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Home My WebLink AboutF-3 - History and Present Status of the City-Owned Property on Bay Avenue Between 18th and 19th�!�J,��.l'd-.tldtR-�/ .,. jam' _:�: w'' v .✓ 6*.('�t .�"s 'y�"-tea- r ,,�' � �-,5e�° G++ ,.�j,.+�'_Ji-- f • J 3 -�-k t.S; F. C.�•/"} f I �i�- (i °,P3., n .=�..�,�^i.�,/iWj,�!L=:i�h I q.i: CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER COUNCIL AGENDA No. F-3 September 12, 1977 TO: MAYOR AND CITY COUNCIL FROM: City Manager HISTORY AND PRESENT STATUS OF THE CITY -OWNED SUBJECT: PROPERTY ON BAY AVENUE BETWEEN 18TH AND 19TH Background and Purpose At the Study Session of August 22, 1977, the City Council reviewed a staff report regarding the current status of the City -owned property on Bay Avenue between 18th and 19th. The Council directed staff to return on September 12, 1977, with an extensive report on the property for review at their regular evening meeting. The purpose of this staff report is to respond to the Council's request. Property Description The subject property is located on the south side of Bay Avenue between 18th and 19th (Attachment 1). The property is slightly irregular in shape and has the following dimensions (Attachment 2): West Bay frontage: 46.02' Westerly boundary: 46.38' Easterly boundary: 47.19' Southerly (rear): 47.95' The total area of the property is approximately 2,200 square feet. Leases on the Property On March 1, 1952, the City leased approximately 1,176 square feet on the easterly half of the subject property, to Mr. and Mrs. G. H. Sullivan, who owned the abutting property to the south (Attachment 3). The lease was assigned a duration of 10 years, from March 1, 1952 to February 28, 1962 on rental terms of $12.50 per month, or a total of $1,500 for the full term. It was noted that a residential encroachment existed on the leased property, and it was specified that under the terms of the lease, only residential usage of the property would be permitted. Upon expiration of the original lease agreement rental payments were continued at $12.50 per month on a month to month basis. MAYOR AND CITY COUNCIL History and Present Status of City -Owned Subj: Property on Bay Ave. Between 18th & 19th Page 2 - 9/12/77 On September 23, 1964, the Sullivan lease was transferred to Mr. and Mrs. Charles H. Straub. The same payments, terms, and conditions of the original lease were applied, with the exception that continuance was on a month to month, rather than a long term basis. On May 1, 1953, the City leased the remaining 1,023 square feet on the wester- ly half of the subject property to Josephine Fulton who also owned abutting property to the south of the leased parcel. The dimensions of the leased parcel were approximately 50' by 25' (Attachment 4). The duration of the Fulton lease was set at 10 years; from May 1, 1953, to April 30, 1963 on the same rental terms as those established for the Sullivans, that is $12.50 per month or a total of $1,500 for the full term. As with the Sullivan lease, it was specified that only residential usage of the property would be accepta- ble. With the expiration of the original lease agreement, arrangements were made to continue rental payments of $12.50 per month on a month to month basis. Summary of Council Actions to Date A. Charter Amendment to Authorize the Sale of the Property and Related Actions -- 1963 to 1966: On February 25, 1963, the Council expressed interest in the possibility of selling the Bay Avenue property, and directed staff to investigate the matter. At the Council meeting of August 22, 1963, a memorandum was submitted by the City Attorney which indicated that Section 1402 of the City Charter, entitled "Water Front Property,"provides that: "The City Council shall not sell or convey any water front property excepting to the State or to the County for use as a public beach or park." Although Bay Avenue separates the subject properties from Newport Harbor, they were still held to be "Water Front Properties" within the meaning of the Charter. It was determined, therefore, that the Charter would have to be amended by a vote of the citizens before any sale of the property could be completed. The Council continued the matter until their meeting of December 9, 1963. On December 9, 1963, another memorandum was received by the Council from the City Attorney, which indicated that a Charter Amendment to authorize the sale of the property could be prepared for sub- mission to the voters at the April 14, 1964 municipal election. The City Council proceeded to authorize the placement of this item on the ballot. MAYOR AND CITY COUNCIL History and Present Status of City -Owned Subj: Property on Bay Ave. Between 18th & 19th Page 3 - 9/12/77 On April 14, 1964, the voters approved a Charter Amendment authorizing the sale of the subject property. The City Manager was directed by the Council to secure an appraisal of the property. On March 24, 1965, Norman W. Fleming and Ralph P. Maskey appraised the property and found the fair market value to be $24,250. At the City Council meeting of September 12, 1966, approval was granted for the resubdivision and sale of the Bay Avenue lots to the adjoining property owners; Mrs. Josephine Fulton and Mr. and Mrs. Charles H. Straub. Negotiations with the property owners did not, however, prove fruitful, and the resubdivision and sale were not consummated. The month to month lease arrangement which was in effect at the time, was continued. B. Consideration of the Use of the Property in the Context of the Marina Park Development Plan -- 1972 to 1976: In May of 1972, an unsolicited offer was made by a private party, to purchase both parcels for $50,000. The City Council referred the offer to the Parks, Beaches and Recreation Commission for their review and recommendation. The Commission, at their meet- ing of May 16, 1972, recommended that rather than sell the property, the City retain the parcels for eventual utilization as part of the proposed municipal sailing center portion of the Marina Park Development Plan. The Council accepted the recommendation of the Commission at that time. On June 24, 1974, the Council received a staff report which indi- cated that it would be advisable, in the absence of a definitive commitment to sailing center land acquisition, for the City to proceed with the sale of the subject property to the highest responsible bidder. Council again referred the matter to the Parks, Beaches and Recreation Commission. The Commission recommended, and the Council accepted the position that the two lots be retained until a final determination could be made concerning the outcome of the Marina Park proposal. At the Parks, Beaches and Recreation Commission meeting of April 6, 1976, a master plan for the Marina Park area was adopted, which did not provide for the inclusion of the subject Bay Avenue property. On June 14, 1976, the Council approved the Commission's recommendation. MAYOR AND CITY COUNCIL History and Present Status of City -Owned Subj: Property on Bay Ave. Between 18th & 19th Page 4 - 9/12/77 C. Reconsideration of the Sale of the Property -- July 26, 1976: Following the deletion of the two leased parcels from consid- eration as part of the Marina Park Development, the Council on July 26, 1976, again considered the possible resubdivision and sale of the property to the highest responsible bidder. The Council decided at that time to table the matter. Mrs. Fulton and the Straubs have continued to lease the parcels from the City on a month to month basis under the original provisions of the agreement. D. Consideration of the Use of the Property for a Community Meeting Facility -- July 11, 1977 to August 22, 1977: In the months following the tabling of the matter, the City received various inquiries and offers concerning the property. Among these were offers by the current lessees; Mrs. Fulton and the Straubs, to purchase the properties from the City. On July 11, 1977, the Council removed this matter from the table and directed staff to initiate the resubdivision of the two parcels. This action was intended to provide for the sale of an encroaching portion of the residence belonging to the Straubs; the removal of the encroachment on the property leased by Mrs. Fulton, and the relocation onto the resubdivided parcels of a structure of historical significance, for use as a community meeting facility. On June 17, 1977, a survey of the property was conducted to determine the nature and extent of existing encroachments. Two primary encroachments were shown to exist on the parcels (Attach- ment 5). The information obtained as a result of the survey was analyzed by staff and presented to the Council on August 22, 1977. It can be seen from an examination of Attachment 6, that even with the removal of the garage from the one parcel, the extent of the encroachment by the residence onto the other City -owned parcel is such that the resubdivided property could not physically accommodate both structures. Following an examination of these materials by the Council, staff was directed to prepare an extensive report on the subject property for consideration at the meeting of September 12, 1977. Summary of Alternatives The following basic alternatives currently exist with regard to the disposition of the subject Bay Avenue property: A. Cancel the existing leases and require the lessees to remove all encroachments. Continue with the proposed resubdivision and, MAYOR AND CITY COUNCIL History and Present Status of City -Owned Subj: Property on Bay Ave. Between 18th & 19th Page 5 - 9/12/77 if desired, community meeting facility relocation. B. Take appropriate action to initiate the sale of the subject property. C. Maintain existing lease situation. D. Provide for a revised lease agreement. Recommendation Due to the small size of the lots, and the fact that the two lessees have indicated a strong interest in purchasing their respective leased parcels, the following actions are recommended: 1. That the property be appraised and resubdivided, and that the two parcels presently being leased, be negotiated for sale to the lessees; Mrs. Fulton and Mr. and Mrs. Straub. It is anticipated that any appraisal costs would be born through a combined effort on the part of the City and the current lessees. 2. If the Council chooses not to sell the property, it is recommended that an appraisal nevertheless be conducted, and that the property be leased on the basis of its fair market value. ROBERT L. WYNN RLW:GJB:ib Attachmentw ATTACHMENT f lo 1p I A)". cill 3 A. vv- cl 19 ai 0090 -A eo G " jig L,60A Alf) oc I 10 AS Zi t5 2t M, AlW Ff c IdJoe it fqA ZoA I 1,*,r CITY OF VICINITY POI MC NEWPORT MNP BENCH ATTACHMENT 2 BAY AVENUE I 4 i 3 2 7 8 , 9 � I I V LELLE PLACE CITY OWNED PROPERTY ATTACHMENT 3 VI LELLE PLNC E ATTACHMENT 4 BAY AVENUE V LELLE PLACE BA Y A VE. CURB Liv6 ATTACHMENT 6 SA Y 4 VE. . . . ........... . ............ 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