Loading...
HomeMy WebLinkAbout18 - Purchase or Lease of Mariners Mile Property to Ensure Marine Land UsesCITY OF NEWPORT BEACH TO: HONORABLE MAYOR AND FROM: Homer L. Bludau, City ManaE DATE: August 27, 2002 AGENDA ITEM NO. 18 ;ITY COUNCIL SUBJECT: Council Consideration of Authorizing a Consultant Study Regarding the Feasibility of City Purchase or Lease of Mariner's Mile Property to Ensure Marine Land Uses ISSUE: Does the City Council want to appropriate money for a consultant to study the feasibility of City leasing or purchasing property along Mariner's Mile in order to ensure retention of marine land uses? RECOMMENDATION: Utilize land use section of Council's adopted "Mariners Mile Strategic Vision and Design Framework" (attached) as context for discussion. Should Council authorize a feasibility study, appropriate $5,000 from unappropriated revenues and direct the City Manager to amend the City's agreement with Applied Development Economics. BACKGROUND: During budget discussions at the June 25th City Council meeting, Council Member Glover raised the issue of City involvement in ensuring that some Mariner's Mile properties are always dedicated to marine related uses. Her intent was to fund a consultant's feasibility study of the concept; however, the discussion went in a different direction and money for a consultant's study was not included in the adopted budget. The Strategic Vision for Mariners Mile speaks of balancing land uses, including those that serve residents and visitors, as well as encouraging marine sales and service businesses. As part of the effort to implement this vision, Council City Hall • 3300 Newport Boulevard • Post Office Box 1768 • Newport Beach, California 92659 -1768 Page 2 Member Glover and the Business Owners Association (BOA) have discussed ways to retain boat sales as a viable use on Mariner's Mile. The purpose would be to maintain Mariner's Mile's historic role as an area that supports marine uses, and to keep some properties open and free from development with the auto - oriented uses that have been prevalent over the past several years. The concept discussed by the BOA is for the City to lease property from private landowners, and sublease it to boat dealers to establish a boat sales center, similar to the auto center concept. It is likely that the City would need to write down the rent to the sub lessees, since the high cost of land on Mariner's Mile is a significant factor in Newport Beach's loss of boat dealers. The responsibility for improving the properties would be the dealers. Improvements probably would be minimal, including items such as fencing, landscaping and small office spaces. DISCUSSION: In addition to maintaining a balanced land use mix that includes marine uses, a boat sales center could produce sizable sales tax revenue for the City. In the year ending the first quarter of 2002, boat sales citywide produced $626,072. Dealers on Mariner's Mile were responsible for $444,550 of that amount. The City Attorney's office has taken a preliminary look at this concept, and believes the land use and fiscal benefits could constitute a valid public purpose, which would allow the City to pursue the concept. The City's economic and fiscal consultant for the General Plan update, Applied Development Economics, is analyzing the marine industry as part of their scope of services. This work could be expanded to include the feasibility study requested by Council Member Glover for approximately $5,000, and could be complete by the end of October. Staff estimates that the cost of a feasibility study by a consultant not already familiar with the City's economy and the local marine industry.would be approximately $25,000. P1 City of Newport Beach Study Session Minutes June 25, 2002 INDEX Spyglass, in Seaview, and areas that overlook the reservoir are not accustomed to the idea of covering the reservoir. He believed that more input and education needs to take place. He added that renderings or something needs to be given to people. Mr. Bludau indicated that the CEQA process also needs to occur. Mayor Ridgeway noted that the front of the reservoir is dirt and asked if landscaping can be added. Council Member O'Neil stated that upgrading the footbridge on Goldenrod has been deferred for over two years. He indicated that it would be an $80,000 project and believed that there is a need to upgrade/ refurbish the bridge and planting area. He noted that it is a historical landmark and a charming crossing area. He indicated that he already requested $25,000 for this and is now asking that it be increased another $55,000. Mayor Pro Tem Bromberg indicated that District 5 is in good shape and thanked Public Works and General Services for that. Council Member Glover indicated that, because of the cost of land in the City, people have been building rather than having boatyards on Mariners Mile. She believed that the boatyards add to the marine look and asked that the City look into leasing long term or purchasing the land from the start of Mariners Mile to the McDonalds so people can put up more boatyards. She noted that boat sales generate a lot of revenue for the City. She emphasized the importance of keeping that type of use on Mariners Mile. Further, she noted that there was talk about putting a walkway on the water side of Mariners Mile. She indicated that new constructions have dedicated walkways and requested funding between $25,000 to $50,000 for this. She added that the Harbor Commission and /or the Economic Development Committee should conduct a study on both the issues. She reported that both the items were in the Mariners Mile Design Framework and were supposed to be studied further. Mayor Ridgeway believed that a cantilever boardwalk from the Arches Bridge to the Balboa Bay Club should be a high priority for the City. He indicated that it is doable and some type of money should be allocated. Mr. Bludau believed that the walkway, whether cantilevered or not, should be a capital improvement feasibility study and that about $50,000 should be included in the wish list if Council desires. He indicated that someone needs to look at the individual properties and right -of -ways. Mayor Ridgeway noted that the City owns from the bulkhead out. He added that the Mariners Mile area is one of the few viable commercial areas the City has in which the public can come to the water. In response to Council Member Proctor's question, Assistant City Manager Kiff announced that water quality is included in the CIP, under the Clean Beaches Initiative Projects. He reported that one of the major projects for West Newport was approved by the technical committee for funding. He stated that the project includes circulation improvements and grates and filters in the storm drains, and that the City was given its second half of Phase II's $500,000. He noted that almost all of the money is going to West Newport. He confirmed that the amount of Volume 55 - Page 235 MARINER'S MILE NEWPORT BEACH, CALIFORNIA STRATEGIC VISION NO DESIGN FRAMEWORK M MARINERS MILE 2.70 LAND USE CONSIDERATIONS DESIGN FRAMEWORK Mariner's Mile is closely surrounded by and easily visible from several existing neighborhoods: a) Bayshores b) Newport Heights C) King's Road d) Cliff Drive e) Santa Ana Avenue /Avon Street f) Lido Isle 2.71 Sensitivity to Existing Neighborhoods Sensitivity to the adjacencies of the existing neighborhoods with proposed new uses and development projects is encouraged and should be reviewed on a case - by -case basis. Mitigation of potential impacts to existing residents should be considered and balanced against the business interests of Mariner's Mile. Mitigation of impacts may be accomplished through landscaping, equipment screening, limitations on signage, lighting and glare spill -off, building colors, or other appropriate measures. 2.72 Balance Neighborhood, Marine and Tourism Traditional marine uses, commercial businesses and restaurants lend character and are enjoyed by nearby residents and visitors alike, especially in the Village area, but these activities can sometimes impact residential uses. New uses along Mariner's Mile should seek to strike a balance between commer- cial businesses, traditional marine uses, restaurants, the pleasure of Newport Beach visitors and the privacy of Newport Beach residents, by encouraging Compatible Land Uses: a) Encourage neighborhood retail in Mariner's Village b) Encourage high - quality professional offices C) Allow a range of residential uses where feasible d) Allow limited auto - serving retail at Inland East and Inland West e) Encourage Visitor - serving facilities along the waterfront f) Encourage marine sales and service businesses g) Seek relocation of USPS distribution facility out of Mariner's Village 10!4!00 PAGE 37, b DEsICN FRAMEWORK MARINER'S MILE 2.73 Encourage Diverse Economic Development Mariner's Mile already contributes significantly to the business climate and economic health of Newport Beach. By capitalizing on its unique assets, location and character, and by promoting a strong and diverse economic development activities, Mariner's Mile has the potential to make an even greater contribution to Newport Beach's business venue and fiscal viability. Objective: City policies which provide revenue benefits to the City or promote richer diversity of businesses and uses along Mariner's Mile should be encouraged, including: a) Emphasize tourism as an element of new uses along Mariner's Mile. b) Promote the enhancement of Mariner's Mile as a potential tourism site. C) Create more user - friendly vehicular access and entrances to businesses. Policies which hamper broadening the range of business development activities or are "non- business- friendly" should be reviewed for potential discontinuation including: d) Discontinue Specific Plan stipu lationof40 %Marine Use formulti- tenant properties. PACE 38 10/4100 1 4,