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HomeMy WebLinkAbout84-88 - Redevelopment of the Balboa Yacht BasinRESOLUTION NO. 84 -88 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING AMENDMENTS TO THE • AGREEMENT WITH THE STATE TO PROVIDE FUNDING FOR THE REDEVELOPMENT OF THE BALBOA YACHT BASIN AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENTS TO THE AGREEMENT WHEREAS, the State Department of Boating and Waterways provides loans to cities, counties and districts for the development of small craft harbor facilities; and WHEREAS, the City of Newport Beach is desirous of developing the proposed boating facilities to meet the needs of the boating public in the surrounding area; and WHEREAS, the City of Newport Beach has conducted a feasibility study which showed the proposed project to be engineeringly and financially feasible and economically justified; and WHEREAS, the City of Newport Beach understands that the marina berthing facilities may be operated by the City of Newport Beach or privately if the concessionaire develops the berths and this option was analyzed and considered in the decision - making process; and WHEREAS, the City of Newport Beach has surveyed the berthing rates of other marinas in the area and agrees to charge competitive berthing rates at the proposed marina and agrees that the berthing rates shall be adjusted annually on the basis of the Consumer Price Index or other more accurate relevant indices; and WHEREAS, based upon the latest cost estimates, a supplement to the existing $2.5 million dollar loan is needed to • complete the funding for the project; and WHEREAS, in order to receive supplemental funding, the original loan agreement must be modified to increase the loan commitment, revise the loan repayment schedule, require the City to establish minimum berthing rights, and require the City to annually adjust and /or survey berthing rates. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newport Beach hereby approved the form and content of. a first amendment to the contract for funding the redevelopment • of the Balboa Yacht Basin, a copy of which amendment is attached to this resolution as Exhibit "A "; BE IT FURTHER RESOLVED that the Mayor and City Clerk are hereby authorized to sign the first amendment to the contract. ATT ST: 1ty Clerk RSP /Marine ADOPTED this 13th day of August , 1984. 2 i 1 First Amendment to Contract Baijoa %..Lna �600,"jJ Liu umental Loan b 3 This amendment is entered into on July 23, 1984, between the California 4 Department of Boating and Waterways (DEPARTMENT) and the City of Newport Beach 5 (APPLICANT). The DEPARTMENT and the APPLICANT agree to amend their Contract • 6 of November 1, 1982, (Contract No. 82- 21 -82) as follows: 7 1. Paragraph 2 shall read: 8 "The DEPARTMENT will make a construction loan in the amount of THREE 9 MILLION THREE HUNDRED THOUSAND DOLLARS ($3,300,000) to the APPLICANT I 10 in accordance with EXHIBIT A." 11 2. Paragraph 3(b) shall read: 12 "(b) Repayment of the first $2,500,000 of the loan shall begin on 13 August 1, 1987, and repayment of the remaining $800,000 of the loan 14 shall begin on August 1, 1988.11 15 ,,3. Paragraph 4 shall read: 16 (a) The APPLICANT certifies that the obligation created by this contract 17 will not create an indebtedness or liability contrary to the provisions of 18 Section 18 of Article XVI of the Constitution of the State of California. 19 (b) If for any reason whatsoever the APPLICANT does not substantially 20 complete the PROJECT (as defined by EXHIBIT A), then all loan moneys expended 21 by the APPLICANT prior to such date are, to the extent permitted by law, a 22 general obligation of the APPLICANT and shall,be due and payable ONE HUNDRED 23 EIGHTY (180) days after the close of fiscal year 1987 -88. 24 (c) The APPLICANT shall establish a berthing rate for the PROJECT 25 sufficient to cover the requirements of Section 71.8(e) of the Harbors and 26 Navigation Code; however, the rates for the rental of berths at the PROJECT 27 shall not average (average calculated by dividing total berth revenues by 0 COURT PAPER COU STATC OP CALIFORNIA SYD. 113 1REV. 0-721 HI I A DRI 3 w • S. 1 2, 3 4 5 6 71 81 9 10 11 12 13 14 15, 161 17 18 19 20 21 22 23 24 25 26 27 COURT PAPER STD. 113 CF REV. 0. U STD. 119 IP6V... al^�•)31 OBP `i total linear feet of berth-) less than $7.Sp per foot of boat or berth lenrth a� (whichever is longer) per month beginning with July 1, 1986. Zhe APPLICANT shall adjust such rate or rates as necessary to keep them at a level which meets the aforestated requirements; however, such adjustments shall be made no less than once each year and shall not be less than the equivalent percent change (over the preceding year) in the United States Bureau of Labor Statis- tics' Consumer Price Index for the United States, or such other index as selected by the DEPARTMENT. (d) The APPLICANT shall each year conduct a survey of berthing charges which prevail in the same market area as the PROJECT and shall transmit the results of the survey to the DEPARTMENT by the 1st of April of each year. The APPLICANT shall establish berthing charges which are reasonable and not exorbitant. (e) Notices required between the parties shall be deemed to have been ,given when mailed to the respective addresses below, first -class postage prepaid thereon. to DEPARTMENT: Department of Boating and Waterways 1629 S Street Sacramento; California 95814 -7291 d to BORROWER: City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92663 Save and except as herein amended, the Contract of November 1, 1982, shall remain in full force and effect. I ............. ............... -2- n r. 1 i CTTY OF NFWWi RT BEACH 2 3 STAT}i OF CAT- UnpNiA oLi... •..NC t. . ,"VIING ,.NL ti 4 By By Title: Director 5 • 6 Date Signed Date Signed 7 8 9 I hereby certify that all conditions for exemption set forth in State 10 Administrative Manual Section 1209 have been complied with and this document 11 is exempt from review by the Department of Finance. 12 14 15 16 17 18 19 20 21 22 23 24 25 26 27 _ ? PAPER °,OF CALIFORNIA E_^ 113 IREV. 0 -731 00! 5 d -3 Director 0