HomeMy WebLinkAbout22 - Planning Process for the Future Use of MarinaparkOF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 22
January 11, 2005
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Homer L. Bludau, City Manager, hbludau @city.newport- beach.ca.us
Robin Clauson, City Attorney, rclauson @city.newport- beach.ca.us
SUBJECT: PLANNING PROCESS FOR FUTURE USE OF MARINA PARK
ISSUES:
1. What process should the City use to determine the future use of the Marina Park
property?
2. What process should the City Council use to resolve the tideland boundary issue
on the property and address the potential closure of the mobile home park?
RECOMMENDATIONS:
1. Adopt a Resolution Establishing the City Council /Citizens Ad Hoc Committee for
Marina Park Planning, and appoint members.
2. Adopt a Resolution Establishing the City Council Ad Hoc Marina Park
Committee, and appoint members.
DISCUSSION:
At the meeting of November 9, 2004, the City Council called for a discussion on the
planning process to be used to determine the future use of Marina Park. This report
discusses some possible approaches to planning, and provides a summary of
background information on the property that will provide an important context to
whatever planning process the City Council ultimately decides to implement.
Planning Process:
In requesting this agenda item, the City Council asked that staff develop a public
process to be used in planning for the future of Marina Park. In staffs experience,
some of the City's more successful projects have been completed when the planning
process has been steered by a committee of City Council, commission and /or citizen
committee members, along with staff support. Some examples are the Zoning Code
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January 11, 2005
Page 2
update and the Coastal Land Use Plan. This kind of collaboration allows for staff to do
technical work, Council, commission and committee members to provide policy
direction, and the public to follow and participate in the process at open meetings of the
committee.
Given the level of interest in the Marina Park property from a wide range of community
interest groups, staff thinks a broader committee and a more formalized public outreach
process would be appropriate. Staff is suggesting a City Council /Citizens Ad Hoc
Committee with the following composition.
• 3 City Council members
• 3 members of the public
• 2 Harbor Commissioners
• 2 Planning Commissioners
• 1 Parks, Beaches and Recreation Commissioner
• 1 General Plan Advisory Committee member
The committee would be charged with developing goals and planning guidelines,
gathering and considering technical information, researching successful projects on
similar properties, gathering public input, and developing possible future use alternative
scenarios. Regular reporting to the City Council would be part of the committee's
charge. After future use scenarios are presented to the City Council, staff envisions a
community meeting to hear the public's reaction to the scenarios before the Council
decides on a direction for future use of the property. Staff has prepared a Resolution
establishing this committee, attached as Exhibit 1.
As discussed in the background sections below, the City has gathered a lot of
information on Marina Park over the years. The Marina Park property has some
complex issues which need to be addressed as a part of any decision on future usages.
Understanding the context of this property should assist in the ultimate use decision.
Staff also considered the alternative of having the future use of Marina Park addressed
as part of the comprehensive General Plan update, and using GPAC as the citizen
committee. We are not recommending this approach because we feel that: 1) the City
Council and the interested community is looking for a special focus on Marina Park; 2)
because the General Plan update and the GPAC have many other issues to resolve;
and 3) because the General Plan Update Committee has recommended that Marina
Park be removed from the General Plan special study areas so it can be addressed on
its own.
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Future Direction for Marina Park
January 11, 2005
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Background Information:
The following questions and answers provide some of the basic information that the
proposed committees will need to consider in the planning process.
What options does the City have relative to the "tidelands" designation of a portion of
the property?
The City and the State Lands Commission (SLC) staff have had, for more than 5 years,
periodic discussions with respect to the location of the tideland boundary bayward of
the Marina Park property. SLC staff has taken the position that (a) meander surveys
conducted in the late 1800's confirm that approximately 70% of the site, and virtually all
of the property occupied by the mobile homes, is tidelands; and (b) even if the meander
surveys are not accurate, a substantial portion of the site is subject to the trust because
tideland assets - dredge spoils - were placed on the site in the 1910's or 1920's. The
SLC staff strongly believes, and case law confirms, that permanent residential use is
not consistent with the tidelands trust restrictions, which limit the use of tidelands to
commerce, fisheries and navigation. If the City Council decides that an effort should be
made to preserve the mobile home park, they have the following options:
1. Litigate the location of the tideland boundary by filing a declaratory relief
action in the Superior Court;
2. Seek a boundary line agreement that designate as uplands a specific
percentage of the site equal to the area occupied by the mobile home
park and the remainder as tidelands. SLC staff believes that
approximately 70% of the site is tidelands and the agreement would have
to overcome current position that any agreement cannot allow a
residential use to occupy a majority of the bay front; or
3. Seek legislation that removes trust use restrictions for a defined period of
time, with the expectation the SLC staff and the legislature would, at a
minimum, require all revenue from the site to be placed in the tidelands
fund, establish restrictions on the use of the revenue (and potentially
require some of the revenue to go to the SLC for administration), and the
site to be made conforming - residential uses removed - at a given point in
time in a similar manner as the Beacon Bay Legislation.
Unless the City anticipates a future use for the property that is consistent with tidelands
trust restrictions, staff believes the City should work with the SLC, and decide on an
approach to resolve the tideland boundary issue. We are recommending that the City
Council appoint by resolution the three members on the Committee to work with staff
on this issue, A Resolution establishing this committee is attached as Exhibit 2.
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What constraints does the City Charter place on future use and lease of the property?
Charter Section 1402 Water -front Property states, in part,
The City Council shall not sell or convey any water -front or beach
property, excepting to the State or to the County for use as a public beach
or park.
Notwithstanding any other provision of this Charter, the City Council
shall have the authority to lease City -owned property, including tide and
submerged lands so long as the lease is limited to the term permitted by
State law...
There shall be reserved forever to the people the use of a strip of bay
front land above mean high tide not less than eighty -five feet in depth of
the city -owned water front property bounded on the west by the
southeasterly line of Nineteenth Street and bounded on the east by a line
parallel thereto lying 349.90 feet northwesterly of the northwesterly line of
Fifteenth Street, said frontage to be bay front frontage.
This Charter provision is equally important to the tideland boundary issue in
determining future use of the property, and should be among the items
addressed by the City Council committee recommended above.
What are the closure procedures if the CitV Council should determine that the Marina
Park mobile homes should be removed and the use of the propertV changed?
The Mobile Home Residency Law, Civil Code Section 798.56 ( "MRL ") contains the bulk of
the notice requirements to convert a mobile home park to another use. It provides that, to
terminate a tenancy due to a conversion of the park, the "management' must follow
notice procedures in subdivision (g), which are as follows:
1. Fifteen (15) days notice to the homeowners that... "the management will be
appearing before a local governmental board... to request permits for a
change of use of the mobile home park
2. Six (6) months written notice of termination of tenancy after all required
permits to change the use have been approved; or, if no permits are
required, twelve (12) months notice prior to determination that the change in
use of the park will occur;
3. Notice to all proposed new homeowners prior to a new tenancy that a
change in use has been requested and /or granted; and
4. If a change in use actually occurs, sixty (60) days notice of termination.
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In addition to the notice requirements prior to conversion of a mobile home park to
another use, Government Code Section 65863.7 requires a report, "on the impact of the
conversion, closure or cessation of use upon the displaced residents of the mobile home
park to be converted or closed... the report shall address the availability of adequate
replacement housing in mobile home parks and relocation costs." This requirement is
applicable to the City under subsection (i), which reads as follows:
This section is applicable when the closure, cessation, or change of use is
the result of a decision by a local governmental entity or planning agency
not to renew a conditional use permit or a zoning variance under which the
mobile home park has operated, or as a result of any other zoning or
planning decision, action, or inaction. In this case, the local governmental
agency is the person proposing the change in use for the purposes of
preparing the impact report required by this section and is required to take
steps to mitigate the adverse impact of the change as may be required in
subdivision (e).
The applicability of these procedures depends largely on what the City Council decides
with regard to the future use for the Marina Park property. If the City Council
determines that the mobile home park is not an appropriate use, prior to deciding on a
new use for the property and therefore without the need for permit approvals, the City
could begin the closure process under the 12 month notice provision. In the alternative,
the City Council could decide to allow for continued occupancy by the mobile home
tenants for an additional term until a new use is identified. The permit requirements of
the new use would then determine the required noticing.
Staff is suggesting that the City Council ad hoc committee studying the tideland issue
also work with the staff to review and recommend to the City Council a legally
appropriate process for closure of the mobile home park, if the mobile home park is not
contained in the future use plan.
How is the property used today?
The Marina Park property owned by the City, shown on Exhibit 3, is located on the
Balboa Peninsula, between Newport Bay and Balboa Boulevard and between 18th and
15th Streets. It is approximately 9.8 acres in size and has 924 feet of bay front beach.
The following uses occupy the site today
Public Beach & 18th St. sailing base 1.28 acres
Las Arenas Park and tennis courts 1.69 acres
Girl Scout House and Community Center .55 acre
American Legion Post 291 1.35 acres
Veteran's Park .42 acre
Marina Park Mobile home Park 4.27 acres
Public parking .25 acre
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City Facilities
The City does not have data on use of the public beach other than its use for the City's
summer day camp program two days a week. The 10 Street sailing base is used for
City sponsored sailing classes and camps, with 2,160 participants annually, as well as
storage of Sabots for the program. The tennis courts also are used for City sponsored
lessons and camps, with over 1,100 participants annually, in addition to their use by the
general public. The playground at Las Arenas Park is used for the City's tiny tots
program as well as by the general public.
The Community Center is used for City programs year- round. These programs include
yoga, tappercize, fencing and sailing classes, the tiny tots program and summer day
camp, with a total of over 2,600 participants annually. In addition, the Balboa Power
Squadron uses the facility two nights a week.
Girl Scout House
The 3,500 square foot Girl Scout House was constructed by the Girl Scout Council as a
term of their original lease in 1947. It is used five afternoons and evenings a week,
year- round, for troop meetings with attendance of approximately 16,000. It is also used
nearly every weekend of the year for overnight stays, and every day during the summer
for camp, with annual participation of nearly 1,400 girls.
American Legion
The American Legion has a post building of 10,000 square feet, a marina that can
accommodate up to 46 boats, and 26 parking spaces, located along the bay front at the
eastern (15th Street) end of the property. These improvements were constructed by the
Legion. In addition to Legion and yacht club activities, the facility is rented out for
private parties and made available for community meetings.
Mobile Home Park
The mobile home park has 58 spaces. Twenty -four are occupied by full -time residents
(including the City's property manager) and 32 by part-time residents. The City is
holding two spaces vacant.
What are the current lease provisions and revenue from the property?
City Facilities
The City charges participants in all of its programs. The fees are intended to recover
the City's costs of providing services, and are not a source of net revenue. The Balboa
Power Squadron has a lease for their use of the Community Center, and currently pays
the City $1,935 per year.
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Girl Scout House
The Girl Scout Council pays $1.00 per year for their use of City property. Their
improvements on the property will revert to the City upon termination of the lease.
American Legion
The City and the Legion entered into a new lease agreement effective January 1, 2003.
It has a term of 25 years with provision for one extension of 25 years. Base rent is
$96,000, and percentage rent is 20% of hall rental, 40% of marina, 50% of boat storage
and 100% of parking revenue. Rent is to be adjusted every five years by the greater of
10 %, or 75% of the increase in CPI. In fiscal year 2003 -04, the Legion paid
$112,635.69 in rent.
Mobile Home Park
The current rental agreement was approved by the City Council in January 2003, and
includes the fair market rental amounts that took effect September 1, 2002. These
rental amounts provide the City with annual revenue of about $800,000 (net of our
management fee to Bendetti Property Management). This rental agreement has a
single one -year term, with no options. Unlike rental agreements starting in 1985, the
current one has no provisions for limited rental increases or waiver of relocation
benefits when the City converts Marina Park to a public recreational use. Individual
space leases expire at various times throughout the year.
What uses are allowed under the existing General Plan. Zoning-Code and Local
Coastal Program (LCP) Land Use Plan?
General Plan
The Land Use Element designates Marina Park for Recreational and Environmental
Open Space. This use designation is described as follows.
This land use category has been applied to land used or proposed for
open space of both a public and private nature. Some areas which carry
this designation are special use open space which are included due to the
particular nature of the geographic land form, including beaches, bluffs,
canyons and Newport Bay uplands. These areas provide for active or
passive open space use, depending on the nature of the area. Other
areas designated for open space can be used for a wide range of public
and /or private open space uses, including parks (both active and passive),
wildlife refuges, -golf courses,__ncht clubs, marina support facilities
aquatic facilities, tennis courts, private recreation facilities, drainage
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January 11, 2005
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courses, interpretive centers, greenbelts and landscaped areas.
(Emphasis added to show uses allowed.)
Marina Park also has a specific area description in the Land Use Element, which states,
This site is located on the bay front between 18th Street and 15th Street. It
is designated for Recreational and Environmental Open Space, and is
proposed to be ultimately used for aquatic facilities, expanded beach and
community facilities such as the existing American Legion. The existing
mobile home park use will be allowed to continue until the end of the
existing lease. At that time the City will make the decision as to whether the
lease should be further extended, or the property converted to public use."
The Recreation and Open Space Element of the General Plan also addresses Marina
Park. It is contained in the section of the element describing Planned Facilities, as
follows.
This site is located on the bay front between 18th Street and 15th Street. It
is designated for Recreational and Environmental Open Space, and is
proposed to be ultimately used for aquatic facilities, expanded beach and
community facilities such as the existing American Legion. The existing
mobile home park use will be allowed to continue until the end of the
existing lease. At that time the City will make the decision as to whether the
lease should be further extended, or the property converted to public use."
Local Coastal Program, Land Use Plan
The existing LCP also designates Marina Park for "Recreational and Environmental
Open Space." The use designation is described in the LCP the same as in the Land
Use Element. The specific area description is similar to that contained in the Land Use
Element, and reads as follows.
This site is located on the bay front between 18th Street and 15th Street. It
is designated for Recreational and Environmental Open Space, and is
proposed to be ultimately used for aquatic facilities, expanded beach and
community facilities such as the existing American Legion. The existing
mobile home park use will be allowed to continue until the end of the
existing lease. At that time the City will make the decision as to whether the
lease should be further extended, or the property converted to public use.
The City shall maintain and improve, where practical, public access to the
site bayward of the Marina Park mobile homes."
The Draft Coastal Land Use Plan does not contain any specific references to Marina
Park, but designates the property as Open Space (OS). This use is described as
follows.
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The OS designation is intended to provide areas for a range of public and
private uses to meet the recreation and open space needs of the
community and to protect, maintain, and enhance the community's natural
resources."
Zoning
Marina Park is Zoned PC (Planned Community). No planned community district
regulations or development plan has been approved for the site. Uses established prior
to the application of the PC district to any property are allowed to continue as legal,
non - conforming uses. Marina Park was zoned PC in 1997.
What aolicy guidance is provided in the existing General Plan and Local Coastal
Program (LCP)?
The Land Use Element includes twelve general development policies, none of which
relates specifically to Marina Park. The Harbor and Bay Element does not contain any
specific discussion of Marina Park; however, given the property's bay front location, there
may be a variety of policies in this element which could become applicable, depending on
the use of the property.
Local Coastal Program, Land Use Plan
The existing LCP has specific policies relating to public property leaseholds. The focus
of these policies is on public access to the ocean, beach and bay and to the provision
of coastal- dependent uses adjacent to the water; consistency of the proposed use with
the public interest; obtaining fair market value for the land; and use of lease revenues
for maintenance, visitor - generated services and acquisition of coastal properties to
provide uses consistent with the Coastal Act (e.g., small boat launching,
environmentally sensitive habitat areas).
In addition to restating the existing LCP policies on leaseholds, the draft CLUP contains
policies for open space and tidelands /submerged lands, as follows:
• Continue to use public beaches for public recreation uses and prohibit
commercial uses on beaches that interfere with public access and
enjoyment of coastal resources.
• Continue to designate lands to provide visitor- serving and recreational
facilities and view parks on or adjacent to the shoreline.
• Continue to administer the use if tidelands and submerged lands in a
manner consistent with the tidelands trust.
Finally, there is a wide variety of policies in the draft CLUP that could apply, depending
on the use under consideration, given Marina Park's bay front location.
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Future Direction for Marina Park
January 11, 2005
Page 10
What is the revenue potential of the property?
1997 City Studies
In 1997, as leases on the Marina Park property were approaching the end of their
terms, the City undertook studies to determine the revenue potential of the property.
This was done pursuant to City Council policy F -7 (Exhibit 4). This policy provides that,
whenever a lease on income property is being considered by the City, an analysis shall
be conducted to determine the maximum or open market value of the property, and the
City shall seek revenue at that level unless specific findings are made. These findings
address issues such as tidelands restrictions, the cost of redevelopment,
recompensable liabilities or inequities for long -term residents of residential property,
essential or unique service to the community, and the promotion of other City goals
such as affordable housing, preservation of open space or marine related services.
The first study was a "Report on Recommended Tideland Boundary" by Boundaries
Unlimited. This study concluded that the meander line shown on Exhibit 2 should be
considered the tidelands boundary.
The City then retained Keyser Marston Associates (KMA) to prepare a revenue study.
KMA's study assumed the recommended tidelands boundary, and therefore assumed
that residential use would be allowed only on the uplands portion along Balboa
Boulevard. KMA estimated revenue for three scenarios.
1. Baseline, with all existing uses remaining and paying fair market rents.
Net annual revenues were estimated at $1 million.
2. Partial Reconstruction, with the mobile home park replaced by an 85 -room hotel
and restaurant and all other existing uses remaining.
Net annual revenues were estimated at $694,000 from the land and $1 million
total.
3. Major Redevelopment, with the American Legion remaining (but the City taking
over operation of the marina), the remaining tidelands portion being developed
with a hotel, restaurant and open space, and the uplands being developed with
ownership housing.
Net annual revenues were estimated at $1 million from the land and $1.4 million
total, making this the highest value scenario.
During the City Council's consideration of the KMA study, Stewart Berkshire presented
an offer from the mobile home park residents to pay fair market rents, which he
indicated would generate annual revenue of approximately $1 million.
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Future Direction for Marina Park
January 11, 2005
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Marina Park Resort and Community Plan Fiscal Impact Report
As part of the information made available to the public for the November 2004 vote on
this proposal, in July 2004 the City had a fiscal impact report prepared by Applied
Development Economics, the firm doing the fiscal impact analysis for our General Plan
update. This analysis concluded that the proposed 110 -room hotel and restaurant
would generate revenue of $1.7 million from the land and $2.1 million total. This
proposed development did not affect the American Legion; the addition of their annual
revenue of $112,635 would make the total $2.2 million.
Staff also has a revised proposal from Stewart Berkshire on behalf of the mobile home
park tenants, also dated July 2004, which he indicates would generate annual revenue
of approximately $1.5 million.
What water quality issues need to be addressed in determining future use of the
Property?
Marina Park is adjacent to Lower Newport Bay, which is subject to several
comprehensive regulations (known as Total Maximum Daily Loads or "TMDLs ")
adopted under the federal Clean Water Act by the US Environmental Protection Agency
(US EPA) to reduce or eliminate impairments to the Bay's beneficial uses, like
swimming, kayaking, and habitat for marine life and wildlife. These impairments are
sediment, nutrients, fecal coliform bacteria and toxic pollutants. The Marina Park area
is tested weekly by the Orange County Health Care Agency and does not have a
problem with fecal coliform bacteria, but the Bay as a whole does. The Rhine Channel
area, just to the northwest of Marina Park, has sediment which is significantly
contaminated by heavy metals and PCBs.
Because of these impairments, new land uses at Marina Park will be expected to
comply with the most recent requirements of the City's National Pollutant Discharge
Elimination System (NPDES) Permit for Municipal Separate Storm Sewer Systems
(MS4s). These requirements must be comprehensively addressed within a Water
Quality Management Plan for the site that describes:
1. How the new land use will incorporate Best Management Practices (BMPs) that
minimize the use of water on -site, that minimize polluted water running off the
site, and that collect and treat water from certain "first flush" rain events;
2. How runoff will be minimized or eliminated during construction via BMPs; and
3. How the constructed facilities will be monitored in the long -term to ensure that
they continue to function as planned to protect water quality.
Future Direction for Marina Park
January 11, 2005
Page 12
What public agency review and permitting would be required for future use of the
property?
Any new development at Marina Park (including a park) will be expected to undergo
review by various resource - related agencies, as well as the City of Newport Beach.
These agencies will include the following:
1. US National Marine Fisheries Service (NMFS) - eelgrass.
2. US Fish and Wildlife Service (USFWS) — eelgrass and endangered or listed
species.
3. California Department of Fish and Game (DFG) — marine and bird life,
streambed alteration.
4. California Coastal Commission (CCC) — Coastal Development Permit.
5. California State Lands Commission (SLC) — approval of use and lease on
tidelands portion.
6. US Army Corps of Engineers (Corps) - Section 404 permit for any filling of
waterways (e.g., for a marina) or development that impacts waterways.
7. California Regional Water Quality Control Board, Santa Ana Region - impacts to
wetlands review of Water Quality Management Plan,
8. City of Newport Beach — environmental review, and amendments to the General
Plan, Local Coastal Program and zoning.
Public Notice:
This item was included on the City Council agenda posted per the Brown Act Open
Meetings Law.
Submitted by:
VI/ �1r�
kw�lomer L. Bludau Robin Clauson
City Manager City Attorney
Attachments: 1. Resolution Establishing City Council /Citizens Ad Hoc Committee for Marina Park
Planning
2. Resolution Establishing City Council Ad Hoc Marina Park Advisory Committee
3. Map of Marina Park
4. City Council Policy F -7
9.
RESOLUTION NO. 2005-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH ESTABLISHING THE CITY COUNCIL/CITIZENS AD HOC
COMMITTEE FOR MARINA PARK PLANNING
WHEREAS, the City of Newport Beach owns the property located on the
Balboa Peninsula between Newport Bay and Balboa Boulevard and between 18th
and 15th Streets, commonly known as Marina Park; and
WHEREAS, the City Council of the City of Newport Beach desires to plan
for the future use of said property in accordance with State and local laws; and
WHEREAS, the City Council recognizes the importance of the Marina
Park property to the community and the variety of community needs and desires
that could be met with proper planning for future use of the property; and
WHEREAS, the City Council wishes to establish an open, public planning
process;
NOW, THEREFORE, the City Council of the City of Newport Beach
hereby resolves as follows:
SECTION 1. ESTABLISHMENT
The City Council /Citizens Ad Hoc Committee for Marina Park Planning
(Committee) shall be established as of the date this Resolution is approved by
four members of the City Council voting at a duly noticed meeting of the City
Council.
SECTION 2. DUTIES
The Committee shall have the following duties:
a) Develop goals for future use of the Marina Park property and guidelines
for the planning process.
b) Gather and consider technical information related to the property,
including, but not limited to, State "tidelands" restrictions, General Plan
and Local Coastal Program policies, Zoning regulations, Coastal Act
policies, and water quality regulations.
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c) Gather and consider information related to the needs of Newport Beach
for parks and recreation facilities, boating facilities, and revenue to the
General and Tidelands Funds.
d) Research similar properties and identify successful examples of public
waterfront property development.
e) Develop a plan for gaining public input on future use of the property.
f) Develop possible future use scenarios for consideration by the City
Council.
SECTION 3. COMPOSITION
The Committee shall consist of the following members appointed by, and serving
at the pleasure of, the Mayor:
a) Three (3) City Council members
b) Three (3) members of the public
c) Two (2) Harbor Commissioners
d) Two (2) Planning Commissioners
e) One (1) Parks, Beaches and Recreation Commissioner
f) One (1) General Plan Advisory Committee member
SECTION 4 TERM
The term of the Committee shall expire at such time as the Committee transmits
possible future use scenarios for consideration by the City Council. The City
Council shall review the progress of and continuing need for the Committee one
year after the date it is first established.
ADOPTED this 111" day of January, 2005.
ATTEST:
City Clerk
Mayor
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RESOLUTION NO. 2005-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH ESTABLISHING THE CITY COUNCIL
AD HOC MARINA PARK ADVISORY COMMITTEE
WHEREAS, the City of Newport Beach owns the property located on the
Balboa Peninsula between Newport Bay and Balboa Boulevard and between 18th
and 15th Streets, commonly known as Marina Park; and
WHEREAS, the City Council of the City of Newport Beach desires to plan
for the future use of Marina Park in accordance with State and local laws; and
WHEREAS, a portion of Marina Park may be considered State "tidelands"
and, as a result, may be subject to certain land use restrictions; and
WHEREAS, the location of a tideland boundary bayward of Marina Park
has not been established; and
WHEREAS, a portion of Marina Park property currently is used for a
mobile home park, which use may not be appropriate if that portion of the
property is designated as tidelands; and
NOW, THEREFORE, the City Council of the City of Newport Beach
hereby resolves as follows:
SECTION 1. ESTABLISHMENT
The City Council Ad Hoc Marina Park Advisory Committee (Committee) shall be
established as of the date this Resolution is approved by four members of the
City Council voting at a duly noticed meeting of the City Council.
SECTION 2. DUTIES
The Committee shall have the following duties:
1. In conjunction with City staff and consultants, to work with the State
Lands Commission in an effort to establish a mutually agreeable tideland
boundary and to resolve issues related to land use restrictions pursuant to
agreement or legislation;
2. Supplemental to the discussions with the State Lands Commission,
to discuss with the City Attorney and staff issues related to the closure of the
mobile home park;
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3. To submit progress reports and any appropriate recommendations
to the City Council if and when appropriate.
SECTION 3.
The Committee shall consist of three members of the City Council appointed by,
and serving at the pleasure of, the Mayor.
SECTION 3. TERM
The term of the Committee shall expire at such time as the Committee's final
recommendations are presented to and considered by the City Council but in no
event later than one year after the date the Committee is first established.
ADOPTED this 11th day of January, 2005.
ATTEST:
City Clerk
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Mayor
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Exhibit 4
F -7
INCOME PROPERTY
The City owns and manages an extensive and valuable assortment of property
including streets, parks, beaches, public buildings and service facilities. The City also
owns and operates a yacht basin, a mobile home park, a luxury residential development
and various other income properties. Most of the income property is tidelands, filled
tidelands or waterfront. Unencumbered fee value of income property is estimated at
upwards of one hundred million dollars, and income typically contributes ten percent
of all City revenues.
As owner of property, the City is the steward of a public trust, and state law requires
the City to maximize its returns or be subject to a charge of making a gift of public
funds. Nevertheless, the City Council recognizes the importance of this property not
only as a revenue generator, but also as a means to provide otherwise unfeasible uses
and facilities to benefit the community.
In managing its property, the City will continually evaluate the potential of all City
owned property to produce revenue. This may include leasing unused land, renting
vacant space, and establishing concessions in recreation areas or other similar
techniques. The City Council will evaluate the appropriateness of establishing new
income properties using sound business principals and after receiving input from
neighbors and users.
The policy of the City Council is that income property be managed in accordance with
the following:
A. Whenever a lease, management contract, concession, sale or similar action
regarding income property is considered by the City, an analysis shall be
conducted to determine the maximum or open market value of the property.
This analysis shall be conducted using appraisals or other techniques to
determine the highest and best use of the property and the highest value of the
property.
B. All negotiations regarding the lease, management contract, concession, sale or
similar action regarding income property shall include review of an appraisal or
analysis of the use being considered for the property conducted by a reputable
and independent professional appraiser, real estate consultant or business
consultant.
1
M
F -7
C. The City shall seek, whenever practical and financially advantageous, to operate
or manage all property and facilities directly with City staff or contractors.
D. In all negotiations regarding the lease, management contract, concession, sale or
similar. action regarding a non - residential income property, the City shall seek
revenue equivalent to the open market value of the highest and best use; and,
whenever possible the City shall conduct an open bid or proposal process to
insure the highest financial return.
E. Whenever less than the open market or appraised value is received or when an
open bid process is not conducted, the City shall make specific findings setting
forth the reasons thereof.
Such findings may include but need not be limited to the following:
1. The City is prevented by tideland grants, Coastal Commission guidelines
or other restrictions from selling the property or converting it to another
use.
2. Redevelopment of the property would require excessive time, resources
and costs which would outweigh other financial benefits.
3. Converting the property to another use or changing the manager,
concessionaire or lessee of the property would result in excessive vacancy,
relocation or severance costs, which would outweigh other financial
benefits.
4. Converting residential property to another use or opening residential
leases to competitive bid would create recompensable liabilities and other
inequities for long -term residents.
5. The property provides an essential or unique service to the community
that might not otherwise be provided were full market value of the
property be required.
6. The property serves to promote other goals of the City such as affordable
housing, preservation of open space or marine related services.
VA
11-1
F -7
F. Generally, lengths of leases, management contracts, concessions or similar
agreements will be limited to the minimum necessary to meet market standards
and will contain appropriate reappraisal and inflation protection provisions.
Also, all agreements shall contain provisions to assure complete audits
periodically through their terms.
G. All negotiations regarding the lease, management contract, concession, sale or
similar action regarding income property shall be conducted by the City
Manager or his designee under the direction of any appropriate City committees
prior to consideration by the City Council.
H. To provide an accurate accounting of actual net revenues generated by the City's
income property, all costs and charges directly attributable to the management of
a specific income property shall be debited against the gross revenues collected
on that property in the fiscal year the costs are incurred. Costs and charges
include property repairs and maintenance, property appraisals, and consultant
fees, as authorized by the City Council, City Manager or by this Income Property
Policy.
Adopted - July 27,1992
Amended - January 24,1994
Amended - February 27,1995
Amended - February 24,1997
Amended - May 26,1998
Formerly F -24
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"RECEIVED AFTER AGENDA
®RI', ED:" "I- 1 I /1) I
C.5
;.- r Yl
Tom Billings
Protect Our Parks
PO Box 1414 '05 JM; 10 P 1 :54
Newport Beach, CA 92659
OF F'` E '' ! :iT t CLERKS
January 10, 2005
Mayor Steve Bromberg
City Hall
3300 Newport Blvd.
Newport Beach, CA 92663
Dear Mayor Bromberg,
I gratefully acknowledge the invitation to be on the ad hoc committee for Marinapark. I
respectfully decline due to current business and personal commitments that include special needs
for a family member, recent election to a position in my church and my ongoing business
commitments.
My hope is that the council will recognize the clear expression of two - thirds of the voters for the
preservation of Marinapark as a park and against its commercialization, and that this City Council
will appoint a fair number of representatives to the ad hoc committee who support park
preservation. You might wish to consider the following individuals from the community:
Joe O'Hora 949- 673 -8844
John Buttolph 949 - 955 -2033
Jan Vandersloot 949 -548 -6326
Craig Rager 949 - 697 -5212
Craig Morissette 714- 816 -9018
Sincerely,
Tom Billings
Cc: Councilmembers:
Leslie Daigle
John Heffernan
Richard Nichols
Tod Ridgeway
Steve Rosansky
Don Webb
P
Suggested Members To
AD HOC COMMITTEE - Marinapark
City Council (3)
Heffernan
Webb
One Additional
Community (6)
Joe O'Hora
John Buttolph
Craig Rager
Jan Vandersloot
Craig Morissette
Chris Harano
Harbors Commission (1)
Seymour Beek or Duffy Duffield
Parks. Beaches & Recreation (1)
Planning Commission (1)
Mike Toerge