HomeMy WebLinkAboutG-8 - Promontory Bay - Severence Damage AppraisalCITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER
May 11, 1970
Item G-8
TO: MAYOR AND CITY COUNCIL
FROM: City Manager
SUBJECT: PROMONTORY BAY - SEVERANCE DAMAGE APPRAISAL
RECOMMENDATION:
It is recommended that the City Council retain the services of
Cedric A. White, Jr., M.A.I., to render an opinion on possible Balboa Yacht
Basin severance damages, at the rate of $35 per hour up to a maximum fee of
$1,000.
DISCUSSION:
At the April 27 meeting the City Council considered a proposal
from The Irvine Company for the development of Promontory Bay. Part of
the information considered by the City Council at this meeting was a report
from Cedric A. White, Jr., M.A.I., regarding his estimate of economic impact
which the proposed Promontory Bay development would have upon City -owned
property in Beacon Bay. It was Mr. White's opinion that:
"1. The market value of the entire City -owned property will
not diminish, and probably will increase, by reason of
the proposed Promontory Point Development.
2. The retail operators within the Balboa Yacht Basin will
not be benefitted by the development, and may suffer a
loss. These losses to the individual operators should
be limited and will be due to reduced drive -by trade.
Furthermore, these losses will be nominal when compared
to the substantial benefits to the entire City -owned
property by reason of improved privacy and residential
desirability."
At the conclusion of the public hearing the City Council referred
the development proposal back to the staff for further study and report.
One of the main problems left to be resolved is the extent of severance
damages which would befall the lessees of the Balboa Yacht Basin property.
2
In order to have a fuller understanding of the extent of severance damages
which may be experienced by each of the individual commercial operators in
the Balboa Yacht Basin, it will be necessary for the appraiser to gather
additional information in order to render such a refined opinion. Mr. White
has estimated that it will take approximately sixteen hours of additional
work to gather the necessary data to complete his appraisal of severance
damages, plus additional time devoted to meeting with City staff and/or the
City Council.
As the long range benefits to the City's Beacon Bay property will
likely far outweigh the additional nominal appraisal cost, it is recommended
that the City Council authorize the retention of Mr. White to perform the
necessary additional work at this time. A Budget Amendment to cover this
expense will be prepared for Council consideration at the May 25 meeting.
Anticipating that the Promontory Bay proposal will again be discussed at
public hearing proposed to be set for May 25, Mr. White will be prepared
to review his findings on severance damages at that time.
HARVEY L. HURLBURT
HLH:JPD:sr