HomeMy WebLinkAboutSS7 - Correspondence - Letter From the Beacon Bay Community Association,
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June 6, 1986
Mayor Philip R . Maurer
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA 92663
Dear Mayor Maurer:
Real Estate Development and Investment.
STUDY SESSION AGENDA NO. 7
On behalf of the Beacon Bay Community Association, I would like
to request that you bring before the City Council study session
on Monday, June 23rd, our community•s desire to have the City
Council form a study committee to examine with members of our
community he hardships that the current option to lease which we
have with the city has placed on the homeowners. The reduction
in mar etability of homes in Beacon Bay caused by this lease
agreement has also diminished considerably the profitability of
the Beacon Bay lease to the City of Newport Beach .
We would like to pursue with said City Council study committee
the mutual benefit which may be derived by both the cit y and
Beacon Bay residents by recommending to the voters in the
November 1987 elections the approval of a lease beyond he 25
year period on terms to be mutually agreed upon.
Thank you for your kind consideration of our request.
Sincerely,
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Dani e l M. Guggenheim
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cc: De nni s D. O'Neil
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4665 MacArthur Court, Su it e 275 • Newport Beach, Cal iforn ia 92660 • (714) 85 1-211 6
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STUDY SESSION NO. 6
CITY OF NEWPORT BEA CH
March 17, 1986
Mr. Arthur V. Strock
Strock Architects
3300 Irvine Avenue,
Newport Beach, CA
Dear Mr. Strock:
Suite 312
92660
644-3000
Thank you for your letter of March 14th concerning a number
of items impacting the Beacon Bay leases. The purpose of
this letter is to provide you with a response which it should
be emphasized are my comments only. This item has not been
discussed or reviewed with the . City Council, who would be
the final body to pass judgment on your request.
First, the lease term was twenty-five years from July 1, 1981.
While there is a difference of opinion there are some in
the City that interpret our Charter as limiting the City to
a maximum of a twenty-five year lease. Others believe that
the City can enter into a fifty year lease if the original
lease preceded the date of the Charter. If the twenty-five
year period opinion prevails,.and over the last twenty-five
years the City has only approved and entered into twenty-five
year leases, this section would take precedence over the state
law which is quoted in your letter as permitting a lease of
fifty years. You may wish to review Section 420 and 421 of the
City Charter which speaks to the authority of the City of lease
property.
It is my opinion, but as explained above only the City Council
can ultimately decide, that the current City Council would not
consider a fifty year lease for Beacon Bay. I would be happy
to discuss this concept with you further if you desire . Further-
more, inasmuch as the current lease is only five years old
and, therefore, has twenty years remaining on its life, the
City would be reluctant to enter into new lease negotiations .
The current lease provides for rent adjustments whenever
there is a sale in Beacon Bay . This adjustment was considered
to be equitable and is still believed to be equitable under
the circumstances. Normally, the City commences lease negotia -
tions when there is only ten to twelve years remaining on the
lease.
City Hall • 3300 Newport Boulevard, N~wport Beach, California 92663
Page -2-
Again, the above are my thoughts on the subject matter . If
you desire a formal position or opinion from the City, you
will have to request this of the City Council. If you have
any questions, give me a call.
S~erely, .
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ROBERT L. WYNN
City Manager