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HomeMy WebLinkAbout01 - Residential Piers - CorrespondenceiLt9.�^ Information about Newport Island — Rent valuations for residential piers (November 20, 2012) From: ]amesBNetzerCalaol.com lmailto:JamesBNetzer(0aol.coml Sent: Tuesday, November 20, 2012 9:30 AM To: Kiff, Dave Cc: James13Netzer0)aol.com Subject: Re: Residential Pier Appraisal Question Dave, On the basis of my research the docks owners in Balboa Coves and around Newport Island that rent their docks get the same rent per lineal foot as those in other areas of the harbor. In general, they also have smaller tidelands area compared to other areas in the harbor. I did not find any market evidence to suggest that they should pay a lower rent per square foot due to the location. On an absolute basis they pay less rent because they generally have smaller tidelands. Regards, Jim Netzer From: Gary Rasmuson [ mailto :oarvCclrasmusonaooraisal.com] Sent: Tuesday, November 20, 2012 9:50 AM To: Kiff, Dave Subject: Re: Residential Pier Appraisal Question Dave, I don't think any adjustment to the rent rate on a rent/SF basis would be warranted. You are leasing tideland area for a residential pier, regardless of the size of the boat. The size of the pier area will be smaller in this area and if leased on a rent/SF basis, this would adjust to a lower rent than other larger piers in Newport Harbor. Gary Rasmuson, MAI, SPA Certified General Real Estate Appraiser Rasmuson Appraisal Services 7830 Westside Drive, #303 San Diego, CA 92108 Brown, Leilani From: Harp, Aaron Sent: Tuesday, November 20, 2012 2:05 PM To: Brown, Leilani Cc: Torres, Michael Subject: FW: City Considering Imposing Dock Tax on Residential Dock Owners? Begin forwarded message: From: "Jim Flaherty" <Jim@Jim- Flaherty.com> Date: November 20, 2012, 12:14:11 PM PST To: <CityCouncil a,newportbeachca.gov >, "Kiff, Dave" <DKiffa,newportbeachca.gov> Subject: City Considering Imposing Dock Tax on Residential Dock Owners? To Whom It May Concern - I just caught wind of this absurdity. It's not enough to tax Newport Harbor business owners to death, now it's time to pick on the residential dock owners? Because of your collective ineptitude in solving City budget problems, we the private dock owners in the harbor are supposed to step up and bail you out? This is an absurdity of the greatest length. I don't recall if City Manager is an elected position but we the people did not elect the City Council to tax us to death. At one time you were all "community members ". Oh what a power position can do to people. Congratulations, you're now in the "self- serving greedy politician" category... I will be attending every City Council meeting regarding this issue. I have alerted all my neighbors to this complete and utter nonsense. Expect a backlash like you've never seen before. Jim Flaherty Bayside Drive Corona Del Mar Brown, Leilani From: Harp, Aaron Sent: Tuesday, November 20, 2012 2:06 PM To: Brown, Leilani Cc: Torres, Michael Subject: FW: JC Comments For Private Pier Meeting Attachments: Questions.pdf From: John Corrough rmailto:jcorrouoh(alaol.com] Sent: Monday, November 19, 2012 12:39 PM To: Kiff, Dave Subject: JC Comments For Private Pier Meeting Dave: Here is an early copy of comments I will make /submit at today's workshop on Private Piers. Nothing new or earthshaking from what has been discussed before, except for #4 which CNB needs to take a good look at. Like the commercial guys, no everybody out here with a pier is a millionaire in cash terms and while paying one's fair share is appropriate, I think we all need to acknowledge that we are now paying for the past NB CC and staff "sleeping in the sun" with regard to the Harbor. One of my first questions to Norma Glover 16 years ago was "what is all this controversy about Tidelands, and why do we only pay $65 /year for a pier permit? I was advised by others in the room to keep quiet ..... and learn. John Corrough Brown, Leilani From: Harp, Aaron Sent: Tuesday, November 20, 2012 2:06 PM To: Brown, Leilani Cc: Torres, Michael Subject: FW: Residential Pier Workshop, 11/1 Begin forwarded message: From: Portcalypso(@aol.com Date: November 20, 2012, 12:24:28 PM PST To: MHenn(i�NewportBeachCa.gov, NGardner @NewportBeachCa.aov, lesheidai le c,aol.com, EdSelich(@roadrunner.com, rhill ,newportbeachca.eov, curryk(a,pfin.com, SRosansky(oNewportB eachCa. eov Cc: dkiff(cDcity.newport- beach.ca.us, gary a,mhsherman.com, tom(@curcicompanies.com, Newpobay (@sbcelobal.net, marina(@,1idonarkul ace. com, cannervt @earthlink.net, Terri .PCandMPmarinas(@,,yalioo.com, robinlombardoI 1(@gmail.com, rllounsburv(@,,msn.com, duffyRduffyboats.com, rtmccaffreya,yahoo.com, johnvallely ,me.com, rluehrs@newpor-tbeach.com Subject: Re: Residential Pier Workshop, 11/1 To: Mayor Gardner and Councilman Henn CC: Other Members of the Newport Beach City Council and Mr. Kiff Re: Residential Pier Workshop, 11/19/12 At the Workshop meeting yesterday afternoon we touched on the fact that, along with the new residential pier rate structure, the City is planning to propose that the NBMC be amended to make it legal for any residential pier owner to make commercial use of his /her slip(s) by renting it to a boat owner tenant. The explanation by Mr. Henn for this proposed change was that, for many years, even though it has been illegal to do, an unknown number of residential slip owners have been renting their residential slips while the City has never or, as corrected by counsel, almost never, enforced the code prohibiting this practice. And, therefore, it was reasoned that, since it is known that some of the 1200 private slip owners in the Harbor are currently ignoring the code, the City should solve this problem by amending the code to make the practice legal. In other words, if pier owners are breaking the law and we are unable or unwilling to control it, let's simply solve the noncompliance problem by making illegal, legal. Next, when asked if these residential slips converted to commercial slips would be charged the commercial marina tidelands rent of approximately $1.26 /sf.(approximate small marina rate when fully phased -in), rather than the $0.525/sf proposed.for private slips used by their owners, the answer was "No ". And, it was then pointed out that this disparity in rentlsf would obviously put the commercial slip operators at a significant competitive disadvantage with any of the 1200 private slip owners who decide to rent out their slips. A disadvantage, I must add, that is compounded by the fact that commercial marinas are charged on the basis of total sf of tidelands water and, as proposed, private slips will be charged on the basis of the total of dock and ramp sf plus the sf of a 10' so- called "Berthing area" around the dock. Using the General Example distributed at the Workshop meeting, a commercial marina utilizing the 3000 feet of total tidelands water space set forth in the City example would pay (at the small marina rate) a rental fee of $3,780/yr, while the private pier owner pays $872/yr for slip(s) located within 3000sf of tidelands water space ..... in effect, $1.26/sf for commercial and $0.29 for private slips being used commercially By any reasonable measure, this proposal, one that encourages private slip rentals with an illegal to legal code change and a tidelands rental rate effectively over 400% less that charged for commercial slip marinas, is extremely inequitable to the commercial marinas in the Harbor. And add to this that the typical private slip owner renting to a tenant does not and will not provide parking or the restroom facilities and trash disposal service required for commercial marina operations. I suggest that the easiest and most equitable solution is to leave the current NBMC code in place (it's reasonable to assume that there was and still are very good reasons that it was put in place and kept in place for alt these years) while strengthening it's enforcement with appropriate verbiage in the proposed Residential Tidelands Pier Permit. Certainly, this a more sensible approach to this issue than for the City to, in essence, encourage and reward commercial use of private slips without having any measure of control over their operation ..... in effect, allowing them to operate like an underground market below the radar of the governing authority. Alternatively, should the City decide to go ahead with the conversion from forbidden to encouraged, the rental charge for privately rented slips should be equal to that charged small commercial marinas; the charge should be based on total tidelands water space; the proposed pier permit should include verbiage that requires private slip rental agreements to be reported to the City; and, there should be penalties for any who do not report. Without these provisions, the City would be gifting public funds while giving up important safeguards that are required of commercial operations. Thank you for listening. Respectfully, Jim Parker Port Calypso Marina Brown, Leilani From: Torres, Michael Sent: Tuesday, November 20, 2012 2:17 PM To: Harp, Aaron; Brown, Leilani Subject: FW: Question on property taxes -- From: Kiff, Dave Sent: Tuesday, November 20, 2012 2:10 PM To: 'Jeff @newportsecurities.com' Cc: Torres, Michael Subject: RE: Question on property taxes -- Dear Mr. Kilpatrick— Thanks for your e-mail. I appreciate it. Please know that this is a hard issue for all of us to deal with — we all dislike it. If you have property right that extends into the water, or have some ownership of the land beneath the water, that's something we would look at now or as we develop your permit (potentially a minimal fee permit versus one that charges rent). I stated in the workshop yesterday that the City cannot, should not, and will not charge rent for something we don't own. If you would like to pass along any specific information /paperwork to us, please do so. Assistant City Attorney Michael Torres (cc -d here) will likely help us look at that. Thanks again for your e-mail and I hope you have a good Thanksgiving. Dave From: Jeffrey Kilpatrick [ mailto :Jeff(olnewoortsecurities.com] Sent: Tuesday, November 20, 2012 10:28 AM To: Kiff, Dave Subject: Question on property taxes -- City Manager Mr. Dave Kiff From: Jeffrey Kilpatrick- phone 951- 704 -4111 Hi Dave, I read the story in the paper on the dock tax issue. I have talked to the fellow on the island that is in opposition to the proposed "fee" on private docks— Here is what I don't understand— My family owns a home at 217 E. Edgewater Ave. —and has since the 1960's - -- We own two parcels at that address—one parcel for the land under the home and one for the land under our pier and the deed covers the land under the pier out past the end of the pier. We have been paying property taxes on both these parcels for all these decades while I believe many of the other private piers in the bay are built over tideland or land owned by the public. These pier owners have not paid property taxes separately from their homes as we have been doing decade after decade. In fact —their piers are not much different than the moorings in the bay —both of which are over public land and both are required to maintain their own boat docking equipment or pier— but the pier owners are not paying any fees for use of the tidelands under their boats while the mooring leases come with monthly costs. I was told back a year ago that piers like ours —that is built over land that we "own" and which we have a deed for and which we pay property taxes on every single year would not be subject to this new proposed private pier fee that is under discussion. In fact —I'm not sure why we are being assessed the current $100 or so yearly fee on piers as again our pier is built over land we own and which we pay property taxes on every year. The property tax also assesses the value of the pier structure as well. I look forward to your thoughts on this question for owners of piers built over privately owned and deeded land. Best Regards, Jeff Kilpatrick Brown, Leilani From: Harp, Aaron Sent: Tuesday, November 20, 2012 8:01 AM To: Brown, Leilani Cc: Torres, Michael Subject: FW: JC Comments For Private Pier Meeting Attachments: Questions.pdf From: John Corrough fmailto:icorrough(aaol.com] Sent: Monday, November 19, 2012 12:39 PM To: Kiff, Dave Subject: IC Comments For Private Pier Meeting Dave: Here is an early copy of comments I will make /submit at today's workshop on Private Piers. Nothing new or earthshaking from what has been discussed before, except for #4 which CNB needs to take a good look at. Like the commercial guys, no everybody out here with a pier is a millionaire in cash terms and while paying one's fair share is appropriate, I think we all need to acknowledge that we are now paying for the past NB CC and staff "sleeping in the sun" with regard to the Harbor. One of my first questions to Norma Glover 16 years ago was "what is all this controversy about Tidelands, and why do we only pay $65 /year for a pier permit? I was advised by others in the room to keep quiet ..... and learn. John Corrough Questions- Proposed CNB Tidelands Process /Rents For Residential Piers City Hall Meeting/Workshop November 19, 2012 I am speaking on behalf of the Mary Fortner Corrough Trust, owner and permittee of he 1004 South Bayfront portion of the pier and dock location shared with neighbors at 1002 South Bayfront on Balboa Island for over 80 years. We have four questions and related observations applicable to private piers harbor -wide which we believe the City of Newport Beach should answer: 1. Can private residential docks be given the same permit option as the commercial docks, as an alternative to a lease, including a flat fee as currently and historically done, rather than a psf lease rate? 2. How will the City determine the actual owner /lessee /permittee tidelands water and dock /pier areas located over an intensively -used intertidal public beach and hand - launch watercraft /shore moorings area like that surrounding Balboa Island ? Pier owner /TL lessee / permittee use of the floating dock and pier as well as public beach access are limited by beach slope and tidal levels affecting navigability, beach access and launch on a significant portion of the Balboa Island Bulkhead to Pierhead Tidelands area, and elsewhere in similar situations. 3. How will the City proportionately divide the Tidelands Areas and rents for two adjacent properties with a shared pier? Our pier, dock and water areas are symmetrically divided on each side of a shared property line extending down the centerline of the shared pier. Others are asymmetrical or have other complications which will require many unique harbor solutions for City staff to legally document, calculate and track. 4. What would be the lease start rate and assumed ramp -up period of 5+ years to a target rate and year and are the City -cited $0.50/$0.55 psf hypothetical rates proposed start rates or target rates? A careful review of the residential portions of the two appraisals prepared for the City indicates that the 2011 SLC Southern California Benchmark Rent Rate for their average private pier example was $0.33 which, inflated to 2012 ,would be approximately $0.34. We have noted with interest the retiree budgets through decades -past negligent City harbor management. John & Mary Corrough ,1004 South Bayfront, Newport Beach, CA 92662 Brown, Leilani From: Harp, Aaron Sent: Tuesday, November 20, 2012 8:02 AM To: Brown, Leilani Cc: Torres, Michael Subject: FW: After attending the workshop on Dock Tax/Fees /Rents I now realize what the rush is and why it being called Rent. For public record. From: Harp, Aaron Sent: Tuesday, November 20, 2012 7:44 AM To: 'emmettconrecode @gmail.com' Cc: Dept - City Council; Kiff, Dave; Torres, Michael Subject: RE: After attending the workshop on Dock Tax /Fees /Rents I now realize what the rush is and why it being called Rent. Good Morning Mr. Conrecode, The City Council has forwarded your email to me for response. A public entity, like the state and City, may not lose title to or any interest in property through adverse possession. (See, Civil Code Section 1007.) Please let me know if you have any questions. Thank you. Aaron C. Harp City Attorney City of Newport Beach 3300 Newport Blvd. Newport Beach, CA, 92658 Phone: (949) 644 -3131 Fax: (949) 644-3139 Email: aharp @newportbeachca.aov CONFIDENTIALITY NOTICE: The information in this e-mail message is intended for the, confidential use of the addressees only. The information is subject to the attorney - client privilege and /or may be attorney work - product. Recipients should not file copies of this e-mail with publicly accessible records. If you are not an addressee or an authorized agent responsible for delivering this e-mail to a designated addressee, you have received this e-mail in error, and any further review, dissemination distribution, copying or forwarding of this e-mail is strictly prohibited. Moreover, such inadvertent disclosure shall not compromise or waive the attorney - client privilege as to this communication. If you received this e-mail in error, please notify us immediately at (949) 644 -3131. Thank you. From: Emmett Conrecode <emmettconrecode(u)a , em ail. com> Date: November 20, 2012 1:57:02 AM PST To: < CityCouncil (cdnewportbeachca.gov> Cc: Doug Iler <dilcr c,ilerlawtnoup.com> Subject: After attending the workshop on Dock Tax/Fees /Rents I now realize what the rush is and why it being called Rent. "Evidence that a squatter paid rent to the owner would defeat adverse possession for that period." http: / /en.wikipedia.org/wiki /Adverse possession The City and State have never maintained the wet lands Adjacent property owners with docks assumed that responsibility. Maintained and continuously possessed those lands. Under California Law we have Adverse Possession Ownership Rights aka Squatters Rights. Therefore no rents are due to the city or state, but once we pay "Rent" we lose those ownership rights. Please advise me where I'm wrong in my legal theory. As a Landlord I know. Charging a simple fee (dock fee) does not maintain property rights unless the property is maintained and rights and responsibilities of that land are exercised. Neither the State or City have ever met those responsibility of the Tidal Zones of Newport Beach, therefor I believe the property rights belong to those that have possessed and maintained those lands. Thanks in advance, Emmett Conrecode Brown, Leilani From: Linda Klein [Ikleinl4 @me.com] Sent: Thursday, November 15, 2012 4:50 PM To: Kiff, Dave Cc: Curry, Keith; Daigle, Leslie; Nancy Gardner; Hill, Rush; Michael Henn; Rosansky, Steven; Kiff, Dave; Selich, Edward; Brown, Leilani Subject: Totally Unacceptable! Dear City Leaders and Staff Members, As a business person involved in real estate in the past, I have seen what it takes to create a full range of attractive opportunities and choices when launching a development project. The effort and outreach is simply not being made by Newport Beach to produce a powerful array of options for an upscale hotel on the city hall site. Where is your passion for the success and potential of this amazing city? You are failing to do the job you have promised to do. Let's stop the foot dragging and get moving to produce quality options that will create a permanent and beautiful legacy for the Peninsula area of Newport Beach. There is no excuse for producing anything less than a spectacular result in this city that is known around the world as extraordinary. The bay and beaches are the priceless and powerful essence of Newport. Your lackluster effort is squandering this pivotal time in the future of the Peninsula. I look forward to hearing the results of a quality effort to attract an outstanding developer for this crucial project Linda Klein