HomeMy WebLinkAbout13 - American Legion Lease Agreement0
ITEM 13
TO: Members of the Newport Beach City Council
FROM: Dave Kiff, Deputy City Manager
SUBJECT: Extension of Lease Agreement with American Legion Post 291
ACTION:
Authorize the Mayor to enter into a 16t Lease Amendment that extends the
current operating lease with the American Legion Post 291 for the marina and
clubhouse at 21515th Street for one year.
EXECUTIVE American Legion Post 291 has operated a clubhouse and 50 -slip marina with dry
SUMMARY: dock spaces at 21515th Street since September 2,1940. The current lease -
entered into on March 10, 1975 -- expires on March 15, 2000, the same date at
which the leases at the Girl Scout Hut and the Marinapark mobile home leases
(also on the same City property) expire.
Because the State Lands Commission has not yet opined as to the appropriate
tidelands boundary associated with the City's property between 15th and 18th
Street, the City Manager asks that the Council offer the Legion a one -year
extension of the current lease. If so authorized, the City and the Legion will
extend this lease via the 1a Lease Amendment to the current lease.
BACKGROUND: American Legion Post 291's history in Newport Beach dates back to January
1924, when Newport-area veterans from the Santa Ana Post decided to break off
and form their own structure in Newport Beach. Post 291 raised money for the
purchase of a permanent meeting site by holding Sunday dances at the Balboa
Pavilion in the 1920s. Later it purchased a bayside site on 10th Street.
When road improvements impacted the 10th Street site, the City and the Legion
signed a lease for the 21515th Street site on September 2,1940. Construction of
the current meeting hall began in 1949. The 1940 Lease was later extended in
February 1951 and again in March 1975.
The premises under lease includes:
• a clubhouse and bar
• shower and restroom facilities
• 34 boat lockers
. 47 dry storage spaces
• a 62 space parking lot
• 50 wet slips
• A hoist dock
• 43 racks for dinghy storage
Newport Beach City Council
BACKGROUND:
(cont'd)
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The current lease includes the following stipulations -the American Legion
must:
• Use the premises for Legion purposes.
• Not discriminate in its operations.
• Allow the City and the community to use the facilities when not in use by
the Legion.
• Maintain the building, parking lot, marina, slips, and landscaping at the
Legions expense.
• Keep insurance levels at $200 -500K (injury) and $50,000 (property damage).
• Keep complete books.
• Allow the City to inspect records.
• Provide an annual audit to the City.
• Pay rent in the amount of:
- $300 /month plus
100% of parking lot revenues from 26 spaces plus
40% of gross marina slip rental revenue plus
50% of gross revenues from dry storage areas and lockers
This rent schedule generates about $105,000 a year to the City.
Given the uncertainty over the tidelands vs. uplands status of the City's
property between 15th Street and 18th Street, the City Manager has asked the
Legion to agree to a one -year extension of the 1975 Lease under the same
terms. This agenda item asks the Council to authorize the Mayor to enter into
this extension via a lease amendment.
ATTACHMENTS: First Lease Amendment
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Attachment A
1St LEASE AMENDMENT
to the 1975 Lease between the City of Newport Beach
and the American Legion Post 291 (Newport Harbor)
This First Lease Amendment, made and entered into this _ day of
,1999, by and between the City of Newport Beach, a chartered
municipal corporation ("CITY ") and Newport Harbor Post 291 of the American
Legion ("LEGION ") is as follows:
WHEREAS, Legion has operated a marina and clubhouse at 21515th
Street in Newport Beach since September 1940 and
WHEREAS, City owns or holds in trust the property associated with the
clubhouse and marina and has leased the premises to Legion under a lease
executed March 10, 1975 ("1975 Lease") and
WHEREAS, the 1975 Lease will expire on March 15, 2000; and
O WHEREAS, City and Legion desire to extend the 1975 Lease under
identical terms for the period of one (1) year from the March 15, 2000 lease
expiration date and
WHEREAS, this one (1) year extension shall cause the 1975 Lease to
expire on March 15, 2001.
NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING
RECITALS AND THE MUTUAL COVENANTS set forth below, City and
Legion hereby agree to execute the First Amendment to the 1975 Lease (Exhibit
A) as follows:
II. TERM
... The term of this lease will commence on March 15,1975 and expire on
March 15,20N 2001.
IN WITNESS THEREOF, the parties hereto have executed this Lease
Amendment as of the day and year first above written.
ATTEST:
LaVonne Harkless, City Clerk
CITY OF NEWPORT BEACH
Dennis D. O'Neil, Mayor
AMERICAN LEGION POST 291
Paul Curtis, Commander
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