HomeMy WebLinkAboutH-8e - Beacon Bay Residential Lease,
November 24, 1980 NOV 24 1980
gy the CITY COUNCIL
CITY, o!! M*"^T A Woo
TO: MAYOR AND CITY COUNCIL
FROM; Beacon Bay Lease Committee
SUBJECT: BEACON BAY RESIDENTIAL LEASE
HISTORY
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COUNCIL AGENDA NO, 4J/
On May 8, 1978, the City Council unanimously adopted Resolution 9330,
re- establishing the Beacon Bay Lease Committee and appointed Mayor Paul Ryckoff,
Councilman Paul Hummel, the City Manager, and City Attorney as this City's rep-
resentatives to the Committee. The Beacon Bay Homeowners' Association ap-
pointed Mr. Barclay Ardell, Mr. Tasker Forbes, and Mr. Tom Viola, as their
representatives. The Resolution concluded by requiring the Committee to report
back to the full City Council on or before May 1, 1980. On November 12, 1979,.
the Committee submitted a report and suggested lease documents to the City
Council. After thorough discussion, the City Council unanimously approved the
report which gave tentative approval to the lease documents, authorized an
appraisal to determine fair market rental value of.the lots with_Beacon Bay,
and reserved final action on the lease documents until the appraisal is ap-
proved. On January 8, 1980, George Hamilton Jones, M.A.I. was retained by the
City to establish fair market value on the subject property. On April 28, 1980,
the City Council appointed Councilman Philip R. Maurer, Councilman Paul Hummel,
and the City Manager as this City's representatives to the Committee. On Novem-
ber 12, 1980, the appraisal was delivered to the City.
It may be of general benefit to relate the recent history of Beacon
Bay. As members of the Council realize, Beacon Bay is situated on the souther-
ly side of Harbor Island Drive and the newly created Promontory .Bay Develop-
ment. There are three lots which are situated on the westerly side of Harbor
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Island Road with the balance of the parcels on the east side of Harbor Island
Road. The subject land is subdivided into 73 residential lots of which 28
are bayfront, 45 are interior home sites, and one being utilized for recreation-
al use. The shape of the lots are irregular, but generally they are from 40
to 50 feet in width and from 90 to 100 feet in length. Attached, you will find
a copy of a map showing the Beacon Bay property.
The land, vested in the City of Newport.Beach, is under a 37 -year
lease to J. A. Beek, et al, which was entered into on January 9, 1950 and is
to expire on December 31, 1987. The individual lots are under sublease by
J. A. Beek, et al to various owners with a common expiration.date with the
master lease. Structural improvements range from five to thirty years of
age and are both one and two stories. All lots are presently improved.
Twenty -two of the bayfront lots are completely or partially tidelands, and
twelve interior lots are completely or partially tidelands. The attached map
shows the mean high tide line dividing the tidelands from the uplands lots.
For approximately ten years, the City has been receiving requests
from the subject lessees for a renewal of the lease which is to expire in
1987. The City had been unable to enter into meaningful dialogue with either
the master lessee (J. A. Beek, et al) or the sub - lessees because.of the exist-
ence of tidelands. Simply stated, before meaningful negotiations could be
commenced, the question of residential use on tidelands had to be addressed.
Assemblyman Ronald Cordova's Bill, AB 1422, was introduced in 1977 and.was
signed into law the first part of 1978 by Governor Brown. This bill, in
essence, removed certain trust provisions permitting residential use on tide-
lands in exchange for a parcel of property that could "enhance" tideland use
elsewhere in the bay. While the "other" parcel has not been finalized, the
tentative effort is to utilize the approximate six acres of property adjacent
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to Irvine Avenue and Monte Vista in West Bay acquired by the City as a
result of the Sea Island subdivision.
On June 7, 1979, a letter was sent to the State Lands Division
requesting its review of the approximately six acre parcel. Furthermore, the
letter requested a determination of the State Lands Division as to whether
this parcel would satisfy the conditions of AB 1422. Initial contact with
the Department of Fish and Game indicates satisfaction with the parcel.
Even though the State Lands Commission has not formally replied,::it is be-
lieved the City can continue with the Beacon Bay Lease question. If a defin-
itive answer is not received from the State Lands Commission and.Beacon Bay
is re- leased, the proceeds could be placed in escrow until a determination is
finally made.
DISCUSSION
As indicated above, the City Council on.November 12, 1979, gave con-
ceputal or tentative approval to the lease documents and reserved final review
and action on these documents pending establishment of fair market rental
value.. This lease, therefore, will return to the City Council for final action .
and thorough review, but for information the basic tenets -of the lease documents
are as follows:
1. The City agrees to re -lease directly to the sub - lessees the
individual residential parcels within Beacon Bay for an ad-
ditional twenty -five year period.
2. The lease will be in two stages: the first stage shall commence
when approved by the City Council and will terminate on December
31, 1987, (termination of the J. A. Beek et al lease);.the second
stage will commence on January 1, 1988 and terminate on January 1,
2004.
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3. During the first stage (present to 1987), the City would re-
ceive fair market rental value for each parcel as determined
by an appraisal of each parcel minus the amount to be paid to
J. A. Beek, et al. During the second stage, the City would re-
ceive fair market rental value.
4. The fair market rental value is determined by appraisal of the
property. If the lessee disagrees with the City appraiser,
he /she may obtain an evaluation from an appraiser of his /her
choice.. If the two values vary by five percent or less, the
determination of value shall be averaged. If the two determina-
tions vary by more than five percent, the two appraisers shall
appoint a mutually acceptable third appraiser who shall make such
determination and the parties agree to be bound thereby.
5. The City Council shall set "an effective date" in which the sub -
lessees are to sign the new agreement. If a lessee signs an
agreement on or before the appointed effective date, the lessee
shall pay to City the fair market rental value minus payments to
J. A. Beek, et al immediately, but the -rent will not be re-
adjusted. until 1996. If a proposed lessee does not re -lease on
or before the effective date, the lessee shall continue to pay
current rental payments to J. A. Beek, et al with no direct pay-
mehts to the City until January 1, 1988, at which time their
rent will be determined by an appraisal as of January:l, 1988,
with a further readjustment in 1996. It is believed by the Com-
mittee that the documents should provide an incentive for current
lessees to re —lease the property on or before the "effective date.
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At the present time yearly leases cost from $181.90 per lot
to a high of $793.76. The City receives but one -third of these
amounts. Unless an incentive is provided, current lessees will
permit the J. A. Beek, et al.lease to expire and renew with the
City in 1988. Fair market value is significantly greater than
that currently paid by lessees. The City would, therefore, receive
considerable revenue if current lessees are motivated to sign on
or before the "effective date" within the lease documents. The
Committee believes the incentive is to forego a rent adjustment
in January 1, 1988. This provision provided the greatest challenge
to the Committee and consumed.the greatest amount of time during
Committee meetings. A number of alternatives were considered to
encourage current lessees to sign on or before the effective date:
Penalties assessed by the City were considered, but eliminated
when examined by the legal participants in the discussion.
6. The lessees may sell, assign, or exchange their leasehold interest
without prior written consent of the City provided that the new
lessee shall agree with all terms of the lease documents.
7. The leased land shall be used solely for residential purposes and
appurtenant uses.
8. Lessee shall pay all general and special.taxes on subject parcels.
9. Maintenance of streets, beaches, walkways, tennis courts, docks,
piers, and common landscaped areas, shall be the respons,ibili.ty
of the Homeowners' Association. The City shall not be obligated
to make any repairs or improvements or provide maintenance to
facilities or structures in Beacon Bay.
Page six
10. Each lessee agrees to become and remain a member in good
standing of the Beacon Bay Community Association.
11. Each lessee agrees to abide by the CC &R's of the subdivision.
12. If any lessee fails to comply with the terms of the lease
documents, the City may at its option and without further notice
or demand, terminate the lease and enter upon the leased land
and take possession thereof.
APPRAISAL DOCUMENT
The appraisal documents
in nature, but may be reviewed in
parcel a fair rental market value
lot will not be given in this rep
follows:
consists of 112 pages, much of it technical
the City Manager's office. On.each lot or..
is established.. An itemized.value for each
)rt, but total value characteristics are as.
1) Total current annual rent paid by sub - lessees, of
which the City receives one - third
2) Total annual fair market value as establi.shed by
the appraisal
3) Total annual value established by the appraisal on.
property designated as.tidelands
4) Total annual value as established by the appraisal
on property designated as uplands
5) Total annual value as established by appraisal on
all bay front lots
6) Total annual.value.as established by.appraisal on
all interior lots
$ 34,991.44
424,711.18
234,874.99
189,836.19
262,275.36
162,435.82
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RECOMMENDATION.
Inasmuch as the proposed leasing documents permits the sub- lessees,
represented by the Homeowners' Association, to review the appraisal establish-
ing fair market value, the appraisal should, therefore, be referred to the
Homeowners' Association for review. Additionally, the appraisal should be
submitted to the State Lands Division for their review and determination as
to the adequacy of the appraisal. It is, therefore, recommended that 1) the
appraisal be submitted to representatives of the Homeowners.' Association of
Beacon Bay for their review and approval; and 2) the appraisal be submitted
to representatives of the State.Lands Division for their review and approval.
Once the appraisal document has been reviewed and approved.as
provided above, all documents, including the appraisal, reports, and lease
agreements, will be presented to the City Council for final review, modification,
and /or approval.
Respectfully submitted,
BEACON BAY LEASE COMMITTEE
By: RO RT L. WYNN
Attachment
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{.EASE Of 4MNTED. T1VtLAHU 5. j . Ftti OWN D UPLA D5 J.A. WK ET. U
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•
L E A S E
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THIS LEASE, made and entered into January 9th, 1950,
by and between the CITY OF NEWPORT BEACH, a Municipal Corporation
of the State of California of the Sixth Class, hereinafter called
Lessor, and J. A. BEEK, CARROLL B. BEEK, BARTON BEEK AND JOSEPH
ALLEN BEEK, JR. (in eaual shares), of the said City of Newport
Beach, hereinafter jointly called Lessee.
W'�I TNESSE TH
In consideration of the payment of the rents and the
performance of the covenants herein by Lessee at the times and
in the manner herein set forth, Lessor does hereby lease to Les-
see the property in Orange County, California., hereinafter des-
cribed, owned by Lessor and containing an aggregate of approximat
ly 19 acres, for iI'ieo "term ofriirty- ®ghJ'j fears,egii?�:
January lst', 1950, and ending'December'31st'- 1997,7 "upon the cov-
enants and for the rentals as follows:
Said 19 acres owned by Lessor are in part tidelands and
submerged lands granted to the Lessor by the State of California,
and the remainder uplands owned by Lessor abutting on said tide-
lands.
The "Westerly Portion" of said 19 acres hereby leased is
agreed, for the purpose of this lease, to contain twelve acres,
and said "Westerly Portion" is described as follows:
A parcel of land situated in the Northwest quarter
of Section 35, Township 6 South, Range 10 West,
S. B. B. & M., Orange County, California, more par -
ticularly described as follows, to -wit:
Beginning at the U. S. Bulkhead Station No. 200, as
shown upon a map entitled "Harbor Lines, Newport Bay
Harbor, California ", approved May 2nd, 1936, by the
Secretary of War and on file in the office of the
United States District Engineer at Los Angeles, Cal-
ifornia; running thence West along the U. S. Bulk-
head line 147.50 feet to U. S. Station No. 137;
thence North 390 481 West along said Bulkhead line
535.53 feet; thence North 230 57' 30" East 126.34
feet to an angle point in the ordinary high tide
line of the Pacific Ocean in Newport Bay, as de-
scribed in Court Case No. 24,026 of the Superior
Court bf the State of California, in and for the
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t. •
County of Orange; thence South 3390 48' East along
said ordinary high tide line 334.47 feet to the
most Westerly corner of that certain parcel of
land conveyed to the City of Newport Beach by the
Irvine Company, as described in deed recorded .
September 25th, 1929, in Book 306, page 375 of
Official Records of Orange County, California;
thence North 230 57' 30" East along the Northwest-
erly line of said parcel of land 317.57 feet;
thence South 710 54' East along the Northerly line
of said parcel of land 290.24 feet; thence South
850 43' East along the Northerly line of said par-
cel of land, said Northerly line being the South-
erly line of Bayside Drive, 606.01 feet; thence
South 424.71 feet to a point in the U. S. Govt.
Bulkhead Line between U. S. Stations Nos. 101 and
200; thence West along said Bulkhead line 754.25
feet to the point of beginning; containing approx-
imately twelve (12) acres.
In the judgment of the governing body of Lessor, the use
of said "Westerly Portion" for industrial uses is and will be
inimical to the best interest of such City of Newport Beach, and
therefore said "Westerly Portion" is hereby leased for said term
for residential purposes, and for said "Westerly Portion" Lessee
shall and hereby agrees to pay to Lessor an annual rental for
the first thirteen years of said term of $600.00 cash plus five
per cent of all sums Lessee shall receive from the use of said
"Westerly Portion", or any part thereof, from whatsoever source,
including all sums received from all sub - tenants, it being agreed
that said percentage shall be of the gross and not of the net re-
turns, and that such annual rental shall be due on January 15th
of each of said years begInning January 15th, 1951, and ending'
January 15th, 1963-
The "Easterly Portion" of said 19 acres hereby leased
is agreed, for the purpose of this lease, to contain seven acres,
and said "Easterly Portion" is described as follows:
A parcel of land situated in the Northwest quarter
of Section 35,.Township 6 South, Range 10 West,
S. B. B. & M., Orange County, California, more par-
ticularly described as follows, to -wit:
Beginning at a point in the U. S. Bulkhead Hine be-
tween Station No. 200 and Station No. 101, as shown
upon a map entitled "Harbor Lines„ Newport Bay
Harbor, California ", approved May 2nd, 1936, by_the
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Secretary of !Par, and on file in the office of
the U. S. District Engineer at Los Angeles, Cal-
ifornia, said point of beginning being East 784.25
feet of said Bulkhead Station No. 200; running
thence North 424.71 feet to a point in the North-
erly line of that certain oarcel of land conveyed
to the City of Newport Beach by the Irvine Company,
as described in deed recorded September 25th, 1929,
in Book 306, page 375 of Official Records of Orange
County, California; thence South 950 431 East 772.15
feet to the Northeasterly corner of the last men -
tioned :parcel of land; thence South along the East-
erly line of the last mentioned parcel of land
367.01 feet to a point in said U. S. Bulkhead line
between Station No. 200 and Station No. 101; thence
West along said Bulkhead line 770 feet to.the point
of beginning; containing approximately seven (7)
acres.
Said "Easterly Portion" is hereby leased for said term
expiring December 31st, 1957, for industrial uses, construction
and maintenance of wharves, docks and piers, and for all other
lawful purposes, such uses in the judgment of the City Council
being necessary for the proper improvement., development and use
of its water front and harbor facilities and consistent with the
reauirements of commerce and navigation at and in Newport Harbor,
and for said "Easterly Portion" Lessee shall and hereby agrees
to pay to Lessor an annual rental for the first thirteen years
of said term of $350.00 cash plus seven and one -half percent of
all sums Lessee shall receive from the use of said "Easterly Por-
tion", or any part thereof, from whatsoever source, including all
sums received from all sub - tenants, it being agreed that said
percentage shall be of the gross and not of the net returns, and
that such annual rental shall be due on January 15th, of each of
said years, beginning January 15th, 1951, and ending January 15th,
1963-
In addition to the above rents, Lessee shall and hereby
agrees to pay Lessor :1,000.00 annually during the first thirteen
yeara of said term, due on January 15th of each of said years, be-
ginning January 15th, 1951, and ending January 15th, 1963-
For the last twenty -five years of said term, Lessee shall
and hereby agrees to pay Lessor thirty -three and one -third per cent
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(33 1/3 %) of all sums Lessee shall receive from the use of both
the "Westerly Portion" and the "Easterly Portion" of the leased
premises, or any part of either of said Portions, from whatsoever
source, including all sums received from all subtenants, it being
agreed that said percentage shall be of the gross and not of the
net returns, and that such annual rental shall be due on January
15th of each of said years, beginning January 15th, 1964, and end-
ing January 15th, 1988.
Reference is made to the existing written lease dated
November 9th, 1927, and the amendments and extensions thereof dat-
ed March 3rd, 1930, July 18th, 1938, February 6th, 1939, and De-
cember 3rd, 1945, between the parties hereto, and to the fact that
all covenants, conditions and obligations of the Lessee thereunder
have been performed (except rent due January 15th, 1950), and it .
is agreed that this lease supercedes said former documents.
Lessee agrees to keep book accounts of all of his re-
ceipts from the property hereby leased, open to Lessor's inspecti
at reasonable times, and to furnish Lessor with a written summary
thereof annually on each January 15th.
Lessee covenants and agrees to pay, as and when due, any
and. all taxes, assessments and levies of every kind and character
which may, during the term of this lease, be made against the de-
mised land or upon any of the improvements thereon.
Except as herein provided, Lessee shall not assign the
interest, or any part thereof, in, to or under this lease, nor su
let all or any part of the "Easterly Portion ".of the demised pre-
mises, excepting to the present subtenants thereof, without the
written consent of Lessor first had and obtained. It is agreed
that the subtenants of the "Easterly Portion" may let rooms inci-
dental to their industrial use thereof. It is provided, however,
that Lessee shall have the right, from time to time, to sublease
any part of said "Westerly Portion." Lessee also shall have the
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right to assign their interest among themselves and to assign an
interest to Seymour Beek.
Lessor covenants that it shall not withhold its consent
to the subletting by Lessee of any part or all of the "Easterly
Portion" of said premises provided that:
(1) The use to which the premises proposed to be so sub-
let by Lessees shall not be of a character more detrimental to the
public health, safety and welfare of the City of Newport Beach than
that existing.at the time of the proposed subletting.
(2) That the rental consideration.accruing to Lessees
with respect to the premises proposed to be sublet shall not be
less than the rental thereof in the year 1949.
(3) That the proposed sublessee shall be financially
responsible.
Lessee agrees strictly to comply with and observe the
laws of the United States, the statutes of the State of California
and the ordinances of the City of Newport Beach in all matters af-
fecting this lease and the premises and property herein demised.
Lessor makes no warranty of title to the demised premises,
express or implied, or to any part thereof, and Lessee accepts this
lease upon such title as Lessor may presently have or hereafter ac-
uire; and in the event.that, by reason of any defect in said title,
r invalidity of this lease, Lessor shall be unable to secure to.
24 1�essee continued peaceful enjoyment of the premises herein demised
25 and such possession shall thereby be disturbed or wholly terminat-
26 ed. Lessee expressly waives all right, claim or demand against
271pessor by reason thereof.
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Lessee covenants to hold Lessor harmless from any and all
s or demands of every kind and nature whatsoever by reason of
use by Lessee,or any sublessee of the demised premises, except-
Ing claims or demands growing out of the use of streets, sidewalks,
R.11eys, docks, piers, or public utilities, or the particular one
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thereof where liability is claimed to have occurred, belong or
belongs to Lessor.
In the event that Lessor shall, without its fault, be
made a party to any litigation or legal proceedings arising out
of the, use of said demised premises by the Lessee or by any sub-
lessee, Lessee agrees to hold Lessor harmless and to reimburse
Lessor for any costs or expenses incurred in such litigation or
legal proceedings, including attorney's fees.
Lessee and any sublessee shall have the right, prior to
the expiration of the term of this lease, to remove any buildings
or improvements from the demised premises, excepting that all.stre
improvements, docks, piers and all other installations including
public utilities shall be left in place and shall be the property
of Lessor.
It is further agreed by Lessee that any sublease here-
after made of any part of the demised premises shall contain a
provision providing for periodic (but not more than once in five
years) readjustment of rentals in accordance with the commodity
index, known as the "U. S. Bureau of Labor Statistics Cost of Liv-
ing Index ", or such other index as may be agreed upon between
Lessee and sublessees.
If Lessee fails to remedy any default in his obligations
hereunder within thirty days after notice thereof from Lessor,
then Lessor may,.at its option, terminate this lease, but in such
event such default shall not in any manner affect any subtenant,
provided said subtenant shall nay Lessor, and he is hereby given
the right of paying to Lessor the yearly payments provided for in
his sublease, and upon said payments being made to Lessor by said
subtenant, said sublease shall remain in full force and effect
during the term thereof, providing said term shall not exceed the
term provided for in this lease..
Lessor is not Obit" hereunder to make any improve-
s
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ments, or repairs, or any other.expenditure, respecting the leasec
property.
This lease shall be binding upon and inure to the ben
efit of Lessee's Heirs and assigns.
IN WITNESS WHEREOF, the Lessor has executed this contract
pursuant to resolution of its City Council dated January 9th, 1950,
authorizing its corporate name and seal to be subscribed and af-
fixed hereto by the Mayor and City Clerk of the City of Neum ort
Beach, and the Lessee has hereunto set his hand.
CITY OF NEWPORT BEACH
LESSEE.
By
mayor
Attest
City er
LESSOR.
7
RESOLUTION NO 11022
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH AUTHORIZING THE CITY MANAGER
AND CITY ATTORNEY TO EXECUTE A CONSENT TO
ASSIGNMENT OF AGREEMENT TO LEASE - BEACON BAY
RESIDENTIAL LOTS
WHEREAS, on May 11, 1981 the City Council approved
Resolution No. 10040 approving the Agreement to Lease for Beacon
Bay residential properties; and
WHEREAS, said Agreement to Lease does not provide an
automatic provision for a Consent to Assignment to provide notice
to encumbrancers of default by sublessees of their obligations to
the City, provide the encumbrancer an opportunity to cure any
such default, and provide the encumbrancer the opportunity to
foreclose against the interest of a sublessee under the Agreement
to Lease; and
WHEREAS, a request has been made to the City to approve
such a Consent to Assignment document, a copy of which is
attached hereto; and
WHEREAS, it is in the best interest of the City to
authorize execution of a Consent to Assignment of Agreement to
Lease, substantially in the form attached hereto by the City
Manager and the City Attorney of the City of Newport Beach, to
facilitate the orderly process of City business; and
WHEREAS, the City Council has considered the Consent to
Assignment of Agreement to Lease form and finds it satisfactory
and adequately protecting the City's interest under the Agreement
to Lease of Beacon Bay residential properties,
NOW, THEREFORE, BE IT RESOLVED by the City - Council of
the City of Newport Beach that the City Manager and City Attorney
be and they are hereby authorized to execute on behalf of the
City, a Consent to Assignment of Agreement to Lease for Beacon
Bay residential properties, provided the Consent to Assignment is
substantially in the form of the document appended hereto.
BE IT FURTHER RESOLVED by the City Council that a
transfer fee of $100.00 is hereby established for approval and
transfer of said Consent to Assignment.
ADOPTED this 24 day of August , 1981.
Mayor
ATTEST:
City Clerk
HRC /pr
8/10/81
•
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RESOLUTION N0. I . 004-i �i
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH PLACING A TRUST RESTRICTION
UPON.THE CITY OWNED PARCEL ADJACENT TO..IRVINE
AVENUE AND MONTE VISTA AVENUE., CONSISTENT WITH
CHAPTER 74.OF STATUTES 1978
WHEREAS, the City of Newport Beach is the trustee of the
Newport Beach Tidelands Trust, hereinafter "the Trust," created
by Chapter 74 of Statutes of 1978; and
WHEREAS, the City of Newport Beach owns a certain parcel of
real property overlooking Upper Newport Bay.,.the legal
description of which is attached hereto,.marked Exhibit "A" and
incorporated herein by this reference, hereinafter "West Bay
parcel "; and
WHEREAS, the City of Newport Beach desires to place the West
Bay parcel into the Trust in conformance with Chapter 74 of
Statutes 1978; and
WHEREAS, the State Legislature. in Chapter 74 of Statutes
1978, hereinafter "the Act ", found and determined that the
residential portions of Beacon Bay, defined in the Act as parcels
A, B and C, including the streets and beaches,.being a relatively
small portion of the granted tide, and submerged lands were no
longer required or needed for the promotion -of the Trust, with
the exception of producing .income for the benefit of ,:the Trust;
and
WHEREAS, the lots designated in the Act as parcels A, S and
C are filled and reclaimed, are no longer submerged or.below the
mean high tide line and are no longer needed or required for
purposes of .navigation, commerce and fisheries and are to be
freed of the public Trust for navigation, commerce and fisheries,
consistent with the Act; and
WHEREAS, when parcels A, B and C are freed from the Trust
for navigation, commerce and fisheries, they shall continue to be
held by the City of Newport Beach, subject to the other terms and
provisions of the Act and other laws applicable to the tide and
submerged lands included in the Grant to the City of Newport
Beach; and
WHEREAS, to free said parcels A, B and C from the Trust, the
City of Newport Beach is required to transfer other property to'
the Trust; and
WHEREAS, the City of Newport Beach desires to transfer the
West Bay parcel to the Trust; and
WHEREAS, the transfer of the West Bay parcel to the Trust
must be approved by the State Lands Commission, upon a
determination that the transfer is-appropriate, taking into
consideration the size of the area affected by the termination,
the Trust purposes that can be, accomplished by the transfer, and.
the value of the real property transferred to the Trust; and
WHEREAS., the approval of the State Lands Commission will be
reflected on a document recorded transferring the property to the
Trus.t;,and
WHEREAS, .it.has been determined by,the City Council of the
City of Newport -Beach that the size of the West Bay parcel,
approximately six,(6). acres compares .favorably with the size of
the,par.cels to be-released from .the public Trust, approximately
four (4) acres; and
WHEREAS, the State Lands Commission has..also indicated its
determination that`the.ttansfer of the West Bay parcel to the
Trust is appropriate; and.
WHEREAS, the City Council of the City of Newport Beach.
desires to transfer the West Bay parcel to the Trust, consistent
with The Act, and to provide that the Trust provisions of the Act
shall be imposed upon. the West Bay parcel,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Newport Beach that the transfer of Municipal property to
City of.Newport Beach Tidelands Trust, a copy of which document
is attached hereto, marked Exhibit "B" and incorporated herein by
this reference, be and it is hereby approved.
BE IT FURTHER RESOLVED that.the Mayor and City Clerk are
hereby authorized and directed to cause said transfer of
Municipal property to be executed and recorded in the Office of
the Orange County Recorder. Said execution and recordation,
however, shall not be accomplished unless and until such time as
the State Lands Commission shall, have approved the transfer of
Municipal Property to the City.of Newport Beach Tideland Trust,
and indicated their approval thereof by executing said document.
ADOPTED.this. day of , 1981.
Mayor
ATTEST:
City Clerk
j
HRC /pr
5/11/81
3
13905Po 1438
WEST BAY ,PARK SITE
All that .portion of'.Blocks 4, 5 and 51,_Irvine's Subdivision, in the .City
of Newport "Beach, County.of Orange; State of California, as per map filed 'in
Book 1, Page 83; Miscellaneous Maps, records of said County, described as
follows:
Beginning at the southwesterly terminus of that certain ca;:rse.in
thS southeasterly right -of -way line of Irvine Avenue shown as North
40 38'10" East 333.39 feat on Sheet 5 of County Surveyor's Map 1 -72
on file in the office of the County Sgrveyor, of :said County; thence
along sand right -of -way line North 40 38'10" East 303.39 feet; thence
South 49 22'09" East 160.:00 feet to, the beginning of a tangent
curve concave .- to..the north and having a.radi.us of 260.08 feet; thence
easterly along said curve through a central angle:of 64 14'30" a
distance of 291.52 feet; thence nontangegt..to said curve South 19 °22'51"
West 349:97' feet -; thence South 70' 37'09" East 31.97 eet to
that certain course having a.bearing and length.of.South 53 22'27"
West, 422.40 feet.in. the northerly. boundary of that certain parcel
of land described in deed to.the State of California recorded in
Book 11382, Page 1876 of Official Records of said'C.ounty;thencS along
said boundary South 53 24'17 ".Dtest'338.:26 feet; thence. North 36 35'43"
Vlest 95.87 :feet to a point on a nontangent 175.00 foot radius cure that
is concave to the northeast, a radial to said point bears South 1 18'21"
East; thence northwesterly along said last mentioned curve, through a
central angle of 7201,1''59'.'; a distance of 220.52 feet to the beginning
of a. reverse curve concave to the southwest and having. a. radius of 175.00
feet; thence nortlivigsterly along said last mentioned curve, through a
central angle of.'44.45'o0", a distance of 136.68 feet; thence North
63 5l'22" West 23:07 feet.to a point -in - the southeasterly .right -of -way
line. of "said I "rvine Avenue; said point.: tieing in a 725:.00 foot r$dius curve
concave to the southeast, a radial to said point bears. North 63 51'22"
West ;` thence`north6g.terly along. said last mentioned curve, through a
central angle of, 14 29'32 ",, a distance of.183.38 feet to the _point of.
beginning:
EXH101T. A
EXHIBIT B.
RECORDING REQUESTED BY
THE CITY OF NEWPORT BEACH
AND WHEN RECORDED RETURN TO
THE CITY OF NEWPORT BEACH
TRANSFER OF MUNICIPAL PROPERTY TO,
CITY OF NEWPORT BEACH TIDELANDS:TRUST
WHEREAS, the City of.Newport Beach Tidelands' Trust,
Chapter 74 of the Statutes of 1978,- hereinafter. "the trust ",.
empowered the City to add real property to the trust as part.of a
procedure for releasing a, relatively..small portion of the.granted
tidelands from the common law public trust; and._
WHEREAS, by.this statute, the.City is authorized to
make such trust acquisitions of.real property by transferring
City -awned property: held in.a Municipal: capacity to the trust;
and
WHEREAS, the City holds:in.its..Municipal capacity a
certain parcel of•real property overlooking Upper ..Newport Bay,
hereinafter "Subject Property,." which it desires to so transfer
to the Trust 'arid
WHEREAS,, the granting statute requires that the parcel
to be transferred, be, appropriate in terms of it:s size, value and .
utility to the Trust; and..
WHEREAS, a study and.investigation has been undertaken
of the size of the area affected by the termin'at'ion of the common
law public.Trust. in `comparison.to..the size of ,the parcel to be
transferred to the'Trust,, the value of the parcel to be
transferred; and the Trust purposes that can be accomplished by
such a transfer; and
WHEREAS., it has .been ..determined. that -the size of the
Subject Parcel, approximately six (6) acres,. compares favorably
with the.size.of the parcel to be,released from the public Trust,
approximately four (4).acresi 'that. the value. requirement is met;
and that the Subject Parce.l,.in its present condition, would
further the.purposes of the Trust by,serving as a site for
passive. recreation, an ecological.unit for scientific study, as
open space,.by.enhancing the adjacent Department of Fish and Game
Wildlife,Preserve,.and by. providing a. panoramic vista of Upper
Newport.Bay. for . public enjoyment:; ..and.
WHEREAS, 'future : development, of the..Subject Parcel will
be.in conformance with -the .terms of the Trust; and
WHEREAS, on , the City
Council of the,City of Newport Mach approved this transfer of
Municipal property:to.the.Tidelands Trust, and the State .Lands
Commission took the action required by Chapter 74, Statutes of
1978 with.,respect to the transfer of the Subject.Property to the
Trust on �.
NOW THEREFORE,
THE CITY,.in its Municipal capacity, does hereby, by
,virtue.of Chapter 74 of -the Statutes of 1978;, transfer, convey
and quitclaim to itself inA is capacity at Tr.ustee.of the
Tidelands Trust, that certain parcel of.real property situated, in
the City of Newport Beach, County of Orange, -State of :California,
as more particularly described in "Description.of Subject Parcel"
attached hereto- and.by this reference incorporated herein.
2
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RESOLUTION NO. 1'U 0 4.0 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH APPROVING.'AN AGREEMENT TO
LEASE AND LEASE OF BEACON BAY RESIDENTIAL LOTS
AND.AGREEMENT TO LEASE AND LEASE OF BEACON BAY
COMMON AREA CONSISTENT WITH CHAPT.ER.34,
STATUTES OF 1978 AND THE CHARTER OF.THE'CITY
OF NEWPORT BEACH
WHEREAS, the.City owns.certain tidelands and uplands in
an area known . as - Beacon Bay; and
WHEREAS, on January 9,.1950 City entered into a master
lease to.said.property with Carroll B. Beek, Barton Beek, Joseph
Allan Beek, Jr. and Seymour Beek jointly, which master lease
expires on 'December 31, 1987; and
WHEREAS', the westerly portion of the Beacon.Bay
property has: been divided into individual lots and sublet for
residential purposes.; and
I
WHEREAS, all said subleases will expire on the same
date as the master lease, December 31, 19873 and-
WHEREAS,-the City Council finds it.to be in the public
interest and- the.welfare of the City that the portion of Beacon
Bay which is currently leased for purposes remain
resdental in character <and that-.to enter into new agreements .to
lease with the sublessees under -terms and conditions•.set forth in
the Agreement to Lease and Lease is in the public interest; and
WHEREAS; the City Council :finds "that it is in the best
interest and welfare of the City that the streets, walkways,,
l
common areas, landscaped areas, beaches and.other areas presently
leased to.the Beacon Bay Community Association should remain in
said status in of.the Beacon Bay Community
Association maintaining said...areas at no expense to'the City and
furthers providing.th.at the areas >designated as tidelands within
said leased area remain open, available and accessible to the
public;. and
.WHEREAS, Chapter 74, Statutes of 1978 permits the
leasing of the res'ident'ial lots in Beacon Bay which.are located
on tidelands;..and
WHEREAS, said Statute provides, that the .maximum term of
leases of residential lots in Beacon;Bay located on tidelands
shall not exceed fifty years; and
WHEREAS, Section 1402 of the Charter.of the.City of
Newport Beach permits the leasing and.re-leasing of water front
property, provided.the property was under lease as of January 11,
1957, the date of adoption.of said provision of the Charter of
.the City of Newport Beach; and
WHEREAS, the City Council hereby finds.that -the maximum
lease term for..the residential lots in Bea con. Bay, shall not
.exceed twenty -five years for the following reasons:
A.". Section 420 of the.Charter.of the City of Newport
Beach prohibits the City entering into a lease in excess of
twenty =five years without voter approval.
B.. The City Council finds :it undesirable:to commit the
residential portion of Beacon Bay to residential -use for a'period
longer than twenty -five years. At the termination'of a twenty-
five year lease renewal, the City Council.of the.City.of Newport
2 .
Beach will be given another opportunity to determine. whether or
not residential uses on that property are appropriate or whether
other uses are more appropriate. A..lease term longer than
twenty-five. years would be an excessive commitment for this
particular residential use of tidelands and. uplands, property
owned by the City of Newport'Beach.
C. The extension of the .residential lease term beyond
twenty -five years would.provide very little, financial advantage
to the City. An analysis.of rental values has shown that a 35
year Lease will only increase the rental by 12.48 per annum.
Therefore, the modest increase in lease payments to the City do
not offset the disadvantage of committing the land to residential
uses for a.period longer than twenty- five.years• and
WHEREAS, the City Council hereby finds and determines
that the leasing of :the sub'ject.property is an act by.the City of
Newport Beach in its proprietary capacity and further that the
execution of the Agreements to Lease the, respective residential
lots and the common areas in the westerly portion of Beacon Bay
binds the C_ity.:of Newport Beach to. execute the 'Leases of said
properties in December, 1987, and said execution of said Leases
by and on behalf of the City of Newport Beach constitutes a
ministerial act and.a furtherance of.the obligation of the City
of Newport Beach hereby created.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of .Newport..Beach that pursuant to.the.recitals
hereinabove set .forth, the Charter of the C:ity.of,Newport Beach
and Chapter 74, Statutes of 1978, the form of Agreement to Lease
and Lease of the residential lots in Beacon Bay, respectively
attached hereto, be and they are hereby approved.
3
BE IT FURTHER RESOLVED that the Agreement to Lease and
Lease of the Common Area of Beacon Bay, respectively attached
hereto, be and they are hereby approved.
BE IT FURTHER RESOLVED that the..Mayor. and.City Clerk
are hereby authorized and directed to execute each individual
Agreement to Lease the respective residential lots in the
westerly portion of the Beacon Bay property and:the common areas
in the western portion of the Beacon Bay property and that the
Mayor and City Clerk of the City of Newport Beach are further
authorized and directed to execute said Lease for the respective
residential lots in the westerly portion of the Beacon Bay
I
property and the common areas of the western portion of the
Beacon Bay property during the month of December,. 1987, provided
that the Sublessees and the Beacon Bay Community Association and
their heirs, devisees, and assigns, as the case might be, have
fully performed and executed their obligation under said
Agreements to Lease.
ADOPTED this _ day of MAY 1.1 1981.
Mayor
TO: MAYOR AND CITY COUNCIL
FROM: Beacon Bay Lease Committee
SUBJECT: BEACON BAY RESIDENTIAL LEASE
HISTORY
COUNCIL AGENDA N05� +�
NOV 12 1979
BY ih. CITY COW=
airy of lilAW K404
On May 8, 1978, the City Council unanimously adopted Resolutio 9330
re- establishing the Beacon Bay Lease Committee and appointed Mayor Paul Ryckoff,,
Councilman Paul Hummel, the City Manager, and City Attorney as this City's re-
presentatives to the Committee. The Beacon Bay Homeowners Association ap-
pointed Mr. Barclay Ardell, Mr, Tasker Forbes, and Mr. Tom Viola, as their
representatives. The Resolution concluded by requiring the Committee to
report back to the full City Council on or before May 1, 1980.
It may be of general benefit to relate the recent history of Beacon
Bay. As members of the Council realize, Beacon Bay is situated on the souther -
ly�side of Harbor Island Drive and the newly created Promontory Bay Develop-
ment. There are three lots which are situated on the westerly side of Harbor
Island Road with the balance of the parcels on the east side of Harbor Island
Road. The subject land is subdivided into 73 residential lots of which 28
are bayfront, 45 are interior home sites, and one being utilized for recreation-
al use. The shape of the lots are irregular, but generally they are from 40
to 50 feet in width and from 90 to 100 feet in length. Attached you will find
a.copy of a map showing,the Beacon Bay property.
The land, vested in the City of Newport Beach, is under a 37 -year
lease to J. A. Beek, et al which was entered into on January 9, 1950 and is
Page two
to expire on December 31, 1987. The individual lots are under sublease by
J. A. Beek, et al to various owners with a common expiration date with the
" °_`master °lease. Structural improvements range from five to thirty years of
age,and are both one and two stories. All lots are presently improved.
Twenty. two of the bayfront lots are completely or partially tidelands; and
twelve interior lots are completely or partially tidelands. The attached
map shows the mean high tide line dividing the tidelands from the uplands
lots.
For approximately ten years, the City has been receiving requests
from the subject lessees for a renewal of the lease which is to expire in
1987. The City had been unable to enter into meaningful dialogue with either
the master lessee (J. A. Beek, et al) or the sub - lessees because of the
existence of tidelands. Simply stated, before meaningful negotiations could
be commenced, the question of residential use on tidelands had to be ad-
dressed. Assemblyman Ronald Cordova's bill, AB 1422, was introduced in 1977
and was signed into law the first part of 1978 by Governor Brown. This bill,
in essence, removed certain trust provisions permitting residential use on
tidelands in exchange for a parcel of property that could "enhance" tideland
use elsewhere in the bay. While the "other" parcel has not been finalized,
the tentative effort is to utilize the approximate six acres of property
adjacent to Irvine Avenue and Monte Vista in West Bay acquired by the City as
a result of the Sea Island subdivision. It is anticipated that this approxi-
mate six acres will be dedicated to the City within a matter of weeks.
On June 7, 1979, a letter was sent to the State Lands Commission
requesting its review of the approximately six acre parcel. Furthermore, the
letter requested a determination of the State Lands Commission as to whether
1 y ,
Page three
this parcel would satisfy the conditions of AB 1422. Initial.contact with
the Department of Fish and Game indicates satisfaction with the parcel.
Even though the State. Lands Commission has not formally replied, it is be-
lieved the City.can continue with the Beacon Bay Lease question. If a
definitive answer is not received from the State Lands Commission and Beacon
Bay is re- leased, the proceeds could be placed in escrow until a determination
is finally made.
DISCUSSION
Attached members of the City Council will find a document entitled,
"Beacon Bay Re -Lease Document." This document is the product of approximately
sixteen months of Committee meetings with the Beacon Bay Homeowners' Associa-
tion and represents the report to the City Council as required by Resolution
No. 9330. The document contains an "Agreement to Lease ", a "Lease" (Exhibit C),
a legal description of Beacon Bay (Exhibit A), a legal description of the in-
dividual lot (Exhibit B), instructions to appraisers (Exhibit D), and the
Beacon Bay C.C. & R's (Exhibit E)'. The purpose of the "Agreement to Lease"
is to cover the period in which the J. A. Beek, et al lease exists, i.e.,
present to December 31, 1987. The "Lease" (Exhibit C) covers the period from
January, 1988 to the term of the lease, January 1, 2004. The basic tenets of.
these documents are as follows:
1. The City agrees to re -lease directly to the sub - lessees the
individual residential parcels within Beacon Bay for an ad-
ditional twenty -five year period.
2. The lease will be in two stages: the first stage shall commence
when approved by the City.Council and will terminate on December
31, 1987, (termination of the J. A. Beek et al lease); the second
1
Page four
stage will commence on January 1, 1988 and terminate on
January 1, 2004.
3. During the first stage (present to 1987), the City would re-
ceive fair market rental value for each parcel as determined
by an appraisal of each parcel minus the amount to be paid to
J. A. Beek, et al. During the second stage, the City would re-
ceive fair market rental value.
4. The fair market rental value is determined by appraisal of the
property, using the "Instructions to the Appraiser" contained
in the attached lease documents. If the lessee disagrees with
the City appraiser, he /she may obtain an evaluation from an
appraisers of his /her choice. If the two values vary by five
percent or less, the determination of value shall be averaged.
If the two determinations vary by more than five percent, the
two appraisers shall appoint a mutually - acceptable third appraiser
who shall make such determination and the parties agree to be
bound thereby.
5. The City Council shall set "an effective date" in which the sub-
lessees are to sign the new agreement. If a lessee signs an
agreement on or before the appointed effective date, the lessee
shall pay to City the fair market rental value minus payments to
J. A. Beek, et al immediately, but the rent will not be re-
adjusted until 1996. If a proposed lessee does not re -lease on
or before the effective date,.the lessee shall continue to pay
current rental payments to J. A. Beek, et al with no direct pay-
ments to the City until January 1, 1988, at which time their
Page five
rent will be determined by an appraisal as of January 1,
1988, with a further readjustment in 1996. It is believed by
the Committee that the documents should provide an incentive for
current lessees to re -lease the property on or before the "ef-
fective date." At the present time yearly leases cost from
$121.78 per lot to a high of $531.40. The City receives but one -
third of these amounts. Unless an incentive is provided, current
lessees will permit the J. A. Beek, et al lease to expire and
renew with the City in 1988. It is believed that fair market
value is significantly greater than that currently paid by lessees.
The City should, therefore, receive considerable revenue if cur-
rent lessees are motivated to sign on or before the "effective
date" within the lease documents. The Committee believes the
incentive is to forego a rent adjustment in January 1, 1988.
This provision provided the.greatest challenge to the Committee
and consumed the greatest amount of time during Committee meetings.
A number of alternatives were considered to encourage current
lessees to sign on or before the effective date. Penalties as-
sessed by the City were considered, but eliminated when examined
by the legal participants in the discussion.
6. The lessees may sell, assign, or exchange their leasehold interest
without prior written consent of the City provided that the new
lessee shall agree with all terms of the lease documents.
7. The leased land shall be used solely for residential purposes and
appurtenant uses.
b� !
Page six
8. Lessee shall pay all general and special taxes on subject
parcels.
9. Maintenance of streets, beaches, walkways, tennis courts, docks,
piers, and common landscaped areas, shall be the responsibility
of the homeowners' association. The City shall not be obligated
to make any repairs or improvements or provide maintenance to
facilities or structures in Beacon Bay.
10. Each lessee agrees to become and remain a member in good stand-
ing of the Beacon Bay Community Association.
11. Each lessee agrees to abide by the C.C. & R's of the subdivision.
12. If any lessee fails to comply with the terms of the lease docu-
ments, the City may at its option and without further notice or
demand, terminate the lease and enter upon the leased land and
take possession thereof.
It is recommended by your Committee that the City Council give tenta-
tive approval to the lease documents, authorize an appraisal to determine
fair market rental value of the lots within Beacon Bay, and to take final
action on the attached documents, including fixing the "effective date," when
the rent values are determined.
Respectfully submitted,
BEACON BAY LEASE COMMITTEE
Attachments
e 10/25/79
BEACON BAY RE -LEASE DOCUMENT
AGREEMENT TO LEASE
THIS AGREEMENT TO LEASE, made and entered into
on the day of , 1979, by and between
the CITY OF NEWPORT BEACH, a chartered municipal corporation,
hereinafter "City," and
hereinafter "Sublessee."
RECITALS
A. City holds title to and is the owner of certain
harbor frontage.and tidelands, together with certain uplands
abutting thereon known as Beacon Bay and.more particularly,
described in Exhibit "A" attached hereto and made a part hereof
by this reference.
B. Carroll B. Beek, Barton Beek, Joseph.Allan Beek,
Jr., and Seymour Beek jointly hold a Master Lease to said
property dated January 9, 1950, which Master Lease expires on
December 31, 1987.
C. The "Westerly Portion" of the Beacon Bay property
has been divided into individual lots and subleased for
residential purposes.
D. All of said subleases expire on the same date as
the Master Lease, to wit: December 31, 1987.
E. City believes it to be in the best interest and
welfare of City: (1) that the portion of Beacon Bay which is
currently leased for residential purposes remain residential in
character; and (2) to enter into new agreements to lease with
the sublessees under the terms, conditions and for the consideration
as hereinafter set forth.
F. It is the judgment of City that the leasing of
the property hereinafter described is consistent with the
trust purposes imposed upon such portions of the leased land
which may constitute tidelands as authorized by Chapter 74,
Statutes of 1978.
G. It is further the judgment of City that in
entering into this Agreement to Lease in the future, City is
acting pursuant to its proprietary powers.
NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING
RECITALS AND THE MUTUAL COVENANTS set forth below, City and
Sublessee hereby agree as follows:
1. City hereby agrees to lease to Sublessee and
Sublessee hereby agrees to lease from City the real property
described in Exhibit "B" attached hereto and by this reference
made a part hereof (hereinafter the "Leased Land ") pursuant to
a lease substantially in the form of Lease which is attached
hereto marked Exhibit "C" and by this reference made a part
hereof, and under the terms and conditions as set forth below.
2. In consideration of City's agreement to lease to
Sublessee hereunder, Sublessee agrees to pay to City on the ls-t
day of each month following the date of this Agreement and on
the 1st day of each month thereafter through the lst day of
December, 1987, a sum determined by subtracting from the fair
market rental value on (the "Effective Date "),
which shall be determined in the same manner as the adjustment of
Base Rental is determined under Paragraph 4 of the Lease,
Exhibit "C" hereto, the payments made by 'Sublessee under a
sublease on the Leased Land to the Master Lessee of Beacon Bay
2
described in Paragraph A of the Recitals above.
3. Subject to Paragraph 4 below, the Base Rental
under Paragraph 3 of the Lease, Exhibit "C" hereto, shall be
the fair market rental value of the land on the Effective Date
which shall be determined in the same manner as the adjustment
of Base Rental is determined under Paragraph 4 of said Lease.
4. Should any Sublessee fail to execute this
Agreement on or prior to the Effective Date, the Base Rental
under Paragraph 3 of the Lease, Exhibit "C" hereto, shall
be the fair market rental value of the land on January 1, 1988
which shall be determined in the same manner as the adjustment
of Base Rental is determined under Paragraph 4 of said Lease.
The different Base Rental provided for in this paragraph is
imposed unilaterally by the City out of what is deemed to be
fair and equitable to those Sublessees who choose to enter
into this Agreement on its Effective Date. Said difference
in Base Rentals is in no manner to be considered a penalty
but moreover a procedure developed solely by City to provide
the incentive to enter into this Agreement to Lease at the
earliest date possible. Commencing January 1, 1988 City is
under no obligation to enter into this Agreement or a Lease
in the form of Exhibit "C" hereto with any sublessee and shall
be free to deal with respect to the lease of any unleased
portions of Beacon Bay on any terms and conditions it deems
fit, either with third parties or prior sublessees.
5. The parties agree that Sublessee may not transfer
his interest under this Agreement except that Sublessee, without
the consent of City, may assign his rights under this Agreement
3
to an assignee of the sublease currently existing with respect
to the Leased Land; provided that the assignee executes an
acceptance of the assignment and an agreement to be bound by
all the terms of this Agreement and to make the payments provided
for hereunder. Upon such assignment and acceptance Sublessee
shall be released of any further obligation and liabilities
under this Agreement to Lease.
6. The parties agree to execute the Lease,
Exhibit "C" hereto, during the month of December 1987 and
concurrently therewith to execute and record a short form
memorandum thereof.
IN WITNESS WHEREOF, the parties have caused this
Agreement to Lease to be executed on the date first above
written.
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
4
CITY OF NEWPORT BEACH
By
0
Mayor
Sublessee
- L E A S E -
THIS LEASE, made and entered into on the 1st day
of JANUARY l'94& by and between the CITY OF NEWPORT
BEACH, a chartered municipal corporation, hereinafter "Lessor ",
and hereinafter
"Lessee ".
RECITALS
A. Lessor holds title to and is the owner of certain
harbor frontage and tidelands, together with certain uplands
abutting thereon known as Beacon Bay and more particularly
described in Exhibit "A" attached hereto and made apart hereof
by this reference.
B. Carroll B. Beek, Barton :Beek, Joseph Allan Beek, Jr..,
and Seymour Beek jointly hold a Master Lease to said property,
dated January 9, 1950, which Master Lease expires on December 31,
1987.
C. The "Westerly Portion" of the Beacon Bay property
has-been divided into individual lots and subleased for
residential purposes.
D. All of said subleases expire on the same date as
the Master Lease, to wit: December 31, 1987.
E. Lessor believes it to be in the best interest
and welfare of said Lessor (1) that the portion of Beacon
Bay which is currently leased for residential purposes remain
residential in character, and (2) to enter into new
subleases with the sublessees under the terms, conditions and
Jryj
for the consideration as hereinafter set forth.
F. It is the judgment of Lessor that the leasing
of the property hereinafter described is consistent with the
trust purposes imposed-upon such portions of the leased lands
which may constitute tidelands as authorized by Chapter 74,
Statutes of 1978.
G. It is further the judgment of City that in
entering into this Lease in the future, City is acting pursuant
to its proprietary powers.
NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING
RECITALS AND THE MUTUAL COVENANTS set forth below, Lessor and
Lessee hereby agree as follows:
1. DESCRIPTION OF LEASED PREMISES. Lessor hereby
leases, and Lessee hereby accepts this lease of the real
property described in Exhibit "B" attached hereto and made a
part hereof by this reference under the :terms and conditions
as set forth below (hereinafter the "Leased Land ").
2. TERM. Unless terminated sooner as provided .
herein, the term of this Lease is for a period commencing
on the 1st day of January, 1988, and ending on the
day of
3. BASE RENTAL. As base rental, Lessee agrees to
pay to Lessor the sum of
DOLLARS ($ ) per month, payable on the.lst day of
each month so long as this Lease remains in effect. Said ,
rental payment and any adjustment thereto as hereinafter
provided is deemed to be the fait market rental value of the
Leased Land as an improved.subdivision lot.
4. ADJUSTMENT OF BASE RENTAL.
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Upon the expiration
1J' •
of the eighth year and.the sixteenth year of the term of this
Lease the rental hereunder shall be adjusted to the then fair
_ market rental value of the Leased Land determined by appraisal
in accordance with the Instructions to Appraisers marked
Exhibit "D" attached hereto and made a part hereof by this
reference. Such determination shall be in the first instance
made by an appraiser for the City, and if the Lessee disagrees
with such interpretation he may obtain a determination of such
value from an appraiser of his choice. If the two determinations
vary by 5% or less, the determination shall be averaged and
such average shall be the adjusted base.rental.'. If the two
determinations vary by more than '5$, the Lessor's appraiser
and the Lessee's appraiser shall appoint a mutually agreeable
third appraiser who shall make such determination, and the
parties agree to be bound thereby.
5. SALE, ASSIGNMENT, SUBLEASE. Lessee may sell,
assign, exchange, convey or sublease his leasehold interest
or encumber such interest without a prior written consent of
Lessor'; provided, however, that the Lessee, proposed transferee
or Encumbrancer shall:
(a) Furnish Lessor with an executed copy of
such assignment, Trust Deed, or other document used to effect
such transfer;
(b) Furnish to Lessor the express.agreement
of the proposed transferee or encumbrance assuming, and agreeing
to perform, all of the obligations under this Lease; and
(c) Pay to Lessor a transfer fee of
$50.00.
6. ENCUMBRANCES. If Lessee assigns his interest
-3-
4h • •
in this Lease to a Trustee under a.Deed of Trust (hereinafter
called "Trust Deed ") for the benefit of the lender (hereinafter
called "Encumbrancer "), such encumbrance shall be upon and
subject to the following covenants and conditions:
(a) Said Trust Deed and all rights acquired
thereunder shall be subject to each and all of.the covenants,
conditions and restrictions set forth in this Lease and to
all rights and interests of the Lessor hereunder, except as
herein otherwise provided.
(b) In the event of any conflict between the
provisions of this Lease and the provisions of any such Trust
Deed, the provisions of this Lease shall control.
(c) Any Encumbrancer which is an established
bank, savings and loan association or insurance company, and
is the purchaser at a foreclosure sale, or is an assignee under
an assignment in lieu of foreclosure shall be liable to perform
the obligations of the Lessee under the Lease only so long -as
such Encumbrancer holds title to the leasehold.
(d) Lessee shall furnish to Lessor a complete
copy of the Trust Deed and note secured thereby, together with
the name and the.address of the holder thereof.
(e) Upon and immediately after the recording
of the Trust Deed, Lessee, at Lessee's expense, shall cause
to be recorded in the office of the Recorder of Orange County,
California, a written request executed and acknowledged by
Lessor for a copy of any notice of default and of any notice
of sale under the Trust Deed as provided by the statutes of
the State of California relating thereto.
(f) Lessor agrees that it will not terminate
this Lease because of any default or breach hereunder on the
-4-
part of Lessee if the Encumbrancer under such Trust Deed,
within ninety (90) days after service of written notice on
the Encumbrancer by Lessor of its intention to terminate this
Lease for such default or breach, shall:
(i) Cure such default or breach if
the same can be cured by the payment or expenditure of money
provided to be paid under the terms of this Lease; provided,
however, that for the purpose of the foregoing, Encumbrancer
shall not be required to pay money to cure the bankruptcy or
insolvency of Lessee or to satisfy Lessee's obligations under
Paragraph 12 hereof, "Indemnification ", or
(ii) If such default or breach is not
so curable, cause the Trustee under the Trust Deed to commence
and thereafter to diligently pursue to completion steps and
proceedings for judicial foreclosure, the exercise of the
power of sale under and pursuant to the Trust Deed in the
manner provided by law, or accept from the Lessee an assignment
in lieu of foreclosure; and
(iii) Keep and perform all of the
covenants and conditions of this Lease requiring the payment
or expenditure of money by Lessee until such time as said
leasehold shall be sold upon foreclosure pursuant to the Trust
Deed, be released or reconveyed thereunder, sold upon judicial
foreclosure or transferred by Deed in lieu of foreclosure;
provided, however, if the holder of the Trust Deed shall fail
or refuse to comply with any and all of the conditions of this
paragraph, then and thereupon Lessor shall be released from
the covenant of forebearance herein contained.
-5-
7. USE. The Leased Land shall be used solely
for residential purposes and any appurtenant uses associated
therewith. Lessee agrees to comply with all laws, regulations
and ordinances of Lessor, the County and State affecting
the Leased Land and any improvements located thereon.
8. TAXES AND UTILITIES. Lessee shall pay before
delinquent any general and special taxes, assessments or
other governmental charges, if any, which may be levied on
the Leased Land, including any improvements located thereon
or associated therewith, or any possessory interest therein
arising out of or based upon the leasehold interest throughout
the term hereof. Satisfactory evidence of such payments shall
be made available to Lessor upon demand.
9. USE AND MAINTENANCE OF COMMON AREA. Lessee shall
have the right to use the streets, beaches, walkways, tennis
courts, docks, piers, and common landscaped areas in Beacon
Bay which shall be leased to the Beacon Bay Community
Association by the City, in consideration of the maintenance
thereof by such Association and fair market value rent to be
paid by individual lessees. Lessor shall not be obligated to
make any repairs, alterations or improvements in or to, or
upon or adjoining the Leased Land or any structure or other
improvement that may be constructed or installed therein, but
Lessee shall, at all times during the term of this Lease and
at its sole cost and expense, keep and.maintain all buildings,
structures and other improvements on the Leased Land in good
order and repair, and the whole of the Leased Land and all
improvements thereto free of weeds and rubbish, and in a clean,
sanitary and neat condition.
10. COMMUNITY ASSOCIATION. Lessee agrees to
become and during the term of this Lease remain a member in
good standing of the Beacon Bay Community Association, and
am
to abide by the Articles of Incorporation, Bylaws and rules
and regulations of said Association, now or hereafter existing,
and to pay to said Association before delinquency all dues, fees,
assessments and other charges from time to time duly levied
or assessed in furtherance of the Association's community
purpose.
11. COVENANTS, CONDITIONS AND RESTRICTIONS. Lessee
agrees to abide and be bound by all covenants, conditions,
restrictions and reservations as contained in Exhibit "E ".
attached hereto and made a part hereof by this reference. Said
covenants, conditions and restrictions shall run with the
Leased Land and shall be binding on Lessee and Lessee's
successors in interest.
12. INDEMNIFICATION. Lessee.agrees that he will
hold and save Lessor, its officers, agents and employees
harmless from any and all claims or demands of any kind or
nature whatsoever arising out of, or incident to, the use
and occupancy of the Leased Land, and to indemnify Lessor for
any cost, liability or expense caused by or arising out of
any injury or death of persons or damage to property which may
occur upon or about the Leased Land or caused by or arising
out of any injury or death of persons or damage to property
which may occur upon or about the Leased Land or caused by
or arising out of any activities or omission of Lessee, his
agents, employees, licensees, and /or invitees, including,,
without limitation, injury or death of Lessee, his agents,
employees, licensees and invitees and damage to his property
or Lessee's property; except for any damage or injury of.any
kind arising out of the negligence of Lessor, its agents
or employees.
-7-
13. NON- COMPLIANCE.AND TERMINATION OF LEASE.
Time and each of the terms, covenants and conditions hereof
are expressly made the essence of this Lease.
If Lessee shall fail to comply with any
of the terms, covenants or conditions of.this Lease, including
the payment,of rental herein reserved, at the time and.in the
amount herein required, and shall fail.to remedy such default
within sixty (60) days and thereafter diligently prosecute
the same to completion, or if a Lessee shall abandon or
vacate the Leased Land, Lessor may, at its option, and without
further notice or demand, terminate this Lease,and enter upon
the Leased Land and take possession thereof, and remove any
and all persons therefrom with or without process of law.
Lessor may.elect to terminate this Lease
for any event of.default or breach hereof or of the covenants,
conditions and restrictions contained in Exhibit "E"'. Should
Lessor elect to terminate, it may recover from Lessee all
damages incurred by Lessor by reason of such breach,
including, without limitation, the cost of recovering the
Leased Land, and the worth at the time of such termination
of the excess, if any,.of the amount of unpaid rent and
unpaid charges reserved under this Lease over the amount of
the rental loss which Lessee proves could be reasonably
avoided, for the remainder of the term of this Lease. Such
amount shall be immediately due and payable from Lessee to
i
Lessor, together with interest at the rate of 10 %.per annum
from the date owing until paid. The remedies of Lessor
specified herein are in addition to.and cumulative of any
remedies provided Lessor by statute, including the remedies
provided in California Civil Code Sections 1951.2, et seq.
WE
14. SURRENDER OF POSSESSION UPON EXPIRATION OR
TERMINATION. Upon the expiration or termination of this Lease,
Lessee agrees to peaceably deliver possession of the Leased
Land to Lessor and unconditionally agrees to vacate the Leased
Land without contest, legal or otherwise. Lessee further
expressly agrees to waive any and all legal rights it may have
to contest vacating the Leased Land and further agrees. to release
Lessor from any and all claims it may have of whatever nature.
Lessee further agrees to waive any relocation assistance or
any other assistance from Lessor resulting from vacating the
Leased Land. Lessee.shall have the right prior to and for
a period of ninety (90) days after the expiration of this
Lease to remove any buildings or improvements appurtenant
thereto from the Leased Land, except that all streets, walkways,
common area landscaping, docks, piers and any other installation
constructed or installed in the common areas, shall be the
property of Lessor.
15. EMINENT DOMAIN.
A. Definition of Terms. The term "total . taking"
as used in this paragraph means the taking of the entire Leased
Land under the power of eminent domain or the taking of so much
of said Land as to prevent or substantially impair the use
thereof by Lessee for the uses and purposes hereinabove provided.
The term "partial taking" means the taking
of a portion only of the Leased Land which does not constitute a
total taking as defined above.
The term "taking" shall include a voluntary
conveyance by Lessor.to an agency, authority or public utility .
under threat of a taking under the power of eminent domain in
lieu of formal proceedings.
The term "date of taking" shall be the
date upon which title to the Leased Land or portion thereof
passes to and vests in the condemnor.
The term "Leased Land" means the real
property belonging to Lessor, together with any and all
improvements placed thereon by Lessor or to which Lessor has
gained title.
B. Effect of Taking. If during the term hereof
there shall be a total taking or partial taking under the power
of eminent domain, then the leasehold estate of the Lessee in
and to the Leased Land or the portion thereof taken shall
cease and terminate, as of the date of taking of said Land. If
this Lease is so terminated in whole or in part, all rentals
and other charges payable by Lessee to Lessor hereunder and
attributable to the Leased Land or portion thereof taken shall
be paid by Lessee up to the date of taking by the condemnor,
and the parties shall thereupon be released from all further
liability in relation thereto.
C. Allocation of Award - Total Taking. All
compensation and damages awarded for the total taking of the
Leased Land and Lessee's leasehold interest therein shall be
allocated as follows:
(a) The Lessor shall be entitled to an
amount equal to the sum of the following:
(i) The.fair market value of the
Leased Land as improved (exclusive of the dwelling and
appurtenances to such dwelling). as of the date of taking, and
(ii) The present worth of rents
due during the period from the date of taking to the next
rental adjustment date or to the date of the expiration of the
-lD-
term of this Lease, whichever date is sooner, computed by
multiplying the annual rent then payable by the factor for
the present worth of $1.00 per annum at % per annum.
compound interest (Inwood Coefficient) for the number of years
in such period.
(b) The Lessee shall be entitled to the
amount remaining of the total award after deducting therefrom
the sums to be paid to Lessor as hereinabove provided.
D. Allocation of Award - Partial Taking. All
compensation and damages awarded for the taking of a' portion
of the Leased Land shall be allocated and divided as follows:
(a) The Lessor shall be entitled to an
amount equal to the sum of the following:
(i) The proportionate reduction of the
fair market value of the Leased Land as improved (exclusive of
the dwelling and appurtenances.to such dwelling) as of the
date of taking, and
(ii) The present worth of the amount-by
which the rent is reduced computed by multiplying the amount
by which the annual rent is reduced by the factor for the
present worth of $1.00 per annum at % per annum compound
interest (Inwood Coefficient) for the number of years remaining
from the date of taking to the next rental adjustment date or
to the date of expiration of the term of.this Lease, whichever
date is sooner.
(b) The Lessee shall be entitled to the amount
remaining of the total award after deducting therefrom the
sums to be paid to Lessor as hereinabove provided.
E. Reduction of Rent on Partial Takinq. In the
event of a partial. taking, the rent payable by.Lessee hereunder
shall be adjusted from the date of taking to the next rental
-11-
k
adjustment date or to the date of the expiration of the
term of this Lease, whichever date is sooner. Such rental
adjustment will be made by reducing the basic rental payable
by Lessee in the ratio that the fair market value of the
Leased Land at the date of taking bears to the fair market
value of the Leased Land immediately thereafter.
16. ATTORNEYS' FEES. Should either Lessor or
Lessee be required to employ counsel to enforce the terms,
conditions and covenants of this Lease Agreement, the
prevailing party shall recover all reasonable attorneys fees
(and court fees if applicable) incurred therein, whether or
not court proceedings were commenced.
17. REMEDIES CUMULATIVE. The rights, powers,
elections and remedies of the Lessor contained in this Lease
shall be construed as cumulative and no one of them shall be
considered exclusive of the other or exclusive of any rights
or remedies allowed by law, and the exercise of one or more
rights, powers, elections or remedies shall not impair or
be deemed a waiver of Lessor's right to exercise any other.
18. NO WAIVER. No delay or omission of the
Lessor to exercise any right,or power arising from any
omission, neglect or default of the Lessee shall impair
any such right or power or shall be construed as a.waiver
of any such omission, neglect or default on the part of
the Lessor or any acquiescence therein.
No waiver of any breach of any of the terms,
covenants, agreements, restrictions or conditions of this
Lease shall be construed as a waiver of any succeeding breach
-12-
of the same or of any of the terms, covenants, agreements,
restrictions or conditions of this Lease.
19.. COMPLIANCE WITH LAWS. Lessee covenants and
agrees to comply with all rules, regulations, statutes,
ordinances and laws of the State of California, County of
Orange, City of Newport Beach, or any other governmental.
body or agency having lawful jurisdiction over the Leased Land.
20. NOTICES. It is mutually agreed that any
notice or notices provided for by this Lease or by law, to
be given or served by Lessee, may be given or served by mail,
registered or certified, with postage prepaid, on the City
of Newport Beach addressed to the Mayor, City Manager, or
City Clerk, 3300 Newport Blvd., Newport Beach, California 92663,
or at such other address as may be hereafter furnished to
Lessee in writing. If notice is intended to be served by
Lessor on Lessee, it may be served either:
personally, or
A. By delivering a copy to the Lessee
B. If he be absent from the Leased Land by
leaving a copy with some person of. suitable age and discretion
who may be occupying the Leased Land, or
C. If no one can be found, then by affixing
a copy of the notice in a conspicuous place on.the property
or also sending a copy through the mail addressed to the
Lessee.
Such service upon Lessor or Lessee shall
be deemed complete at the expiration of forty -eight (48) hours
-13-
0
from and after the deposit in the United States mail of such
notice, demand or communication.
21. HOLDING OVER. This Lease shall terminate and
become null and void without further notice upon the expiration
of said term. Any holding over shall not constitute a renewal
hereof, but the tenancy shall thereafter be on a month -to -month
basis and otherwise on the same terms and conditions as herein
set forth.
22. MISCELLANEOUS.
Inurement. Each and all of the covenants,
conditions and agreements herein contained shall, in accordance
with the context, inure to the benefit of Lessor and apply to
and bind Lessee, his respective heirs, legatees, devisees,
executors, administrators, successors, assigns, licensees,
permittees, or any person who may come into possession or,
occupancy of said Leased Land or any part thereof in any manner
whatsoever. Nothing in this paragraph shall in any way alter
I
the provisions herein contained against assignment or subletting.
IN WITNESS WHEREOF, the parties have caused
this Lease to be executed on the date first above written.
ATTEST:
City Clerk
APPROVED AS TO FORM:
CITY OF NEWPORT BEACH
0
City.Attorney
-14-
Mayor
Lessee
Lessee
EXHIBIT "A"
LEGAL DESCRIPTION OF BEACON BAY
,, t
EXHIBIT "B"
Lot as shown on that certain Record of
Survey filed in Orange County Records as instrument
number 5383 on February 28, 1939 covering a portion of
the Northwest one - quarter (1/4) of Section 35, Township
6 South, Range 10 West, S.B.B.M., TOGETHER WITH the right
zo use in common with other members of the Beacon Bav
Community Association Lots 62 and A through J, as shown
on said Record of Survey..
2u
October 25, 1979
EXHIBIT "D"
INSTRUCTIONS TO APPRAISERS
Appraisal of Beacon. Bay Residential Lots
The purpose of the appraisal report is to estimate fair market rental value
(sic)of the land:onl.y for each parcel in Beacon Bay. "Fair market rental
value" is considered to mean the same as "rental value" as such term is de-
fined on pages 136 and 175 of Real. Estate Appraisal Terminology, sponsored
by the American Institute of Real Estate Appraisers and the Society of Real
Estate Appraisers, published by Gallinger Publishing Co., 1975.
2. The estimate of rental value for each parcel shall be the fair market rental
value of each lot as a finished subdivided lot with street constructed and
all utilities installed. Improvements. on the lot, such as buildings, land-
scaping., walkways, drives, piers and docks are to be disregarded. However,
common areas, such as streets, green belts, and tennis courts are available
to residents and this availability shall be considered by appraiser.
3. The conclusion shall be based on. an analysis of comparable lease data, rather
than a reflection of the.unencumbered fee value based on an analysis from
sales of comparable sites.
4. The proposed leases are to have a term of 25 years without renewal options.
In analyzing data and in forming any conclusions, the appraisers must analyze
and consider any limitation imposed by the lease term on availability of
financing and the: wiTlingness of a lessee to make improvements to the land
and the general marketability of the leasehold estate created.
5. In comparing the subject lots with comparable rental data, the appraisers
shall consider the surface drainage problems which exist on the subject lots
and the fact that electricity and telephone service is provided by overhead
lines rather than underground.
6. The appraisers shall consider and adjust all physical differences between
each of the subject lots and between the subject lots and the comparable
rental data These differences include,, but are not limited to, size, shape,
street frontage, water frontage, views, street width, corner location, beach
quality, adequacy of drainage, ease of access, utilities, and any other factor
that a well - informed prospective lessee and lessor might consider pertinent
in-negotiating a lease.
7. Inasmuch as the homeowners are the lessees and the City is the lessor, the
appraisers are to consider in adjusting comparable Tease or rental data that
the lessee performs all street maintenance and repair, beach, dock, tennis
court, and pier maintenance and repair. The availability and use of streets,
beaches, docks, tennis .courts, and piers by lessee shall.be taken into con-
sideration by the appraiser.
B. The appraisers should consider the impact of the added property tax reassess-
ment as a consequence of a new lease for a term of more than 10 years.
9. Consideration should be given to the fact that Beacon Bay is directly under
jet takeoff patterns.
10. In reaching an opinion of fair market rental, the appraisers shall consider
all terms and conditions in the proposed lease agreement, which is attached
hereto. The appraiser shall also compute and take into consideration the effect
of a rental advantage that current tenants have with the existing lease, valid
through 1987.
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s Cl'fY C:
June 12, 1978
Honorable City Council
City of Newport Beach
3300 Newport Boulevard
Newport Beach, California 92660
Dear Ladies and Gentlemen of the Council:
Marina
CityClub
14- 3 (0)
As some of you may remember I was quite active in the City of Newport
Beach during the decade from 1963 to 1973. During that time and in various
capacities I was either in the center of or participant in every major debate
concerning the future of our city. Even though I moved my principal resi-
dence to Los Angeles during the past three years, I continued to subscribe
to the Daily Pilot and followed the on -going saga of Newport Beach with
great interest, if not dismay. I recently moved back to Newport Beach and
while my principal business interests are still outside of the city I remain
a residential and commercial owner of property within the city. However,
I do want to emphasize that I have no aspirations of, or plans of developing
or redeveloping any of the property that I own.
Since the recent election events have taken a very predictable course, I
would like to share with you a couple of observations which I find to be
tragically amusing.
1) Principal support of the new majority of your council seems to come
from the same group of individuals who lead the fight against the freeway
during the 1960's. The central rationale through this group was that if we
did not build roads then the public would not come to use them, and there -
JUN 10 1978 by, we could save our city from the onslaught of vehicular traffic and un-
Dst° wanted bodies. On that Pinnacle of Wisdom the freeway was defeat (U
CT6�1 $ENT TO: t!�
Yor
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Marina City Club 4333 Admiralty Way Marina del Rey, California 90291 j 8
Councilmen Mailing Address: Post Office Box 92726 • Los Angeles, California 90009 �' /�..� A
City Council
June 12, 1978
Page 2
Now we find that the people have come anyway. And so, now the same
group of individuals have changed their tune and are saying to the property
owners of Newport Beach in effect " you solve the problem, or we won't
let you develop the land that you own".
2) On the other hand I read with great interest where the resolution fon
the extension of the Beacon Bay lease was near a decision. It is very in-
teresting to note that this same new majority who will restrict or kill the
development of property held _by responsible individuals for many years
in the interest of the "public" , apparently is wl Ming to deny the most
valuable piece of property in Newport Beach to the same public. About
ten years ago there was a study in great depth about the future of city
owned leaseholds. I think if you dig in your files you'll find the reports
and promises that upon the expiration of the Beacon Bay lease that the land
would be putto public use, either in the form of parks and beaches or into
high density development interspersed with open areas which could at least
gain for the public coffers much needed income to maintain property tax
levels and provide on -going needed city services. It is not very difficult
to read between the lines of the Daily Pilot and see that the City Council
apparently intends to renegotiate the single- family leaseholds which has
to be the most uneconomical and non - public utilisation of this priceless
asset.
Somehow, the above two situations seem to be at conflict with one another
and both seem to be wrong. I hope this is not a prediction of things to come
from our new leadership in the city.
Very truly yours,
PSven:s:::�
Richard S
President
RSS /jr
MEMORANDUM: From
ASSISTANT CITY ATTORNEY
TO „_....._DORIS..GEORGE� City Clerk
RE: Balboa Yacht Basin Lease
November 15, 197
....... ..............................y .......
Attached is the original copy of the Assumption Agreement
executed by The Irvine Company, a Michigan Corporation,
assuming the duties and obligations'of its predecessor, The
Irvine Company, a west Virginia Corporation, as to the Balboa
Yacht Basin. Please file the original in an appropriate
location.
HRC:yz
Attachment
cc: City Manager.(Attachment)
Marine Director (Attachment)
Reply wanted O
Reply not necewry O
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OF NEWPOST
.SOH.
MEMORANDUM: From
ASSISTANT CITY ATTORNEY
TO „_....._DORIS..GEORGE� City Clerk
RE: Balboa Yacht Basin Lease
November 15, 197
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Attached is the original copy of the Assumption Agreement
executed by The Irvine Company, a Michigan Corporation,
assuming the duties and obligations'of its predecessor, The
Irvine Company, a west Virginia Corporation, as to the Balboa
Yacht Basin. Please file the original in an appropriate
location.
HRC:yz
Attachment
cc: City Manager.(Attachment)
Marine Director (Attachment)
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