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Study Session Agenda Item 3 <br />City of Newport Beach <br />Office of the City Manager <br />DATE: May 10, 1999 <br />TO: Mayor and Members of the City Council <br />FROM: Dave Kiff, Assistant to the City Manager <br />SUBJECT: Negotiation of Income Property Leases <br />The City has a number of income property leases that are either approaching the <br />end of the lease term, or have already expired. The status of each is as follows: <br />AMERICAN LEGION: The original lease, signed in 1940, was extended both in <br />1951 and 1976. The current lease terminates in March 2000. The 1.54 -acre site <br />consists of the American Legion building, a paved area that hosts 53 parking <br />spaces and 45 dry dock spaces, and a marina with 46 boat slips. The current <br />lease requires the Legion pay the City $300 /month for the building, $1,700 /year <br />for the parking spaces, 40% of the gross revenues on the marina slips, and 50% <br />of the gross revenue from the dry boat storage. On August 25, 1997, the City <br />Council directed staff to begin renegotiation of the American Legion lease. <br />Lease revenue for FY 98/99 is estimated at $105,000. <br />MARINAPARK: Marinapark Mobile Home Park was acquired by the City in 1919 <br />and used as a visitor's campground until 1945, when it was converted to a travel <br />trailer park. In 1955, the City converted the property to its present use, a mobile <br />home park. New lease agreements were signed in 1973 and in 1985. The <br />current lease term expires in March 2000. Marinapark has sixty mobile home <br />spaces. On February 22, 1999, the Newport City Council directed staff to send a <br />letter to the State Lands Commission indicating the City's position that the <br />tidelands boundary aligned with the boundaries on the adjacent private parcels. <br />As such, Marinapark was not in tidelands and therefore Marinapark's residential <br />land use was not at issue. To date, State Lands Commission has not responded <br />to the City's letter. Lease revenue for FY 98/99 is estimated at $585,000. <br />GIRL SCOUT HOUSE: The City approved the first lease with the Girl Scout <br />Council in 1947. The lease required the Girl Scouts to construct a building on the <br />City's site, at an annual lease of $1. The lease was renewed every ten years <br />after the original lease expired until 1987 when the lease was extended until <br />March 2000. The lease rate has remained at $1 per year. The 3,500 square foot <br />building contains a large meeting room, a fully equipped kitchen, <br />bathroom /shower facilities, storage space, a small office space, and parking. <br />