain the Park, at least until March 31, 1989, unless there is a substantial failure of one or more of the Community's utility systems; 2. Provides for a uniform annual rent increase of 9\ during the term of the lease; 3. Provides for a relocation allowance of $7,000.00 which decreases over the term of the lease to $1,000.00; and • 4. Treats recreational vehicles (occupying 60\ of the Park spaces) under the more protective designation of "mobile home." Respectfully submitted, JDH/kk CCX Attachments: Letter from Curci-Turner Company with attachments Lido Mobile Home Park 710 Li do Poi~ Dri ve . f':ewpo rt 8eoch. Ca\1forn,a 9266 .3 · Phone [714) 67 j -6 C:.J All Residents Lido Mobile Horne Park 710 Lido Park Drive Newport Beach, California 92663 Re: 5-Year Lease Offer Dear Residents: January 17, 1984 For a number of years, residents have repeatedlyasked, "How long will i,ido Park remain in business?". our response has been, "We don't know. We have no plans to go out of business immediately, but it is something which will happen some day." This response understandably makes many of you very un- comfortable. For some time now, we've been trying to think of a way to reduce this un- certainty. In the process, we've also realized that the ultimate demise of Lido Park is something both of us have to plan for. If we don't, we'll all be making a mistake. With the help of the Lido Park Homeowners' Association, we think we've found the best possible solution to this predicament. That solution is the Lease you'll find with this letter. This Lease has been specifically designed to answer concerns and resolve un- certainties. The more important provisions are briefly described below. First, and most important, we are making the commitment to stay in business for five (5) years, the only exception being a major failure of one of the utility systems. This doesn't mean we'll go out of busin~ss at the end of five years, it only means we'll guarantee you that we'll stay in business at least that long. This is a unique guarantee, rarely found anyplace. It is particularly unique when you consider Lido Park's location and other factors influencing its operation. We're also doing something else that is very unique. We're guaranteeing re- location benefits. You can take advantage of these benefits at any time -- you can move out in the first month of the Lease and collect the full benefits. You're also always guaranteed a minimum relocation benefit, regardless of whether we stay in business for five years or even ten or fifteen years. Cvm ed and O p e rated b'/ Curci-Turne r Company All Residents January 17, 1984 Page Two Rent increases are severely limited as well. For example, those of you who have been with us for a number of years realize that your rent is at its present below-market rate. This fact, plus the fact that all future rent increases are reduced below· those which would probably occur, means you'll realize substantial savings. If your rent is now at a market rate, you'll still en.joy substantial savings because future increases are limited. Sixty-two percent (62%) of you own homes which are classified as "recreational vehicles". This means we can treat you differently than the owners of "rnobilehomes". For example, when you sell or transfer your home, we can require it to be moved out of the Park. Alternatively, we could tell the buyer of your home that he could only live in the Park for e~ght (8) months, then he and the home would have to go. The Lease guarantees you we will not exercise these and the many other rights we have to treat recreational vehicles differently. (For those of you who may not know, a recreational vehicle is one which is not wider than 8' or longer than 40'; Although some of you have cabanas, their extra size does not change your home from a recreational vehicle to a mobilehome.) The lease may a~so be assigned to the buyer of your home, subject to approval of buyer by the "owners". Again, this is very uncommon and will make your home more saleable. All of these benefits are things we're not required to do by law. We only have to offer one (1) year leases, not five (5) years. We're also permitted to ·have an unlimited number of rent increases every year, in any amount we choose. We could have written the Lease so that you had to continue to pay rent if you moved your home out. We also could have written it so that we could charge your buyer any amount of rent we chose. Most importantly, we're not obligated to agree to remain in business or pay relocation benefits. All of -these Lease benefits should make your homes more marketable. More im- portantly, all of you will have certainty and peace of mind about the future of Lido Park. We all have to be able to plan for the future; therefore, at least eighty per- cent (80%) of the homesites in Lido Park must sign and return this lease by February 15, 1984, otherwise we'll have the option to cancel the Lease. We have worked very hard and have spent many hours on this Lease, and your Homeowners' Association has contributed greatly, so please take the time to read over the Lease carefully. We expect some of you will have questions; if so, please call Jim Cummo, the Park Manager. ( All Residents January 17, 1984 Page Three We respect and value all of you, and we're willing to make in the Leas e . both signed copies of the Lease back February 15, 1984. Your copy of the to you. we hope that's apparent by the commitments Please don't forget that we have to have in the Park Office by not later than Lease, signed by Lido Park, will be returned Sincerely, LIDO PARK