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HomeMy WebLinkAbout20 - McFadden Place Farmers Market AgreementCITY OF NEWPORT BEACH COMMUNITY AND ECONOMIC Hearing Date: DEVELOPMENT ., PLANNING DEPARTMENT Agenda Item No.: a 3300 NEWPORT BOULEVARD Staff Person: NEWPORT BEACH, CA 92658 (949) 644 -3200; FAX (949) 644 -3250 REPORT TO THE MAYOR AND CITY COUNCIL PROJECT: Renewal of McFadden Place Farmers Market Agreement May 9, 2000 20 Daniel R. Trimble (949) 644 -3230 SUGGESTED ACTION: 1. Approve First Amendment to the Encroachment Agreement, which allows for annual renewal by the City Manager for up to three one year terms. 2. Review the current monthly lease amount, and a. Reduce the monthly lease payment to $130 year round, or b. Reduce the monthly lease payment to $130 during from November to February only, or c. Make no change to the monthly lease amount Background On July 22, 1996 the City Council approved an encroachment agreement with the Orange County Farm Bureau to hold a Certified Farmers Market each Tuesday morning in the portion of the McFadden Place Parking Lot adjacent to Balboa Boulevard. In April 1999, the Orange County Farm Bureau notified the City that they were closing the market. Subsequently, Mr. Larry Nedeau the former market manager for the OCFB, requested and received approval to reopen the market as an independent operator. In October 1999, Staff conducted a six - month review as part of the conditions of approval and submitted a report to the City Council. Community & Merchant Suoaort Early after the opening of the Farmers Market on July 30, 1996, there were periodic phone inquiries and complaints by nearby merchants. In 1997, petitions were circulated and signed by sixteen merchants and employees requesting the removal of the Farmers Market due to parking demand in the summer. Summer is also the peak season for fruits and vegetables sold at the Market. To address the conflict during the peak summer season, the Farmers Market now opens and closes one hour earlier — summer hours are 8:00 a.m. to noon, and non -peak hours are 9:00 a.m. to 1:00 p.m. The Farmers Market must be taken down and off the premises one hour after closing. No complaints, parking or otherwise, were filed during the summers of 1998 or 1999. McFadden Place Farmers Market Renewal May 9, 2000 Page 1 During the 1997 renewal process, customer petitions also circulated in support of the Farmers Market at the present location, with 517 unverified signatures. There were also several phone calls of support received by local residents and a few by local merchants. Most of the calls of support heralded the Farmers Market as a community event bringing together peninsula residents. Staff had also received several calls for community members inquiring why the market was closed during the April 1999 management transfer from the OCFB to Mr. Nedeau. Lease Amount Staff has received a request from Mr. Nedeau that his lease payments be reduced from the current $330 per month to the same amount currently paid by the Corona del mar Farmer's Market of $130 per month. If there is not agreement for a year round reduction, then Mr. Nedeau has suggested an alternative of a lower lease amount of $130 during the slower autumn and winter months from October to February. This would mean that the lease payment, which is based roughly on the revenue the City forgoes by having the market operate in the City parking lot, would be more in line with lower parking demand during the off season. Analysis Mr. Nedeau has operated the Farmers Market for several years now. Although there have been occasional issues that staff has had to raise with either Mr. Nedeau or the Orange County Farm Bureau, the market currently operates as a relatively passive commercial use and requires minimal regulatory enforcement. Community and merchant support still appears to be in favor of the market remaining open. Staff does have some concern about the long -term viability of the market considering the reduced demand during off season and believes that the request for a lower lease amount is appropriate to ensure the continued operation of this community benefit. For these reasons staff is recommending that the Amendment to the Encroachment Agreement be approved permitting annual renewal by the City manager for up to three one year terms and that the lease amount be reduced to $130 year round. Submitted by: SHARON Z. WOOD Assistant Prepared by: DANIEL R. TRIMBLE Associate Planner Attachments: Amendment to the Encroachment Agreement Letter from Mr. Nedeau F:\ Usm\PLMShuedTRMRSMK\MCFMCFFMRENE W 2000.doc Page 2 April 14, 2000 Mayor John Noyes City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92658 Dear Mr. Mayor: I have operated the McFadden Farmer's Market for the last four years both as an employee of the Orange County Farm Bureau and most recently as an independent operator. I am also one of the vendors at the market in Corona del Mar. During that time I have had the pleasure of meeting and serving many Newport Beach residents and merchants each and every Tuesday and Saturday morning. The reason for my letter today is to formally request a reduction in the market's monthly lease payment to $130, which I believe is the amount the City charges the market in Corona del Mar. Although, the market does reasonably well during the summer, it has struggled to make ends meet during the late fall and winter. Even a lower payment during the slower months would be a great help. I appreciate the opportunity to continue serving the City and its resident's and look forward to your consideration of my request. Sincerely Z7�( Larry Nedeau Market Operator, McFadden Farmer's Market 20 Cabrillo Newport Beach, CA 92663 AMENDMENT TO ENCROACHMENT AGREEMENT THIS Amendment is made and entered into by and between the CITY OF NEWPORT BEACH, hereinafter "City" and LAWRENCE NEDEAU, hereinafter " Permittee" to amend that certain Encroachment Agreement between the parties dated May 26, 1999. RECITALS A. Section 5 of the Encroachment Agreement allows for the extension of the Agreement for two (2) additional one (1) year terms. AGREEMENT NOW THEREFORE the parties wish to amend the Encroachment Agreement as follows: The Encroachment Agreement is hereby extended for one (1) additional one (1) year tern, through and including May 8, 2001. The parties have executed and approved this amendment to Agreement effective as of the date written below. Dated: , 2000 Permittee LAWRENCE NEDEAU Dated: , 2000 City of Newport Beach HOMER BLUDAU Approved as to form: ROBIN L. CLAUSON Assistant City Attorney F: \Uwn\PLN\.Shmd\FRMRSM K\MCF�AMEND2000M CF.dw