HomeMy WebLinkAbout13 - 2nd Amendment & Lease Extension with Marinapark ResidencesITEM 13
TO: Members of the Newport Beach City Council
FROM: Dave Kiff, Assistant City Manager
Robin Clauson, Assistant City Attorney
SUBJECT: 2nd Amendment & Lease Extension — Marinapark Residences
We met with representatives from Marinapark on Thursday, March 7, and have suggested that
your Council approve two changes to the proposed Amended Lease which are summarized
here. The entirety of the Amended Lease, ready for execution, is attached should your Council
concur with our suggestions.
Our two proposed changes are:
1— NOTICE TO RESIDENTS OF CITY'S INTENT TO EXERCISE OPTIONS:
Rather than a 60 -day notice from the City that it will extend the Amended Lease for a second
year (or third year), we propose a 180 -day notice. This will grant greater certainty to the
residents yet not significantly limit the City's flexibility to close the park for a re -use plan.
2 — RENTAL INCREASES AFTER RENT IS RAISED TO NEAR - MARKET:
Once the rent is raised to near - market, we propose tying any further increase in rent to an
appropriate Consumer Price Index.
ATTACHMENT: Proposed Amended Lease (with the above changes)
SECOND AMENDMENT
AND EXTENSION OF LEASE
This Amendment and Extension of Lease (Amended Lease), entered into and
effective this of day of , 2002 by and between the CITY OF
NEWPORT BEACH, a municipal corporation and charter city (City) and
(Lessee), is made with reference to the following
facts, the materiality and existence of which is stipulated and agreed by the parties:
A. City is the owner, and is in possession and control, of a parcel of real
property, located northerly of Balboa Boulevard and between approximately
le Street and 18th Street in Newport Beach, commonly known as
Marinapark, generally described in Exhibit "A" (Property);
B. The Property was under lease prior to the effective date of the Charter of the
City of Newport Beach and, pursuant to the provisions of Section 1402 of the
City Charter, the City Council is empowered to authorize execution of this
Lease by the Mayor;
C. Prior to the effective date of this Amended Lease, City leased 58
mobilehome spaces on the Property pursuant to a standard lease dated
March 24, 1976, (hereinafter "1976 Lease'), which would have expired on
September 30, 1985, subject to the right of the Lessee to extend the term for
a five (5) year period under certain conditions;
D. Prior to the expiration of the 1976 Lease, City leased the same 58
mobilehome spaces on the Property pursuant to a lease that would have
expired on March 15, 2000 (1985 Lease) but for an Amendment and
Extension of Lease which expires March 15, 2002; (2000 Amendment);
E. The City Council actively solicited proposals for non - residential uses at
Marinapark and, as of February 2002, has deemed a non - residential use of
Marinapark the most appropriate land use for the property. As such, the City
Council intends to close the mobilehome park no later than March 15, 2005.
F. The Parties acknowledge that, subsequent to the effective date of the 1985
Lease, Cal"rfomia State Lands Commission staff has discovered evidence
that a portion of the Property consists of tidelands. City and Lessee have,
in the past, claimed that all or substantially all, of the Property leased for
mobilehome residency purposes is uplands owned by the City, and City and
Lessee have discussed evidence to support that claim.
G. State Lands Commission staff has indicated that permanent residential use
of tidelands is inconsistent with State statutory, decisional and constitutional
law. However, City and Lessee may dispute that position.
H. The City Council finds and declares that the terms and conditions of this
Amended Lease comply, and are consistent, with the Charter of the City,
including, without limitation, the provisions of Sections 200 and 1402 of the
Charter;
The City Council also finds and declares that the provisions of this Amended
Lease are consistent with the plans, policies, rules and ordinances of City.
The City Council also finds that this Amended Lease is consistent with the
General Plan and the Land Use Plan of the Local Coastal Program;
The terms and conditions of this Amended Lease are in compliance, and
consistent, with the provisions of the Mobilehome Residency Law (Section
798 et seq. of the Civil Code) and the State Zoning and Planning Act
(Sections 65863.7 and 65863.8 of the Government Code).
K. The purpose and intent of the Parties is to amend, and extend the term of,
the 1985 Lease and the 2000 Amendment so that the Lessee may continue
to reside on the property for the year commencing March 15, 2002 while the
process of preparing the property for a different use continues. The City
may allow short extensions of this Second Amended Lease but not past
March 15, 2005.
NOW, THEREFORE, the Parties do hereby mutually agree as follows:
DESCRIPTION OF PREMISES.
The City leases, and Lessee accepts the lease of, the portion of the Property
described as space as shown on Exhibit "A" (Premises).
2. TERM.
(a) Term. The tenancy created by this Amended Lease shall extend the
expiration date of the 1985 Lease as modified by the 2000
Amendment, to March 15, 2003 (Term), unless earlier terminated in
accordance with the terms of this Amended Lease and the
Mobilehome Residency Law.
(b) No Holdover; Option Periods. There shall be no holdover on this
Second Amended Lease. However, the City, at its sole option, may
extend this Amended Lease for two (2) consecutive one -year terms
( "Option Periods ").
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(c) Notice of Park Closure. If City does not provide notice to Lessee by
September 15, 2002 of the City's intent to close the park, then the
Amended Lease is deemed extended until March 15, 2004. During
the first one -year Option Period, if City does not provide notice to
Lessee by September 15, 2003 of the City's intent to close the park,
then the Amended Lease is deemed extended until March 15, 2005.
If the Amended Lease is not extended for any reason, there shall be
no holdover.
3. USE OF PREMISES.
A. The Premises shall be used only for residential purposes, and no business
or commercial activity shall be conducted on the Premises. Permitted
occupants are:
(i) Lessee;
(ii) An additional person if Lessee is living alone;
(iii) Family members entitled to occupy the premises pursuant to the
Mobilehome Residency Law; and
(iv) Short term guests.
The term "short term guest" shall mean any person who does not stay with
Lessee for more than a total of twenty (20) consecutive days or a total of
thirty (30) days in any calendar year. Other persons may occupy the
premises with the prior written consent of the City.
B. Lessee agrees that the primary residence requirement is fundamental to this
lease, stipulates that the residency requirement will not constitute an undue
burden or hardship on Lessee in light of the time allowed for compliance in
the 1985 Lease, and, subject to the provisions of Section 8, Lessee agrees
that the Premises shall be Lessee's primary residence unless this
requirement is waived by the City Council due to hardship. Lessee shall
provide satisfactory proof of residency to the City.
C. Lessee agrees to comply with the Rules and Regulations of Marinapark
(Exhibit "131 and further agrees these Rules and Regulations may be
amended as provided in the Mobilehome Residency Law or other relevant
statute.
4.
A. Introduction.
The City and Lessee agree that the terms and conditions of the 1985 Lease,
the 2000 Amendment and this Amended Lease preserve and protect
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substantial and important rights and advantages, economic and personal,
that each Party would not otherwise be entitled to receive. These economic
and personal rights and benefits are the consideration for the 1985 Lease,
the 2000 Amendment and this Amended Lease. The more important rights
and benefits gained and given up by each Party are specified in this
paragraph and the Parties agree that, like the 1985 Lease, this Amended
Lease should be interpreted such that each party receives the benefits and
advantages identified in this section.
B. Consideration to Lessee.
(1) As consideration for Lessee's approval of this Amended Lease, City
commits to maintain the Property as a mobilehome park until March
15, 2003.
(2) The City also commits that, if it decides to let this space as a
mobilehome space during the period from March 15, 2003 through
March 15, 2005, it will not terminate or fail to renew this Lease with
the Lessee and instead let the Premises to another person.
(3) Additional consideration for Lessee's approval of this Amended
Lease is the right to occupy the Premises subject to the payment of
rent in the sum of through June 30, 2002 at which time
the rent shall be . Although this sum is substantially
higher than the rent paid under the 1985 Lease and the Amended
Lease it is less than the market rent for this space based upon a
survey of similar beach front properties.
C. Consideration to City.
As consideration to the City, Lessee agrees and acknowledges that City
may convert the Property to a different use upon expiration of this Amended
Lease, or shortly thereafter. Lessee agrees that, if City chooses to close the
mobilehome park on the Property it may do so without obligation to pay
relocation benefits or provide other forms of relocation assistance. Lessee
acknowledges that the terms of the 1985 Lease, the 2000 Amendment and
this Amended Lease constitute full and adequate mitigation of any adverse
impact on Lessee of any conversion of the Property to a non - mobilehome
use, and the extended term of the 1985 Lease and this Amended Lease
gives Lessee sufficient time to secure replacement space in another
mobilehome park or other alternative housing. Accordingly,
LESSEE HEREBY WAIVES, GIVES UP THE RIGHT TO RECEIVE, AND
RELEASES CITY FROM ANY OBLIGATION TO PAY, RELOCATION
BENEFITS, OR ANY OTHER FORM OF RELOCATION ASSISTANCE OR
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OTHER PAYMENT OR CONSIDERATION THAT ARISE OUT OF, OR
ARE IN ANY WAY RELATED TO:
(1) THIS LEASE OR ANY FUTURE TENANCY;
(2) THE ULTIMATE TERMINATION OF LESSEE'S TENANCY
PURSUANT TO THE 1985 LEASE, THE 2000 AMENDMENT
OR THIS AMENDED LEASE, OR THE TERMINATION OR
EXPIRATION OF ANY SUBSEQUENT TENANCY
HOWEVER CREATED;
(3) THE CONVERSION OF THE PREMISES TO ANY USE
OTHER THAN A MOBILEHOME USE.
(4) THE DISPLACEMENT OF LESSEE FROM HIS AND /OR
HER PRIMARY RESIDENCE;
(5) ANY FEDERAL, STATE OR LOCAL LAW, PLAN & POLICY
OR RULE WHICH RELATES TO SUCH DISPLACEMENT,
OR REQUIRES THE MITIGATION OF THE IMPACTS
CAUSED BY DISPLACEMENT. THIS RELEASE BY
LESSEE, NOTWITHSTANDING SECTION 1542 OF THE
CALIFORNIA CIVIL CODE, WHICH PROVIDES THAT:
"A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH CREDITOR DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS
FAVOR AT THE TIME OF EXECUTING THE
RELEASE, WHICH IF KNOWN BY HIM MUST
HAVE MATERIALLY AFFECTED THE
SETTLEMENT WITH THE DEBTOR;'
RELEASES ALL CLAIMS OR LOSSES, WHETHER
KNOWN, UNKNOWN, FORESEEN OR UNFORESEEN,
WHICH LESSEE MAY HAVE AGAINST CITY. LESSEE
UNDERSTANDS AND ACKNOWLEDGES THE
SIGNIFICANCE AND CONSEQUENCE OF THIS RELEASE
AND OF THIS SPECIFIC WAIVER OF SECTION 1542 AND
ASSUMES FULL RESPONSIBILITY FOR ANY DAMAGES,
LOSS OR CLAIM THAT LESSEE MAY INCUR AS A
RESULT OF THE CONVERSION, TERMINATION AND /OR
DISPLACEMENT REFERRED TO ABOVE. LESSEE IS
FREELY AND VOLUNTARILY EXECUTING THIS
AMENDED LEASE, AND LESSEE, IN EXECUTING THIS
RELEASE, HAS NOT RELIED UPON ANY INDUCEMENTS,
PROMISES OR REPRESENTATIONS MADE BY CITY OR
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ITS OFFICERS OR EMPLOYEES, OTHER THAN THE
COMMITMENTS AND COVENANTS CONTAINED WITHIN
THIS LEASE.
D. Provisions related to Consideration
(1) This Amended Lease constitutes notice that City reserves the right to
physically convert the Premises to a non - mobilehome use on or
about March 16, 2003.
(2) Upon expiration of the term of this Amended Lease, Lessee shall,
within sixty (60) days, remove any mobilehome or recreational
vehicle, structure, improvement, personal property or equipment
located upon the Premises. Upon the expiration of this sixty (60) day
period, the City shall have the right to remove and dispose of any and
all properly improvement structures, personal property (including the
mobilehome) or any accessory equipment that remain on the
Premises. The cost of removing such shall be bom by the Lessee
unless the Lessee has given written notice to City not less than thirty
(30) days prior to the expiration of this Amended Lease or applicable
renewal thereof, whichever is later, of Lessee's desire to abandon the
mobilehome and transfers all title and interest in the mobilehome,
clear of all liens and encumbrances, to City and the documents
necessary to effectuate such transfer are delivered on or before the
date of termination. If City receives such written notice from Lessee,
City shall bear the cost of removing and disposing of all property
improvement structures, personal property (including the
mobilehome) or any accessory equipment that remain on the
Premises.
5. RENT.
Lessee shall pay as rent, without deduction or offset, on the 1st day of April
2002, and on the first day of each month through June 2002 the sum of
As of July 1st, 2002 the rent shall be
and shall be paid on the first of each month thereafter
without deduction or offset.
Rent for any fractional part of any month between the commencement date
and the first date of the first full calendar month within the Term shall be
prorated, and paid by Lessee to City along with the first full month of rent
due hereunder.
Lessee stipulates and agrees that this Amended Lease constitutes the
ninety (90) day written notice of rental increases required by the Mobilehome
Residency Law and Lessee acknowledges that no additional written notice
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need be given by City; provided, however, City may provide Lessee with
ninety (90) days written notice of the precise amount of any rental increase
authorized by this paragraph and City and Lessee agree that such notice
shall not constitute a waiver of City's right to rely upon the adequacy of the
notice provisions in this paragraph.
Lessee acknowledges that this Amended Lease may create a possessory
interest subject to property taxation and that Lessee may be subject to the
payment of property taxes levied on such interest. Lessee shall pay, in
addition to rent and before delinquency, all taxes, assessments, license fees
and other charges (Taxes) that are, during the Term, levied or assessed
against Lessee's interest in the Premises pursuant this Amended Lease and
against any personal property installed on the Premises.
City agrees that, once the rental rate which commences, July 1, 2002
becomes effective, the rent will not be raised during the period from July 1,
2002 to June 30, 2003. If City offers a renewal of this Amended Lease, rent
shall be increased effective July 1 2003, and if Amended Lease is renewed
again, on July 1, 2004, based on the percentage change in the cost of doing
business as measured by the U.S. Department of Labor, Bureau of Labor
Statistics, Consumer Price Index, for all urban consumers for the Los
Angeles, Long Beach, Anaheim areas, all items (1967 =100) for the
preceding twelve (12) months of the most recently published CPI.
6. RELEVANT STATUTES AND RULES.
The Mobilehome Residency Law requires this Amended Lease to contain,
among other things, the Rules and Regulations of Marinapark and the
language of the Mobilehome Residency Law. The Rules and Regulations of
Marinapark are attached as Exhibit "B," the provisions of the Mobilehome
Residency Law are attached as Exhibit "C," and both documents are
incorporated into this Amended Lease by reference. The Marinapark Rules
and Regulations and the Mobilehome Residency Law may be amended or
modified from time to time, and these amendments and modifications shall
be deemed to be incorporated into the documents attached as Exhibits "B"
and "C;' respectively, when effective.
7. LATE CHARGE.
If the entire rent owed by Lessee is not received by City by the 6th day
following its due date, then, without any requirement for notice to Lessee,
Lessee shall pay to City a late charge of thirty five dollars ($35.00). The
parties agree that such a late charge represents a fair and reasonable
estimate of the costs City will incur by reason of any late payment of rent.
An Acceptance of a late charge by City shall not constitute a waiver of
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Lessee's default with respect to rent, or prevent City from exercising any of
the rights or remedies granted by this Amended Lease.
8. SALE OR ASSIGNMENT.
Lessee may sell the mobilehome located on the Premises pursuant to the
rights, and subject to the obligations, of Lessee under the Mobilehome
Residency Law and any other applicable statutes. If the mobilehome that is
the subject of the sale or transfer is to remain in the park, or if Lessee
proposes to assign Lessee's interest in this Lease to any person or persons
who is (are) to reside on the Premises, Lessee and /or the proposed
transferee must do the following:
A. Lessee must give notice of the sale or assignment to City prior to close of
escrow.
B. The sale or assignment shall not be effective unless City has given prior
written approval, the transferee has executed an assignment of lease form
provided by City, and the transferee has expressly agreed to be bound by
the waivers and releases provided in this Amended Lease.
C. Lessee agrees that occupancy of the Premises shall be limited as provided
in Section 3 and Lessee agrees not to sublease or otherwise transfer any
partial interest in this Amended Lease.
D. City shall approve any such transfer, if the transferee has the financial ability
to pay the rent and charges and otherwise comply with the terms and
conditions of this Amended Lease, provided, however, City may withhold
approval if it determines that, based upon the transferee's prior tenancies,
the transferee will not comply with the Rules and Regulations of Marinapark
(Exhibit "B ").
E. City shall not approve any transfer or assignment of any interest in this
Amended Lease that would permit the installation of any mobilehome or
structure that exceeds twelve (12) feet in height.
F. City shall have rights of first refusal (First Right of Refusal). Before Lessee
sells or agrees to sell or otherwise transfer Lessee's interest in this
Amended Lease, Lessee shall offer to sell its interest to City, in writing and
on terms and conditions identical to those proposed for the sale of Lessee's
interest to a third party. The third party must have previously fully and
truthfully completed an application for residency in the Premisis that has
either been approved subject to this First Right of Refusal or has not been
acted upon by, City with fifteen (15) days after delivery to City. The third
party must acknowledge and declare that he /she/they have an intent to
reside in the Premises on a full -time basis. Lessee must notify the City of
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the essential terms of the sale, which shall include, at a minimum, the
following information: (i) the purchase price proposed for the sale to the third
party; (ii) the method of purchase price payment; (iii) the amount and terms
of any proposed Lessee financing in connection with the proposed
purchase; (iv) the time and location for the close of escrow; (v) the name of
the proposed purchaser; and (vi) the other material terms and conditions of
the proposed sale.
City shall have ten (10) days (Acceptance Period) from the date of the
notification to inform Lessee that City will be purchasing the lease interest. If
accepted, City thereafter shall enter into an agreement on the terms and
conditions set forth in the notification. If the City chooses not to accept the
offer, the third party may then purchase the lease interest on the terms and
conditions set forth in the notification to the City. Should any of the terms
and conditions be altered then the City once again shall have the Right of
First Refusal and the City has the right to refuse to grant tenancy to the
proposed buyer if the terms and conditions of sale differ in any significant
manner from those in the notification. However should City deny tenancy,
City thereafter must purchase lease interest on the new terms and
conditions.
G. Notwithstanding any other provision in this Amended Lease, Lessee shall
have the right to assign its interest in this Amended Lease to a spouse, son
and /or daughter without any requirement that City be given the right of first
refusal to acquire the interest, provided, however, the Premises shall be
used as the primary residence of the assignee and the assignee shall be
bound by all provisions of this Amended Lease, including, without limitation,
the waiver of relocation assistance.
9. UTILITIES.
A. City shall not provide electricity or telephone service. Lessee shall make
arrangements directly with the utilities furnishing the services and promptly
pay all charges.
B. City shall provide Lessee with water and gas service. The charge to Lessee
for such service shall be the amount of the charges paid by Lessee as of
February 1, 2002. The charges for gas and water service may be increased
or decreased on the first day of October.
C. The charge for gas and water service shall be paid when rent is due, and in
addition to the obligation to pay rent. In the event Lessee fails to pay the
charge for water or gas service within ten days after the amount is due,
Lessee shall pay to City a late charge of thirty -five dollars ($35.00).
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D. In the event City provides both master meter and submeter service of utilities
to Lessee, the cost of the charges for each billing period shall be separately
stated and shall contain opening and closing readings of the meter. In such
event, City shall post rates charged by the appropriate utility in a
conspicuous place.
E. City shall not be liable for any loss, damage or injury, and Lessee shall not
be entitled to any abatement or reduction of rent, by reason of City's failure
to fumish any utility or service if the failure is caused by accident, breakage,
repairs, maintenance or any other cause beyond the reasonable control of
City.
10. MAINTENANCE OF LANDSCAPING AND IMPROVEMENTS.
It is the responsibility of City to provide and maintain the physical
improvements in the common facilities of the Property in good working order
and condition, and, management shall have a reasonable period to repair
any sudden and unforeseeable breakdown or deterioration and bring the
improvements into good working order and condition, after management
knows or should have known of the breakdown. Such period shall be not
more than thirty (30) days unless there exist exigent circumstances justifying
a delay, and the required work shall be completed as soon as possible in
any event as to items affecting health and safety.
Lessee shall, at its cost and expense, maintain in good order and condition
any mobilehome, cabana or other improvement located on the Premises.
Lessees also agree that all landscaping on the Premises shall be limited to
three feet (3') in height, to preserve views and open space. City may charge
a reasonable fee for services relating to the maintenance of the Premises in
the event Lessee fails to maintain the Premises in accordance with the
provisions of this Amended Lease and the Rules and Regulations of
Marinapark (Exhibit "B "), after giving written notification to Lessee and
Lessee's failure to comply within fourteen (14) days from the date of notice.
The notice shall contain all information required by the Mobilehome
Residency Law.
11. PHYSICAL IMPROVEMENTS AND SERVICES.
Lessee shall have the nonexclusive right to use all of the common areas and
common facilities located within Marinapark, including but not limited to
streets, nonrestricted parking areas, laundry facilities, restrooms and
showers located in the common areas and common facilities and designated
for use by residents.
The services to be provided by City during the term of this Amended Lease
include the services to be provided by the Marinapark manager and other
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employees and officers of City, the utilities to be provided by City specified in
Section 9 and the maintenance of all common areas and common facilities
in good condition pursuant to Section 10.
It is the responsibility of the property manager to provide and maintain
physical improvements in the common facilities in good working order and
condition.
It is understood by all parties hereto that this mobilehome park may close as
early as March 15, 2003 and therefore, in exchange for City's concession in
offering this Amended Lease, it is agreed that City need not invest any funds
in repairing or replacing any facility so that it lasts longer than the Term
hereof, provided that no facility which affects health and safety will be
ceased during the Term Amended Lease.
12. CHANGES IN MARINAPARK RULES AND REGULATIONS, PHYSICAL
IMPROVEMENTS AND SERVICES.
City retains the right to amend or modify the Marinapark Rules and
Regulations, the terms of this Lease, and the nature of the physical
improvements or services to be provided, after complying with the provisions
of the Mobilehome Residency Law and other applicable law. The right to
amend the terms of this Amended Lease, the Marinapark Rules and
Regulations and the physical improvements and services to be provided by
City include, without limitation, the right to reduce the size of, or eliminate,
any physical improvement, common area, common facility or equipment;
provided, however, no changes shall be made to the provisions of this
Amended Lease, including the Term or the rent to be charged, unless those
changes or amendments are permitted by other provisions hereof.
13. RIGHT OF ENTRY.
Lessee, subject to the right of revocation as set forth in the Mobilehome
Residency Law, hereby grants written consent to City to enter the Premises
and Lessee's mobilehome for the purpose of improving, maintaining,
repairing or replacing gas, water and sewage systems owned and
maintained by City. Subject to the obligation of City to exercise ordinary
care., any damage, loss or injury to Lessee's home, property of Lessee or
the Premises which results from efforts of City to maintain, repair, improve or
replace the gas, water or sewage systems shall be the sole responsibility of
Lessee, and City shall not be responsible for reimbursing any cost or
expense incurred by Lessee as a result of such efforts, nor shall City be
responsible for repairing, replacing or otherwise restoring the mobilehome,
the Premises or any improvements thereon to the state or condition
immediately prior to the maintenance, replacement or repair efforts. City
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also reserves the right to enter the Premises for other purposes as specified
In the Mobilehome Residency Law.
14. NOTICE REQUIRED BY CIVIL CODE 52079.10(a).
The California Department of Justice, sheriffs departments, police
departments serving jurisdictions of 200,000 or more and many other local
law enforcement authorities maintain for public access a data base of the
locations of persons required to register pursuant to paragraph (1) of
subdivision (a) of Section 290.4 of the Penal Code. The database is
updated on a quarterly basis and is a source of information about the
presence of these individuals in any neighborhood. The Department of
Justice maintains a Sex Offender Identification Line through which inquiries
about individuals may be made. This is a "900" telephone service. Callers
must have specific information about individuals they are checking.
Information regarding neighborhoods is not available through this telephone
service.
15. HOLD HARMLESS.
Lessee covenants to indemnify, defend and hold City, and its officers,
agents and employees, harmless from any and all claims or demands of any
name or nature whatsoever arising out of, or incident to, Lessee's use and
occupancy of the Premises, and to indemnify City for any cost, liability or
expense caused by or arising out of any injury or death of persons or
damage to property which may occur upon or about the Premises or caused
by or arising out of any activities or omission of Lessee, or Lessee's agents,
employees, licensees and /or invitees, including, without limitation, injury or
death of Lessee, or Lessee's agents, employees, licensees and invitees and
damage to their property or Lessee's property, except for any damage or
injury of any kind arising out of the sole negligence, fraud or willful
misconduct of City, its officers, agents or employees.
Lessee, as a material part of the consideration under this Amended Lease,
hereby waives all claims against City for any damage or loss from any cause
arising at any time, including, but not limited to fire, theft, Acts of God,
vandalism or any physical damage while the mobilehome remains on the
Property, unless caused by the negligence, fraud or willful misconduct of
City's agents, officers or employees. Lessee agrees to indemnify and hold
City, and its officers, agents and employees, harmless from and on account
of any damage or injury to any person or equipment in or on the mobilehome
arising from any cause or from the negligence of Lessee, and Lessee's
family or guests.
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Since a substantial portion of the present value of Lessee's mobilehome or
coach is attributable to the value of the Premises and the proximity of the
Premises to Newport Bay, and not solely to the value of the structural
improvements, Lessee, in addition to the other commitments specked in
paragraph 4, agrees to indemnify and hold City, and its officers, agents and
employees, harmless from any and all loss or injury of any nature
whatsoever arising out of or attributable to future change of use of the
Premises and the requirement that Lessee remove his/her mobilehome and
other property from the Property.
16. TERMINATION.
A. Lessee may terminate this Amended Lease, without any further liability to
City, upon sixty (60) days written notice to City and upon condition that all
persons occupying the Premises terminate their tenancy within that period
and remove the mobilehome and all other improvements from the Premises.
B. City may terminate this Amended Lease for the reasons specked, and
according to the procedures set forth in the Mobilehome Residency Law.
C. In addition to the rights specified in subparagraph B, City reserves the right
to terminate this Amended Lease in the event: (1) a court of competent
jurisdiction determines that residential use of the property is inconsistent, or
is in conflict, with the provisions of the public trust imposed upon those
portions of the Property that constitute state tidelands, or that the residential
use is inconsistent with any provision of the State Constitution or state law;
or (2) there is a major failure in one or more of the public utilities furnished
Lessee by City, and, in the opinion of City, the cost of repairing the system is
excessive when viewed in light of the highest and best use of the Property.
D. The waivers and releases relative to relocation benefits or assistance shall
operate to preclude recovery of same by Lessee in the event this Lease is
terminated pursuant to the provisions of this paragraph.
17. ATTORNEYS' FEES.
Should either City or Lessee be required to employ counsel to enforce the
terms, conditions and covenants of the 1985 Lease, the 2000 Amendment,
or this Amended Lease, the prevailing party shall recover all reasonable
attorneys' fees (and court costs if applicable) incurred therein whether or not
court proceedings were commenced.
18. REMEDIES CUMULATIVE.
The rights, powers, elections and remedies of the parties contained in this
Amended Lease shall be construed as cumulative and no one of them shall
be considered exclusive of the other or exclusive of any rights or remedies
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allowed by law, and the exercise of one or more rights, powers, elections or
remedies shall not impair or be deemed a waiver of either party's right to
exercise any other.
19. NO WAIVER.
No delay or omission of either party to exercise any right or power arising
from any omission, neglect or default of the other party shall impair any such
right or power or shall be construed as a waiver of any such omission,
neglect or default on the part of the other party or any acquiescence therein.
No waiver of any breach of any of the terms, covenants, agreements,
restrictions or conditions of this Amended Lease shall be construed as a
waiver of any succeeding breach of the same or of any of the terms,
covenants, agreements, restrictions or conditions of this Amended Lease.
20. COMPLIANCE WITH LAWS.
Lessee covenants and agrees to comply with all rules, regulations, statutes,
ordinances and laws of the State of California and City or any other
governmental body or agency having lawful jurisdiction over the Premises
and /or the Property.
21. MOBILEHOME RESIDENCY LAWIZONING AND USE PERMIT
INFORMATION.
A. Lessee acknowledges having received and read a copy of the 1985 Lease,
the Amended Lease and this Second Amended Lease, the provisions of the
Mobilehome Residency Law (Exhibit "C ") as presently constituted, and the
Marinapark Rules and Regulations (Exhibit "B ").
B. The Property is currently zoned unclassified and there are no conditional
use permits or other permits required to operate the Property as a
mobilehome park. The City of Newport Beach owns the Property, except to
the extent the Property is determined to be tidelands and subject to the
public trust applicable to tidelands.
22. ENTIRE AGREEMENT.
This Amended Lease and the documents referred to in this Amended Lease
represent the entire agreement between City and Lessee.
23. NOTICES.
All notices and other communications shall be in writing, shall be sent by first
class registered or certified United States mail, postage prepaid, and shall
14
be deemed effective at the expiration of seventy -two (72) hours after the day
of mailing addressed:
A. To Lessor:
City Manager
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA, 92658
With a copy to:
City Clerk's Office
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA, 92658
or at such other addresses as Lessor shall have furnished to Lessee; and
To Lessee:
By delivering a copy to the Lessee personally; or, Lessee be absent from the
mobilehome, by leaving a copy with some person of suitable age and
discretion who may be occupying the mobilehome; or, no one can be found,
then by affixing a copy of the notice in a conspicuous place on the Premises
or mobilehome and also sending a copy through the mail addressed to
Lessee.
B Following notice by City of any amendment, all other provisions of the Lease
shall remain in force and effect in their original form.
24. TIME OF ESSENCE.
Time is of the essence in this agreement and each and every provision
hereof.
25. EFFECTIVE DATE
The Parties agree that the effective date of this Amended Lease is March
15, 2002, whether executed before or after that date.
IN WITNESS WHEREOF, the parties have caused this Lease to be executed the
day and year first above written.
15
LESSEE
a
IIWE ACKNOWLEDGE AND AM /ARE AWARE OF THE PROVISIONS OF THIS
AMENDED LEASE INCLUDING THE RELEASE AND WAIVER PROVISIONS OF
SECTION 4
CITY OF NEWPORT BEACH
a municipal corporation.
Homer Bludau,
City Manager
APPROVED AS TO FORM:
Robin L. Clauson
Assistant City Attorney
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17
ITEM 13
TO: Members of the Newport Beach City Council
FROM: Dave Kiff, Assistant City Manager
SUBJECT: 2nd Amendment & Lease Extension — Marinapark Residences
RECOMMENDED 1 -- Authorize the City Manager to execute the 2nd Amendment and Lease
ACTIONS: Extension with the tenants at Marinapark (including authorization for a rent
increase);
2 — Authorize the City Manager to, under consultation with a 3Td Party specialist,
offer an economic "hardship" rent credit for those persons meeting
appropriate standards.
BACKGROUND: At the City Council's February 26, 2002 meeting, the Council discussed and
heard testimony about a proposal to extend the current leases for the coaches at
the Marinapark Mobile Home Park at 1770 West Balboa Avenue. This Agenda
Item, if approved, would authorize Mayor Ridgeway to execute new Lease
Extensions with each resident that:
Extend the terms of the leases by one year, wi>:h the City's option of two
additional one -year extensions; and
Raise rents to near market rates as of July 1, 2002.
Parks and Lease History. The Marinapark mobile home park ( "Marinapark ") sits
today on a 4.34 acre parcel at 1770 West Balboa Boulevard on the Balboa
Peninsula between 18th and 15w Streets. Marinapark has 58 mobilehome spaces
and 924' of beach frontage facing Newport Bay.
The City of Newport Beach acquired Marinapark from Pacific Electric Land
Company in 1919. The initial use of the property after purchase was for a city
campground (where campers paid 75(r/ day for waterfront camp areas and
50c/ day for interior spaces) and later (in approximately 1955) to a "deluxe trailer
court" for 120 trailers. A later renovation of Marinapark to accommodate larger
trailers put the park at today's capacity of 58 mobilehomes. Today 56 of the
coach spaces are occupied with a coach.
The City and the residents at Marinapark ( "Lessees ") entered into a series of
short- and medium -term leases relating to the Lessees' occupancy at Marinapark.
An abbreviated schedule follows:
• 1973 Lease. The 1973 Lease extended an existing lease to September 30,1977
at which time all Lessees would "unconditionally and without contest vacate
the premises without contest, legal and otherwise. Lessees further agree to
waive any relocation assistance or any other assistance from Lessor resulting
from vacating the premises." The 1973 Lease also dictated a new rental
schedule through 1977.
.1976 Lease. A new 1976 Lease extended the Marinapark Lessees' tenancy
through September 30, 1985. The 1976 Lease offered an extension of five
years "should the City Council find and determine ... that Marinapark is not
required for any public trust purpose or other public purpose..." Rents at
the time were set by the Lease and deemed to be "the fair market rental
value" for the spaces.
• 1985 Lease. The City Council did, indeed, state its intent that Marinapark
should be converted "to a public recreation area" upon expiration of a new
1985 Lease. The 1985 Lease - with an expiration date of March 15, 2000 -
said that "the most significant rights obtained by Lessee, and given up by
City..." were:
— Lessee's long -term right to occupy the Premises...
— Lessee's payment of "moderate rent ... and the advantage of limited
rental increases in the future, while City gives up the right to charge
higher rents initially and the right to impose future rental increases in
excess of the cost -of- living index..."
The 1985 Lease also outlines the rights and benefits "given up" by the Lessee,
including:
City's right to convert Marinapark into a public recreational use upon
Lease expiration.
— The full waiver of any right of the Lessee to receive relocation benefits
"or any other form of relocation assistance."
u 2000 Amendment and Extension of Lease. On February 8, 2000, the City
Council authorized the City to offer an amendment and extension ( "Lease
Extension ") to the 1985 Lease. The Lease Extension acknowledged several
things - some new, others a restatement of information in the 1985 Lease.
The Lease Extension acknowledged (among other things):
— Uncertainty over the tidelands status of the land upon which the park
sits - arguably, if the land is State -owned and City- managed "tidelands,"
then the residential uses at Marinapark may not be appropriate, because
tidelands are intended to be visitor - serving.
The City's (at that time) review of up to eight responses to a Request for
Proposals (RFP) for future uses and development of Marinapark, some
of which envisioned the continuation of the mobilehome use.
The "substantial and important benefit" of the economic and personal
rights of the Lessees under the 1985 Lease, including the Lessees'
payment of moderated rent AND the ongoing waiver of Lessees' claims
to any relocation benefits.
Current Rent and Residency. In 2000, the City believed that, of the 58 coaches
occupied at the time:
a 16 of the coaches were full-time residences for lessees;
0 6 of the coaches were full-time residences for persons other than the lessees;
u 36 coaches were part -time residences for lessees.
Rents at Marinapark are the following:
Space 11D (didn't sign 2000 Extension) $1,362.60/ month
Bay- adjacent lots (As and Bs) $1,225.08 /month
One lot distance from Bay (Cs and Ds) $ 924.83 /month
Two lot distances from Bay (Es) $ 864.80 /month
Marinapark space rentals earn the City about $600,000 annually. Bendetti
Property Management of Irvine manages Marinapark for the City at a fee of
about $2,980 per month. Bendetti has been on a month -to -month contract since
March 2000. Residents have been generally quite happy with Bendetti's on -site
manager, Joe Albano, and its off -site manager, Bill Mecham. I have been very
pleased with Bendetti's service over the past 4 years.
Lease Recommendation. Because of the uncertainty in timing with any re -use or
redevelopment of the Marinapark site, we recommend the following:
• Extending tenancy at Marinapark for one year (to March 15, 2003) under
substantially similar lease terms as the 1985 Lease as extended by the 2000
Lease Extension, with two additional one -year options (ending March 15,
2004 and March 15, 2005, respectively) that are exercisable at the City's sole
discretion;
• Authorize the City to receive and fund the removal of any coaches remaining
at Marinapark at the end of the Lease term on behalf of the coach owners,
should the coach owners desire us to do so.
• Following a March 31, 2002 Notice of 90 -day Rent Increase, raise all rents to the
rates listed below (which we believe to be slightly below market). These
rents would be effective between July 1, 2002 and March 15, 2003:
Bay- adjacent lots (As and Bs) $ 2,300.00/ month
One lot distance from Bay (Cs and Ds) $ 3,850.00 /month
Two lot distances from Bay (Es) $ 1,700.00 /month
Rents at this level would generate about $1,150,000 for the City annually, an
increase of about $550,000.
Discussions at the February 26, 2002 Meetfne. Council members and residents
raised the following issues at the February 26, 2002 Council meeting -- some of
these issues were elaborated upon further by Cary Lowe, the attorney for the
residents (letter is Attachment C):
Value of Moderated Rent. Marinapark residents and Council members
discussed the extent to which rent paid by Marinapark tenants had been
moderated (some said "reduced ") since 1985 (a year in which rents at
Marinapark roughly equalled "market" for the region). At no time were
Marinapark rents decreased from one year to the next - each year did see an
increase based on the Consumer Price Index. However, this Index
significantly lagged the market value of rental housing in Orange County,
especially Bay- adjacent mobile home parks in Newport Beach (like DeAnza
and Lido Peninsula Resort). The below chart illustrates the changes since
1985:
/ tss / mo
month
Rent @
Bay- adjacent lots at Marinapark then underpaid market rent by about
$132,00 (in constant dollars) since 1985. C, D, and E lots underpaid market
rent by at least $17,500 during that same period, though the underpayment is
likely to be even greater given that few comparable parks have the blue -
water views held by the C, D, and E lots at Marinapark.
The City Clerk's search of Council minutes about rent rates (requested by
Council Member Glover) shows the following:
♦ Minutes of August 25,1997 (Discussion of Keyser - Marston's Marinapark
Revenue Study results):
"the tenants' proposal essentially would increase the rent the City would receive by the
year 2000 equal to a net income of $900,000 per year."
"By accepting Marinapark's offer of "fair market" rent, plus other lease provisions,
(Marinapark tenants) anticipate the revenue to the City would be in the range of
$900,000 to $1 million, some of which could begin as early as 1998."
... (Mr. Berkshire) explained that their (Marinapark tenants') offer includes a
willingness to start paying increased rents as soon as agreement is reached, possibly two
years prior to the expiration of their current leases... under their proposal the rent per
unit would go up in the order of 50 % ... "
♦ Minutes of October 25, 1999 (Discussion of Marinapark Hotel Proposal):
... (Mr. Berkshire) further confirmed that the rent offered by the residents at the time
(Fall 1997) would've brought the City $1 million per year."
♦ Minutes of August 22, 2000 (Discussion of Marinapark RFP):
"...(Mr. Rettberg) stated that the tenants offered to increase the lease to market value
three years prior."
♦ Minutes of January 22, 2002 (Discussion of Sutherland -Talla General Plan
Amendment Initiation):
... (Mr. Berkshire) added that the residents offered to have their rents increased, several
years ago, but their offer was never responded to..."
Term of the Extension. Marinapark tenants seek at least 3 years for any
extension, arguing that the proposed redevelopment for the site will take at
least that long to occur. Allowing three years, they say, will encourage
residents to make minor improvements to their coaches (painting, carpeting,
etc) that they may not make under year -to -year tenancy. We believe that the
City still needs the discretion to end the least in 2003, 2004, or 2005 in case
the State directs us to do so or the Council chooses a redevelopment option
that calls for a faster park closure.
Month- to-Month Tenancy. The Did Amendment and Lease Extension offers the
tenants a 12 month lease as required by law. There is a no provision in the
current 2000 Extension for holdover at a month-to -month tenancy. However,
those persons not wishing to stay for a full 12 months may still sign the 2nd
Amendment and Lease Extension and use its 60 -day notice provision to end
tenancy early.
• Rent Survey, Rent Amount. The tenants argue that the rent we have
proposed for July 1, 2002 through March 15, 2003 should be reconsidered
using a 3cd Party appraiser. They also questioned our use of Bendetti
Property Management, the current Park managers, as the firm
recommending the rent levels to the City. We believe that the review
completed by Bendetti to arrive at the rents proposed for July 1, 2002 was
appropriate and that no further review is needed. We believe, too, that
monthly rental rates are best determined by the location and amenities
associated with a leased space than by the term remaining on a lease
(arguably, a very short -term lease, like a weekend rental, commands a higher
rental rate). A coach's resale value is affected much more by a lease's
remaining term than the space's rental rate is affected by the term.
• Rental Credit for Persons with Economic Hardships. We have proposed
within the Recommended Action that your Council allow tenants to appeal
to the City Manager if they believe they have a valid economic hardship (i.e.
on fixed income with limited assets, park is primary residence, more)
associated with the proposed rent increases. The City Manager would
evaluate a rental credit policy and standards in cooperation with an
independent 3m Party like the Manufactured Housing Educational Trust
(MHET).
The proposed 2iie Amendment and Lease Extension is Attachment A to this
document. A map of Marinapark appears in Exhibit A to Attachment A.
ATTACHMENT: Attachment A — Proposed 2nd Amendment and Lease Extension.
Attachment B — Letter from Cary Lowe dated February 27, 2002.
SECOND AMENDMENT
AND EXTENSION OF LEASE
This Amendment and Extension of Lease (Amended Lease), entered into this of
day of , 2002 by and between the CITY OF NEWPORT BEACH, a
municipal corporation and charter city (City) and
(Lessee), is made with reference to the following facts, the materiality and existence
of which is stipulated and agreed by the parties:
A. City is the owner, and is in possession and control, of a parcel of real
property, located northerly of Balboa Boulevard and between approximately
15"' Street and 18th Street in Newport Beach, commonly known as
Marinapark, generally described in Exhibit "A" (Property);
B. The Property was under lease prior to the effective date of the Charter of the
City of Newport Beach and, pursuant to the provisions of Section 1402 of the
City Charter, the City Council is empowered to authorize execution of this
Lease by the Mayor;
C. Prior to the effective date of this Amended Lease, City leased 58
mobilehome spaces on the Property pursuant to a standard lease dated
March 24, 1976, (hereinafter "1976 Lease "), which would have expired on
September 30, 1985, subject to the right of the Lessee to extend the term for
a five (5) year period under certain conditions;
D. Prior to the expiration of the 1976 Lease, City leased the same 58
mobilehome spaces on the Property pursuant to a lease that would have
expired on March 15, 2000 (1985 Lease) but for an Amendment and
Extension of Lease which expires March 15, 2002; (2000 Amendment);
E. The City Council actively solicited proposals for non - residential uses at
Marinapark and, as of February 2002, has deemed a non - residential use of
Marinapark the most appropriate land use for the property. As such, the City
Council intends to close the mobilehome park no later than March 15, 2005.
F. The Parties acknowledge that, subsequent to the effective date of the 1985
Lease, California State Lands Commission staff has discovered evidence
that a portion of the Property consists of tidelands. City and Lessee have,
in the past, claimed that all or substantially all, of the Property leased for
mobilehome residency purposes is uplands owned by the City, and City and
Lessee have discussed evidence to support that claim.
G. State Lands Commission staff has indicated that permanent residential use
of tidelands is inconsistent with State statutory, decisional and constitutional
law. However, the City and Lessee may dispute that position.
H. The City Council finds and declares that the terms and conditions of this
Amended Lease comply, and are consistent, with the Charter of the City
including, without limitation, the provisions of Sections 200 and 1402 of the
Charter,
The City Council also finds and declares that the provisions of this Amended
Lease are consistent with the plans, policies, rules and ordinances of the
City. The City Council also finds that this Amended Lease is consistent with
the General Plan and the Land Use Plan of the Local Coastal Program;
J. The terms and conditions of this Amended Lease are in compliance, and
consistent, with the provisions of the Mobilehome Residency Law (Section
798 et seq. of the Civil Code) and the State Zoning and Planning Act
(Sections 65863.7 and 65863.8 of the Government Code).
K. The purpose and intent of the Parties is to amend, and extend the term of,
the 1985 Lease and the 2000 Amendment so that the Lessee may continue
to reside on the property for the year commencing March 15, 2002 while the
process of preparing the property for a different use continues. The City
may allow short extensions of this Second Amended Lease but not past
March 15, 2005.
NOW, THEREFORE, the Parties do hereby mutually agree as follows:
1. DESCRIPTION OF PREMISES.
The City leases, and Lessee accepts the lease of, the portion of the Property
described as space as shown on Exhibit "A" (Premises).
2. TERM.
The tenancy created by this Amended Lease shall extend the expiration
date of the 1985 Lease as modified by the 2000 Amendment, to March 15,
2003 (Term), unless earlier terminated in accordance with the terms of this
Amended Lease and the Mobilehome Residency Law.
There shall be no holdover on this Second Amended Lease. However, the
City, at its sole option, may offer Lessee an extension of this Amended
Lease. Such offer will be made, if at all, no later than by January 15th of the
year the lease term expires, on such terms and conditions as the City then
establishes. If no such offer is made, then there shall be no holdover.
2
3. USE OF PREMISES.
A. The Premises shall be used only for residential purposes, and no business
or commercial activity shall be conducted on the Premises. Permitted
occupants are:
(i) Lessee;
(ii) An additional person if Lessee is living alone;
(iii) Family members entitled to occupy the premises pursuant to the
Mobilehome Residency Law; and
(iv) Short term guests.
The term "short term guest" shall mean any person who does not stay with
Lessee for more than a total of twenty (20) consecutive days or a total of
thirty (30) days in any calendar year. Other persons may occupy the
premises with the prior written consent of the City.
B. Lessee agrees that the primary residence requirement is fundamental to this
lease, stipulates that the residency requirement will not constitute an undue
burden or hardship on Lessee in light of the time allowed for compliance in
the 1985 Lease, and, subject to the provisions of Section 8, Lessee agrees
that the Premises shall be Lessee's primary residence unless this
requirement is waived by the City Council due to hardship. Lessee shall
provide satisfactory proof of residency to the City.
C. Lessee agrees to comply with the Rules and Regulations of Marinapark
(Exhibit "B ") and further agrees these Rules and Regulations may be
amended as provided in the Mobilehome Residency Law or other relevant
statute.
►.P
A. Introduction.
The City and Lessee agree that the terms and conditions of the 1985 Lease,
the 2000 Amendment and this Amended Lease preserve and protect
substantial and important rights and advantages, economic and personal,
that each Party would not otherwise be entitled to receive. These economic
and personal rights and benefits are the consideration for the 1985 Lease,
the 2000 Amendment and this Second Amended Lease. The more
important rights and benefits gained and given up by each Party are
specified in this paragraph and the Parties agree that, like the 1985 Lease,
this Amended Lease should be interpreted such that each parry receives the
benefits and advantages identified in this section.
151
B. Consideration to Lessee.
(1) As consideration for Lessee's approval of this Amended Lease, City
commits to maintain the Property as a mobilehome park until March
15, 2003.
(2) The City also commits that if it decides that it desires to continue to let
this space as a mobilehome space during the period from March 15,
2003 through March 15, 2005 that it will not terminate or fail to renew
this Lease with the Lessee and instead let the Premises to another
person.
(3) Additional consideration for Lessee's approval of this Amended
Lease is the right to occupy the Premises subject to the payment of
rent in the sum of through June 30, 2002 at which time
the rent shall be
C. Consideration to Citv.
As consideration to the City, Lessee agrees and acknowledges that City
may convert the Property to a different use upon expiration of this Amended
Lease, or shortly thereafter. Lessee agrees that, if City chooses to close the
mobilehome park on the Property it may do so without obligation to pay
relocation benefits or provide other forms of relocation assistance. Lessee
acknowledges that the terms of the 1985 Lease, the 2000 Amendment and
this Amended Lease constitute full and adequate mitigation of any adverse
impact on Lessee of any conversion of the Property to a non - mobilehome
use, and the extended term of the 1985 Lease and this Amended Lease
gives Lessee sufficient time to secure replacement space in another
mobilehome park or other alternative housing. Accordingly,
LESSEE HEREBY WAIVES, GIVES UP THE RIGHT TO RECEIVE, AND
RELEASES CITY FROM ANY OBLIGATION TO PAY, RELOCATION
BENEFITS, OR ANY OTHER FORM OF RELOCATION ASSISTANCE OR
OTHER PAYMENT OR CONSIDERATION THAT ARISE OUT OF, OR
ARE IN ANY WAY RELATED TO:
(1) THIS LEASE OR ANY FUTURE TENANCY;
(2) THE ULTIMATE TERMINATION OF LESSEE'S TENANCY
PURSUANT TO THE 1985 LEASE, THE 2000 AMENDMENT
OR THIS AMENDED LEASE OR THE TERMINATION OR
EXPIRATION OF ANY SUBSEQUENT TENANCY
HOWEVER CREATED;
4
(3) THE CONVERSION OF THE PREMISES TO ANY USE
OTHER THAN A MOBILEHOME USE.
(4) THE DISPLACEMENT OF LESSEE FROM HIS AND /OR
HER PRIMARY RESIDENCE;
(5) ANY FEDERAL, STATE OR LOCAL LAW, PLAN & POLICY
OR RULE WHICH RELATES TO SUCH DISPLACEMENT,
OR REQUIRES THE MITIGATION OF THE IMPACTS
CAUSED BY DISPLACEMENT. THIS RELEASE BY
LESSEE, NOTWITHSTANDING SECTION 1542 OF THE
CALIFORNIA CIVIL CODE, WHICH PROVIDES THAT:
"A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH CREDITOR DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS
FAVOR AT THE TIME OF EXECUTING THE
RELEASE, WHICH IF KNOWN BY HIM MUST
HAVE MATERIALLY AFFECTED THE
SETTLEMENT WITH THE DEBTOR,"
RELEASES ALL CLAIMS OR LOSSES, WHETHER
KNOWN, UNKNOWN, FORESEEN OR UNFORESEEN,
WHICH LESSEE MAY HAVE AGAINST CITY. LESSEE
UNDERSTANDS AND ACKNOWLEDGES THE
SIGNIFICANCE AND CONSEQUENCE OF THIS RELEASE
AND OF THIS SPECIFIC WAIVER OF SECTION 1542 AND
ASSUMES FULL RESPONSIBILITY FOR ANY DAMAGES,
LOSS OR CLAIM THAT LESSEE MAY INCUR AS A
RESULT OF THE CONVERSION, TERMINATION AND /OR
DISPLACEMENT REFERRED TO ABOVE. LESSEE IS
FREELY AND VOLUNTARILY EXECUTING THIS
AMENDED LEASE AND LESSEE, IN EXECUTING THIS
RELEASE, HAS NOT RELIED UPON ANY INDUCEMENTS,
PROMISES OR REPRESENTATIONS MADE BY CITY OR
ITS OFFICERS OR EMPLOYEES, OTHER THAN THE
COMMITMENTS AND COVENANTS CONTAINED WITHIN
THIS LEASE.
D. Provisions related to Consideration
(1) This Amended Lease constitutes notice that City reserves the right to
physically convert the Premises to a non - mobilehome use on or
about March 16, 2003.
5
(2) Upon expiration of the term of this Amended Lease, Lessee shall,
within sixty (60) days, remove any mobilehome or recreational
vehicle, structure, improvement, personal property or equipment
located upon the Premises. Upon the expiration of this sixty (60) day
period, the City shall have the right to remove and dispose of any and
all property improvement structures, personal property (including the
mobilehome) or any accessory equipment that remain on the
Premises. The cost of removing such shall be bom by the Lessee
unless the Lessee has given written notice to City not less than thirty
(30) days prior to the expiration of this Amended Lease or applicable
renewal thereof, whichever is later, of Lessee's desire to abandon the
mobilehome and transfers all title and interest in the mobilehome,
clear of all liens and encumbrances, to City and the documents
necessary to effectuate such transfer are delivered on or before the
date of termination. If City receives such written notice from Lessee,
City shall bear the cost of removing and disposing of all property
improvement structures, personal property (including the
mobilehome) or any accessory equipment that remain on the
Premises.
S. RENT.
Lessee shall pay as rent, without deduction or offset, on the 1 st day of April
2002, and on the first day of each month through June 2002 the sum of
As of July 1st, 2002 the rent shall be
and shall be paid on the first of each month thereafter
without deduction or offset.
Rent for any fractional part of any month between the commencement date
and the first date of the first full calendar month within the Term shall be
prorated, and paid by Lessee to City along with the first full month of rent
due hereunder.
Lessee stipulates and agrees that this Amended Lease constitutes the
ninety (90) day written notice of rental increases required by the Mobilehome
Residency Law and Lessee acknowledges that no additional written notice
need be given by City; provided, however, City may provide Lessee with
ninety (90) days written notice of the precise amount of any rental increase
authorized by this paragraph and City and Lessee agree that such notice
shall not constitute a waiver of City's right to rely upon the adequacy of the
notice provisions in this paragraph.
Lessee acknowledges that this Amended Lease may create a possessory
interest subject to property taxation and that Lessee may be subject to the
payment of property taxes levied on such interest. Lessee shall pay, in
addition to rent and before delinquency, all taxes, assessments, license fees
and other charges (Taxes) that are, during the Term, levied or assessed
against Lessee's interest in the Premises pursuant this Amended Lease and
against any personal property installed on the Premises.
The City agrees that, once the rental rate which commences, July 1, 2002
becomes effective, the rent will not be raised during the period from July 1,
2002 to March 15, 2003. If City offers a renewal of this Amended Lease,
City reserves the right to increase rent at such time.
6. RELEVANT STATUTES AND RULES.
The Mobilehome Residency Law requires this Amended Lease to contain,
among other things, the Rules and Regulations of Marinapark and the
language of the Mobilehome Residency Law. The Rules and Regulations of
Marinapark are attached as Exhibit "B," the provisions of the Mobilehome
Residency Law are attached as Exhibit "C," and both documents are
incorporated into this Amended Lease by reference. The Marinapark Rules
and Regulations and the Mobilehome Residency Law may be amended or
modified from time to time, and these amendments and modifications shall
be deemed to be incorporated into the documents attached as Exhibits "B"
and "C," respectively, when effective.
7. LATE CHARGE.
If the entire rent owed by Lessee is not received by City by the 6th day
following its due date, then, without any requirement for notice to Lessee,
Lessee shall pay to City a late charge of thirty five dollars ($35.00). The
parties agree that such a late charge represents a fair and reasonable
estimate of the costs City will incur by reason of any late payment of rent.
An Acceptance of a late charge by City shall not constitute a waiver of
Lessee's default with respect to rent, or prevent City from exercising any of
the rights or remedies granted by this Amended Lease.
8. SALE OR ASSIGNMENT.
Lessee may sell the mobilehome located on the Premises pursuant to the
rights, and subject to the obligations, of Lessee under the Mobilehome
Residency Law and any other applicable statutes. If the mobilehome that is
the subject of the sale or transfer is to remain in the park, or if Lessee
proposes to assign Lessee's interest in this Lease to any person or persons
who is (are) to reside on the Premises, Lessee and /or the proposed
transferee must do the following:
A. Lessee must give notice of the sale or assignment to City prior to close of
escrow.
7
B. The sale or assignment shall not be effective unless City has given prior
written approval, the transferee has executed an assignment of lease form
provided by City, and the transferee has expressly agreed to be bound by
the waivers and releases provided in this Amended Lease.
C. Lessee agrees that occupancy of the Premises shall be limited as provided
in Section 3 and Lessee agrees not to sublease or otherwise transfer any
partial interest in this Amended Lease.
D. City shall approve any such transfer, if the transferee has the financial ability
to pay the rent and charges and otherwise comply with the terms and
conditions of this Amended Lease, provided, however, City may withhold
approval if it determines that, based upon the transferee's prior tenancies,
the transferee will not comply with the Rules and Regulations of Marinapark
(Exhibit "B ").
E. City shall not approve any transfer or assignment of any interest in this
Amended Lease that would permit the installation of any mobilehome or
structure that exceeds twelve feet in height.
F. The City shall have rights of first refusal. Before Lessee sells or agrees to
sell or otherwise transfer Lessee's interest in this Amended Lease, Lessee
shall offer to sell its interest to City, in writing and on terms and conditions
identical to those proposed for the sale of Lessee's interest to a third party.
The third party must have previously fully and truthfully completed an
application for residency in the Property that has either been approved
subject to this First Right of Refusal or have been given to park
management for more than 15 days without an acceptance, rejection. The
third person must acknowledge and declare that he/she /they have an intent
to reside in the Property on a full time basis. The Lessee must notify the
City of the essential terms of the sale which shall include at a minimum, the
following information: (i) the purchase price proposed for the sale to the third
party; (ii) the method of purchase price payment; (iii) the amount and terms
of any proposed Lessee financing in connection with the proposed
purchase; (iv) the time and location for the close of escrow; (v) the name of
the proposed purchaser; and (vi) the other material terms and conditions of
the proposed sale of the Property.
City shall have ten (10) days (Acceptance Period) from the date of the
notification to inform the Lessee that the City will be purchasing the property.
The City shall thereafter enter into a agreement on the terms and conditions
set forth in the notification. If the City chooses not to accept the offer the
third person may then purchase the home on the terms and conditions as
set forth in the notification to the City. Should any of the terms and
conditions be altered then the City once again as has the right of first refusal
and the City has the right to refuse to grant tenancy to the proposed buyer if
[]
the terms and conditions of sale differ in any significant manner. However
should the City deny tenancy the City must thereafter purchase the home on
new terms and conditions.
G. Notwithstanding any other provision in this Amended Lease, Lessee shall
have the right to assign its interest in this Amended Lease to a spouse, son
and /or daughter without any requirement that City be given the right of first
refusal to acquire the interest, provided, however, the Premises shall be
used as the primary residence of the assignee and the assignee shall be
bound by all provisions of this Amended Lease, including, without limitation,
the waiver of relocation assistance.
9. UTILITIES.
A. City shall not provide electricity or telephone service. Lessee shall make
arrangements directly with the utilities furnishing the services and promptly
pay all charges.
B. City shall provide Lessee with water and gas service. The charge to Lessee
for such service shall be the amount of the charges paid by Lessee as of
February 1, 2002. The charges for gas and water service may be increased
or decreased on the first day of October.
C. The charge for gas and water service shall be paid when rent is due, and in
addition to the obligation to pay rent. In the event Lessee fails to pay the
charge for water or gas service within ten days after the amount is due,
Lessee shall pay to City a late charge of thirty-five dollars ($35.00).
D. In the event City provides both master meter and submeter service of utilities
to Lessee, the cost of the charges for each billing period shall be separately
stated and shall contain opening and closing readings of the meter. In such
event, City shall post rates charged by the appropriate utility in a
conspicuous place.
E. City shall not be liable for any loss, damage or injury, and Lessee shall not
be entitled to any abatement or reduction of rent, by reason of City's failure
to furnish any utility or service if the failure is caused by accident, breakage,
repairs, maintenance or any other cause beyond the reasonable control of
City.
10. MAINTENANCE OF LANDSCAPING AND IMPROVEMENTS.
It is the responsibility of City to provide and maintain the physical
improvements in the common facilities of the Property in good working order
and condition, and, with respect to sudden and unforeseeable breakdowns,
management shall have a reasonable period to repair any sudden and
E
unforeseeable breakdown or deterioration and bring the improvements into
good working order and condition, after management knows or should have
known of the breakdown. Such period shall be not more than thirty (30)
days unless there exist exigent circumstances justifying a delay, and the
required work shall be completed as soon as possible in any event as to
items affecting health and safety.
Lessee shall, at its cost and expense, maintain in good order and condition
any mobilehome, cabana or other improvement located on the Premises.
Lessees also agree that all landscaping on the Premises shall be limited to
three feet (3') in height, to preserve views and open space. City may charge
a reasonable fee for services relating to the maintenance of the Premises in
the event Lessee fails to maintain the Premises in accordance with the
provisions of this Amended Lease and the Rules and Regulations of
Madnapark (Exhibit "B "), after giving written notification to Lessee and
Lessee's failure to comply within fourteen (14) days from the date of notice.
The notice shall contain all information required by the Mobilehome
Residency Law.
11. PHYSICAL IMPROVEMENTS AND SERVICES.
Lessee shall have the nonexclusive right to use all of the common areas and
common facilities located within Marinapark, including but not limited to
streets, nonrestricted parking areas, laundry facilities, restrooms and
showers located in the common areas and common facilities and designated
for use by residents.
The services to be provided by City during the term of this Amended Lease
include the services to be provided by the Marinapark manager and other
employees and officers of City, the utilities to be provided by City specified in
Section 9 and the maintenance of all common areas and common facilities
in good condition pursuant to Section 10.
It is the responsibility of the property manager to provide and maintain
physical improvements in the common facilities in good working order and
condition.
It is understood by all parties hereto that this mobilehome park may close as
early as March 15, 2003 and therefore, in exchange for City's concession in
offering this Amended Lease, it is agreed that City need not invest any funds
in repairing or replacing any facility so that it lasts longer than the Term
hereof, provided that no facility which affects health and safety will be
ceased during the Term Amended Lease.
10
12. CHANGES IN MARINAPARK RULES AND REGULATIONS, PHYSICAL
IMPROVEMENTS AND SERVICES.
City retains the right to amend or modify the Marinapark Rules and
Regulations, the terms of this Lease, and the nature of the physical
improvements or services to be provided, after complying with the provisions
of the Mobilehome Residency Law and other applicable law. The right to
amend the terms of this Amended Lease, the Marinapark Rules and
Regulations and the physical improvements and services to be provided by
City include, without limitation, the right to reduce the size of, or eliminate,
any physical improvement, common area, common facility or equipment;
provided, however, no changes shall be made to the provisions of this
Amended Lease, including the Term or the rent to be charged, unless those
changes or amendments are permitted by other provisions hereof.
13. RIGHT OF ENTRY.
Lessee, subject to the right of revocation as set forth in the Mobilehome
Residency Law, hereby grants written consent to City to enter the Premises
and Lessee's mobilehome for the purpose of improving, maintaining,
repairing or replacing gas, water and sewage systems owned and
maintained by City subject to the obligation of City to exercise ordinary care.
Any damage, loss or injury to Lessee's home, property of Lessee or the
Premises which results from efforts of City to maintain, repair, improve or
replace the gas, water or sewage systems shall be the sole responsibility of
Lessee, and City shall not be responsible for reimbursing any cost or
expense incurred by Lessee as a result of such efforts, nor shall City be
responsible for repairing, replacing or otherwise restoring the mobilehome,
the Premises or any improvements thereon to the state or condition
immediately prior to the maintenance, replacement or repair efforts. City
also reserves the right to enter the Premises for other purposes as specified
In the Mobilehome Residency Law.
14. NOTICE REQUIRED BY CIVIL CODE §2079.10(a).
The California Department of Justice, sheriff's departments, police
departments serving jurisdictions of 200,000 or more and many other local
law enforcement authorities maintain for public access a data base of the
locations of persons required to register pursuant to paragraph (1) of
subdivision (a) of Section 290.4 of the Penal Code. The database is
updated on a quarterly basis and is a source of information about the
presence of these individuals in any neighborhood. The Department of
Justice maintains a Sex Offender Identification Line through which inquiries
about individuals may be made. This is a "900" telephone service. Callers
must have specific information about individuals they are checking.
11
Information regarding neighborhoods is not available through this telephone
service.
15. HOLD HARMLESS.
Lessee covenants to indemnify, defend and hold City, and its officers,
agents and employees, harmless from any and all claims or demands of any
name or nature whatsoever arising out of, or incident to, Lessee's use and
occupancy of the Premises, and to indemnify City for any cost, liability or
expense caused by or arising out of any injury or death of persons or
damage to property which may occur upon or about the Premises or caused
by or arising out of any activities or omission of Lessee, or Lessee's agents,
employees, licensees and /or invitees, including, without limitation, injury or
death of Lessee, or Lessee's agents, employees, licensees and invitees and
damage to their property or Lessee's property, except for any damage or
injury of any kind arising out of the sole negligence, fraud or willful
misconduct of City, its officers, agents or employees.
Lessee, as a material part of the consideration under this Amended Lease,
hereby waives all claims against City for any damage or loss from any cause
arising at any time, including, but not limited to fire, theft, Acts of God,
vandalism or any physical damage while the mobilehome remains on the
Property, unless caused by the negligence, fraud or willful misconduct of
City's agents, officers or employees. Lessee agrees to indemnify and hold
City, and its officers, agents and employees, harmless from and on account
of any damage or injury to any person or equipment in or on the mobilehome
arising from any cause or from the negligence of Lessee, and Lessee's
family or guests.
Since a substantial portion of the present value of Lessee's mobilehome or
coach is attributable to the value of the Premises and the proximity of the
Premises to Newport Bay, and not solely to the value of the structural
improvements, Lessee, in addition to the other commitments specified in
paragraph 4, agrees to indemnify and hold City, and its officers agents and
employees, harmless from any and all loss or injury of any nature
whatsoever arising out of or attributable to future change of use of the
Premises and the requirement that Lessee remove his /her mobilehome and
other property from the Property.
16. TERMINATION.
A. Lessee may terminate this Amended Lease, without any further liability to
City, upon sixty (66) days written notice to City and upon condition that all
persons occupying the Premises terminate their tenancy within that period
and remove the mobilehome and all other improvements from the Premises. -
12
B. City may terminate this Amended Lease for the reasons specified, and
according to the procedures set forth in the Mobilehome Residency Law.
C. In addition to the rights specified in subparagraph B, City reserves the right
to terminate this Amended Lease in the event: (1) a court of competent
jurisdiction determines that residential use of the property is inconsistent, or
is in conflict, with the provisions of the public trust imposed upon those
portions of the Property that constitute state tidelands, or that the residential
use is inconsistent with any provision of the state constitution or state law; or
(2) there is a major failure in one or more of the public utilities furnished
Lessee by City, and, in the opinion of City, the cost of repairing the system is
excessive when viewed in light of the highest and best use of the Property.
D. The waivers and releases relative to relocation benefits or assistance shall
operate to preclude recovery of same by Lessee in the event this Lease is
terminated pursuant to the provisions of this paragraph.
17. ATTORNEYS' FEES.
Should either City or Lessee be required to employ counsel to enforce the
terms, conditions and covenants of the 1985 Lease the 2000 Amendment,
or this Amended Lease, the prevailing parry shall recover all reasonable
attomeys' fees (and court costs if applicable) incurred therein whether or not
court proceedings were commenced.
18. REMEDIES CUMULATIVE.
The rights, powers, elections and remedies of the parties contained in this
Amended Lease shall be construed as cumulative and no one of them shall
be considered exclusive of the other or exclusive of any rights or remedies
allowed by law, and the exercise of one or more rights, powers, elections or
remedies shall not impair or be deemed a waiver of either party's right to
exercise any other.
19. NO WAIVER.
No delay or omission of either party to exercise any right or power arising
from any omission, neglect or default of the other party shall impair any such
right or power or shall be construed as a waiver of any such omission,
neglect or default on the part of the other party or any acquiescence therein.
No waiver of any breach of any of the terms, covenants, agreements,
restrictions or conditions of this Amended Lease shall be construed as a
waiver of any succeeding breach of the same or of any of the terms,
covenants, agreements, restrictions or conditions of this Amended Lease.
13
20. COMPLIANCE WITH LAWS.
Lessee covenants and agrees to comply with all rules, regulations, statutes,
ordinances and laws of the State of California and City or any other
governmental body or agency having lawful jurisdiction over the Premises
and /or the Property.
21. MOBILEHOME RESIDENCY LAWIZONING AND USE PERMIT
A. Lessee acknowledges having received and read a copy of the 1985 Lease,
the Amended Lease and this Second Amended Lease, the provisions of the
Mobilehome Residency Law (Exhibit "C ") as presently constituted, and the
Marinapark Rules and Regulations (Exhibit "B ").
B. The Property is currently zoned unclassified and there are no conditional
use permits or other permits required to operate the Property as a
mobilehome park. The City of Newport Beach owns the Property, except to
the extent the Property is determined to be tidelands and subject to the
public trust applicable to tidelands.
22. ENTIRE AGREEMENT.
This Amended Lease and the documents referred to in this Amended Lease
represent the entire agreement between City and Lessee.
23. NOTICES.
All notices and other communications shall be in writing, shall be sent by first
class registered or certified United States mail, postage prepaid, and shall
be deemed effective at the expiration of seventy -two (72) hours after the day
of mailing addressed:
A. To Lessor:
City Manager
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA, 92658
With a copy to:
City Clerk's Office
City of Newport Beach
3300 Newport Blvd.
Newport Beach, CA, 92658
14
or at such other addresses as Lessor shall have furnished to Lessee; and
To Lessee:
By delivering a copy to the Lessee personally; or Lessee be absent from the
mobilehome, by leaving a copy with some person of suitable age and
discretion who may be occupying the mobilehome; or no one can be found,
then by affixing a copy of the notice in a conspicuous place on the Premises
or mobilehome and also sending a copy through the mail addressed to
Lessee.
B Following notice by City of any amendment, all other provisions of the Lease
shall remain in force and effect in their original form.
24. TIME OF ESSENCEError! Bookmark not defined..
Time is of the essence in this agreement and each and every provision
thereof.
25. EFFECTIVE DATE
The Parties agree that the effective date of this Amended Lease is March
15, 2002, whether executed before or after that date.
IN WITNESS WHEREOF, the parties have caused this Lease to be executed the
day and year first above written.
LESSEE
By:
IIWE ACKNOWLEDGE AND AM /ARE AWARE OF THE PROVISIONS OF THIS
AMENDED LEASE INCLUDING THE RELEASE AND WAIVER PROVISIONS OF
SECTION 4
15
CITY OF NEWPORT BEACH
a municipal corporation.
Homer Bludau,
City Manager
APPROVED AS TO FORM:
Robin L. Clauson
Assistant City Attorney
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FEB-2?-2002 17:40 JENKENS & GILCHRIST, LLP 626 304 9711 P.03/03
Attachment B
Jenkens & Gilchrist, LLP
AUSnN, Tow
(512) 499.3900
CMCAGO, IWK0IS
TWO NORTH LAKE AVENUE
(310) 4253900
SUrTE830
DAUAS TTxAS
PASADENA, CA 91101 -4176
(214) BSS -2500
HO05IOw, TEXAS
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(626)304-7
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Cary D. Lowe FACSUME (626) 304 -9711
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(626) 3564211
NEwYoax,NEwYoaK
clowepLenkens.com www.jenkens.com
(217) 762.6000
SAN ANTomo, TEXAS
(210) 246-M
wAMNaroN, D.C.
(202) 346.1500
February 27, 2002
VIA U.S. MAIL & FACUMME
Mayor and Members of the City Council
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92663
Re: Marinapark -- Lease Amendment/Extension
Honorable Mayor and Members of the City Council:
On behalf of our client, the Marinapark Homeowners Association (the "Association "), we
would like to provide you with some comments and suggestions regarding the proposed Second
Amendment and Extension of Lease (the "Amendment') with the residents of the Marinapark
mobilehome park ( "Marinapark'j. This letter is intended to support and expand on the comments
which I presented at the City Council meeting of February 26, 2002.
The Amendment proposes a one -year extension of the existing Lease, along with a
substantial upward adjustment in rent levels and various other less significant revisions. We request
that you reconsider two particular aspects of the Amendment:
1. Term of Extension. The Association requests that the term be extended to a
minimum of three years. The Amendment implicitly acknowledges that the proposed
redevelopment of the site which is currently under consideration is unlikely to occur sooner than
that. In fact, the Amendment goes so far as to specify that the City may unilaterally extend the
term for that additional period The residents would appreciate greatly the certainty and stability
which would be derived from specifying a longer term in the first place. This would allow them
to plan in a more orderly way for the eventual closing of Matinapa& It also would provide an
incentive for the residents to invest in improvements to their respective units, rather than
performing the minimal maintenance associated with a short-term tenancy. By cooperating with
the residents in this manner, the City Council would bestow a useful benefit to the residents, with
ancillary benefits to the surrounding community, at no cost to the City.
LOSANGELES 210464VI 4175040001
FEE-2?-2002 18:2? 626 304 9711
TOTAL P.03
P.03
Z0'd /.66 1146 v0£ 929 4Z:81 Z00Z- LZ -63d
Jenkens & Gilchrist, LLP
Mayor and Members of the City Council
City of Newport Beach
February 27, 2002
Page 2
2. Rent Levels. The Association requests that the proposed new rent levels be
reconsidered and better substantiated as being actual "market rate" rents. Based on its own
research and analysis, the Association believes that the proposed rent levels for the various classes
of units are in excess of market rate. The residents are not seeking a subsidy from the City in the
form of below - market rents, but simply rent levels which can be validated as representing current
market levels. The City's staff report indicates that the proposed rent levels are based on an
analysis performed by Bendetti Property Management, the fam engaged by the City to manage
Marinapark The Association requests a new rent analysis by a third patty not otherwise involved
in the operation or management of Marinapark, and we urge you to instruct staff to have such an
analysis performed. In addition to any other factors which establish the appropriate rent levels, the
residents assume that a longer Lease term would justify higher rents, whereas a mere one -year term
should result in rents at a discounted level.
In addition to the comments above, we are transmitting a mark -up of the Amendment to
City staff, making various other, more technical suggestions.
Please give our comments your immediate consideration, and provide appropriate direction
to City staff in connection with their revision of the Amendment, in preparation for action on the
proposal at the City Council meeting of March 12, 2002. Thank you.
Sincerely,
JENKENS & G ST, tip
Cary .Lowe
CDL:sh
cc: Stewart Berkshire, President, Marinapark Homeowners Association
Assistant City Manager David Kid City of Newport Beach
Assistant City Attorney Robin Clauson, City of Newport Beach
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FROM : ST.JOSEPH JUSTICE CENTER FAX NO. : 714 - 744 -3186 Mar. 12 2002 11:34AM P6
" RECEN*ED AFTER AGEN A
PRl;dTE:G:" 3 la
OC Interfaith Coalition for Social Justice,
'02 MAR 12 All :46
Interfaith Coalition for Justice do St. Joseph Justice Center
• _.._
----- re nooc0 11A.GV7.2171 r77RQ
March 12, 2002 OFFIi ;I? i;. :; Y C Ekr
Alliance for spiritual community
Commission on Peace and Justice.
Mayor Tod W. Ridgeway
y
Episcopal Diocese of Los Angeles
City of Newport Beach
CovncA on American•tslamlc Relations
P.O. Box 1768
Newport Beach CA 92659-8915
Episcopal Cam. On Advocacy for
Children and Youth
Dear Mayor Ridgeway:
Evangelical Lutheran Church in America -
Pacitica Synod
Housing in Orange County is at a premium and financially
unaffordable for many citizens of our community.
Fullerton Interfaith Emergency Services
Inspired Action
In learning of the change of use of a mobile home park to a new
hotel, we feel we must express the following concerns:
Interfaith Council of Garden Grove.
Westminster, Stanton
Although a number of owner /renters can afford the raise
of rent, there are those who cannot. The City is making
Interfaith Council of Laguna Beach
allowances for those who will be unduly burdened with
Interfaith Council of South Orange County
regard to rent for the year, but this does not solve their
long -term needs.
Interfaith Peace Ministry of Orange County
Building another hotel brings with it the obligation of
La Purisimo Catholic Church
providing affordable housing in the community for the
No lional conference for community and
expected staff of the hotel. This is an obligation owed not
Justice
only to the workers, but also to the rest of the County.
OC Adopt o Social Worker Program
OC Society of St. vincentde Paul
We ask that the City assist in the relocation of seniors and low
income residents of the Park.
St. Anselm of Canterbury Episcopal
Church
We recommend that the city's Housing Element be reviewed to
see that it adequately addresses the needs of lower income
Si. Mark Presbyterian Church
hospitality employees and that adjustments be made if
St. Mary's Episcopal Church
necessary. We also recommend that high priority be given
immediately to developing housing identified in the Element so
S, Simon and Jude: Jusr with
that is proceeds in step with the development of the hotel site.
Sisters of St. Joseph of Orange
Newport Beach is a uniquely beautiful and rich city. The quality
Unitarian Universalist Church of Fullerton
of life in the City and in the entire County is dependent on each
City doing its fair share of providing housing for its labor force.
Unitarian Universalist Fellowship of Laguna
beach
Sincerely,
Universalist Church of SOVih
County
County
ty
Convener
Interfaith Coalition for Justice do St. Joseph Justice Center
• _.._
----- re nooc0 11A.GV7.2171 r77RQ
Brown, Lejlani
From:
Brown, Leilani
Sent:
Tuesday, March 12, 2002
To:
O'Neil, Dennis; Ridgeway,
Steven; Adams, Gary
Cc:
Harkless, LaVonne
Subject:
Marinapark Caller
1:10 PM
Tod; Proctor, Gary; Heffernan, John; Glover, Norma; Bromberg,
Bruce Rosen called because he feels that the City should not raise the residents' rent. He said he
does not live in the City and that he would not give his telephone number.