HomeMy WebLinkAbout16 - Marinapark Request for Proposals• November 8,1999
Agenda Item 16
CITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER
TO: Honorable Mayor and City Council
FROM: Homer Bludau, City Manager
SUBJECT: Marinapark Request for Proposals
At the conclusion of the study session on Marinapark on October 25, 1999, the City
Council directed staff to circulate a request for proposals (RFP) so that the Council may
consider proposals from a variety of parties interested in using the site, including the
existing tenants.
• A draft RFP is attached for the Council's review. It provides background information on
the site, including current uses and tenants, zoning, and tidelands boundary status, as well
as conclusions from the Keyser Marston revenue study and the Balboa Peninsula
Planning Advisory Committee (BPPAC) report. The RFP also outlines the City's goals
for the site, the information that submittals in response to the RFP must include, and the
review process the City will use in evaluating submittals. Staff thinks it is especially
important for the Council to review and comment on the suggested City goals, as that is
the section most likely to guide parties in deciding whether to respond to the RFP, and in
what fashion.
In addition, staff is requesting Council comments on distribution of the RFP. As Council
indicated on October 25, it will be sent to all current Marinapark lessees, to Stephen
Sutherland so that he has the opportunity to meet all the submittal requirements in the
RFP and to amend his earlier proposal if he chooses, to other parties who have expressed
interest in the site, and to local residential developers.
Recommendation
Approve RFP for distribution.
•
REQUEST FOR PROPOSALS
Marinapark
Newport Beach, California
Introduction
The City of Newport Beach is seeking parties to propose reuse of the City -owned
property known as Marinapark. The 10.71 acre site, shown on the attached map, is
located on the Balboa Peninsula, bounded by Newport Bay, 15th Street, Balboa
Boulevard, and 18th Street. The City uses a portion of the site for Las Arenas Park with a
tot lot and four tennis courts, and a metered public parking lot. The remainder of the site
is currently leased to the Marinapark Mobile Home Park, an American Legion Post and
marina, a Girl Scout House and the Balboa Community Center. All leases will expire on
March 31, 2000, except the American Legion lease, which has been extended to March
31, 2001. The City wishes to evaluate proposals from parties, including the current
tenants and others, who are interested in reusing the property in a manner that will be a
positive addition to the Balboa Peninsula and produce a secure revenue stream for the
City.
Site Information
The site has a General Plan designation of Recreational and Environmental Open Space,
which is intended to provide for both public and private open space and recreation uses,
such as parks, golf courses, tennis courts, yacht clubs, marina support facilities and
private recreation facilities. Similar provisions are included in the City's Local Coastal
Program. The City will consider reuses of the site that are not primarily recreation and
open space, and which will require amendments to the General Plan and Local Coastal
Program. The zoning classification is Planned Community, which is intended to provide
for the development of coordinated, comprehensive projects with a diversification of land
uses. Planned Community regulations are required to be prepared and adopted to govern
any uses that do not exist on the site today. The City has not done any planning or
environmental work on the site, as the future land use has not been decided. The City
intends to make that decision based, in part, on responses to this request for proposals.
The selected party(ies) will be responsible for the land use entitlement and development
review processes.
The City is awaiting a determination by the State Lands Commission as to the location of
the tidelands boundary on the site. Earlier this year, the City Council concluded that the
• property should be considered "upland" and requested that determination from the
Commission. A "tidelands" designation would require uses for public enjoyment, while
an "uplands" designation would accommodate any land uses meeting zoning
requirements.
Background
The City retained Keyser Marston Associates Inc. to prepare a revenue study of possible
reuses of the Marinapark property. That study analyzed the following three scenarios:
1. Baseline, which would retain all existing uses with rents adjusted to market rates,
2. Partial redevelopment, consisting of replacing the mobile home park with a hotel
(approximately 85 rooms) and restaurant (approximately two acres), and
3. Major redevelopment, consisting of replacing the mobile home park with hotel and
restaurant uses and replacing all other uses except the American Legion with 30
single family residential lots.
The conclusion was that the major redevelopment scenario would maximize City
revenues.
• The City Council appointed the Balboa Peninsula Planning Advisory Committee
(BPPAC) in 1995 to study issues on the Peninsula, identify solutions and recommend
implementation strategies. BPPAC presented its recommendations in 1997 in a report
entitled "Project 2000." The vision for the Peninsula is a quality community for residents
and businesses; a destination for families, visiting boaters and day users to enjoy the
resources of the beach and Bay; and a place with a reputation as a quality environment.
Building on this vision, land use policies focus on a balance of residential, commercial
and visitor serving uses, and respect for the environmental constraints of the Peninsula.
Economic policies focus on covering the costs of visitors with revenues derived from
them rather than from local residents and businesses.
With regard to the Marinapark site, BPPAC found that it affords an opportunity for a
community marine recreation center, including a visiting boaters' marina. In a TOT
Enhancement Study prepared for the City by PKF Consulting, the site was considered a
potential hotel development site. These studies, and public interest in retaining the
mobile home park and City park facilities, demonstrate that there is a range of uses that
can be considered for the Marinapark site. In deciding how to use the property after the
existing leases expire in 2000, the City wishes to achieve the goals listed below.
Copies of the studies by Keyser Marston Associates Inc., BPPAC, and PKF Consulting
are available for review in the Newport Beach Planning Department.
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City Proiect Goals
• High quality design, with sensitivity to on- and off -site views of Newport Bay and
appearance of the project from Balboa Boulevard and the Bay.
• Provision of a public open space /recreation component and public access to Newport
Bay.
• Compliance with tidelands regulations and State Lands Commission determinations.
• Consistency with City plans, policies and regulations.
• Conformance with Coastal Commission regulations and policies.
• Respect for the property enjoyment rights of neighboring uses, especially residential
uses.
• Strong market support.
• Provision of a secure revenue stream to City.
• Catalyst for future improvements to Balboa Peninsula.
Form of Disposition
The City would prefer to work with one party or team on the entire site, but will consider
separate proposals for portions of the property.
It is currently the City's intent to lease the land on a non- subordinated basis to future
user(s) for a period of up to 50 years. However, the City may consider sale of the uplands
(non- tidelands) portion of the site if that is shown to be more advantageous for the City.
Submittal Requirements
Parties wishing to be considered should submit the following information.
1. Basic Oualifications
Describe the qualifications of the party or team to undertake the project. Include
information on any joint venture or limited partners, and any previous experience the
team or partners have had together. Provide addresses, project descriptions and city
contacts for similar projects that the party or team has completed successfully, and
describe the role of each team member in the projects. 0
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0 2. Financial Qualifications
Provide information on the financial status of the party or team members, and their ability
to obtain financing for the project. Include references from banks or other sources of
financing for comparable, recent projects.
3. Proiect Description
Provide a site plan and general description of the proposed project. Include information
on land area and facilities to be provided for public and private recreation use, building
area to be developed for restaurant or other commercial uses, number of units for hotel or
residential uses, and amount of parking to be provided for all uses. The site plan and
project description should indicate how views of and access to Newport Bay are
preserved, and how the project's design and function will relate to the surrounding
neighborhood.
4. Development Costs and Operating Pro Forma
Provide a detailed estimate of land and development costs and identify sources of
financing. Provide a stabilized year revenues/expenses statement, and a ten -year
operating pro forma, including sources and projections of income, and projections of
• revenue to be realized by the City.
5. Implementation Schedule
Identify timelines for the completion of all project related tasks including financing, pre -
development planning, entitlement and environmental review, design development,
permit processing and construction.
6. Consultant Team
Provide background information, previous projects and references for all lead consultants
to be used in development of the project, including architect and other design
professionals and traffic engineer.
Submittal Requirements
Ten copies of the proposal are required. Submittals must be received no later than 5:00
p.m. on February 4, 2000. Submittals should be addressed to:
Sharon Wood, Assistant City Manager
3300 Newport Boulevard
• P. O. Box 1768
Newport Beach, CA 92658 -8915
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Review Process
The City will review all complete and timely submittals, and may interview those parties
who appear most likely to achieve the City's goals for the project. The most qualified
parties may be invited to submit more detailed development proposals. The City reserves
the right to reject all proposals, to request additional information from interested parties,
and to select more than one party to participate in a further review process.
City Contact
Sharon Wood
Assistant City Manager
714 - 644 -3222
Attachments:
Location Map
Parcel Map
Aerial Photograph
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