HomeMy WebLinkAbout22 - Lido House Hotel Ground Lease - Supplemental ReportCITY OF
°� mz NEWPORT BEACH
City Council Staff Report
September 09, 2014
Agenda Item No. 22
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Community Development Department
Kimberly Brandt, AICP, Director
949 - 644 -3226, kbrandt @newportbeachca.gov
PREPARED BY: Kimberly Brandt, Director
TITLE: Ground Lease with Olson Real Estate Group, Inc., dba R.D. Olson
Development for the Former City Hall Property located at 3300
Newport Boulevard
SUPPLEMENTAL INFORMATION
To supplement the information contained in the staff report for this agenda item, please
note that Section 6.8 of the draft lease reflects that the California Coastal Commission
has instituted a program requiring developers of hotels to pay a "Lower Cost Overnight
Accommodations Mitigation Fee ". When and if applicable, the Coastal Commission
would impose this type of fee as a condition of approval in conjunction with their
approval of a Coastal Development Permit.
As a result, the lease states that if the Coastal Commission were to impose such a
condition on the Lido House Hotel project, the City is the responsible party for paying
the mitigation fee, up to a maximum amount of $975,000. The lessee, R.D. Olson,
would be responsible to pay any amount in excess of $975,000.
This would be a one -time mitigation fee payment, and the maximum to be paid by the
City is $975,000.