HomeMy WebLinkAbout06 - Property Lease - 709 E. Balboa & 111 Main StreetCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 6
November 26, 2002
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Sharon Wood, Assistant City Manager
644 -3222, swood @city.newport- beach.ca.ua
SUBJECT: Real Property Lease for 709 E. Balboa Boulevard and Units 5 and 6,
111 Main Street
RECOMMENDATION:
Receive and File report.
DISCUSSION:
This item was continued from the meeting of November 12, 2002. The City and
property owner have not come to agreement on terms of the lease. The most critical of
the unresolved issues is the ability of the City to sublet the premises before the Balboa
Performing Arts Theater Foundation is ready to begin construction. The owner does not
wish to continue lease negotiations with the City, and wishes to proceed with finding
another tenant for the first floor commercial space.
Submitted by:
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"RECEIVED AFTER AGENDA
DAVID MAGILAVY PRINTED. °4
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1405 CLAY STREET, NEWPORT BEACH, CA 92663 -5330
Office: Tel: 949 631 7835
Fax: 949 6314110
November 19, 2002
Ms. Sharon Z. Wood
Assistant City Manager
City of Newport Beach
3300 Newport Blvd
Newport Beach, CA 92663 -3884
Re: Lease of Portions of the Collins Building
Dear Ms. Wood:
E -mail: davidmagilavyCaco mpuserve. com
This is to advise that Mrs. Collins has decided not to extend her offer to lease the referenced
property to the City of Newport Beach beyond November 15, 2002 as was set forth in my letter
of October 30, 2002.
Inasmuch as it was orally agreed to pay my legal fees in this matter, I am enclosing an invoice in
the amount of $3,000 that being the "not to exceed" amount which we had previously quoted.
Following our telephone conversation this afternoon, I discussed the options and alternatives
which you suggested as a means of resurrecting the proposed lease. She did not elect to pursue
any of those, so we must conclude that the proposed lease is out of the question.
Sincerely,
David Magilavy
Attorney at Law
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DAVID MAGILAVY
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1405 CLAY STREET, NEWPORT BEACH, CA 92663 -5330
Office: Tel: 949 631 7835 E -Mail:
Fax: 949 -631 41 10 davidmagilavy(a'compuserve.com
November 19, 2002
Ms. Sharon Z. Wood
Assistant City Manager
City of Newport Beach
3300 Newport Blvd
Newport Beach, CA 92663 -3884
FOR PROFESSIONAL SERVICES RENDERED:
Fee based upon this lawyer's estimate of workload involved in $3,000.00
the matter of leasing to the City of Newport Beach, and modifying
a portion of the Collins building and subleasing same to the Balboa
Theater Foundation. Meetings with City employees and principals
to discuss proposed modification of the premises to suit the needs
of the Balboa Theater foundation. Meetings with Mrs. Collins to
discuss City proposals and drawings. Prepare correspondence to
City of Newport Beach. Perform legal research into the matter of
liability for costs of providing new electrical service to the
Collins building when the joint service on the Theater building is
terminated.
Prepare final form of lease and deliver same to City for signature.
Now due and payable.
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$3,000.00