HomeMy WebLinkAbout15 - Commercial Marina Rental Rate ApproachCTY OF
F
NEWPORT BEACH
City Council Staff Report
July 28, 2015
Agenda Item No. 15
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Dave Kiff, City Manager — (949) 644 -3002, dkiff @newportbeachca.gov
PREPARED BY: Dave Kiff, City Manager
PHONE: (949) 644 -3002
TITLE: Commercial Marina Rental Rate Approach
ABSTRACT:
Council Member Muldoon asked previously that the Council consider changes to the 2012 actions that
increased rental rates for various commercial activities in Newport Harbor, especially commercial marinas.
This item updates the Council on staffs preliminary actions here.
RECOMMENDATION:
Receive and File.
FUNDING REQUIREMENTS:
Not required at this time.
DISCUSSION:
Following Council Member Muldoon's suggestion (and later approval by the full Council to consider
changes), staff has proceeded down the following path in preparation for reviewing and /or adjusting the
rental rates for tidelands used for commercial purposes, such as marinas:
1. We have frozen commercial rental rates at their current amount per square foot. 2015 -16 was to the
be the year when rates would gradually but significantly increase over the next seven years to what the
2012 City Council believed was an appropriate market rental rate.
2. We will consider the possible use of the State Lands Commission's (SLC's) Southern California
benchmark rate as a local factor in determining commercial use rental rates.
3. We have asked local appraiser George H. Jones to conduct a new appraisal of a generic commercial
tidelands property in Newport Harbor, and to offer his firm's opinion on the applicability of the SLC's
Southern California benchmark rate to commercial operations in Newport Harbor. This appraisal is
estimated to cost about $25,000 and is due back in September 2015.
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4. We have communicated this action with key stakeholders in the local commercial marina field.
5. We have informed the SLC staff of this approach.
6. We intend to return to the City Council with whatever information we have, including the appraisal
data, in fall 2015. At this time, Council will be asked to provide additional direction.
If Council has any questions or seeks further information about this approach, those questions and
comments are welcomed as this item is considered by the City Council.
ENVIRONMENTAL REVIEW:
This action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060
(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in
physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at
which the City Council considers the item).
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