HomeMy WebLinkAbout89-110 - Rental Rates for Commercial TidelandsRESOLUTION NO. 89 -110
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH INCREASING THE RENTAL RATE
FOR TIDELANDS USED FOR COMMERCIAL PURPOSES.
WHEREAS, the State of California has granted the City of
Newport Beach certain tidelands located in the Lower Bay; and
WHEREAS, the City is empowered to lease, and authorize the
construction of improvements over, tidelands so long as the
property is used in a manner consistent with the public trust
imposed on those lands; and
WHEREAS, the City incurs costs and expenses in maintaining
records relative to piers and structures on the harbor, conducting
periodic inspections and enforcing relevant laws and regulations,
as well as accounting to the State for all such revenues; and
WHEREAS, the City is required, pursuant to provisions of
the Constitution and State law, to appraise the value of
tidelands used for commercial purposes and charge an annual rent
equal to the fair market rental value of the property; and
WHEREAS, the City has commissioned an appraisal of
commercial tidelands in Lower Newport: Bay, and the appraiser has
concluded that the range of annual fair rental value is between 19
cents and 22 cents per square foot of tidelands within a permit
zone; and
WHEREAS, the City Council has determined that 22 cents per
square foot is an appropriate annual rental for tidelands, that
• the proposed rental rate is consistent with constitutional and
statutory requirements, and the rental rate should be increased or
decreased each year to reflect changes in the CPI.
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NOW THEREFORE, BE IT RESOLVEI) THAT Sub - Section 12B of the
Harbor Permit Policies (Council Policy H -1) is hereby amended, and
Sub - Section C is added, to read as follows:
B. PIER FEES. Annual pier fees are due and payable on 1
March in accordance with the following schedule:
• 1. Non - Commercial piers - $50.
2. Commercial piers - Not over City Tide and
Submerged Lands - $20 base fee plus the
following sums for additional slips and /or
floats:
a. Not more than 10 slips or floats - $2 each.
b. Not more than 20 slips or floats - $20 plus
$1.00 for each slip or float in excess of
10.
C. More than 20 slips or floats - $30 plus 50
cents for each slip or float in excess of
20.
3. Commercial piers over City Tide and Submerged
Lands - Fee is included in rental rate imposed
pursuant to Sub - Section C.
C. ANNUAL RENTAL.
1. Permittees having commercial piers over City
Tide and Submerged I:,ands shall, for 1990, pay an
annual rent of $.22 per square foot of permit
area (base rental).
2. Annual rent shall be paid on or before March 1.
3. The Base Rental shall be adjusted annually to
reflect the increase or decrease in Consumer
Price Index (CPI) for the twelve month period
commencing December 1, 1989 and ending November
• 30, 1990, and each twelve month period
thereafter. The CFII (all urban consumers, all
items) for the Los Angeles -Long Beach- Anaheim
California area as published and released by the
Bureau of Statistics for the U.S. Department of
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Labor shall be the index utilized for
calculating the rental adjustment.
4. The base rental shall be recalculated every ten
years pursuant to an appraisal commissioned by
the City of Newport Beach. In determining the
value of tide and submereged lands, the
appraiser shall consider the fact that
commercial use of publicly owned tidelands is
economically feasible only in conjunction with
privately owned uplands.
5. All appraisals shall be conducted by an MAI
appraiser(s) with membership in the American
Institute of Real Estate Appraisers and
experience in assessing the value of tidelands.
6. The provision of this Sub - Section shall not
apply to tidelands subject to a written lease
requiring the payment of rent based on gross
receipts.
ADOPTED this 25th day of September , 1989.
ATTEST:
City Clerk
9/18/89
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