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HomeMy WebLinkAboutSS2 - Council Review of City Acquisition of Dunes LeaseholdCITY OF NEWPORT BEACH STUDY SESSION ITEM NO. SS 1- TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Homer L. Bludau, City Manager C!"U! C{+I aEND ls�-.. +eL�L f;�cl�La DATE: September 11, 2001 NO. 9/X/0 I SUBJECT: Council Review of Staffs Preliminary Assessment of City Acquisition of Dunes Leasehold It has been a challenge to gather and provide information regarding the Newport Dunes property and leasehold in a way in which you can develop a comfort level in either continuing or discontinuing the idea of a leasehold purchase. The information provided is a compilation of information from leases, the Settlement Agreement and amendments, the recent project EIR done on the 450 room hotel project and financial reports. I apologize for the variation in quality of copies and the lack of consistency information appearance, but given the time and circumstances, it was the best I could do. I hope it serves its intended purpose. The report contains the following informational sections: 1. Pertinent background information (Page 1) a. Historical Use of Site (Page 1) b. Redevelopment Plan (Page 2) c. Settlement Agreement (Page 2) d. Newport Dunes Site Features (Page 3) 2. Newport Dunes Planned Community (PC) District General Overview and Specific Permitted Uses (Page 6) a. Planning Units 1 -5 (Page 9) b. Comparison of Facilities and Structures — Existing vs. Settlement Agreement (Page 20) 3. Lease Information (Page 23) 4. Proposed Sale and Financial Information (Page 25) 5. Newport Dunes Settlement Agreement and Amendments (Page 27) 6. Map of Newport Dunes Resort (Page 90) City Hall • 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659 -1768 Council Review of Staff's Preliminary Assessment of City Acquisition of Dunes Leasehold ISSUE: Staff has begun looking at preliminary information relating to the Newport Dunes leasehold in an effort to make an assessment of a potential City purchase of the leasehold from the Newport Dunes and Webster Hotel Building Partnership. After reviewing this preliminary information, Council should provide direction to the City Manager to either discontinue the assessment or to continue the assessment, to include the identification of potential options for lease purchase. PERTINENT BACKGROUND INFORMATION: As a means of providing the context for discussion on the potential purchase of the Newport Dunes leasehold, the City Manager is presenting some basic information regarding the site and the leasehold. Leasehold Ownership: The Newport Dunes leasehold is held by the Newport Dunes Partnership. The Newport Dunes Partnership ( "Dunes "), a California general partnership, was formed in March 1988 upon the liquidation of Newport Dunes, Inc. The principal asset of Dunes is the leasehold interest in a 100 -acre parcel of property located at the corner of Pacific Coast Highway and Jamboree in Newport Beach, California, known as the Newport Dunes. The land is leased from the County of Orange and is presently operated as a recreational vehicle park and marina. Webster Hotel Building Partnership, a California general partnership, owns 100% of Newport Dunes Marina ( "Marina "). During 1989, a sublease from Dunes to operate a 230 boat slip marina at Newport Dunes was acquired from an unrelated third party by Webster. The renovation and expansion of Marina from 230 boat slips to 430 boat slips was completed in 1991. Webster also owns 25% of Newport Dunes Partnership. Historical Use of Newport Dunes Site: With the exception of a small portion of uplands, the Newport Dunes site consists entirely of State tidelands that were granted to the County of Orange under the terms and conditions of Chapter 526 of California State Statutes of 1919. The use of tidelands is governed by the statute and subsequent amendments contained in Chapter 315, Statutes of 1975. The terms and conditions of the tidelands grant specify that the tidelands are: For the establishment, improvement, and conduct of a public harbor, and for the construction, maintenance, and operation thereon of ... structures and appliances necessary or convenient for the promotion or accommodation of commerce and navigation. For the establishment, improvement, and conduct of public bathing beaches, public marinas, public aquatic playgrounds, and similar recreational facilities open to the public and for the construction, reconstruction, repair, maintenance, and operation of all works, buildings, facilities, utilities, structures, and appliances identical... thereto. Prior to 1955, the site consisted of a saltwater marsh area surrounding a shallow bottomed lagoon, which was connected to the Upper Newport Bay by a narrow channel. The marsh area was subject to tidal flow during periods of extreme high tide. In 1955, the Orange County Harbor Department initiated a two -year dredging operation that created the present -day Swimming Lagoon and sand beach. In 1958, following the completion of the dredging, the County leased the site to a private operator, Newport Dunes Inc., and its subleasees developed the site with a marina, boat launch, boat storage, RV park, swimming beach, and other related facilities. Redevelopment Plan: Beginning in 1976, the County of Orange and Newport Dunes, Inc., initiated a redevelopment plan for the Newport Dunes Resort with the goal of enlarging or improving the existing facilities and constructing new facilities. This process culminated in December 1980, with the conceptual approval by the County Board of Supervisors of a Newport Dunes Recreational and Development Plan for the property that included construction of a motel or family inn with 350 rooms, and "meeting rooms" with a seating capacity of 400 persons, plus four additional coffee shops and snack bars, the upgrading and enlargement of the recreational vehicle area, and construction of a marina village with additional marina slips. Settlement Agreement: In February 1981, the City of Newport Beach instituted litigation against the County and Newport Dunes, Inc., alleging inadequacy of the EIR and arguing that the Newport Dunes Recreational and Development Plan required the approval of the City. As a result of this action, the City, County and Newport Dunes, Inc. (predecessor of Newport Dunes Partnership) signed a Settlement Agreement in May 1983, which reduced the scope of the project and named the City as the agency with jurisdiction over land use decisions for the property. The County of Orange, as the property owner, is the landlord from which the tenant, the Newport Dunes Partnership, leases the property. The Settlement Agreement (as amended in 1984, 1987, 1988, and most recently 1990) limited the expansion of the Newport Dunes Resort facilities to the uses outlined. Z The Newport Dunes Partnership began implementation of the Newport Dunes Recreation and Development Plan in 1989, and the majority of the project site has been developed with the improvements called for in the Newport Dunes Recreation and Development Plan. The Family Inn and restaurants are the only major improvements that remain to be completed and constitute the bulk of the floor area permitted under the Development Plan. Newport Dunes Site Features: The Dunes leasehold site includes the adoption of the Newport Dunes Planned Community District Plan for the 100 -acre Newport Dunes Resort, along with a 30 -acre portion designated for hotel development. The key physical features of the site are as follows: Back Bay Drive Back Bay Drive runs from Jamboree Road to Eastbluff Drive. It is two lanes wide between Jamboree Road and the entrance to the Upper Newport Bay Ecological Reserve. At the reserve boundary, it becomes a one -way road sharing the right -of -way with a two -way bicycle and pedestrian path. The bicycle path connects with the bicycle trail that runs along the southern edge of the Newport Dunes Resort and then continues to Bayside Drive. Bayside Drive Bayside Drive is a two lane commuter road with an 80 foot right -of -way. The road currently connects the west side of the project site to Coast Highway. South of Coast Highway, Bayside Drive runs along Newport Bay to Corona del Mar. Bayside Landing Bayside Landing is located on the north side of Bayside Drive, west of the DeAnza Bayside Village Mobile Home Park and adjacent to the Upper Bay Bridge. The site is used for boat and RV storage and small boat rentals. In addition, Pearson's Port, a fish market, is located on the water adjacent to the storage area. DeAnza Bayside Village Mobile Home Park The DeAnza Bayside Village Mobile Home Park is located adjacent to Coast Highway. The mobile home park was restricted to seniors age 55 or older; however, after August 12, 2001, the mobile home park became a open to tenants of all ages. Bayside Drive bisects the mobile home park into two sections where it connects Coast Highway to the project site. Family Inn Project The Family Inn Project is a 275 room "family inn" up to 500,000 square feet in size on the site. The Family Inn Project is entitled through the 1983 Settlement Agreement, most recently amended in 1990, which also allows for a total of up to 27,500 square feet of restaurant space on the west side of the Swimming Lagoon. Lower Bayview Landinq The Lower Bayview Landing site is located at the southwest comer of Jamboree Road and Back Bay Drive, adjacent to the main entrance to the Newport Dunes Resort. The Lower Bayview Landing property is currently owned by The Irvine Company. Newport Dunes Marina The Newport Dunes Marina (Marina) consists of 450 boat slips on the Upper Newport Bay. The Marina administrative offices, clubhouse, and restrooms, are located on the west side of the Swimming Lagoon. There are 488 automobile parking spaces on the west side of the Swimming Lagoon that currently serve the Marina. Newport Dunes Marina Dredqinq Disposal Basin The Newport Dunes Marina Dredging Disposal Basin is located on the future hotel site north of the RV Resort, west of the Swimming Lagoon, and south of the interim boat storage area. The dredging disposal basin, made up of 10 to 15 foot high slopes surrounding a basin, was created through the dredging of the Newpot Dunes Marina in 1980. The dredging disposal basin is in the process of being removed under permits with the Army Corps of Engineers. Removal of the dredging disposal basin is being conducted by the County of Orange under separate permits. Newport Dunes Recreational Vehicle Resort The Newport Dunes Recreational Vehicle Resort (RV Resort) is a campground within the Newport Dunes Resort that caters primarily to large recreational vehicles. The RV Resort is located south and west of the Swimming Lagoon, and has vehicular access from Back Bay Drive. Swimming Lagoon The Swimming Lagoon at the Newport Dunes Hotel and Time -Share Resort was created through a County dredging operation in 1958. The ten -acre Swimming Lagoon is located in the center of the Resort, and is a focal point for the uses that surround it. This water body creates a natural separation between the boat launch and day use beach on the east side, the Marina and Hotel and Time -Share Resort site on the west side, and the RV Resort to the south. Upper Bayyiew Landing The Upper Bayview Landing site is located at the intersection of Coast Highway and Jamboree Road, adjacent to and above the Newport Dunes RV Resort and Lower Bayview Landing. It is being planned for use as a City View Park. Upper Newport Bay Ecological Reserve The Upper Newport Bay Ecological Reserve (Reserve) is one of the largest coastal estuaries along the Southern California coast. The Reserve encompasses the waters and flats of Newport Bay from Jamboree Road, where San Diego Creek drains into the Bay, to the Upper Bay Bridge where Coast Highway separates the Upper Newport Bay from the Newport Harbor (Lower Newport Bay). The Reserve is home to many rare and sensitive wildlife species. 5 07/13/99 11:33 AM Part 1 Land Uses, Development Standards & Procedures Section L Introduction NEWPORT DUNES PLANNED COMMUNITY DISTRICT The Newport Dunes Planned Community District is comprised of the approximately 100 acre Newport Dunes Resort ( "Newport Dunes Planned Community" or "Newport Dunes Planned Community District "). The Newport Dunes Planned Community shall be governed by this Newport Dunes Planned Community ( "PC ") District Plan set forth herein which includes Part 1: Land Uses, Development Standards & Procedures and Part 2: Design Guidelines (the "PC District Plan. ") Newport Dunes Resort is a long standing, visitor serving aquatic - oriented resort community located in the City of Newport Beach. The Newport Dunes Resort site ( "Site ") comprises approximately 100 acres along Upper Newport Bay and is serviced by Jamboree Road via Back Bay Drive and Pacific Coast Highway via Bayside Drive. The Site is leased from the County of Orange by a private resort developer and operator and is partially developed. Figure 1 Newport Dunes Planned Community District Plan t 1✓ 07113/99 11:33 AM Part i Land Uses, Development Standards 8 Procedures Section I. Introduction A. Existing and Proposed Uses The intent of the Newport Dunes Planned Community is to provide a visitor serving, aquatic- oriented, mixed use destination resort, with "villages" defined by use, within the Resort Site. Existing uses within the Newport Dunes Resort Site include: a 10 -acre swimming beach; a mile -long pedestrian promenade around the swimming lagoon; day use facilities with parking and beach restrooms; a restaurant; a 450 -slip marina; a recreational vehicle resort and village center; swimming pools; meeting space; boat storage and launching facilities; support services, and parking. Proposed uses include a resort hotel and time -share facility with associated retail and services; health club; eating and drinking establishments; as well as other associated visitor serving, aquatic - oriented, resort uses. Existing Newpdrt Dunes Resort, 1998 Figure 2 Newport Dunes Planned Community District Plan 2 07/13/99 11:33 AM Part 1 Land Uses, Development Standards & Procedures Section I. Introduction B. Governmental Agencies The Site is located within the City of Newport Beach and, therefore, is subject to the City's General Plan and Municipal Code. The Site also is within the Coastal Zone and is, therefore, subject to the California Coastal Act and the jurisdiction of the California State Coastal Commission. The City of Newport Beach is responsible for implementing the Local Coastal Program. The County of Orange serves as the landowner and responsible agency for the lease, settlement agreement and other ownership responsibilities. C. Purpose of The Newport Dunes Planned Community District Plan The City of Newport Beach Municipal Code allows a "Planned Community District" (Chapter 20.35) to address land use designations and regulations in Planned Communities. The Newport Dunes PC District Plan serves as the controlling ordinance for the Site. The PC District Plan is designed to be consistent and in conformance with the City of Newport Beach General Plan and Municipal Code and is authorized and intended to implement the "Planned Community District" regulations of the City of Newport Beach Municipal Code. The specific purposes of the Newport Dunes PC District are found in Section 20.35.010 of the Municipal Code as follows: "A. To provide for the classification and development of parcels of land as coordinated, comprehensive projects so as to take advantage of the superior environment which can result from large -scale community planning; B. To allow diversification of land uses as they relate to each other in a physical and environmental arrangement while insuring substantial compliance with the spirit, intent and provisions of this Code; C. To include various types of land uses, consistent with the general plan, through the adoption of a development Newport Dunes Planned Community District Plan 3 U 07113/99 11:33 AM Part 1 Land Uses, Development Standards & Procedures Section I. Introduction plan and text materials which set forth land use relationships and development standards." The Newport Dunes PC District Plan achieves the three purposes set forth above by: A. Providing for the classification and development of the Site in five Planning Units which provides a coordinated, comprehensive project and takes advantage of large scale community planning. The PC District Plan combines provisions for the orderly site planning and development, protection of sensitive and natural habitats, innovative design concepts, design guidelines for consistent treatments and a logical and timely sequence of community and governmental review and input; B. Allowing for diversification of land uses in the five Planning Units as they relate to each other in the physical and environmental arrangement along the Upper Newport Bay while insuring substantial compliance with the spirit, intent and provisions of the Municipal Code; C. Including various types of land uses, as set forth in Figure 3 and Section III.0 consistent with the General Plan, through the adoption of this PC District Plan and the implementing Precise Plans setting forth land use relationships and development standards set forth in Section IV. D. Project Approval Summary Precise Plans processed pursuant to this PC District Plan will be reviewed as set forth in Section V of this PC District Plan, as summarized below: 1. PC District Plan a. Scope and Purpose. The Newport Dunes PC District Plan covers the entire 100 acre Resort Site Planned Community and includes both existing and proposed land uses. The PC District Plan divides the Planned Community into five (5) Planning Units, Newport Dunes Planned Community District Plan 4 07/13199 11:33 AM Part 1 Land Uses, Development Standards & Procedures Section I. Introduction based upon existing use and/or areas of geographic similarities. Subsequent Precise Plans will cover at least one Planning Unit. Planning Units are delineated as: 1. Planning Unit I — Resort Hotel & Time -Share 2. Planning Unit 2 — Recreational Vehicle Resort and Village Center 3. Planning Unit 3 — Day Use/Beach/Lagoon 4. Planning Unit 4 — Boat Launch & Dry Boat Storage 5. Planning Unit 5 — Marina Key -� Re=%Hotel d _rmeSlures F-2-1 1 ® `Days , aeacht EKI atmoraDry 9oSge Eu Marne li 4- 2 Planning Units Figure 3 S Planning Unit Delineation This PC District Plan is the overall land use regulation for the entire Planned Community. It serves as the basis for all decisions and contains the statistical summary for the Newport Dunes Planned Community and each Planning Unit. Likewise, it provides a method for review and input from the community and governmental agencies on the relationship of uses on the Site. Newport Dunes Planned Community District Plan 5 /b Part t Land Uses, Development Standards & Procedures Section I. Introduction b. Process. The PC District Plan is approved and may be amended or updated in accordance with the procedures set forth in Municipal Code Chapter 20.35. 2. Conceptual Precise Plan a. Scope and Purpose. The Conceptual Precise Plan addresses one or more Planning Units and may consider both existing and proposed land uses. The Conceptual Precise Plan is designed to allow a project to be brought before the Planning Commission at a point in the conceptual design process which allows early input of policy guidance from the City staff and the community's representatives. The Conceptual Precise Plan would address the important major features of the project, the larger scale decisions and the macro level determinations. The Conceptual Precise Plan will give policy guidance to the Planning Director for her review and administrative approval of the detailed Final Precise Plans. The Conceptual Precise Plan allows the decision - makers, staff, and community an opportunity to review and make input on the merits of the project proposal at an early and logical stage in the planning process. It also allows the applicant to receive input from the decision - makers, staff, and community before finalizing the engineering drawings necessary for implementation and final approval. _ b. Process. A Conceptual Precise Plan shall be reviewed and approved in accordance with the process set forth in Chapter 20.91 and Chapter 20.95 of the Municipal Code. 07/13/99 11:33 AM 3. Final Precise Plan a. Scope and Purpose. The Final Precise Plan shall include the final engineering necessary to pull building permits and other supporting implementing information set forth in Section V.13.2 of this PC District Plan. The Final Precise Plan is a more precise, detailed and engineered plan that implements the policy guidance in the Conceptual Precise Plan. Newport Dunes Planned Community District Plan 6 07/13/99 11:33 AM Part 1 Land Uses, Development Standards & Procedures Section I. Introduction b. Process. At the applicant's election, a Final Precise Plan may be processed (i) after approval of a Conceptual Precise Plan for one or more Planning Unit(s) or (ii) as the first submittal without having previously obtained approval of a Conceptual Precise Plan. If a Conceptual Precise Plan has been approved by the Planning Commission, the Planning Director shall review the engineered Final Precise Plan for substantial conformance with the approved Conceptual Precise Plan on an administrative basis. Upon a finding of substantial conformance with the Conceptual Precise Plan, the Planning Director shall approve the Final Precise Plan. If the Final Precise Plan is submitted as the first submittal, the Final Precise Plan shall be reviewed and approved in accordance with the process set forth in Chapter 20.91 and Chapter 20.95 of the Municipal Code. The following table, Table 1, graphically illustrates this process. Newport Dunes Planned Community District Plan 7 k-11 0711319911:33 AM Part 1 Land Uses, Development Standards & Procedures Section I. Introduction Table 1 Newport Dunes Planned Community District Plan 8 13 PC District Plan Details This PC District Plan covers the entire Planned Community. Prior to approval of any tentative subdivision map or issuance of a building or grading permit, the applicant shall obtain approval of a Final Precise Plan. Any maps within the Planned Community shall be approved pursuant to Municipal Code Title 19. 1. Permitted General Uses For purposes of the PC District Plan, "permitted uses" are those uses set forth in this Section for each Planning Unit, and as described in a Final Precise Plan. The following General Uses are permitted in the Newport Dunes Planned Community, subject to Final Precise Plan approval: a. Visitor accommodations, including, but not limited to, a hotel /time- share complex (not to exceed a total of 600 rooms /units), and a recreational vehicle resort and village center, b. Marinas and marine sales and services, C. Various food and beverage services including, but not limited to, cafes, restaurants, bars and cocktail lounges, food and beverage concessions, and catering service. No more than one (1) free standing cafe /restaurant is permitted in the Newport Dunes Planned Community, d. Dry boat storage, at grade level and /or in covered multi -level structures, e. Boat launch ramps, f. Commercial recreation uses, g. Retail commercial business supportive of the destination resort uses, h. Service commercial business supportive of the destination resort uses, i. Day use beach areas, j. Accessory and ancillary structures or uses which are customarily incidental or necessary to the permitted main uses, and k. Any other similar use which is found compatible with the purpose and objectives this PC District Plan and which is indicated on the approved Planned Community Development Plan, and a Final Precise Plan or amendment thereof, approved in accordance with this Newport Dunes PC District. /I/ 07/13/99 11:33 AM Part 1 Land Uses, Development Standards & Procedures section III. Land Use and Development Entitlements 2. Permitted Specific Uses Per Planning Unit The following Specific Uses are permitted in the Planning Units as delineated generally on Figure 4. Key i1� Resort Motel & Timeshares ® Day Use, Beach, yoo Boat Launch & Dry Boat storage Planning Units F ' Figure 4 Planning Unit 1, Resort Hotel and Time - Shares: Planning Unit I comprises approximately 30 acres of the larger 100 -acre Newport Dunes Planned Community visitor serving resort and recreational complex. All existing and planned land uses in Planning Unit I are visitor- serving uses. Permitted Primary Uses, Unit l: The primary use for Planning Unit I is visitor- serving destination resort hotel and associated time -share units. Permitted are: Newport Dunes Planned Community District Plan 17 /S C::7 07/13/99 11:33 AM Part 1 Land Uses, Development Standards & Procedures section III. Land Use and Development Entitlements a. Resort Hotel and Time - Shares: up to 600 hotel rooms, with the option to replace up to 200 hotel rooms with time -share units. Up to 100 time -share units with no more than 200 bedrooms may be allowed at the option of the applicant with a pro rata reduction in hotel rooms. If a time -share unit has more than one bedroom and the potential to be separated for the purpose of renting separately, then each bedroom shall be counted as one room. Permitted Secondary Uses, Unit]: Secondary visitor serving support uses are also provided for, and include such land uses as: a. Parking structures and surface parking, b. Fitness center and health spa, C. Food and beverage outlets (such as cafes, restaurants, cocktail lounges, bars, food and beverage concessions, etc.), d. Retail shops, e. Community information pavilion, f. Meeting rooms, ballrooms, pre - function areas and banquet facilities, g. Aquatic - Oriented recreation activities, including beach, watersports and other recreational uses, It. Special events, parties, catering and functions, i. Accessory uses that are customarily incidental to, and supportive of, the main uses including, but not limited to: restrooms, showers, equipment rentals, security and snack stands and carts, and j. Any similar use which is found to be consistent with the aquatic- oriented destination resort concept of the Newport Dunes Planned Community and which is shown on an approved Final Precise Plan. Planning Unit 2, Recreational Vehicle Resort and Village Center: Planning Unit 2 comprises approximately 12 acres of the larger 100 acre Newport Dunes Planned Community visitor serving resort and recreation complex. All existing and planned uses in Planning Unit 2 are visitor- serving uses. Newport Dunes Planned Community District Plan 18 16 07113199 11 :33 AM Part 1 Land Uses, Development Standards & Procedures Section III. Land Use and Development Entitlements Permitted Primary Uses, Unit l: The primary use for Planning Unit 2 is a visitor serving recreational vehicle resort and village center. Permitted is: a. Recreational vehicle resort and village center. Permitted Secondary Uses, Unit l: The secondary uses for Planning Unit 2 are support for the recreation vehicle resort and a "village center" serving and supporting the Newport Dunes Resort. Permitted are: a. Administrative offices, security and first aid station, b. Retail/convenience store and equipment rental, C. Recreational/meeting room and clubhouse, d. Additional meeting/banquet space, e. Snack stands and carts, f. Restrooms, showers and laundry, g. Community information pavilion, h. Special events, parties, catering and functions, i. Accessory uses, which are customarily incidental to and supportive of a recreational vehicle resort, and j. Any similar use which is found to be consistent with the aquatic- oriented destination resort concept of the Newport Dunes Planned Community and which is shown on an approved Final Precise Plan. Planning Unit 3, Day Use, Beach & Lagoon: Planning Unit 3 comprises approximately 35 acres of the larger 100 acre Newport Dunes Planned Community visitor serving resort and recreation complex. All existing and planned land uses in Planning Unit 3 are visitor- serving uses. Permitted Primary Uses, Unit 3: The primary uses for Planning Unit 3 are: a. Paved parking areas serving the beach and lagoon visitors, b. Pavilions, cabanas, picnic areas and playgrounds (permanent, open structures, with services limited to electricity and water), Newport Dunes Planned Community District Plan 19 17 07113/99 11:33 AM Part 1 Land Uses, Development Standards & Procedures Section III. Land Use and Development Entitlements C. Commercial concessions and facilities that serve beach goers, including, but not limited to, boat and equipment rentals and fast -food stands, d. Public visitor serving beach areas, and e. A swimming and recreation lagoon. Permitted Secondary Uses, Unit 3: Permitted secondary uses in Planning Unit 3 include: a. Restrooms and showers, b. Special events, parties, catering and functions, C. Accessory uses which are customarily incidental to and supportive of the main uses, and d. Any similar use which is found to be consistent with the aquatic - oriented destination resort concept of the Newport Dunes Planned Community and which is shown on an approved Final Precise Plan Planning Unit 4, Boat Launch and Dry Boat Storage: Planning Unit 4 comprises approximately 13 acres of the larger 100 acre Newport Dunes Planned Community visitor serving resort and recreation complex. All existing and planned uses in Planning Unit 4 are visitor- serving uses. Permitted Primary Uses, Unit 4: The primary uses for Planning Unit 4 are: a. Boat launching ramps, b. Dry boat storage either at grade or in a covered stacked - storage facility, C. One free - standing restaurant/cafe, d. Marine repairs, and e. Transient boat slips. Permitted Secondary Uses, Unit 4: Permitted uses in Planning Unit 4 include: a. Temporary boat trailer parking while using the launch ramp facility, b. Boat wasbdown racks, C. Charter vessels for commercial purposes, subject to a commercial harbor activities permit, Newport Dunes Planned Community District Plan 20 50 07/13/99 11:33 AM Part 1 Land Uses, Development Standards & Procedures Section 111. Land Use and Development Entitlements d. Special events, parties, catering and functions, e. Accessory uses which are customarily incidental to and supportive of the main uses, including, but not limited to, convenience docks, commercial vessel charter operations, and an ecological interpretive center, and f. Any similar use which is found to be consistent with the aquatic- oriented destination resort concept of the Newport Dunes Planned Community and which is shown on an approved Final Precise Plan. Planning Unit 5, Marina: Planning Unit 5, including the floating docks, comprises approximately 13 acres of the larger 100 acre Newport Dunes Planned Community visitor serving resort and recreation complex. All existing and planned uses in Planning Unit 5 are visitor- serving uses. Permitted Primary Uses, Unit 5: The primary uses for Planning Unit 5 are: a. Boat slips and docks, b. Marine clubhouse, C. Offices, d. Storage, and e. Pedestrian bridge. Permitted Secondary Uses, Unit 5: Permitted secondary uses in Planning Unit 5 include: a. Restrooms /showers, b. Charter vessels for commercial purposes, subject to a commercial harbor activities permit, C. Special events, parties, catering and functions, d. Accessory uses which are customarily incidental to and supportive to the main uses, including, but not limited to, boat pump -out stations and commercial vessel charter operations, and e. Any similar use which is found to be consistent with the aquatic- oriented destination resort concept of the Newport Dunes Planned Community and which is shown on an approved Final Precise Plan. Newport Dunes Planned Community District /f LSA Associates. Inc. Newport Dunes Resort Facilities and Structures - Existing vs. Settlement Agreement (Continued) Brackets indicate floor area specifically designated in the Settlement Agree- ment which is already included in the total square footage for that facil- ity/structure in this table. 91 17/99((P: \CNB834\E1R\SEC3 -O.W PD)> Zo PROJECT DESCRIPTION 3 -17 Permitted by Existing Settlement (Constructed) Agreement BEACHAREA Pavilion 1 3,000 SF Pavilion 2 3,750 SF Pavilion 3 2,300 SF Pavilion 5 3,000 SF Pavilion 4 ( may be removed) 3,700 SF Cabanas (18 total - 360 SF [each]) 6,480 SF SUPPORT FOR BACKBAYDRIVE USES Public Beach Restrooms Day use beach area 1,200 SF RV beach area 800 SF RV Resort Restrooms (3 total) 1,200 SF (each) Maintenance Building (including residence) 2,000 SF Watersports Rental 300 SF MARINA CENTER Operations Center 6,100 SF 6,000 SF Marina office TV room Clubhouse (meeting room) Fitness Center [475]' Storage Building 3,500 SF 3,200 SF Storage lockers Laundry and vending area Restrooms (2 total - 1,200 SF [each]) 2,400 SF COA& ERCIALIOFFICEIRETAIL 5,000 total East side of lagoon Marina area Source: Newport Dunes Partnership, November, 1998; 1983, 1984, 1987, 1988, 1990, Settlement Agreement, IVPA Traffic Engineering, February, 1999. Brackets indicate floor area specifically designated in the Settlement Agree- ment which is already included in the total square footage for that facil- ity/structure in this table. 91 17/99((P: \CNB834\E1R\SEC3 -O.W PD)> Zo PROJECT DESCRIPTION 3 -17 LSA Associates. Inc. Newport Dunes Resort Facilities and Structures - Existing vs. Settlement Agreement (Continued) FAMILY INN 40% of rooms with kitchens, 500,000 sq. feet 275 rooms max 500,000 SF RESTAURANTS 27,500 total Family Inn Site [12,500)' - Anthony's Pier Il Site [15.000)' BACK BAYCAFE BUILDING Back Bay Caf6/Marine Repair: 7,200 SF 7,500 SF Kitchen/receiving/storage Banquet prep and storage Dockside Room (meeting room) Residence (upstairs) Outdoor dining deck (2,000 additional SF) Marine Repair Facility [3,000 SFJ' Brackets indicate floor area specifically designated in the Settlement Agree- ment which is already included in the total square footage for that facil- ity /structure in this table. ' Brackets indicate floor area specifically designated in the Settlement Agree- ment which is already included in the total square footage for that facil- ity /structure in this table. PROJECT DESCRIPTION 9 1)7/99 «P:1CNB8341EIR1SEC3 -0.WPD» 3 -16 Z/ Permitt ed by Existing Settlement (Constructed) Agreement Offices: Sales, Catering, General Manager, Activi- [6,200 adminT ties, Marketing, Advertising, Human Resources, Accounting, Security Bayview Room (meeting room) Grocery Store: 3,400 SF 3,500 SF Selling area Receiving and storage Rentals (bicycles, in -line skates, etc.) Wind and Sea Room (meeting room & office space) 2,100 SF 1 meeting room (100 person capacity) Clubhouse 2,900 SF 2,900 SF Laundry/Restrooms 2,100 SF 2,100 SF Resident Manager Residence 2,050 SF FAMILY INN 40% of rooms with kitchens, 500,000 sq. feet 275 rooms max 500,000 SF RESTAURANTS 27,500 total Family Inn Site [12,500)' - Anthony's Pier Il Site [15.000)' BACK BAYCAFE BUILDING Back Bay Caf6/Marine Repair: 7,200 SF 7,500 SF Kitchen/receiving/storage Banquet prep and storage Dockside Room (meeting room) Residence (upstairs) Outdoor dining deck (2,000 additional SF) Marine Repair Facility [3,000 SFJ' Brackets indicate floor area specifically designated in the Settlement Agree- ment which is already included in the total square footage for that facil- ity /structure in this table. ' Brackets indicate floor area specifically designated in the Settlement Agree- ment which is already included in the total square footage for that facil- ity /structure in this table. PROJECT DESCRIPTION 9 1)7/99 «P:1CNB8341EIR1SEC3 -0.WPD» 3 -16 Z/ LSA Associates, Inc. Newport Dunes Resort Facilities and Structures - Existing vs. Settlement Agreement] Permitted by Existing Settlement (Constructed) Agreement FACILITIES RV Resort 406 sites 444 sites Boat Launch 7 lanes (including 2 7 lanes launch docks) 185 boat launch park- ing Boat Wash Rack 6 lanes Dry Boat Storage Storage Area (adjacent to boat launch) 284 spaces 400 spaces Interim Storage Area (west of Swimming Lagoon) 195 spaces Total Boat Storage Spaces 479 spaces Marina 450 slips (including 230 existing 20 transient slips 200 new near launch ramp) Automobile Parkine East Side Parking 852 spaces 645 RV Resort and Village Center 115 spaces West Side of Lagoon 488 spaces Total Automobile Parking Spaces 1,455 spaces STRUCTURES VILLAGE CENTER Operations Center: 5,970 SF 7,000 SF total Front Desk Restrooms The table is provided for reference only, as direct comparisons between the "Existing" and "Settlement Agreement" columns are not exact. The reader is referred to the Settlement Agreement and Figure 3.2.3, Existing Newport Dunes Resort Site Plan, for more specific information. 7 See Table 4.7.13, Newport Dunes Resort Existing Parking, for a complete breakdown of existing automobile parking spaces at the Resort. PROJECT DESCRIPTION 911 7/99 «P:1CNB834\EIR\SEC3 -O. WPD» 3 -15 22 Lease Information The existing lease between the County of Orange and the Newport Dunes Partnership is a 50 -year lease entered into on February 16, 1989, and therefore covers another 38 years, until 2039. The lease has had the following amendments: Parcel B Lease Amendment in 1990; First Amendment to Lease in 1992; Parcel C Lease Amendment in 1994; and Second Lease Amendment in 1996. A brief highlight of the lease follows: 1. The purpose cited for the County to enter into the lease is "...to promote the redevelopment of Newport Dunes and to make available recreational facilities and services provided by'Tenant for the benefit of the public." 2. An annual minimum rent is established with a provision for adjustment by the County every 5 years. A percentage of rent against the gross generated from specific uses is established and is subject to periodic adjustments. See the following page for various rent percentages. 3. The Tenant agrees to establish a Capital Replacement Fund for the replacement of furniture, fixtures and equipment and for capital repairs and improvements. 4. The lease required that specific demolitions and improvements were mandated. 5. The Tenant is solely responsible for site maintenance, except dredging. 6. The lease requires to County to establish and make annual contributions to a Dredging Reserve Fund. 7. Lifeguarding is required when swimming areas are open to the public. 8. Insurance coverage is required in specific amounts. 9. Lease transfer requires County approval. The County also has the Right of First Refusal to match any bona fide purchase offer and has 45 days to decide. 10. The County has to agree to boat launch and marina fee changes. ,�?3 i 2' 3' 4, 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 On the fifth (5th) anniversary of the effective date of this LEASE, and every five years thereafter, the minimum annual rent shall be automatically adjusted in accordance with the provisions of Clause 11 (REVISION OF RENT). Should this LEASE be terminated during an accounting year, the applicable minimum annual rent shall be prorated on the basis of a three hundred sixty -five (365) day year. B. Percentage Rent. Percentage rent for the Demised Premises shall be calculate, and automatically increased using percentages of gross receipts from business activities conducted on or from the Demised Premises in accordance with the following schedule: (1) Parcel A. Percentage Rents and Effective Dates Business Activities/ First Next Thereafter to Service or Use Two Years Two Years Scheduled Revision % _p Y Boat Storage Open /Enclosed 5 7 11 Storage Lockers 20 20 25 Dinghy Racks 20 20 25 Boat Launch 5 10 10 Boat (Sales /Charter) Rental 20 20 20 Charter 5 5 5 Sales - New /Used 1.5 1.5 1.5 Brokerage /Commissions 10 10 10 Instruction /lessons 10 10 10 Equipment Rentals 10 10 10 Insurance Brokerage 10 10 10 Marine Repair Boat Repair 3 4 4 Do -it- yourself 3 4 5 Ships Chandlery 3 4 4 Parts (Wholesale) 1 1 2 Office Rent 10 10 10 Overnight Camping 5 10 20 Parking 10 is 20 Pay Telephone (of payment made to TENANT) 10 10 10 Pump- out /Dump Station 5 5 5 Retail Stores 3 3 3 RV Convenience Store 4 4 5 RV Park* 5 10 15 Snack Stands 4 4 5 Transient Boat Slips 25 25 25 Unapproved Use 100 100 100 SB :mg j :da 91 -1 -7 *The percentage rental for the RV Park shall automatically increase to 2t on the fifth anniversary of the effective date of this LEASE. z¢_ Proposed Sale and Financial Information To date, the City Manager has been able to obtain the following information regarding the proposed sale of the leasehold and current financial condition of the Dunes operation. 1. There is no minimum bid price being proposed by the sellers. 2. There is no cutoff date for accepting lease purchase offers. 3. The entire leasehold is for sale. 4. The seller is not interested in the purchase price being paid over time. The desire is for a lump sum buyout. 5. The County has 45 days to match any purchase offer. 6. Leasehold revenues have increased at a 6 % -8% annual average. 7. As of the 2000 year -end audit, the Partnership listed $13,638,627 in total long -term liabilities. 8. In 2000, the combined revenues for rent, food and beverage, gift shop, and other income totaled $11,208,179. 9. The 2000 financial statement shows a gross operating profit of $4,671,203. 10. The lease payment to the County in 2000 was $1,796,662. Property taxes, insurances, and other expenses totaled another $587,905. 11. The Net Income before interest expenses, depreciation and amortization was $2,286,636. 12. Property and equipment for December 31, 2000 was listed as having a value of $28,997,950. Accumulated depreciation and amortization reduced this figure to $16,042,377. Based on a brief review of the lease and financial documents available to the City, the City Manager believes the value of the lease to be in the range of $25- $50 million. It is the City Manager's opinion that were the City to purchase the lease, that site operational revenue would be insufficient to support bond payments. Additionally, the City would not be able to bond for the purchase solely with operational revenues, since operational revenues alone would not support repayments. There are two reasons for this: 1) The City would have to substantially fund a Replacement Fund for maintenance and repairs of facilities in the early years, and 2) The the purchase price would include value for the un- built "family inn" and 27,000 sq. ft. of restaurant space, and unless revenue producing uses were added to the site, the existing income generating uses would have to cover the purchase value which includes future revenue generators. The City Manager believes that existing operational revenue could cover a portion of the bonded indebtedness payments, but not all. A community wide 25 property tax override, of an undetermined amount, would be needed to obtain bond financing and to make the bond payments. These opinions are solely that of the City Manager and staff, and are not based on professional opinions of appraisers or land developers. A much greater level of due diligence would be required to undertake a professional assessment, which include purchase funding options. 2G Newport Dunes Settlement Agreement In February 1981, the City of Newport Beach instituted litigation against the County and Newport Dunes, Inc. for the alleged inadequacy of a project EIR which would have resulted in redevelopment of the property. In May 1983, the three parties signed a Settlement Agreement which reduced the scope of the project and provided the City with land use jurisdiction over the property. The Settlement Agreement was amended in 1984, 1987, 1988 and 1990. Copies of the Agreement are enclosed: 1. 1983 Settlement Agreement (SA) — 30 pages 2. 1984 SA Amendment — 2 pages 3. 1987 SA Amendment — 3 pages 4. 1988 SA Amendment — 23 pages 5. 1990 SA Amendment — 4 pages The original agreement and subsequent amendments defined and refined the buildable space and site uses. -�47 SETTLEMENT AGREEMENT THIS AGREEMENT, entered into this Zday of 7T1711, 1983, by and between THE CITY OF NEWPORT BEACH, a Municipal Corporation and Charter City, hereinafter referred to as "City ", THE COUNTY OF ORANGE, a political subdivision of the State of -California, hereinafter "County ", and NEWPORT DUNES, INC., a California Corporation, hereinafter "Corporation ", and the ORANGE COUNTY HARBOR, BEACHES AND PARRS DISTRICT, organized pursuant to Division 8, Part II of the H N Code, hereinafter 'District ", is- made with reference to the following facts, the materiality and existence of which is stipulated by and between the parties hereto: A. Pursuant to the provisions of Chapter 526 of the California State Statutes of 1919, the State of California grant- ed certain tidelands to County, which grant was subject to cer- tain conditions and restraints on the use of the property. These tidelands were regranted by the State to the County, pursuant to the provisions of Chapter 415 of the Statutes of 1975, this grant Z Flo v. again subject to certain conditions and restraints on the use of the property. The tidelands referred to in these two grants, together with a small parcel of uplands, are described as set forth in Exhibit "A" to this Agreement, and are hereinafter referred to as "the property "; B. County has improved the property with certain pub- lic recreational facilities, including a lifeguard headquarters building and public restroom; C. County has leased the property to Corporation pur- suant to two 50 -year leases which run to May 30, 2008 and February 28, 2015, respectively; D. Pursuant to these leases, Corporation has improved the property such that certain recreational and visitor - serving facilities are now located on the property. These facilities include the following: i) A beach, consisting of approximately eleven acres, together with concessions to serve beachgoers, such as, fast food stands and businesses which rent beach equipment; ii) A recreational' vehicle and travel trailer camping area, with 64 spaces fully serviced by sewer, water and 2 Z9 I L_ electricity and 80 spaces which are partially served by such utilities; iii) A restaurant known as Anthony's Pier II locat- ed on the northwesterly edge of the swimming lagoon and consist- ing of approximately 7,500 sq. ft. of public area, and a coffee shop, consisting of approximately 2,000 sq. ft. of public area and located on the easterly side of the lagoon in the area of the current boat - launching facilities; iv) Boat and marina - related facilities consisting of approximately 230 slips, a boat repair business, a canvas shop, maintenance storage and a dry boat storage area with room for approximately 350 boats and a six -lane boat launching ramp; V) A structure, located near Anthony's Pier II, consisting of approximately 1,500 sq. ft. which presently serves as the headquarters and equipment yard for Corporation. E. Commencing in 1976, County and Corporation embarked on a process designed to redevelop the property by enlarging or improving existing facilities and constructing new facilities. This process culminated, in 1980, with the approval, in concept, of a redevelopment plan for the property which called for the 91 30 construction of a motel or family inn with 350 rooms, construc- tion of "meeting rooms" with a seating capacity of 400 persons, the construction of four additional coffee shops and snack bars, at least one of which would seat 150 persons, construction of 263 additional boat slips, the construction of a "marina village" consisting of approximately 50,000 sq. ft. of commercial and retail development, the construction of approximately 20,000 sq. ft. of facilities described as "marina amenities", the construc- tion of approximately 12,000 sq. ft. of unspecified, commercial development, the upgrading and enlarging of the recreational vehicle area, and the construction of other development to sup- port the primary uses; F. . rn February, 1981, the City instituted litigation in response to the approval of County of the redevelopment plan for the property. This lawsuit is presently pending in Orange County Superior Court (Case No. 35- 01 -35) and seeks a declaration of that Court that the approval of the redevelopment plan by County was in violation of provisions of the California Environ mental Quality Act (CEQA) and the State EIR Guidelines (Guidelines) promulgated pursuant to that legislation. City, in 4 31 its complaint, also seeks a declaration of that Court that the property, and the proposed construction of recreational facilities, is subject to the ordinances of the City and that any construction on the property must be approved by the City; G. Subsequent to the filing of the lawsuit, all of the interested parties have engaged in a collective discussion with the intention of resolving all of the issues and concerns raised by the redevelopment plan and the litigation instituted by City. The development authorized by this agreement, and as conditioned by this Agreement, resolves these issues and concerns in that: (i) The changes in the project, the requirement of City concurrence in any additional development, and the binding nature of this Agreement, mitigate, to an acceptable level, any adverse environmental impacts that may result from the construction of the improvements contemplated by this Agreement. (ii) The development contemplated by this Agreement is in the nature of proprietary activity and the binding commit- ments to obtain City concurrence for additional development, are adequate to fully protect the health, welfare and safety of the citizens of Newport Beach; 5 32' (iii) The commitments contained in this Agreement will resolve, the issues relative to land use control of the property without the undue expenditure of taxpayers' funds and the uncertainty that would result from continued litigation of those issues. NOW, THEREFORE, the parties hereto agree as follows: I. City, in consideration of the covenants and pro- mises of County and Corporation agrees to development of the property not exceeding that described herein and conceptually illustrated on Exhibit "B ", and provided further, that development may proceed in .phases as deemed appropriate by Corporation: A. The construction of a family inn, not to exceed 275 rooms, to be located on the west side of the swimming lagoon subject to the following: 1. The family inn will be designed and constructed with features that will make it attractive to families and these design and construction features shall J 3� ' include, but not necessarily be limited to, the following: (a) Kitchen facilities in approximately forty percent (408) of the units; (b) A room containing recreational facilities and equipment for use by guests of the inn; (c) No permanent audio /visual facilities or equipment are to be integrated into the design. 2. The area immediately adjacent to the family inn shall be designed, improved and maintained such that it is consistent with the concept of a visitor - serving facility attractive to families. 3. The family inn will be constructed in accordance with the Building and Zoning Ordinances of the City of Newport Beach, all as more fully discussed in paragraph III - A below. 7 334 4. The structure which houses the family inn shall not exceed 500,000 sq. ft. of gross floor area as that term is defined by the ordinances of the City of Newport.Beach; B. The construction of two additional restaurants, and the expansion of Anthony's Pier II, or a successor restaurant, subject to the" -following: 1. One of the restaurants is to be a quality dinner house, with a net public area (per City standards) , not to exceed 5,000 sq. ft.; the restaurant to be sited on the east side of the swimming lagoon; 2. The second restaurant, which will consist of a net public area, (per City standards) no greater than 7,500 sq. ft., shall be designed, maintained and operated such that it serves, principally, the patrons and guests of the family inn, and special consideration I �� d shall be given to families and children in the operation of that restaurant; 3. The expansion of Anthony's Pier II shall be limited such that the total net public area (per City standards) shall be no greater than 15,000 sq. ft. C. The construction of structures -which will house commercial, office or retail tenants, subject to the following: 1. The size of new structures shall not exceed 10,000 sq. ft. of gross floor area; 2. One structure shall be located near the existing Marina Dunes office building, on the west side of the swimming lagoon and in proximity to the existing boat slips; 3. A second structure shall be located on the east side of the lagoon, near the pedestrian bridge; G: VAN { 4. The tenancy shall be limited to those businesses listed on Exhibit "C" to this Agreement. D. The construction of two meeting rooms with seating capacity not to exceed 100 persons each, one of which will be located on the east side of the swimming lagoon. E. The construction of a structure which will serve as the headquarters for Newport Dunes, Inc., subject to the following: 1. The size of the structure shall not exceed 12,000 sq. ft.; 2. The structure will contain approximately 6,000 sq. ft, of space devoted to office and administrative uses, with the remaining space within the structure to be devoted to parking of equipment, a first aid station and the storage of materials. 10 V F. The construction of a recreational vehicle park not to exceed 444 spaces, approximately 808 of which will have full service capabilities including electricity, water and sewer, together with a recreational vehicle support center of approximately 5,000 sq. ft., the center to contain a small"- convenience store, equipment rental area, recreation room, restrooms and showers, a laundry facility, a storage area and swimming pool, all subject to the following: 1. At least 20 spaces in the recreational vehicle park will be reserved for use by those who have not made reservations for space in the park, provided that those 20 spaces may be located in areas without full service capability and, provided further, that the Corporation may accept reservations for those not occupied on or before 3:00 p.m.; 11 i 2. Users of the recreational vehicle park will have preferential use of the meeting room constructed on the westerly side of the swimming lagoon. G. The construction of approximately 200 boat slips, a pedestrian bridge connecting the easterly and westerly portions of the property, and a pump -out station., subject to the following: 1. No boat slips will be constructed in the mouth of the lagoon, or in the lagoon itself, until such time as the City /County Joint Harbor Review Committee has reviewed and approved a water quality study which considers the effects of the construction of boat slips on the water quality in.the swimming lagoon; 2. Boat slips constructed in the mouth of the lagoon, or within the lagoon itself, shall not accommodate boats exceeding 28 ft. in length; 12 3. Boat slips constructed in the mouth of the lagoon, or in the lagoon itself, shall be designed and constructed to ensure that there is minimal interruption of the tidal flow in and out of the lagoon; 4. Overnight occupancy of boats moored in the mouth of the lagoon, or in the lagoon itself, will be prohibited and all action necessary to ensure enforcement of that prohibition will be taken; 5. The pedestrian bridge which is to be constructed across the mouth 'of the swimming lagoon will be elevated above the water surface, built on pilings, and designed in such a manner as to minimally restrict tidal flows in and out of the lagoon; 6. A pumpout station shall be constructed at a location convenient to boaters with a 13 Sfo A sufficient capacity to service any boat for which slip or mooring space is available on the property. II. Corporation shall retain, and in certain cases. upgrade and /or add to certain existing facilities and uses, as follows: A. The existing dry boat storage capacities shall be increased to not more than 400 un its, the increase to be accomplished by the construction or installation of a facility that will allow stacking of small boats, the storage facility will be covered and will be administered in a manner that will assure adequate security to private property stored therein; B. Corporation shall re- stripe the existing six - lane launch ramp to ten lanes, and retain, or upgrade, the washdown facilities located in proximity to the launch ramp; 14 C. Corporation shall maintain the existing marine repair facility located in proximity to the boat launch ramp; D. County and Corporation will preserve all of the existing beach area and retain and assure the continuing operation of concessions which serve beach - goers, e.g., boat and equipment rentals, fast food stands, lifeguards, picnic areas, etc. At least 800 parking spaces will be set aside and made available for persons using the beach during the day. E. Corporation shall provide for overnight camping use and all related facilities.. ZZZ. Corporation, in consideration of the commitment of City to approve the contemplated development as generally described in this Agreement, stipulates and agrees as follows: A.- Corporation agrees to design and construct all new development in accordance with the. applicable Building and Zoning Ordinances of the City of Newport Beach and, specifically, 15 agree to construct new development in conformance with the following: 1. No structure shall exceed the basic 35 ft. height limit established by Zoning Ordinances of the City of Newport Beach; 2. Parking for all new development will be in conformance with the parking standards of the City of Newport Beach as set forth in Chapter 20.30 of the Newport Beach Municipal Code; 3. All signs and sign structures shall con- form to the provisions of Chapter 20.06 of the Newport Beach Municipal Code; B. Corporation agrees to contribute the sum of $600,000 to City to be used to construct circulation system improvements to mitigate the traffic impacts created by development of the project, this contribution to be subject to the following: 16 43 1. On or before January 1, 1984, County and City shall agree on the specific traffic mitigation measures to be financed by Corporation's payment pursuant to this paragraph and the approximate dates on which construction of the improvements is to commence; 2. The sum of $600,000 represents a contri- bution of $1,500 per room, with the re- mainder of the contribution predicated upon the additional traffic generated by the other development proposed for the property; 3. Payment of the sum of $600,000 shall be made in increments, in accordance with the following schedule: a) The sum of $150,000 to be paid upon issuance of building permits; b) The sum of $150,000 to be paid upon completion of the foundation work for the family inn; 17 5,ey c) The sum of $150,000 to be paid upon final inspection of all rough construction, e.g., plumbing, electrical, framing and roofing; and property; and d) The sum of $150,000 to be paid upon issuance of a Certificate of Occupancy. 4. The sum of $600,000 represents the minimum sum that would be required for circulation system improvements to mitigate the traffic impacts identified in the traffic study, prevared by Kunzman & Associates and attached as Exhibit "D" on behalf of Corporation in January, 1983. This contribution is in lieu of compliance by County and Corporation with the City's Traffic Phasing Ordinance; C. Corporation shall construct an interpretive center, to be located near the northeast 18 Y5 corner of the property, the function of the interpretive center to be the provision of information and educational materials relative to the Upper Newport Bay Ecological Reserve. Educational programs offered by the interpretive center shall be coordinated with the Department of Fish and Game and the interpretive center shall be integrated into a trail system, approved by the Department of Fish and Game, that will allow interested persons access to portions of Upper Newport Bay. D. Corporation agrees to construct a launching area for human- powered and small sailcraft and this launch area shall be of sufficient size to accommodate, at a minimum, the current use of the area for the launching of small sail boats and human - powered craft by members of non - profit corporations such as the Girl Scouts; 19 �546 A a s E. Corporation shall construct a bike trail, the design, width and location subject to the approval by the County's Director of the Environmental Management Agency and the City Engineer, connecting Back Bay Drive with Bayside Drive. No admission or user charge shall be imposed upon persons for use of trail. Bicyclists will be allowed access to the interpretive center. F. Transient occupancy taxes will be imposed upon users of the family inn in accordance with the provisions of Chapter 3.16 of the Newport Beach Municipal Code. Transient occupancy taxes will be collected and processed in accordance with Chapter 3.16 of the Newport Beach Municipal Code, and payment of all transient occupancy tax revenues shall be made to City as provided by the Newport Beach Municipal Code. 20 G. Corporation, with respect to any use of the property which requires the payment of any tax or fee, for the issuance of any permit, pursuant to the provisions of Title 5 of the Newport Beach Municipal Code, agrees to pay such fee or tax and /or obtain the rewired permit and comply with any and all- conditions imposed upon the issuance of the permit; H. The following uses of the property shall not be permitted: 1. Skateboard courses; Exeeyl, 2. Fireworks displays —,As approved by the Fire Department of City; 3. Small animal or reptile zoo; 4. The use of loudspeakers for paging or announcements outside of any structure provided, however, lifeguards may use such equipment for safety and beach control purposes; 5. Amplified music, except in the family inn 21 C Ile 51 or other structure, and in no event shall amplified music provided by Corporation, its lessees, licensees or operators of the property, exceed 55 dbs when measured at a point 50 ft. distant from any exterior wall. I. Grading and building permits shall be"-issued by the City of Newport Beach and may contain appropriate conditions. to ensure that construction activities do not adversely impact the citizens of Newport Beach. Such conditions may include, but not necessarily be limited, to the following: 1. Designation of specified haul routes; 2. Restrictions on hours of activity; 3. Installation of erosion control facilities to ensure that silt does not enter the Bay from the construction site; J. Final design of the project shall incorporate the following: W #1 1. A lighting system designed and maintained to conceal the light source and minimize light spillage and glare offsite; 2. The incorporation of water — saving devices; 3. The installation of grease. traps in all restaurant facilities; 4. Conformance with energy requirements as specified in Title 24 of the California Administrative Code; S. Access and fire suppression systems in accordance with the requirements of the Fire Department of the City of Newport Beach; 6. A landscape plan which emphasis on the use of native vegetation, irr tem designed to avoid overwatering, with the installed during the 23 -�57© shall place heavy drought resistant [gated with a sys- surface runoff or landscaping to be initial phase of construction or as early as practicable once conflicts with other construction activities are resolved. IV. City agrees to provide a level of services to Newport Dunes appropriate to the uses developed on the site and consistent with that provided other properties in the.. -..City_,.,, including, but not limited to, water, fire and police. y. The promises and commitments of the parties as set forth herein, are intended to bind the parties now and in the future. The parties understand that this Agreement is similar to a'Joint Powers Agreement, and, as such, contains commitments of both City and County sufficient to bind future boards and councils, notwithstanding any change in the composition thereof. City and County hereby expressly waive and give up any right to challenge the validity of this Agreement, or any speci- fic term or condition hereof, based upon the contention that the legislative bodies of cities or counties are not empowered to bind future boards or councils, and each of the parties hereto stipulates that the consideration set forth in this Agreement is adequate to support this waiver. 24 51, ; VI. County shall not allow, and Corporation shall not construct, any development on the property exceeding that contem- plated by this Agreement, without the concurrence of the City Council of the City of Newport. Beach. Any plan for future development, not contemplated by this Agreement, must be accom- panied by adequate environmental documentation as required by law, and will be processed through the Planning Commission and City Council of the City of Newport Beach in accordance with the provisions of Chapter 20.80 of the Newport Reach Municipal Code. VII. The parties hereto recognize that the approval of the California Coastal Commission and the State Lands Commission, will be required for development of the property, and County and Corporation covenant that, in requesting such approval, they will seek no development in excess of that contemplated herein. City agrees to notify, in writing, all agencies which are required to approve the development contemplated in this Agreement of its. support and City will endeavor to appear at public hearings be- fore any Board or Commission reviewing a proposal for such development 'or any portion thereof, to express its support. To the extent that the California Coastal Commission and /or State 25 .5Z Lands Commission make requirements upon County and Corporation not set forth in, or at variance with, the provisions of this Agreement, County and City agree to accept and incorporate .as. amendments to this Agreement all said changes and /or variances, so long as said changes and /or variances do not expand or increase the concentration, intensity or density of the development of the project as contemplated by this Agreement or change the nature of the land uses described herein. All parties understand that this Agreement is intended to establish the limits of development and not to guarantee construction or development. City understands and agrees that any of the development contemplated by this Agreement, and any of the. revenues or contributions which may be required pursuant to this Agreement, are contingent upon County and Corporation negotiating a satisfactory lease of the property. The County and Corporation acknowledge that it will be necessary to re- negotiate the leases on the property, in order for Corporation to be able to develop the project described in this Agreement. County, therefore, agrees to negotiate in good faith with Corporation to enter into a new lease of sufficient scope and duration so as to allow F3j 53 Corporation to develop the project as envisioned in this Agreement. County and Corporation shall endeavor to notify City of any public hearing or meeting which may relate to the develop- ment contemplated by this Agreement at least ten (10) days prior to the date of such meeting or hearing. Notice shall be given as provided in this Agreement. To City: City Attorney _ City of Newport Beach 3300 Newport Blvd., Newport Beach, California 92663 To County and District: Director, Orange County Environmental Management Agency 811 No. Broadway Santa Ana, California 92702 To Corporation: Newport Dunes, Inc. c/o Lawrence H. Buxton Courton & Associates 2061 Business Center Dr. #203 Irvine, California 92715 VIII. This Agreement is in furtherance of a plan for redevelopment of the property. County and Corporation seek to transform underused portions of the property to their economic advantage by constructing visitor- serving facilities of greater 27 �y 9W intensity than now exist. City seeks to obtain certain offsite benefits, including, among others, circulation system improvements. All parties agree and recognize that it will not= be practical to restore this property to its previous state once any significant portion of the contemplated development is undertaken. The parties hereto have made significant and irrevocable commitments and have each given up certain rights and powers in order to achieve this agreement. The parties agree that damages would not be an adequate remedy for the failure of one of the parties to carry out its obligations under this-.Agree- ment, both because the property and this Agreement are unique, and because it would be very difficult to estimate the amount of damages which could, or would, properly compensate the other parties in the event of such failure or breach. Thus, the parties agree that specific performance, rather than damages, is the only remedy which would adequately compensate the other parties in the event of the failure of one party to comply with its duties and obligations as set:forth in this Agreement. IX. City and County shall annually review the parties' 2$ ,�-5 performance of this Agreement. At its first meeting of each calendar year, the Joint Harbor Review Committee shall review the - performance and implementation of this Agreement,, prepare a report and provide copes of the report to the City Council and County Board of Supervisors. In connection with such review, c_ each party shall have a reasonable opportunity to discuss matters ti which it believes have not proceeded in accordance with this Agreement, to receive from the other party information relating to its position on such matters and shall seek to resolve such matters by negotiation. rC X. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. f XI. No modification, amendment or other change in this Agreement or any provision thereof shall be affected for any 1 purpose unless specifically set forth in writing and signed by a duly authorized representative of the parties hereto. J Executed the day and year first above written. CITY By Mayor City of Newport Beach :1 ATTEST: A City Clerk APPROVED AS TO RM: ity Attor ey 1�"6 APPROVED AS TO FORM- County Counsel- SIGNED AND CERTIFIED THAT A COPY Of THIS DOCUMENT HAS BEEN DELNERED TO THE CHAIRMAN fJF THE BOARD. JUNE ALEXANDER Clerk of the Board of Supervisors County of Orange. California COUNTY OF ORANGE r_ =;-' / 1 By; - The. Chairman of its Board of Supervisors DISTRICT ORANGE COUNTY HARBORS, BEACHES AND PARRS DISTRICT �Wi✓ e Chairman of its Board of Supervisors CORPORATION NEWPORT DUNES, INC. A California Corporation mil 57 • SETTLEPLs':iT ACPWE.".EIiT AMENDMENT l� ft /�� � T_rHI�S Au ^Rir..CIE'iT AMF1iD:•LNT, entered into this day of ^_ /,L(4 , 1984, by and between THE CITY OF NEWPORT BEACH, a Municipal Corpora - tion and Charter City, hereinafter referred to as "City ", THE COMITY OF ORANGE, a political subdivision of the State of California, hereinafter "County ", and NiiiPORT DUNES, INC., a California Corporation, hereinafter "Corporation ", and the ORANGE COMITY IiARBOR, BEACHES AND PARES DISTRICT, organized pursuant to Division 8o Part II of the H 6 M Code, hereinafter "District ", is made with reference to the following facts, the materiality and existence of which is stipulated by and-between the par- ties hereto: A.' County is currently leasing 72 -acre Newport Dunes Aquatic Park, hereinafter referred to as "the property", to Corporation under a 50 -year lease agreement dated February 25, 1958. Corporation has constructed various recreational and visitor- serving facilities located on the property pursuant to lease provisions. J B. Litigation was instituted by City in 1981 in response to County's approval of proposed general redevelopment plans for the property. Subsequent negotiations between all interested parties resulted in a Settlement Agreement, s • j approved by the Board of Supervisors on May 17, 1983. Among the provisions I described therein, the Settlement authorized construction of two new restaurants and expansion of an existing restaurant subject to specific size restrictions. C. City, County, and Corporation now wish to amend the Settlement to allow for possible future alteration of new public area allotted to each restaurant such that no increase in total authorized development occurs. N(M, THEREFORE, the parties hereto agree as follows: The permitted development for restaurant uses may be reapportioned in a manner other than that provided in subparagraphs 1 B 1 -3 subject to the following ;j :onditions: • -1- 5S a) That the development is reapportioned on a per square foot basis such that there is no increase in permitted development; and b) That the reapportionment has been reviewed and approved by the Director of the Environmental Management Agency for the County of Orange and the Planning Director of the City of Newport Beach. Executed the day and year first above written. 7 . `e // Cit �¢lerk APPROV7 AS TO FORM: Aj torney APPROVED S TO FORM: County Counsel 'SIGNED AND CERTIFIED TAAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED ((((T��p OiH�E��C��•�HI�RMAN OF THE BOARD Linda Rdberts Clerk of the Board of Supervisors of Orange County, California MY•.dthDR804-33 6/13/84 CITY OF NEIP RT BEACH Bye maybr Cr ty of Newport Beach '9C� FO RN\ COUNTY OF ORANGE , r, The Chairman of its Board of Supervisors DISTRICT ORANGE COUNTY IiARBORS, BEACHES A►:) ARKS DISTRICT �f BY: The Chairman of its Board of. Supervisors • I CORPORATION NEWPORT DUNES, INC. A Califo Corporation By: r7-e K-r,-� —2— 59 If 77 SETTLEMENT AGREEMENT AMENDMENT THIS SECOND AGREEMENT AMENDMENT, entered into this o(_3ay o' � 19g'/, by and between THE CITY OF NEWPORT BEACH, a Municipal Corporation and Charter City, hereinafter ref °rred to as "City," THE COUNTY OF ORANGE, a political subdivision of 'the State of California, hereinafter "County," and NEWPORT DUNES, INC., a California Corporation, hereinafter "Corporation," and the ORANGE COUNTY HARBORS, BEACHES AND PARKS DISTRICT, organized pursuant to Division 8, Part II of the Harbors S Navigation Code, hereinafter "District," is made with reference to thf following facts, the materiality and existence of which is stipulated by and between the parties hereto: A. County is currently leasing 72 —acre Newport Dunes Aquatic Park, hereinafter referred to as "the property," to Corporation under a 50 —year lease agreement dated February 25, 1958. Corporation has constructed various recreationa3 and visitor- serving facilities located on the property pursuant to lease provisions. B. Litigation was instituted by City in 1981 in response to County's approval of proposed general redevelopment plans for the property. Subsequent negotiations between all interested parties resulted in a Settlement Agreement, approved by the Board of Supervisors on May 17, 1983. Among the provisions described therein, the Settlement provides for City and County to annually review parties' performance of the agreement through the Joint Harbor Review Committee and for said Committee to prepare a report for the City Council and Board of Supervisors. C. City, County, and Corporation now wish to amend the Settlement to delete the requirement for an annual review and report by the Joint Harbor Review Committee, in consideration of the fact that said Committee has not been duly organized and that adequate administrative mechanisms exist to conduct such review and prepare reports as may be necessary once project implementation begins. NOW, THEREFORE, the parties hereto agree to amend Section IX to read as follows: "City and County shall periodically review the parties' performance of this Agreement. In connection with such review, each party shall have a reasonable opportunity to discuss matters which it believe have not proceeded in accordance with this Agreement, to receive from the other party information relating to its position on such matters, and shall seek to resolve such matters by negotiation." Executed the day and year first a ATTEST: City Cle APP VED AS TO O City Attorney APPROVED ,#S T FORM County Counsel SIGNED AND CERTIFIED THAT A COPY OF THIS DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD Linda Roberts Clerk of the Board of Supervisors of Orange County, California COUNTY OF ORANGE By: The Chairman of its Board of Supervisors DISTRICT ORANGE COUNTY HARBORS, BEACHES AND PARKS DISTRICT By: The Chairman of its Board of Supervisors CORPORATION NEWPORT DUNES, INC. A Cal otnia tion By: 1�c,h��c,r DR:bhPRF01 -7 -01-62 AMENDED NEWPORT DUNES SETTLEMENT AGREEMENT THIS AGREEMENT, entered into this 1`-" may of -Z2 CZ, 1988, by and between THE CITY OF NEWPORT BEACH, a Municipal Corporation and Charter City, hereinafter referred to as "City," THE COUNTY OF ORANGE, a Political Subdivision of the State of California, hereinafter "County," and NEWPORT DUNES PARTNERSHIP, a California Partnership, hereinafter "Company," is"- made with reference to the following facts, the materiality and existence of which is stipulated by and between the parties hereto: A. Pursuant to the provisions of Chapter 526 of the California State Statutes of 1919, the State of California granted certain tidelands to County. These tidelands were regranted by the State to the County, pursuant to the provisions of Chapter 415 of the Statutes of 1975. The legislature imposed certain conditions and restrictions on the use of the granted property. The tidelands referred to in these two grants, together with a small parcel of uplands, are described in Exhibit "A" to this Agreement, and are hereinafter referred to as "the Property "; B. Newport Dunes, Inc., formerly a California corporation (NDI) has, in the past, constructed certain recreational and visitor - serving facilities on the property, including the following: rig (1) A beach, consisting of approximately ten (10) acres, together with concessions to serve beachgoers, such as, fast food stands and businesses which rent beach equipment; (2) A recreational vehicle and travel trailer camping area, with 64 spaces fully serviced by sewer, water ands electricity and 80 spaces which are partially served by such utilities; (3) A restaurant known as Anthony's Pier II located on the northwesterly edge of the swimming lagoon and consisting of approximately 7,500 sq. ft. of public area, and a coffee shop, consisting of approximately 2,000 sq. ft. of public area and located on the easterly side of the lagoon in the area of the current boat - launching facilities; (4) Boat and marina - related facilities consisting of approximately 230 slips, a boat repair business, a canvas shop, maintenance storage and dry boat storage area with room for approximately 350 boats and a six -lane boat launching ramp; (5) A structure, located near Anthony's Pier II, consisting of approximately 1,500 sq. ft. which presently serves as the headquarters and equipment yard for Company. C. Commencing in 1976, County and NDI embarked on a process designed to redevelop the property by enlarging or improving existing facilities and constructing new facilities. This process culminated in 1980, with the approval, in concept, of a redevelopment plan for the property which called for the construction of: z d �_ (1) A motel or family inn; (2) Meeting rooms with a seating capacity for 400 persons; (3) Additional restaurants, coffee shops and snack bars, at least one of which would seat 150 persons; (4) 263 additional boat slips; (5) A "marina village" consisting of approximately 50,000 sq. ft. of commercial and retail development with approximately 20,000 sq. ft. of facilities described as marina amenities; (6) A modern recreational vehicle park; and (7) other development to support the primary uses. D. The City instituted litigation challenging the County's approval of the redevelopment plan for the property. In 1983, the parties resolved this litigation through a settlement agreement which reduced the size and scope of certain components of the project and obligated County and NDI to comply with provisions of the Building and Zoning Codes of the City. E. NDI has assigned its rights, duties and obligations under the leases and original Settlement Agreement to Company. F. The Orange County Harbor, Beaches and Parks District, which was a party to the original Settlement Agreement, has been dissolved, with County of orange designated as successor agency, therefore, District is not a necessary or appropriate party to this amended Agreement. r G. The parties to the original settlement agreement have determined that unanticipated delays in constructing the project, a desire• to construct_ a revised project, and changes in the circumstances surrounding the project require execution of an amended settlement agreement. NOW, THEREFORE, the parties hereto agree as follows: I. City, in consideration of the covenants and promises made by County and Company in this agreement agrees to approve the development of the property contemplated in this agreement, (conceptually illustrated on Exhibit "B, ") provided County and Company have complied with all conditions precedent to development that are specified in this agreement. The development contemplated in this agreement may proceed in phases as deemed appropriate by Company. The development of the property authorized by this agreement is as follows: A. The construction of a family inn, not to exceed 275 rooms, to be located on the west side of the swimming lagoon subject to the following: 1. The, family inn will be designed and constructed with features that will make it attractive to families and these design and construction features shall include, but not necessarily be limited to, the following: (a) Kitchen facilities in approximately forty percent (40 %) of the units; (b) A room containing recreational facilities and equipment for use by the guests of the inn; U (c) No permanent audio /visual facilities or equipment are to be integrated into the design. 2. The area immediately adjacent to the family inn shall be designed, improved and maintained such that it is consistent with the concept of a visitor - serving facility attractive to families. 3. The family inn will be constructed in accordance with the Building and Zoning Ordinances of the City of Newport Beach, all as more fully described in paragraph-III -A. 4. The structure which houses the family inn shall not exceed 500,000 sq.ft. of gross floor area (per City standards) inclusive of area used for the service, storage and preparation of food or beverage. B. The construction of a new restaurant on the site previously occupied by Anthony's Pier II, and the construction of restaurant and food serving areas within, or adjacent to, the family inn, subject to the following: 1. Restaurant area within, and adjacent to, the family inn, shall be limited to 12,500 sq.ft. of net public area (per City standards); 2. The restaurant to be constructed on the site formerly occupied by Anthony's Pier II shall be limited to 15,000 sq.ft. of net public area (per City standards). 3. Restaurant and food serving area outside of the structure which houses the family inn shall be limited to X 67 those areas which are intended to primarily serve guests of the inn, such as the pool and cabana -area; 4. A substantial portion of restaurant space within the family inn shall be located, designed, maintained and operated such that it principally serves the patrons and guests of the family inn, with special consideration given to families with children; and S. The permitted development for restaurant uses may be reapportioned in a manner other than that specified in the preceding paragraphs provided: (a) The reapportionment is on a per square foot basis such that there is no increase in permitted restaurant development; (b) The reapportionment has been reviewed and approved by the County's Director of Harbors, Beaches and Parks /EMA and the Planning Director of the City of Newport Beach; and (c) The reapportionment does not result in a transfer of restaurant development to the east side of the swimming lagoon. C. The construction of a structure or structures which will house commercial, office or retail tenants, subject to the following: 1. The size of new structure or structures shall not exceed a total of 5,000 sq. ft. of gross floor area (per City standards); M 2. The tenancy shall be limited to those activities permitted by the lease and with County and Company and which are consistent with the tidelands grants businesses listed on Exhibit "C" to this Agreement. D. The construction of a structure or structures to replace the existing marine repair facility and coffee shop on the east side of the swimming lagoon subject to the following: 1. The structure shall not exceed a total of 7,500 sq. ft. of gross floor area (per City standards); and 2. Approximately 3,000 sq. ft. of the structure shall be utilized as a marine repair facility, with the remaining portion of the structure or structures to be used as a coffee shop and retail uses which support the needs of those using the boat launch or boat storage areas. E. The construction of a meeting room with a seating capacity not to exceed 100 persons to be located on the west side of the swimming lagoon. F. The construction of a structure which will serve as the headquarters for Company, subject to the following: 1. The size of the structure shall not exceed 7,000 sq. ft.; 2. The structure will contain approximately 6,200 sq. ft. of space devoted to office and administrative uses, with the remaining space within the structure to be devoted to parking of equipment, a first aid station and the storage of materials. 6f 4 G_ The construction of a recreational vehicle park not to exceed 444 spaces, all of which will have full service capabilities, including electricity, water and sewer, together with a recreational vehicle support center, the center to contain a small convenience store and an equipment rental area (approximately 3,500 sq.ft. of gross floor area), an equipment rental area, recreation /meeting room and clubhouse (approximately 2,900 feet of gross floor area) , restrooms, showers and a laundry facility (approximately 2,100 feet of gross floor area), a storage area and swimming pool. H. The construction of approximately 200 boat slips, a pedestrian bridge connecting the easterly and westerly .portions of the property, and a pump -out station, subject to the following: 1. No boat slips shall be constructed in the mouth of the lagoon, or in the lagoon itself, until such time as designated representatives of the City and County have reviewed and approved a water quality study which considers the effects of the construction of boat slips on the water quality in the swimming lagoon; 2. Boat slips constructed in the mouth of the lagoon, or within the lagoon itself, shall not accommodate boats exceeding 28 ft. in length; 3. Boat slips constructed in the mouth of the lagoon, or in the lagoon itself, shall be designed and constructed 13 /0 to ensure that there is minimal interruption of the tidal flow in and out of the lagoon; 4. Overnight occupancy of boats moored in the mouth of the lagoon, or in the lagoon itself, is prohibited and County and /or Company shall take all action necessary to ensure enforcement of that prohibition; 5. The pedestrian bridge which is to be constructed across the mouth of the swimming lagoon will be elevated above the water surface, built on pilings, and designed to minimally restrict tidal flows in and out of the lagoon and permits the entry of dredging equipment (such as removable center section); 6. A pumpout station shall be constructed at a location convenient to boaters with a sufficient capacity to service any boat for which slip or mooring space is available on the property; and 7. Company may charter vessels for commercial purposes from a location on the west side of the swimming lagoon subject to issuance, by City, of a commercial harbor activities permit and compliance with all City ordinances. II. Company shall retain, and in certain cases upgrade and /or add to, certain existing facilities and uses, as follows: A. The existing dry boat storage capacity may be increased to no more than 400 units. During the first phase of construction, all dry boat storage shall be at surface level. If additional spaces are to be provided, the increase may be U 71 accomplished by the construction or installation of a facility that will allow stacking of small boats. The storage facility will be covered and will be administered in a manner that will insure adequate security of private property; B. Company shall restripe the existing six -lane ' launch ramp to at least seven 15' lanes, and retain, or upgrade, the washdown facilities located in proximity to the launch ramp; C. Company shall provide at least 185 boat - trailer parking spaces in proximity .to the boat launch area. These spaces shall be used for vehicles and trailers using the boat launch facilities, and by patrons of the marine service building and dry boat storage facility, and to extent space is needed and available by beach users when day -use parking area is filled. D. County and Company shall preserve substantially all of the existing beach area and retain and assure the continuing operation of concessions and facilities which serve beachgoers, including, but not limited to, boat and equipment rentals, fast food stands, lifeguards, and picnic area. At least 645 day use area parking spaces, in addition to parking spaces specified elsewhere in this Agreement, will be made available for persons using the facilities. No more than 250 of the parking spaces shall be designated for use by compact vehicles and compact spaces shall be distributed evenly throughout the parking area. E. Company shall provide for overnight camping use and all related facilities in the recreational vehicle park areas. W 7? III. Company, in consideration of the commitment of City to approve the contemplated development as generally described in this Agreement, stipulates and agrees as follows: A. Company agrees to design and construct all new development in accordance with the applicable Building and Zoning ordinances of the City of Newport Beach and, specifically, agree to construct new development in conformance with the following: 1. No structure, nor any portion of the structure, shall exceed a height of 38.5 feet. Mechanical equipment may be permitted in excess of the basic 35 foot height limit provided the equipment does not exceed a height of 38.5 feet and is fully screened from public view. No structure shall exceed three (3) stories and the family inn shall be constructed with a pitched roof. Chimneys and vents are permitted to exceed the height limit specified in this paragraph only to the extent required to comply with state law or local ordinances; 2. Except as otherwise provided in this agreement, parking for all new development will be in conformance with the parking standards of the City of Newport Beach as set forth in Chapter 20.30 of the Newport Beach Municipal Code; and 3. All signs and sign structures shall conform to the provisions of Chapter 20.06 of the Newport Beach Municipal Code. B. Company shall comply with the Traffic Phasing Ordinance and Fair Share Ordinance of the City of Newport Beach. Company shall have satisfied Traffic Phasing and Fair Share %3 requirements upon payment of the sums specified in this section. Amendments to the Traffic Phasing or Fair Share Ordinance which would otherwise increase the fees to be paid by County or Company shall not be applicable to the development contemplated in this agreement. The appropriate method and time for the payment of these fees has been difficult to determine in that: (1) while the early phases of development will not generate substantial levels of traffic over and above those which now exist, infrastructure necessary to accommodate the family inn and other traffic intensive uses will be constructed during the initial phases of the project; and (2) the number of building and grading permits required for each phase of the project, and the potential that development within each phase will not proceed at the same time, make it extremely difficult for the parties to determine what percentage of Traffic Phasing or Fair Share Fees should be paid in conjunction with any specific permit. The method of payment specified in this Agreement represents the parties best efforts to establish a fee schedule consistent with the intent of the Fair Share and Traffic Phasing Ordinances. 1. Company shall pay $600,000 to comply with the provisions of the Traffic Phasing Ordinance. This sum will be used to reimburse the City for a portion of the $2,058,000 spent to date, and the additional $724,000 to be spent in the 1988 -89 fiscal year, on circulation system improvements which were required, in part, because of traffic generated by this project. Company and County have benefitted by the City's early Yf %'-# construction of these improvements which were to have been funded, in part, by the $600,000 payment required by the original agreement. 2. Company shall pay Fair Share fees in the sum of $235,402. This fee is based upon "new traffic" of 5,213 average daily trips, multiplied by the current rate of $99.27 a trip and reduced by a credit of $282,902 for master plan circulation system improvements funded by the Traffic Phasing Ordinance payments required by this Agreement. 3. The Fair Share and Traffic Phasing Ordinance fees required by this Agreement shall be paid as follows: a) The sum of Twenty Five Thousand ($25,000) Dollars concurrent with the execution of this Agreement; b) The sum of Seventy Five Thousand ($75,000) Dollars prior to the issuance of the first building permit for any of the projects described in Phase 1 (RV Park, Day Use, Boat Launch, Boat Storage, Marine Repair Facility, Coffee shop and Operations Center); c) The sum of Seventy Five Thousand ($75,000) Dollars prior to the issuance of the first occupancy permit for any project described in Phase 1; d) The sum of Five Hundred ($500) Dollars per slip to be paid prior to the issuance of the final building or harbor permit necessary to the construction of the slips (the Fair Share and Traffic Phasing fees totalling $835,402 have been calculated on the assumption that 200 new boat slips will be constructed. In the event less than 200 boat slips are constructed, the Traffic Phasing and Fair Share fees required by this Agreement shall be reduced by a sum equal to the difference between the 200 slips predicted and the actual number constructed multiplied by $500.) e) The sum of Fifty Thousand ($50,000) Dollars prior to the issuance of the first building permit for the first building permit for the construction of a restaurant on the site formerly occupied by Anthony's Pier II; f) The sum of one Hundred Thousand ($100,000) Dollars prior to the issuance of the first building permit for the family inn; g) The sum of Four Hundred Ten Thousand Four Hundred Two ($410,402) Dollars prior to the issuance of the first occupancy permit for the family inn. 4. The fees required by the preceding paragraph shall be paid by Company or by Company's sublessee. 5. The County, City and Company will meet and confer on the specific circulation system improvements to be financed by Company's payment of the Fair Share and Traffic Phasing fees required by this Agreement, to the extent funds remain after consideration of improvements previously made by City. The parties acknowledge that, to the extent possible, Company's payments should be used to finance improvements to those 7'6 components of the City's circulation system most heavily impacted by the development authorized in this Agreement. C. Company shall construct an interpretive center, - to be located near the northeast corner of the property. The function of the interpretive center shall be the provision -of information and educational materials relative to the Upper Newport Bay Ecological Reserve. Educational programs offered by the interpretive center shall be coordinated with the Department of Fish and Game'and the interpretive center shall be-integrated into a trail system, approved by the Department of Fish and Game, that will allow interested persons access to portions of Upper Newport Bay. D. Company agrees to construct a launching area for human- powered and small sail craft and this launch area shall be of sufficient size to accommodate, at a minimum, the current use of the area for the launching of small sail boats and human - powered craft by members of non - profit organizations such as the Boy Scouts, Girl Scouts or similar organizations. E. Company shall construct a bike trail, the design, width and location of which is subject to the approval by the County's Director of Harbors, Beaches and Parks /EMA and the City Engineer, connecting Back Bay Drive with Bayside Drive. No admission or user charge shall be imposed upon persons for use of trail. Bicyclists shall be allowed access to the interpretive center. Company shall install bike racks along the trail adequate in number to accommodate demand. The bike trail may be 97 11 used by the :ity, County and other public entities engaged in constructing, repairing or maintaining public facilities or landscaping. The bike trail shall be designed to allow convenient access for public vehicles engaged in the maintenance and repair work. F. Transient occupancy taxes will be imposed upon users of the family inn and recreational vehicle park in accordance with the provisions of Chapter 3.16 of the Newport Beach Municipal Code. Transient occupancy taxes will be collected, processed, and paid in accordance with the provisions of Chapter 3.16 of the Newport Beach Municipal Code. G. Company, with respect to any use of the property which requires the payment of any tax or fee, for the issuance of any permit, pursuant to the provisions of Title 5 of the Newport Beach Municipal Code, agrees to pay such fee or tax and /or obtain the required permit and comply with any and all conditions imposed upon the issuance of the permit; H. The following uses of the property shall not be permitted: 1. Skateboard courses; 2. Fireworks displays except as approved by the City Council of Newport Beach; 3. Small animal or reptile zoo; 4. The use of loudspeakers for paging or announcements outside of any structure provided, however, lifeguards may use such equipment for safety and beach control purposes; and 5. Amplified music, except in the family inn or other structure, and in no event shall amplified music provided by Company, its lessees, licensees or operators of the property, exceed 55 dbs when measured at a point 50 ft. distant from any exterior wall. I. Grading and building permits shall be issued by the City of Newport Beach and may contain appropriate- conditions to ensure that construction activities do not adversely impact the citizens of Newport Beach. Such conditions may include, but are not necessarily limited to, the following: 1. Designation of specified haul routes; 2. Restrictions on hours of activity; and 3. Installation of erosion control facilities to ensure that silt does not enter the Bay from the construction site. J. Final design of the project shall incorporate the following: 1. A lighting system designed and maintained to conceal the light source and minimize light spillage and glare offsite; 2. The incorporation of water- saving devices; 3. The installation of grease traps in all restaurant facilities; 7s s. 4. Conformance with energy requirements as specified in Title 24 of the California Administrative Code; 5. Access and fire suppression systems in accordance with the requirements of the Fire Department of the City of Newport Beach; and 6. A landscape plan which emphasizes the use of drought resistant native vegetation, irrigated with a system designed to avoid surface runoff or overwatering, with the landscaping to be installed during the initial phase of construction or as early as practicable once conflicts with other construction activities are resolved. IV. City agrees to provide a level of services to Newport Dunes appropriate to the uses developed on the site and consistent with that provided other properties in the City, including, but not limited to, water, fire and police. V. The promises and commitments of the parties as set forth herein, are intended to bind the parties now and in the future. The parties understand that this Agreement is similar to a Joint Powers Agreement, and, as such, contains commitments of both City and County sufficient to bind future boards and councils, notwithstanding any change in the composition thereof. City and County hereby expressly waive and give up any right to challenge the validity of this Agreement, or any specific term or condition hereof, based upon the contention that the legislative bodies of cities or counties are not empowered to bind future boards or councils, and each of the parties hereto stipulates that MM the consideration set forth in this Agreement is adequate to support this waiver. VI. County shall not allow, and Company shall not construct, any development on the property exceeding that contemplated by this Agreement, without the concurrence of the City Council of the City of Newport Beach. Any plan for future development, not contemplated by - this Agreement, must be accompanied by adequate environmental documentation as required by law, and will be processed through the Planning Commission and City Council of the City of Newport Beach in accordance with the provisions of Chapter 20.80 of the Newport Beach Municipal Code. v22. The parties hereto recognize that the approval of the California Coastal Commission and the State Lands Commission, will be required for development of the property, and County and Company covenant that, in requesting such approval, they will seek no development in excess of that contemplated herein. City upon request by County or Company agrees to notify, in writing, all agencies which are required to approve the development contemplated in this Agreement of its support and City will endeavor to appear at public hearings before any Board or Commission reviewing a proposal for such development or any portion thereof, to express its support for the project. To the extent that the California Coastal Commission and /or State Lands Commission impose requirements upon County and Company not set forth in, or at variance with, the provisions of this Agreement, County and City agree to accept and incorporate as amendments to tu :39 s� this Agreement all said changes and /or variances, so long as said changes and /or variances do not expand or increase the concentration, intensity, density or type of the development as contemplated by this Agreement. All parties understand that this Agreement is intended to establish the limits of development and' not to guarantee construction or development. County and Company shall endeavor to notify City of any public hearing or meeting which may relate to the development contemplated by this Agreement at least ten (10) days prior to the date of such-meeting or hearing. Notice shall be given as provided in this Agreement. To City: City Attorney City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 To County: Director, Harbors, Beaches and Parks /Orange County Environmental Management Agency P.O. Box 4048 Santa Ana, CA 92702 To Company: Newport Dunes Partnership c/o David Cherashore 998 West Mission Bay Drive San Diego, CA 92109 VIII. This Agreement is in furtherance of a plan for redevelopment of the property. County and Company seek to transform underused portions of the property to their economic advantage by constructing visitor - serving facilities of greater intensity than now exist. City seeks to obtain certain offsite benefits, including, among others, circulation system improvements. All parties agree and recognize that it will not be practical to restore this property to its previous state once any FJil significant portion of the contemplated development is undertaken. The parties hereto have made significant and irrevocable commitments and have each given up certain rights and powers in order to achieve this agreement. The parties agree that damages would not be an adequate remedy for the failure of one of -the parties to carry out its obligations under this Agreement, both because the property and this Agreement are unique, and because it would be very difficult to estimate the amount of damages which could, or would, properly compensate the other parties in the event of such failure or breach. Thus, the parties agree that specific performance, rather than damages, is the only remedy which would adequately compensate the other parties in the event of the failure of one party to comply with its duties and obligations as set forth in this Agreement. IX. In the event Company fails to comply with its obligations pursuant to this agreement, County shall have the right to perform and shall be entitled to the rights and benefits confered thereby. X. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. XI. No modification, amendment or other change in this Agreement or any provision thereof shall be affected for any purpose unless specifically set forth in writing and signed by a UIN duly authorized representative of the parties hereto. Executed the day and year first above written. CITY ATTEST: City Clerk f / Mayor �- City of Newport Beach X gy APPROVED AS TO FORM: COUNTY OF ORANGE By: The Chairman of its Board of Supervisors SMIi *ZD AND CE TINED -FRAT A COPY OF THIS DOCLI BENT uAS E'EEa CcCNE =ED TO THE CHNRMAN OF THE BO M. County Counsel UNDA D. FcOBEBTS UEC 13 19 __ • Y ; ; a Clerk of the Board of Supervisors COMPANY County of Orange, CaliiorrGa NEWPORT DUNES PARTNERgKIP A California Partnership 1 By: David GheEashGr- /-\ t� t-- �-- L . 3= �,'^ r•-5 FIRST AMENDMENT TO AMENDED NEWPORT DUNES SETTLEMENT AGREEMENT This First Amendment to Amended Newport Dunes Settlement Agreement ( "First Amendment ") is made as of December /g, 1990 by and between THE CITY OF NEWPORT BEACH, a Municipal Corporation.and Charter City, hereinafter referred to as "City ", THE COUNTY OF ORANGE, a Political Subdivision of the State of California, hereinafter "County ", and NEWPORT DUNES PARTNERSHIP, a California partnership, hereinafter "Company ", who agree as follows- 1. This First Amendment is executed in contemplation of the following facts and circumstances: (a) City, County and Company are parties to that certain Amended Newport Dunes Settlement Agreement, dated December 9, 1988 ( "Settlement Agreement "). (b) It is the intent of City, County and Company to amend and modify certain of the provisions and conditions of the Settlement Agreement; it is the express intention of City, County and Company that except as expressly amended or modified by the provisions and conditions of this First Amendment, the Settlement Agreement shall remain in full force and effect. (c) The capitalized terms used in this First Amendment shall have the same meaning as is otherwise ascribed thereto in the Settlement Agreement. 2. Paragraph I.H is modified to include with the improvements so described a marina club house and storage building, together with appurtenant facilities, constructed in accordance with the requirements of paragraph H.8 of the 'Settlement Agreement. 0 3. Paragraph I.H of the Settlement Agreement is hereby amended and modified by adding the following provisions and conditions thereto as paragraph 8: "8. A marina club house and storage building and appurtenant facilities shall be constructed upon the Property. The gross floor area of the office and amenity uses shall not exceed 6,000 square feet and the gross floor area of the storage uses shall not exceed 3,200 square feet. The fitness room within the marina club house shall be no larger than the size shown on the approved Conceptual Plans (approximately 475 square feet) and all exercise equipment shall be located within the fitness room. The marina club house shall contain no more than two stories and the storage building shall be limited to one story. The marina club house shall be constructed at or below the northerly prolongation of the sight line drawn from a point five feet above Pacific Coast Highway (along the section shown on the revised schematic site plan) to the top of the north side of the proposed Family Inn. The marina club house and storage building shall be available only to tenants of the marina upon the Property and their guests and access shall be controlled by Company. In the event the City finds evidence that the marina club house and /or storage building are being used by other than tenants of the marina and that additional vehicular traffic is being generated thereby, the City will so advise the County and the County shall as part of its lease administration ;z'- X7 responsibilities correct the situation to ensure that the traffic impacts do not occur. The marina club house and storage building and appurtenant facilities shall substantially conform to approved Conceptual Plans on file with the County and City and the architectural theme of the marina club house and storage building and appurtenant facilities shall be consistent with the mediterranean style of existing Phase I improvements on the Property. The pool, courtyard and related areas appurtenant to the marina club house shall be sized, designed and landscaped in substantial conformance with the "preliminary landscape technical plan" on file with the City and County and all landscaping shall be maintained at a height of at least five feet below the highest point of the marina club house. Marina tenants and users shall be prohibited, and their leases shall so provide, from undertaking and otherwise pursuing commercial activities within the marina club house and storage building including boat charters. However, the limitation on charter activities shall not prohibit charters of up to and including six passengers. The marina club house shall include space for marina office personnel and three distinct recreational amenity areas. The amenity areas include a television room, fitness center and club lounge. The storage building shall consist of large lockers, laundry facilities, vending machines and the storage area for marina maintenance equipment." 3. L:xcept as expressly amended or modified by the provisions and conditions of this First Amendment, the Settlement Agreement shall and .foes remain in full force and effect. ATTEST: City Clerk TO FORM: APPROVF A< TO FORM: County COL•: •.sel H:\2 \2529 \33220 \ = :STAY CITY J '> By: Mayor o°;,�jty of Newport Beach COUNTY QR ORANGE The Chairman of it:. Board of Supervisors SIGN7ED h *:D CEP • . ?;T A COPY OF THIS DOCI'.:E ":T H : DELNERED TO THE C�.!�.... • • = - O RD. Clerk of tre 3oer- • - aaniso S C ^uny of 0, 2r. :ziifornia COMPANY NEWPORT DUNES PARTNERI.: ::P, a Cali nia partner . By �'- Anne L. 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N am am N o •� O• 0 N �a v C' as al 0 a`ai a`�i m � al • � • U 0 w w O w . r�r^ cd . ^Cj /VlJ V N � 424 Q a H a a a U C7 c,4 a H a a O c O CU Goa 3 u M M o cd c� a� v� to v U P--4 �1 '� Harkless, LaVonne From: SCHULERMAISON @aol.com Sent: Tuesday, September 18, 20019:41 PM To: Opinion@city.newport-beach.ca.us Subject: Dunes Hotel For the record I would like to convey that I oppose the Dunes Hotel. Please keep this area as open space or a park. Thank you. Most sincerely, Kathy Schuler in Newport Beach Date 31 Id Copies Sent Tx O* rA n ,@-mayor until Member / anager ❑ At�t0.rneeyy ❑ ----- _ 0 E F Dr. Joan P. v„ P newport erxq G 1 no npcA. OV eX )II-LXXCS. ,.s zxakxD at E. K�a s:Uus 1X01. RECEIVE Ut SEP 18 88:43 �. OFF10EOf�' CITYCLK CITY OF NE PO . BE, F CII unymmm } �D Mfl yo,z, cod /Z�dge Write: City Clerk, PO Box 1768, Newport Beach, CA 92658 -3 15 _b� !wc 44i , City Fax: 949 - 644 -3039 I_ City Email: Opinion @city.newport - beach.ca.us N[t ,� � PLv4)4f (A letter directed to the options above is distributed to all councilpersons.) a The Daily Pilot: Phone hotline for letters: 949 - 642 -6086 Fax: 949-646-4170 Email: dailypilot @latimes.com Tod Ridgeway: (b)949- 721 - 9490, Rdgeway@city.newport- beach.ca.us (h)949- 673 -8017 Gary Proctor: (b)949- 706 - 2594, gproctor @juveniledefenders.com LCu(Op ro6�� Norma Glover: (h)949 -548 -3212, ngl over @city.newport- beach.ca.us �/ Iii ��• �i2000 Gary Adams: (b)949- 263 -9322, gary.adams @parsons.com Cd0Vt -7 ) (h)949- 644 -5506 3/ -4-2— Steven Bromberg: (b)949- 640 -2001, dandee @earthlink.net (h)949- 673 -6407 Dennis O'Neil: (b)949- 798 -0734, doneil @hewittmcguire.com John Heffernan: (b)949- 640 -4300, jhff @aol.com If you would be willing to help pass out flyers elsewhere in the city, please contact me at 949 - 722 -6699 or Email Susan @Caustin.org. Thank you for your help in stopping any Dunes Hotel!! Susan Skinner Caustin d Stop The Dunes Hotel Committee om m TO y rn o� I a a m m� m n r b nA W �y HarkleSs, LaVonne From: ana chu [00wesley @pacbell.net] Sent: Tuesday, September 11, 20019:36 AM To: Opinion @city.newport- beach.ca.us; Bert Ohlig ( @olec.com) Subject: Newport Dunes Project I am in favor of a city park at the Newport Dunes site instead of a hotel/conference center. I am in favor of finding ways to purchase the property and convert it to open space in order to improve the environment around the bay. Ana Chu George Wesley 233 Poinsettia Avenue Corona del Mar, CA 92625 949 723 -4064 00wesley c pacbell.net Date Copies Sent To: Mayor (�,ouncil Member �]'ftanager ❑Anne El El Fiarkless, LaVonne From: WALoveland @aol.com Sent: Tuesday, September 11, 20016:09 PM To: opinion @city.newport- beach.ca.us Subject: Dunes I should like to have the city of Newport Beach consider seriously taking over the lease of the Dunes and turning the area into a permanent park. Another hotel is not needed and would detract from the site. Sincerely, Katharine A. Loveland Harkless, LaVonne From: winnie jay[winniekjay @hotmail.com] Sent: Wednesday, September 12, 2001 11:28 AM To: Opinion@city.newport-beach.ca.us Cc: dailypilot @latimes.com Stop the Dunes Hotel please. We would like to have a beautiful park instead. Thank you. Winnie Get your FREE download of MSN Explorer at http://explorer.msn.com/inti.asp Office of The Mayor ,o Y /?" ffae,40 0 (%T C) n O m ° m -1 �m 1 on � rn y m Dr w Q v I3RVENY C. CIIAP.MA 2962 Airway Avenue Costa Mesa, California 9 `- E y V E U (714) 540 -1588 -01 SEP -6 AS :18 September 4, 2001 OFFICE OF THE CITY CLERt< CITY OF NEWPORT BEACH City Clerk P.O. Box 1768 Newport Beach, CA 92658 -8915 Dear City Clerk, As a long time resident in Bayshores, I am vitally interested in this area. Now that the Dunes Resort is for sale, I hope that the City Council will take advantage of the opportunity to purchase it for a city park. Float a bond issue if it is necessary to provide funding for the purchase. I am confident that it would have wide approval by our citizens. Please do not permit this distinct opportunity to be lost by inaction. Sincerely, IRVIN C. CHAPMAN Fisher, Cathy From: Mark & Gloria Fahey [glomarkltd @earthlink.net] Sent: Thursday, September 06, 2001 9:00 PM To: opinion @city.newport- beach.ca.us Cc: dailypilot @latimes.com Subject: Dunes development My wife, son and I would ask the council to stop any hotel building in the Dunes. It is a matter of record that the EIR the Dunes owners submitted factually stated that the approved 275 room family inn was not a positive realty investment. There should be no variance granted in lieu of this. Greenlight put the brakes on the giant hotel /convention Center, etc. program that was sought after. This kind of revenue to the city would be overcome by the increased traffic, pollution, etc. The people have spoken - listen to them. We are asking the officials that we have elected to represent us to listen to our voices and express them in their decisions., Thank you. Mark, Gloria and Christopher Fahey 1034 Pescador Dr., Newport Beach, CA 92660 Fisher, Cathy From: Willie Disbrow [wdisbrow @juno.com] Sent: Saturday, September 01, 2001 6:58 AM To: OPINION @CITY.NEWPORT- BEACH.CA.US Cc: DAILYPILOT @LATIMES.COM; TRIDGEWAY @CITY.NEWPORT- BEACH.CA.US; GPROCTOR @JUVENILEDEFENDERS.COM; NGLOVER@CITY.NEWPORT- BEACH.CA.US; GARY.ADAMS @PARSONS.COM; DANDEE @EARTHLINK.NET; DONEIL @HEW ITTMCGUIRE.COM; JHFF @aol.com Subject: STOP THE DUNES HOTEL I SUPPORT THE CONCEPT OF A CITY PARK AT THE DUNES. This property is public tidelands and deserves to be protected for a truly public use, such as a park. Allowing this land to be used for a privately owned hotel does not appear to be in the public's best interest in any respect. I regret that the traffic on jamboree Road is becoming unbearably congested. If a privaely owned hotel is built at the Dunes the traffic situation will become more and more difficult. Please consider taking over the long term lease of the Dunes and creating a city park for all of the residents of Newport Beach to enjoy. (Ms.) Willie Disbrow Homeowner Corona del Mar, CA Date 9-5- — Copies Sent To: ['Mayor t Council Member d Manager A grne p Pale i of 1 Fisher, Cathy From: WALoveland @aol.com Sent: Thursday, August 30, 2001 10:48 AM To: opinion @city.newport- beach.ca.us Cc: WALoveland @aol.com Subject: Dunes Resort - Recommendation Having recently returned to Newport Beach where I was raised during the 1950s and 1960s, I have learned that the City of Newport Beach may have the opportunity to take over the lease for the Dunes Resort and to control any further development on the property. As a new resident having been away for many years, the City has grown up population -wise and development -wise. I encourage you to explore taking over the subject lease and dedicating yourself to options such as turning the Dunes into a permanent park without the addition of any new hotel on the site. Ample hotel rooms now abound for the area, the addition of any hotel at the Dunes area would detract from the aesthetic beauty of its natural state, we do not need to burden traffic levels, and the perservation of the Dunes as a park would rebound to the benefit of residents and tourists alike. Thanks for your consideration William A. Loveland waloveland @aol.com Date —2:� � , 0 Copies Sent To: [Maya 6I Council Member t# Manager M❑ tney k 8/31/2001 August 27, 2001 Newport Beach City Counsel c/o City Clerk P.O. Box 1768 Newport Beach CA 92658 -8915 Dear Council Members: RECEIVED '01 AUG 28 A 8 :36 OFFICE OF THE CITY CLERrt CITY OF NEWPORT BEACH I have been a resident of Newport Beach for over 33 yrs. I have seen the citizens of our community unite over many issues ... ie: the Balboa Bay Club expansion and Public Hotel development... the conversion of Orange County Airport from a general aviation usage to commercial usage ... the development of the Castaways!! Now we have the potential of a meaningful development on the Dunes Resort. Please don't let that happen. The citizen; of our community have lost a great many issues, lets keep the Dunes Resort low impact. When you compare the last 25 yrs. development in other beach communities like Del Mar, Solona Beach, Santa Barbara, or Carmel... with what we have allowed to happen in Newport Beach ... We have lost the charm of the community and it is not a situation that anyone can view with pride. Sincerely, ne A. Sullivan 2571 Crestview Dr. Newport Beach, CA 92663 -5624 Date �^ Copies Sent To: Mayor )— " "until Member anager ❑ A orn Harkless, LaVonne From: Laurie A. McKay [mckay @marwit.com] Sent: Friday, August 24, 2001 3:45 PM To: opinion@city.newport-beach.ca.us Cc: dailypilot @latimes.com Subject: Dunes Resort Dear City Council Members, I wish to register my opinion regarding the Dunes Resort. I understand that the City of Newport Beach has an opportunity to take over the lease and control any further development on the property. I am opposed to any hotel being built there and would like to see the property protected and used as a park instead. We need to preserve what little open space we have left and prevent further traffic congestion. Thank you. Laurie McKay 180 Newport Center Drive, Suite 200 Newport Beach, CA 92660 mckay @marwit.com Harkless, LaVonne From: MSeastrom @aol.com Sent: Monday, August 27, 2001 4:16 PM To: Opinion@city.newport-beach.ca.us Subject: Dunes As a homeowner at 118 Ruby Ave, B.I. I very much REJECT the Dunes development. The City Coucil should take over all the lease, create a park at the Dunes ,,,and work toward an airport at El Toro Harkless, LaVonne From: Ray Carpenter [comnetl 1 @home.com] Sent: Wednesday, August 29, 2001 9:40 AM To: opinion @city.newport- beach. ca. us; dailypilot @latimes.com Subject: Stop the Dunes Hotel Dear Council Members, The Dunes Hotel must be stopped. 275 rooms hardly qualifies as a "smaller family inn ", impacts traffic, may provide further justification for those who wish to expand John Wayne Airport, and in short, seems to provide little benefit to our community. The specialness of Newport Beach, and the rewards for residents as a whole, are continually undermined by the interests of a select few. Sincerely, Ray Carpenter 949 - 644 -8199 STOP THE DUNES HOTEL!! RECEIVED PO Box 5280, Balboa Island, CA 92662 'Ot AUG 23 A 8 :25 Dear Newport Beach Resident: OCITIY OFF {- THE CITY CLER6 ,WPORT BEAN The City of Newport Beach has a wonderful opportunity to stop any hotel from being built at the Dunes, and our City Council needs to hear from you that residents support such an idea. With a little push from us, the City Council can choose to put a park at this site. As you may have read, the Dunes Resort is up for sale. This resort sits on public tidelands and is subject to a long -term lease through the County. Newport Beach has an opportunity to take over the lease and control any further development on the property. As you may recall, the Dunes already has the right to build a 275 room family inn. They were seeking permission to build a much larger hotel, a plan which has been shelved in large part because of the success of the Greenlight Initiative. However, even this smaller family inn will have a negative impact on traffic and density in our city. By taking over all or part of the lease, the city can choose not to build any hotel on this site, and can create a park instead. Less development at the Dunes means less traffic, especially at Bayside Dr. and Coast Highway. During Newport Beach Planning Commission meetings, the Dunes stated in their Environmental Impact Report (EIR) that the 275 room family inn was not economically feasible. This was vigorously challenged and equally vigorously defended by the Dunes. When the Planning Commission approved the EIR, they accepted the accuracy of the Dunes' statement. We think that the Dunes should delighted to let the city take over this portion of the property, since they would never have made money with the family inn. Make your voice heard today!! Write, call or Email City Council members and get your friends and neighbors to do the same. (Be sure and send a copy of your letter to the Daily Pilot, too.) g (over) O � 7 � d d � c c 08�p 000 Write: City Clerk, PO Box 1768, Newport Beach, CA 92658 -8915 City Fax: 949 - 644 -3039 City Email: Opinion @city.newport - beach.ca.us (A letter directed to the options above is distributed to all councilpersons.) The Daily Pilot: Phone hotline for letters: 949 - 642 -6086 Fax: 949-646-4170 Email: dailypilot @latimes.com Tod Ridgeway: (b)949- 721 - 9490, tridgeway @city.newport- beach.ca.us (h)949- 673 -8017 Gary Proctor: (b)949- 706 - 2594, gproctor @juveniledefenders.com Norma Glover: (h)949 -548 -3212, nglover @city.newport- beach.ca.us Gary Adams: (b)949- 263 -9322, gary.adams @parsons.com (h)949- 644 -5506 Steven Bromberg: (b)949- 640 -2001, dandee @earthlink.net (h)949- 673 -6407 Dennis O'Neil: (b)949- 798 -0734, doneil @hewittmcguire.com John Heffernan: (b)949- 640 -4300, jhff @aol.com If you would be willing to help pass out flyers elsewhere in the city, please contact me at 949 - 722 -6699 or Email Susan @Caustin.org. Thank you for your help in stopping opping any Dunes Hotel!! Susan Skinner Caustin Stop The Dunes Hotel Committee U)y-�I/U� " W. s W& W� 2. amdrkkm 2631 dr. R. lkwpmt acsb6G 92663 If .cam. , RIM r RECEIVED ro} AL16 24 A 8 :09 nCITY OF NEWPO T BEACH au�?-o - Zpo/ -zoo ale Y/O-&W � 12'�' 1 �aGi72S . a ice /fz c/1 alGnaltel �� � Gue Q 2e �o2a -e ✓ � ��- ..ale` X12 QS /!� �LC�E/L1/Zli �1 %S S�ea*�61 S191 ;7 ,00/J�l�2SS /-- *b ca��2� N ('irro f'�ae /ael /. J r ne 51 ]asmlae treek Dr. [orana Del Mar.G92625 -143 Harkless, LaVonne From: RTaubegl8l@aol.com Sent: Friday, August 24, 2001 10:44 AM To: Opinion @city.newport- beach.ca.us Subject: The Dunes Resort The City of Newport Beach should take over the lease of the current Dunes Resort and create a park that could be used and enjoyed by all residents. The traffic congestion that now exists on PCH, especially at the intersections with Jamboree, with Bayside Drive and with Dover Drive, would be greatly increased by the development of any hotel on the site. Penny and Bob Taube i Harkless, LaVonne From: Gary Turner [bayside48 @home.com] Sent: Wednesday, August 22, 2001 7:32 AM To: Opinion@city.newport-beach.ca.us Subject: Dunes Lease status As a resident along Bayside Drive since 1969, 1 wish to strongly urge the City of Newport Beach to take over the Dunes lease, and preserve this area for all to enjoy as parkland, as it has been since we moved here 32 years ago. Date 2 aa�o Copies Sent To: Mayor Council Member �anager ❑ Attorney y ❑ K_ Harkless. LaVonne From: lauraleebrowne @netscape.net Sent: Sunday, August 19, 2001 1:29 PM To: Opinion @city.newport- beach.ca.us Subject: Newport Dunes Hotel and American Legion Post Please use your power to protect our already traffic impacted community, caused by hotel development. Stop the "Dunes" and the proposed distruction of the historic American Legion post on the Balboa Penninsula. Thank you, Laura Lee and Richard Browne Developer and owners of the Long Beach Airport Business Park Former partner in the Westlake Village Hyatt Hotel developement Laura Lee Browne Your favorite stores, helpful shopping tools and great gift ideas. Experience the convenience of buying online with Shop @Netscape! http://shopnow.netscape.com/ Get your own FREE, personal Netscape Mail account today at http://webmail.netscape.com/ i Harkless, LaVonne From: B Forman [bmforman @hotmail.com] Sent: Saturday, August 18, 2001 12:25 PM To: opinions @city.newport- beach.ca.us Cc: dailypilot @latimes.com Subject: Stop the Dunes Hotel Dear Councilpersons, How soon we forget. The effect of excess development Los Angeles County is historic. And for more recent examples just look south to San Diego. Just 5 or 6 years ago one could drive to /from San Diego on the I5 without excessive traffic delays. Now it seems that not a day goes by where the I5 is not hopelessly congested in north San Diego County. Do we want this to happen to Newport Beach also? As an NB resident I certainly don't want to see this. Don't we have enough development here already! Do we really need another large hotel? Seems to me that NB is doing just fine economically and otherwise so why risk lowering our quality of life for another hotel project! Stop the Dunes Hotel! Build a park instead! B Forman Get your FREE download of MSN Explorer at http://explorer.msn.com/intl.asp i RECEIVED '01 AUG 21 A 8 :20 T.`% T'Y OF NEWPORT BEACH Cfl -� c.Vy ca,r,- :l Yr,--mbe,. - ucJ,162cc� 3�j�z` Cc\ \ins Awe. Q-A 9266z i nc o.11 nor+ eS��on. V5 17�q Qr' 'OUT �tesiz�S S.:N,QX40Ay FQ.� �_JCW�uS I Dunes Resort Fisher, Cathy From: Carlson, Sunny (scarlson @uci.eduj Sent: Wednesday, August 15, 20014:20 PM To: ' opinion @city.newport- beach.ca.us' Subject: Dunes Resort Importance: High Dear Council Members, Page I of 1 What a wonderful opportunity there is before us, namely, to take over the long -term lease of the Dunes Resort. Think of the possibilities this presents for our great city! By taking over this lease, the City could create a much - needed park instead. Most of us moved to Newport Beach for the quiet, suburban, resort atmosphere. Over the years, most of the open spaces in Newport Beach have been developed and we are desperately in need of open parkland. Think of what an asset and attraction it would provide. Consider what the provision of parkland has meant to cities like New York, Atlanta, San Diego, Denver, Sacramento, etc. Please consider taking over the Dunes Resort lease. It is a golden opportunity for our precious city. Sunny Carlson Sunny Carlson University Advancement University of California, Irvine 400 University Tower Irvine, CA 92697 -5601 Phone: 949.824.1810 Fax: 949.824.6352 «Carlson, Sunny.vcf>> 8/17/2001 Date 0— (� U Copies Sent To: Mayor Council Member Manager ❑ Attorn 't8 . 0 0 0 go Herman Rumm So. o. N.�pert Bach, CA 92960 -206 a, RECEIVED '01 AUG 15 P 1 :29 OFFICE OF THE CITY CLERX CITY OF NEWPORT BEACH r ::rv4t I ttz Date I ` s5 ,c I Copies Sent To: Mayor /Inuncit Member anager ❑ orney I /i r- C❑ K 1'f ❑ — ❑ — Harkless. LaVonne From: nmarguli Icba @csulb.edul Sent: Wednesday, August 15, 2001 5:59 AM To: opinion @city.newport- beach.ca.us Subject: Newport Dunes Hotel project To All Interested Parties: August 15, 2001 Quite some time ago I reviewed material forwarded to residents concerning the hotel project at Newport Dunes. At that time I communicated directly to the Newport Dunes my unhappiness and objections to this project. I considered the material to be basically propaganda and was extremely uneasy with the lack of accuracy and distortion presented as fact. I am Professor Emeritus and former Dean at the Graduate School of Management at UCI and have lived in the area for many years. Assumptions that the residents are uninformed naive, and disinterested were in fact erroneous in light of the recent influence and impact of the Greelight initiative. While living on the Balboa Peninsula, I watched with utter dismay the growing traffic, noise, nuisance, and worse, which resulted from increases in tourism without proper consideration for those of us who lived there. Why would I take at face value assurances that my quality of life, for which I labored long and hard, will remain the same? There have been numerous times when I have called the Newport Dunes to report problems and have been summarily dismissed and ignored. In the case of the hotel project, information has been sorted and filtered so that the facts are present, but only the facts that are supportive and not detrimental to the project. The potential down sides and possible problems with this project as it might impact those of us who live here were only highlighted because of the active participation of Greenlight. The media is teeming with examples of how "hard nosed" business objectives and decisions take precedent over environmental and quality of life factors. Early reports misrepresented the real concerns of residents. The accumulated information is was at least 15 years old and did not assure residents that there will be no increase in traffic, no increase in noise, no obstruction in view (important to those who chose to live in this area for that reason), no problems of public safety. Indeed claims that these factors will be minimally disruptive were ill conceived and misleading. I argued and still argue, that the costs of added police, and public safety amendments will be borne by the tax payer coupled with a steady deterioration of the environment and our i quality of life. It should be obvious that I am strongly opposed to the Dunes hotel project. I would consider a proposal that involves the City of Newport Beach and a commission that would control the factors that potentially would negatively impact the environment and the quality of life. Thank you for your consideration of these important matters. Newton Margulies, PhD Harkless, LaVonne From: GEOFWICK @aol.com Sent: Wednesday, August 15, 2001 7:27 AM To: Opinion @city.newport- beach. ca. us; dailypilot @latimes.com Subject: The Walled City I feel that I am living in a dying city. The City of Newport Beach seems to the City of Snobs. We do not want any new business, entering our city as it might bring in another car or perhaps, another dollar? I do not understand why we are becoming a walled city keeping out a new Lexus dealership. We now have a big push to keep out a new high class hotel and it seems that we have done out utmost to keep out any new manufactures. I wonder if we should really have events like the Christmas boat Parade, The Character Boat Parade, Spirit Run, sidewalk Art shows, youth sailing events, Forth of July fireworks (at the Dunes — that terrible Dunes) and other events that bring in "Outsiders" oh my! Were do we have our heads. ( I know the answer to that, but it could not be printed) HELLO — We live in the greatest place in the world and we do not want to share it with anybody. Do the "STOP PEOPLE" know that business brings in revenue? People who stay in hotels buy things, they eat at the local restaurants and pay sales tax as they do all these things. Hotels and car dealerships and manufactures pay sales taxes. Only 15% of our city revenue comes from property taxes. I just hope and pray that we do not end up making a city tax of $.10 on the $1.00 to keep our city alive. Are we the new city waiting to die? With great concern. Geof Wickett Harkless, LaVonne From: Cort Ensign [cort@starcomind.com] Sent: Tuesday, August 14, 2001 12:42 PM To: Opinion @city.newport- beach.ca.us Subject: Dunes Park Excellent idea. This is a great opportunity to add one more reason why people should come to Newport Beach to see our beautiful city. Harkless, LaVonne From: dr.t @home.com Sent: Monday, August 13, 20019:54 PM To: Opinion @city.newport- beach.ca.us Subject: Dunes Resort To: Newport Beach City Council As a resident of Newport Beach, I very much support the idea of the City purchasing the Dunes or at least that part of the property that would become another large hotel in an otherwise mostly residential area. It would be a terrific place for a park. Please do what it takes to carry such a plan into effect. Thank you. Alan Knox, 302 Ave. Carlos i karkless, LaVonne _ From: Burtpa @aol.com Sent: Monday, August 13, 2001 2:05 PM To: opinion @city.newport- beach.ca.us Subject: Newport Dunes City Clerk,Newport Beach: We have no objection to a hotel being built on the Dunes area property as planned originally. The hotel would be a benefit to Newport economy. The Greenlight environmentalists shouldn't be making these decisions. The city council was voted in to do this. Burt and Eleanor Sandiford, Balboa Island Harkless, LaVonne From: TGT4TGT @aol.com Sent: Saturday, August 11, 2001 3:42 PM To: Opinion@city.newport-beach.ca.us Cc: dailypilot @latimes.com; tridgeway @city.newport- beach.ca.us; gproctor @juveniledefenders.com; nglover @city.newport- beach.ca.us; gary.adams @parsons.com; dandee @earthlink.net; doneil @hewittmcguire.com; JHFF @aol.com Subject: STOP THE DUNES HOTEL!! Good afternoon. I am writing you today to support the Greenlight organization's call for STOPPING the DUNES HOTEL project. I have lived in Corona del Mar for 15 years and have seen the community change radically over the years from the loss of the buffalo farm, to widening of MacArthur, to building of new large homes ruining the character of the CDM village. Please do not allow this project to continue. We have way too much conjestion and traffic and visitors daily in our city. Preserve our city for the future. Thank you for your support !! Tom Toland 604 Marigold Avenue Corona del Mar, Ca. 92625 949 - 720 -0097 home Harkless, LaVonne From: Ted Mumm (3mumms @brats.com] Sent: Saturday, August 11, 2001 12:35 PM To: City of Newport Beach Cc: Daily Pilot Subject: Dunes Hotel Newport Beach City Council Members: I have been a continuous Newport Beach resident since 1969. I am writing today to inform you of my strong support for the movement to stop the Dunes Hotel. Please avail yourselves of the opportunity to take over the lease on the property, and cancel any development. In my opinion, the greatest benefit to our community would be to turn this area into a beautiful new public park, just as the "Stop The Dunes Hotel' committee suggests. Thank you. Sincerely, Carl W. Mumm, Jr. 1 Fisher, Cathy From: Roz Crowell [crowellr @pacbell.net] Sent: Wednesday, August 08, 2001 6:27 PM To: dailypilot @latimes.com Cc: Opinion @city.newport- beach.ca.us Subject: Do NOT stop the Dunes Hotel! Dear City Councilpersons, I have been given a letter that urges me to write the City Council to urge the City to take over the land site scheduled to build a hotel (Dunes site). I am much IN FAVOR of the largest income producing hotel that can be built on the site. The income generated by hotel guests will be enormous, and for goodness sake that is a simple way to keep from reaching into local residents pockets for another city owned property. We already have more parks than are used and beaches galore that sit empty a lot of the time. Lets help our merchants and residents by providing space and zoning to ASSIST someone in developing a new hotel in our city. Harry C. Crowell 554 Harbor Is. Dr. Newport Beach, CA 92660 -7224 Date 2 — I'D - 0 1 copies Sent Ta '4 Mayor E1 Council Member )� Manager O A mey � cue , O O ..., ,1,7 BEARD 714 67`'158 Cc� . Date Copies Sent is uncif �b37�31�j 3y130 331 /� /` ..' °naB rMemyer ❑ Orney 9� OIL g_ y to. % ❑ . 9� CGO Harkles3, LaVonne From: DrMoses @aol.com Sent: Tuesday, August 07, 2001 11:09 AM To: opinion @city.newport- beach.ca.us Subject: Future use of the Dunes Property I am a resident of Newport Beach since 1967. We have several hotels but not one major park for the people. Almost every other city in Orange County has at least one major park. We now have a wonderful opportunity to take over the Dunes area and create that park, so lets do it Michael Moses MD 166 Harbor Island Road Newport Beach, Ca 92660 Harklesa, LaVonne From: Warren Person [warrenperson @personford.com] Sent: Wednesday, August 08, 2001 10:18 AM To: Opinion @city.newport- beach.ca.us Subject: Dunes Project As a long time Newport Beach resident (at 433 Harbor Island Drive), and one who would be directly affected by the increased traffic at Bayside Drive and Coast Highway, I am strongly opposed to the City taking over the Dunes lease. The City has already approved the development right to a 275 -room hotel. While I probably would have opposed a dramatically larger facility with big conference capabilities, the City has already approved this concept and the developer deserves his rights too. I'm afraid that the Caustins et al have gone too far. If they have their way, Newport Beach's tax base will become static, eventually forcing cutbacks in basic services such as police and fire. Let's not become isolationists, but continue to look for good projects that enhance the diversity and quality of life in Newport Beach. Such projects will stand the Greenlight test and prevail in the court of public opinion. Warren Person 433 Harbor Island Dr Newport Beach, CA 92660 949 675 -4710