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HomeMy WebLinkAbout13 - American Legion Lease Agreement0 ITEM 13 TO: Members of the Newport Beach City Council FROM: Dave Kiff, Deputy City Manager SUBJECT: Extension of Lease Agreement with American Legion Post 291 ACTION: Authorize the Mayor to enter into a 16t Lease Amendment that extends the current operating lease with the American Legion Post 291 for the marina and clubhouse at 21515th Street for one year. EXECUTIVE American Legion Post 291 has operated a clubhouse and 50 -slip marina with dry SUMMARY: dock spaces at 21515th Street since September 2,1940. The current lease - entered into on March 10, 1975 -- expires on March 15, 2000, the same date at which the leases at the Girl Scout Hut and the Marinapark mobile home leases (also on the same City property) expire. Because the State Lands Commission has not yet opined as to the appropriate tidelands boundary associated with the City's property between 15th and 18th Street, the City Manager asks that the Council offer the Legion a one -year extension of the current lease. If so authorized, the City and the Legion will extend this lease via the 1a Lease Amendment to the current lease. BACKGROUND: American Legion Post 291's history in Newport Beach dates back to January 1924, when Newport-area veterans from the Santa Ana Post decided to break off and form their own structure in Newport Beach. Post 291 raised money for the purchase of a permanent meeting site by holding Sunday dances at the Balboa Pavilion in the 1920s. Later it purchased a bayside site on 10th Street. When road improvements impacted the 10th Street site, the City and the Legion signed a lease for the 21515th Street site on September 2,1940. Construction of the current meeting hall began in 1949. The 1940 Lease was later extended in February 1951 and again in March 1975. The premises under lease includes: • a clubhouse and bar • shower and restroom facilities • 34 boat lockers . 47 dry storage spaces • a 62 space parking lot • 50 wet slips • A hoist dock • 43 racks for dinghy storage Newport Beach City Council BACKGROUND: (cont'd) Page 2 The current lease includes the following stipulations -the American Legion must: • Use the premises for Legion purposes. • Not discriminate in its operations. • Allow the City and the community to use the facilities when not in use by the Legion. • Maintain the building, parking lot, marina, slips, and landscaping at the Legions expense. • Keep insurance levels at $200 -500K (injury) and $50,000 (property damage). • Keep complete books. • Allow the City to inspect records. • Provide an annual audit to the City. • Pay rent in the amount of: - $300 /month plus 100% of parking lot revenues from 26 spaces plus 40% of gross marina slip rental revenue plus 50% of gross revenues from dry storage areas and lockers This rent schedule generates about $105,000 a year to the City. Given the uncertainty over the tidelands vs. uplands status of the City's property between 15th Street and 18th Street, the City Manager has asked the Legion to agree to a one -year extension of the 1975 Lease under the same terms. This agenda item asks the Council to authorize the Mayor to enter into this extension via a lease amendment. ATTACHMENTS: First Lease Amendment � II E Attachment A 1St LEASE AMENDMENT to the 1975 Lease between the City of Newport Beach and the American Legion Post 291 (Newport Harbor) This First Lease Amendment, made and entered into this _ day of ,1999, by and between the City of Newport Beach, a chartered municipal corporation ("CITY ") and Newport Harbor Post 291 of the American Legion ("LEGION ") is as follows: WHEREAS, Legion has operated a marina and clubhouse at 21515th Street in Newport Beach since September 1940 and WHEREAS, City owns or holds in trust the property associated with the clubhouse and marina and has leased the premises to Legion under a lease executed March 10, 1975 ("1975 Lease") and WHEREAS, the 1975 Lease will expire on March 15, 2000; and O WHEREAS, City and Legion desire to extend the 1975 Lease under identical terms for the period of one (1) year from the March 15, 2000 lease expiration date and WHEREAS, this one (1) year extension shall cause the 1975 Lease to expire on March 15, 2001. NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING RECITALS AND THE MUTUAL COVENANTS set forth below, City and Legion hereby agree to execute the First Amendment to the 1975 Lease (Exhibit A) as follows: II. TERM ... The term of this lease will commence on March 15,1975 and expire on March 15,20N 2001. IN WITNESS THEREOF, the parties hereto have executed this Lease Amendment as of the day and year first above written. ATTEST: LaVonne Harkless, City Clerk CITY OF NEWPORT BEACH Dennis D. O'Neil, Mayor AMERICAN LEGION POST 291 Paul Curtis, Commander Page 4 0 r�,