HomeMy WebLinkAbout23 - Marina Park RFPCITY OF NEWPORT BEACH
City Council Agenda Item No. 23
TO: HONORABLE MAYOR AND COUNCIL
FROM: Homer L. Bludau, City Manager
DATE: February 22, 2000
RE: REVIEW MARINA PARK REQUEST FOR PROPOSALS (RFP)
RECOMMENDED ACTION
Direct the City Manager to have staff review the eight (8) proposals to the City's Marina Park
Request for Proposals (RFP) and identify the proposals' features. Staff would provide this
information to Council to help them make a determination as to its proposal review process.
BACKGROUND
In November 1999, the City Council approved a Request for Proposals for the Marina Park site.
The RFP process was a response to a development proposal for the site submitted by the
Sutherland Talla Hospitality group. Rather than consider one proposal, the Council followed its
Income Property Policy (F -7), which states "...In all negotiations regarding the lease,
management contract, concession, sale or similar action regarding a non - residential income
property, the City shall seek revenue equivalent to the open market value of the highest and
best use; and, whenever possible the City shall conduct an open bid or proposal process to
insure the highest financial return." Proposals have been submitted by the following:
The Ayers Group
The Bendetti Company
Ficker and Stevens
Newport Harbor American Legion Post 291
Parks, Beaches and Recreation Commission
RHC Communities
Sutherland Talla Hospitality
Terra Vista Management (for Marina Park Homeowners Association)
STAFF ACTION PROPOSED
The City Manager proposes staff review the eight proposals and identify the contents as a
means to assist Council in understanding the elements of each proposal and deciding how
Council's review will occur. Staff proposes to develop a matrix whereby proposals' contents
would be illustrated. Staff's matrix and review should be available by the regular March 14th
Council meeting.
City Hall • 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659 -1768
REQUEST FOR PROPOSALS
MARINAPARK
FUTURE USE/DEVELOPMENT
CITY OF NEWPORT BEACH
3300 Newport Boulevard
P. O. Box 1768
Newport Beach, CA 92658 -8915
November 1999
Introduction
The City of Newport Beach is seeking qualified parties to propose future use 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.
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 Project 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 Qualifications
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.
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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. Project 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. 0. 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
City Council Policy F -7, Income Property
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F -7
INCOME PROPERTY
The City owns and manages an extensive and valuable assortment of property
including streets, parks, beaches, public buildings and service facilities. The City also
owns and operates a yacht basin, a mobile home park, a luxury residential development
and various other income properties. Most of the income property is tidelands, filled
tidelands or waterfront. Unencumbered fee value of income property is estimated at
upwards of one hundred million dollars, and income typically contributes ten percent
of all City revenues.
As owner of property, the City is the steward of a public trust, and state law requires
the City to maximize its returns or be subject to a charge of making a gift of public
funds. Nevertheless, the City Council recognizes the importance of this property not
only as a revenue generator, but also as a means to provide otherwise unfeasible uses
and facilities to benefit the community.
In managing its property, the City will continually evaluate the potential of all City
owned property to produce revenue. This may include leasing unused land, renting
vacant space, and establishing concessions in recreation areas or other similar
techniques. The City Council will evaluate the appropriateness of establishing new
income properties using sound business principals and after receiving input from
neighbors and users.
The policy of the City Council is that income property be managed in accordance with
the following:
A. Whenever a lease, management contract, concession, sale or similar action
regarding income property is considered by the City, an analysis shall be
conducted to determine the maximum or open market value of the property.
This analysis shall be conducted using appraisals or other techniques to
determine the highest and best use of the property and the highest value of the
property.
B. All negotiations regarding the lease, management contract, concession, sale or
similar action regarding income property shall include review of an appraisal or
analysis of the use being considered for the property conducted by a reputable
and independent professional appraiser, real estate consultant or business
consultant.
F -7
C. The City shall seek, whenever practical and financially advantageous, to operate
or manage all property and facilities directly with City staff or contractors.
D. In all negotiations regarding the lease, management contract, concession, sale or
similar action regarding a non - residential income property, the City shall seek
revenue equivalent to the open market value of the highest and best use; and,
whenever possible the City shall conduct an open bid or proposal process to
insure the highest financial return.
E. Whenever less than the open market or appraised value is received or when an
open bid process is not conducted, the City shall make specific findings setting
forth the reasons thereof.
Such findings may include but need not be limited to the following:
1. The City is prevented by tideland grants, Coastal Commission guidelines
or other restrictions from selling the property or converting it to another
use.
2. Redevelopment of the property would require excessive time, resources
and costs which would outweigh other financial benefits.
3. Converting the property to another use or, changing the manager,
concessionaire or lessee of the property would result in excessive vacancy,
relocation or severance costs, which would outweigh other financial
benefits.
4. Converting residential property to another use or opening residential
leases to competitive bid would create recompensable liabilities and other
inequities for long -term residents.
5. The property provides an essential or unique service to the community
that might not otherwise be provided were full market value of the
property be required.
6. The property serves to promote other goals of the City such as affordable
housing, preservation of open space or marine related services.
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F -7
F. Generally, lengths of leases, management contracts, concessions or similar
agreements will be limited to the minimum necessary to meet market standards
and will contain appropriate reappraisal and inflation protection provisions.
Also, all agreements shall contain provisions to assure complete audits
periodically through their terms.
G. All negotiations regarding the lease, management contract, concession, sale or
similar action regarding income property shall be conducted by the City
Manager or his designee under the direction of any appropriate City committees
prior to consideration by the City Council.
H. To provide an accurate accounting of actual net revenues generated by the City's
income property, all costs and charges directly attributable to the management of
a specific income property shall be debited against the gross revenues collected
on that property in the fiscal year the costs are incurred. Costs and charges
include property repairs and maintenance, property appraisals, and consultant
fees, as authorized by the City Council, City Manager or by this Income Property
Policy.
Adopted - July 27, 1992
Amended - January 24,1994
Amended - February 27,1995
Amended - February 24,1997
Amended - May 26,1998
Formerly F -24
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