HomeMy WebLinkAbout09 - American Legion Lease AgreementITEM 9
TO: Members of the Newport Beach City Council
FROM: Dave Kiff, Deputy City Manager
SUBJECT: 2nd Extension to Lease Agreement with American Legion Post 291
RECOMMENDED
ACTION:
Authorize the Mayor to enter into a 2^d Lease Amendment that extends the
current operating lease with the American Legion Post 291 for the marina and
clubhouse at 21515'" Street for one additional year to March 15, 2002.
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 and amended in August 2000 — expires on March
15, 2001.
Your Council approved a one -year extension to the American Legion Lease
Agreement on October 25, 1999 due to uncertainty about the proposed uses of
the remainder of the City -owned or managed parcel upon which the Legion's
clubhouse sits. The parcel includes the Marinapark mobile home park. In the
meantime, your Council approved a Lease Extension with the Marinapark
residents that extended their tenancy to March 15, 2002. This item would align
the Legion's tenancy with that of the Marinapark residents.
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 include:
• a clubhouse and bar • a 62 space parking lot
• shower and restroom facilities • 50 wet slips
• 34 boat lockers • a hoist dock
• 47 dry storage spaces • 43 racks for dinghy storage
Newport Beach City Council
Page 2
BACKGROUND: The current lease includes the following stipulations - the American Legion
(cout'd) 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
Legion's 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 phis
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.
To align the American Legion lease with the term of the Marinapark residents'
Lease Extension, this item would amend the Legion's 1975 Lease (for a second
time) to extend the 1975 Lease under the same stipulations (above) through
March 15, 2002. This agenda item asks the Council to authorize the Mayor to
enter into this extension via a 2nd Lease Amendment (attached).
ATTACHMENT: 2nd Lease Amendment
Attachment A
2nd LEASE AMENDMENT
to the 1975 Lease between the City of Newport Beach
and the American Legion Post 291 (Newport Harbor)
This Second Lease Amendment, made and entered into this 24th day of
October, 2000, 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 215 15th
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 was to expire on March 15, 2000 but was
extended to March 15, 2001 ( "First Lease Amendment "); and
WHEREAS, City and Legion desire to match the Legions Lease with the
term of the Marinapark Lease Extension, which allows Marinapark residents to
remain at Marinapark to March 15, 2002;
NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING
RECITALS AND THE MUTUAL COVENANTS set forth below, City and
Legion hereby agree to execute the 2nd Lease Amendment to the 1975 Lease (as
amended by the First Lease Amendment) as follows:
II. TERM
... The term of this lease will commence on March 15,1975 and expire on
March 15,204 2002.
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IN WITNESS THEREOF, the parties hereto have executed this 2nd Lease
Amendment as of the day and year first above written.
ATTEST:
LaVonne Harkless, City Clerk
CITY OF NEWPORT BEACH
John E. Noyes, Mayor
AMERICAN LEGION POST 291
Dennis Lahey, Commander