HomeMy WebLinkAbout12 - Balboa Yacht Basin Office Lease AgreementBY THE CITY COUNCIL
CI IY OF NEWPORT BEACH
.JUL
To: Mayor and Members of the City Council '
From: Tim Riley, Fire and Marine Chief
Subject: Balboa Yacht Basin Office Lease Agreement
RECOMMENDATION:
OV
July 8, 1996
Council Agenda
Item 12
If desired, authorize the Mayor and City Clerk to execute the attached lease with Don
Ross, doing business as Sailk g Ei4c4 R-teY , a yacht -brokerage business.
DISCUSSION:
One of the properties in the Balboa Yacht Basin complex consists of 780 square feet of
office space. It comprises the second floor of a wood frame building which also
houses the Balboa Yacht Basin restrooms on the first floor. In the recent past it was
a sales office for a yacht brokerage. Our previous month-to-month tenancy was
terminated in April of 1996 due to the death of the tenant.
As required by Council Policy F-7, the City retained the services of Fuller and
Associates Real Estate Appraisers and Counselors to appraise the fair market rental
value of the property. The appraiser report was completed in April of 1996 and as a
result of that investigation and an analysis of matters pertinent to the property's
value, the appraisers concluded that the fair market rental value of the 780 square
feet of office space would be $1,350.00 per month on a full service gross basis.
The primary proposed lease terms and conditions are a one-year lease with five one-
year options at fair market rent. The Lessee must notify Lessor in writing of his
election to extend the lease at least 60 days prior to the expiration of the term of the
lease and execute a modification of the lease to increase the rent during the
extension to the current fair market rent. Lessor, at its sole discretion, will
determine the current fair market rent prior to extending the lease.
Taxes are to be paid by Lessor. Use of the premises is limited to a yacht sales and
brokerage; no other uses are permitted without written consent of Lessor. Repairs to
be made by Lessor. Utilities to be paid by Lessor. Insurance to be obtained by Lessee.
The remaining conditions of the lease are considered typical. The lease negotiation
was conducted by the Marine Environmental Division of the Fire and Marine
Department in conjunction with the City Manager's Office. The City Attorney's
office has reviewed the lease and approved it as to form.