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HomeMy WebLinkAboutI-5 - Beacon Bay Residential LeaseH-3'd38 1110dM3N d0 A110 IM: NROa min in ow A8 1661 f Am TO: FROM: SUBJECT: History V�V CITY OF NEWPORT BEACH. (7 OFFICE OF THE CITY MANAGER May 11, 198.1 MAYOR AND CITY COUNCIL Beacon Bay Lease Committee BEACON.BAY RESIDENTIAL LEASE CITY COUNCIL ITEM NO,S:n� On May 8, 1978, the.City Council unanimously adopted Resolution 9330, re- establishing the Beacon Bay Lease.Committee and appointed Mayor Paul Ryckoff, Councilman Paul Hummel, the City Manager, and City Attorney as this City's representatives to the Committee. The Committee was charged with the responsibility to meet with representatives of the Beacon Bay Homeowners Association and continue final negotiations in regard to the finalization of a lease for.the residential uses in'Beacon Bay. The Beacon Bay Homeowners Association appointed Mr...Barolay Ardell, Mr. Tasker Forbes, and Mr. Tom Viola, as their representatives. The Resolu- tion concluded by.requiring the Committee to report back to the full City Council on or before May 1, 1980. On November 12., 1979, the Committee submitted a report and suggested lease documents to the City Council. After thorough discussion, the City Council unanimously approved the report which gave tentative approval to the lease documents, authorized an appraisal to determine fair market rental value of the lots within Beacon Bay, and reserved final action on the lease documents until the appraisal is approved. N TO: MAYOR AND CITY COUNCIL - Page Two On January 8, 1980, George Hamilton Jones, M.A.I., was retained by the.City to establish.fair market value on the .subject property. On April 28, 1980, the City Council appointed. Councilman Philip R. Maurer, Councilman Paul Hummel, and the City Manager as this City's representatives to the Committee. On November 12, 1980, the appraisal was delivered to the City. On November 24, 1980, a detailed report from the Committee was submitted to the City Council and the Council unanimously approved in concept the Committee's recommendations and directed the Committee to proceed in the finalization of the contract documents with the Homeowners Association, Attorney General's Office, and State Lands Division, and report back to the City Council. It may be of general benefit to relate the.recent history of Beacon Bay. As members of the Council realize, Beacon Bay is situated on the.southerly.side of Harbor Island Drive and the newly- created Promontory Bay Development. There are three lots which are situated on the westerly side of Harbor Island Road with the balance of the parcels on the east side of Harbor Island Road. The subject land is subdivided into 73 residential lots of which 28 are bayfront, 45 are interior home sites, and one being utilized for recreational use. The shape of the lots are irregular, but. generally they are from 40.to 50 feet in width and from 90 to 100 feet in length.. Attached, you will find a copy of a map showing, the Beacon Bay property. I ' TO: MAYOR AND CITY COUNCIL - Page Three The land, vested in the City of Newport Beach, is under a 37= year lease to J. A. Beek, et al, which was entered into on January 9, 1950 and is to expire on December 31, 1987. The indi- vidual lots are under sublease by J. A. Beek, et al to. various. owners with a common expiration date with the master lease. Structural improvements range from five to thirty years of age and are both one and two stories.' All lots are presently improved. Twenty -two of the bayfront lots are completely or.partially tidelands; and twelve interior lots are completely or partially tidelands. The attached map shows the mean high tide line dividing the tidelands from the uplands lots. For approximately ten years, the.;City.has been receiving.requests from the subject lessees for a renewal of the lease which is to expire.in 1987. The City had been unable.to'enter into meaningful dialogue with either the master lessee (J. A. Beek, et Al.) or the sub - lessees because of the existence of tidelands. Simply stated, before meaningful negotiations could be commenced, the-question of residential use on tidelands had to be addressed. Assemblyman Ronald Cordova's Bill, AB 1422, was introduced in 1977.and was signed into law the first part of '1978 by Governor Brown. , This Bill, in essence, removed certain trust provisions permitting . residential use on tidelands in exchange for a parcel of property that could "enhance" tideland use elsewhere in the Bay and provided the City receive fair market rental value for each parcel in Beacon Bay. TO: MAYOR AND CITY COUNCIL - Page Four Discussion and Lease Documents Since the signing of the Bill in 1978, the City has held numerous meetings with the Department of Fish and Game, the Attorney General's Office, the State Lands Division, the Beacon Bay Homeowners Association, the City's appraiser, the appraiser for the Beacon Bay Homeowners Association, and the current lessee, Beek, et .al. The management of these representatives in producing an acceptable lease document, has been complicated and in some phases, frustrating. However, the Beacon Bay Committee is now ready to recommend specific documents to the City Council for review and approval. These documents have been reviewed in detail with representatives of the Attorney General's Office,.State Lands Division, and,Department of.Fish and Game on March 11, 1981 in Los Angeles and on April 9, 1981 in the City Manager's Office. Additionally, the documents have been reviewed by representatives of the Beacon Bay Association on April 8, 1981 and April 17, 1981. After each meeting, there were minor modifications to the basic documents. These modifications have been reviewed by all other parties involved and are ready, therefore, for review by the City Council. The basic lease documents (copy attached). provide for the following: 1. The City agrees to re -lease directly to the subject lessees, the individual residential parcels within Beacon Bay for an additional 25 -year period.. Q 10 TO: MAYOR AND CITY COUNCIL - Page Five 2. The lease on the.individual parcels will be in two stages, The first stage will commence when approved by the City Council and will terminate on December 31, 1987. (termination of the J. A. Beek, et al lease); the second stage will commence on 9 -/a 4604 January 1, 1988 and terminate on Ligantiery i,.21 4. 3. During the first stage (present to 1987), the City would receive fair market rental value.for each parcel as determined by the appraisal less the .amount to be paid to J. A. Beek, et al. During the second stage, the City would receive the entire fair market rental value. 4: The fair market rental value is as determined by.the appraisal of the property by George Hamilton Jones, dated November 5, 1980. 5. The City Council shall set "an effective date" in which the subject lessees are to sign the new agreements. This new "effective date" could be July 1, 1981. If a lessee signs the agreements on or before the "effective date ", the lessee shall pay to.City the fair market rental value less the pay- ments to J. A. Beek, et al immediately. If a lessee does not re -lease on or before the "effective date ", the lessee shall continue to pay current rental payments to J. A. Beek, et al with no direct payments to the City. At the present time, yearly leases cost from $181.90 per lot to'a.high,of $793.76. The TO: MAYOR AND CITY COUNCIL- Page six City receives but one -third of these annual amounts. The Committee believes, therefore, that an incentive should be . written into the agreements encouraging lessess.to sign prior to July 1, 1981. This incentive provision provided one of the greater challenges to the Committee and consumed a large amount.of time during the negotiating meetings. A number of alternatives were considered to encourage current lessees to sign immediately. All incentives were rejected by the Committee except the one chosen.and written into the attached lease documents. This incentive requires a lessee after July 1, 1,981, if that date becomes the "effective date ", to pay an amount to the City which increases by.1988 to a 344% increase over the base rental for interior.lots and a 334% increase for bayfront lots. This increase is due to the•add- ing of an inflation factor and the loss to the current lessee of a rent advantage factor. This "incentive" is shown in formula on Exhibit "G" attached hereto. it is the belief of the Committee that current lessees will be encouraged by the economics.of the proposal.to 'sign prior to July 1, 1981. 6. The lessees may sell, assign, or exchange.their leasehold interest without prior written consent of the City provided. that the new lessee shall agree with:all terms -of the lease documents and further provided that the.payments to the City will immediately change to 2 -1/2% of the sales price or the base rental price, whichever is the greater: This arrangement will permit the City to share in future inflated housing costs. IR 0 • TO: . MAYOR AND CITY COUNCIL - Page Seven 7. The leased land shall be used solely for residential purposes and appurtenant uses. 8. The lessee shall pay all general and special taxes on the subject parcels. 9. Maintenance of streets, beaches, walkways, tennis courts, docks, piers, and common landscape areas shall be the responsi- bility of the Homeowners Association. 10. Each lessee agrees to become and remain a member in good standing of the Beacon Bay Community Association. 11. Each lessee agrees to abide by the CC &Ft`s of the subdivision. 12. If any lessee fails to comply with the terms of the lease documents, the City may at its option and without further notice or demand, terminate the lease and enter upon the leased land and take possession thereof., 13. The City agrees to re -lease directly to the Beacon Bay Home- owners Association, the common areas for a 25 -year period.' The common areas contained on.the public tidelands shall be non - exclusive and the public cannot be prohibited from entering the common areas. Uplands are leased exclusively through the Beacon Bay Homeowners Association. Value to the City of this lease is reflected in the individual rents of each parcel and the value of the Association providing all TO: MAYOR-AND CITY COUNCIL -.Page Eight maintenance. The agreements for the.common areas are similar to the agreements for the individual parcels inasmuch as the agreements are in two stages,. The first stage to commence when approved by the City Council and to terminate on December 31, 1987 (termination of the J. A. Beek:, et al lease); the second stage will commence on January 1, 1988 and terminate 7 • /- «400x. on , 4, 14. The City will place upon the City -owned parcel adjacent to Irvine Avenue and Monte Vista in West Bay,.acquired by the City as.a result of the Sea Island subdivision, a tidelands trust provision. The property would still remain in the City's title -and the trust .would merely place a requirement on the property that it be used for "passive recreation,.an ecological unit for scientific study, and open space, by enhancing the .adjacent Department of Fish and Game Wildlife Preserve; and by providing a panoramic vista of Upper Newport Bay for public enjoyment." The trust would not prohibit the City from using the subject land for the purposes for which it was originally acquired. Appraisal Document The appraisal document submitted by George Hamilton Jones consists of 112 pages, much of it technical in nature.and.may be reviewed in the City Manager's office. On each lot or parcel a fair rental market value has been established. The appraisal-on November 19, 1980, was submitted to the Deputy Chief of the Division of Land TO: MAYOR AND CITY COUNCIL - Page Nine Management and Conservation for the State Lands Commission. He and his staff have thoroughly reviewed the appraisal and on March 11, 1981, approved of the appraisal concept and values established thereby. An itemized value for each lot will not be given in this report, but total value characteristics of the appraisal and current rent are as follows: 1. Total current annual rent received by the City from Beacon Bay residential - $ 11,664.00 2. Total annual fair market value as established by the appraisal and to be received by City - 424,375.00 3. Total annual value of property on tidelands - 234,874.00 4. Total annual value of property on uplands - 189,501.00 if the leases are approved and in subsequent years sales occur, the total annual return to the City will increase above that shown in paragraph 2 above by virtue of the fact that the City will receive 2 -1 /2m yearly of the sales price or base rental, whichever is the greater. Proposed Schedule it is proposed that the City Council review and approve the at- tached documents during the Council meeting of May 11th. The ap- proved documents will then be submitted to the Attorney General's Office and the Division of State Lands. The staff of the State Lands Division will prepare the necessary staff work and present the report and all documents to the State Lands Commission during the week of May 25th. This will permit the City to prepare TO: MAYOR AND CITY COUNCIL - Page Ten individual lease documents for all seventy -two (72) parcels. within Beacon Bay, plus the lease documents for the common areast and present these documents on or about June 1, 1981, for review and execution by the individual lessees and the Homeowners Associa- tion. During the month of June and prior to July 1, 1981, the City staff will meet, if necessary, with the Association and /or individual lessees to explain the documents and respond to any questions that they may have. Those lessees desiring to .sign must return the executed documents by July 1, 1981. Those not signing by July 1st may sign at a.later date, but will be charged a greater rental fee. Recommendation 1. That the City Council approve Resolution No. , approving an Agreement to Lease and Lease of Beacon Bay Residential Lots and Agreement to Lease and Lease of Beacon Bay Common Areas Consistent with Chapter 74, Statutes of 1978. 2. That the City Council approve of Resolution No. placing a trust restriction upon the City -owned parcel adjacent to Irvine Avenue and Monte Vista., Said trust provision permitting the site to be used as passive,recreation, an ecological unit for scientific study, open space, enhancement of the adjacent Department of Fish and Game Wildlife Preserve, and a vista for public enjoyment of the Upper Newport Bay. 3. That the staff be directed to transmit all documents to.the State Lands Commission for their review and approval; and 6 TO: MAYOR AND CITY COUNCIL - Page Eleven 4. That the staff be directed to submit individual leases to current lessees of Beacon Bay with the effective date being established as July 1, 1981. I BEACON BAY LEASE COMMITTEE Councilman Philip Maurer, Chairman Councilman Paul Hummel By RO�L. WYN4 City Manager w LAND LIh� ® WATER �! RESIDENTIAL 0 e COMMERCIAL - storage garages and slip rentals, apartments over storage garages, o restaurant, marine hardware store, �? boat yard, yacht brokerage. parking lot M s j� RAA {aR ISLAND pAIYL a (snyeloa calve) r L ok� N. LL-L. " /1'" 10.915 AcAf U.S. 6ULV446.7 LINL U.S. rIMW LINE. LEASE Of MHTED TfPUMV5 I FU 000 UFLAUDS J.A.bc>xC7. 0 G N 0 R T e city of Newport Beach Fw11: :a 9 OT AOVAMtL ,IX.M..A OWSI -M L -0 -17 0 f10 I sc- L =,--r E=E= N FEET EXHIBIT G (INTERIOR LOT 32) EFFECTIVE RENTAL VALUE CHANGE WITH ASSUMED 128 PER YEAR INCREASE BASIC FORMULA: R - A(1 -f)+Cf R = Effective Net Rent A - Base Rent x CPI Increase -$735 (Comm. Area Ad).) C - ExisUng Contract Rent I - Combined Present Worth and Annualizing Factor 8 Change Over $3,860.98 + '5.35 + 16. SS +24.11 +30.76 +45.04 +62.73 +80.95 +102.99 +127.73 +155.23 +184.62 +219.02 +256.80 + 299.89 +344.34 'N 1 fA EXAMPLE: INTERIOR PARCEL: LOT 32 Adjustment . New Months Factor 0 - Time Lease From I8/Mo. Base Adjusted Less Date 111/81 Cemeounding Rent Rental S 735 (A X (1 -f ) (C X ( ) 1 _ R 7/91 7 1.072135 x 7,750 - 8,309.05 - 735 - 7,574 x 0.4876140 + (327.42 x 0.512386) = 3.860.98 12/91 12 . 1.126825 x 7,750 = 8,732.89 - 735 7,998 x 0.4876140 + (327.42 x 0.512386) = 4,067,65 1/82 13 1.138093 x 7,750 - 8,820.22 - 735 = 8,085 x 0.537849 + (327.42 x 0.46215q . -- 4,499.95 7 /B2 19 1.200109 x 7,750 = 9,362.84 - 735 8.628 x 0.537849 + 1327.42 x 0.462151) - 4,791.79 12/62 24 1.269735 x 7,750 - 9,840.44 - 735 = 9,105 x 0:537849 + (327.42 x 0.462151) = 5,048.67 1163 25 1.282432 x 7,750 9,938.85 - 735 - 9,204 x 0.593991 + )327.42 x 0.406009) = 5.599.94 12183 36 1.430769 x 7,750 = 11,088.46 - 735 = 10,353 x 0.593991 + (327.42 x 0.406009) = 6,282.80 1184 37 1.445076 x 7,750 11,199.34 - 735 10,464 x 0.656998 + (327.42 x 0.343102) - 6,986.34 12184 48 1.612226 x 7,750 - 12,494.75 - 735 = 11,760 x 0.656698 + (327.42 x 0.343102) = 7.837.30 1 /85 49 1.628348 x 7,750 - 12,619.70 - 735 - 11,885 x 0.727591 + 4533.15 x 0.272409) - 8,792.44 12/8$ 50 1.816697 x 7,750 14,079.40 - 735 = 13,344 x 0.727591 + (533.15 x 0.272409) - 9.854.50 1/66 61 - 1.834064 x 7,750 - 14,220.19 - 735 = 13,485 x 0.907296 + (533.15 x 0.192704) = 10,989.28 12186 72 - 2.047099 x 7,750 - = 15,065.02 - 735 15,134 x 0.807296 + (533.15 x 0.192704) - 12,317.14 1107 73 2.067570 x 7,750 - 16,023.67 - 73S = 15,289 x 0.097495 + (533.15 x 0.102505) = 13.776.16 12187 94 2.306723 x 7,750 - 17,877.10 - 735 17,142 x 0.097495 + 4533.15 x 0.102505) - 15,439.60 O 1 /89 85 2.329790 x 7,750 - 18,055.87 - 900 = 17,156 x - - - 17,155.87 8 Change Over $3,860.98 + '5.35 + 16. SS +24.11 +30.76 +45.04 +62.73 +80.95 +102.99 +127.73 +155.23 +184.62 +219.02 +256.80 + 299.89 +344.34 'N 1 fA EXHIBIT G ( BAYFRONT PARCEL LOT 12) EFFECTIVE RENTAL VALUE CHANGE WITH ASSUMED 124 PER YEAR INCREASE BASIC FORMULA: R - A (1 -0 + Cf R = Effective Net Rent A - Base Rent x CPI Increase - $735 (Common area adjustment) C = Existing Contract Rent I - Combined Present Worth and Annualizing Factor EXAMPLE: BAYFRONT PARCEL: LOT 12 Less Adjustment New Months Factor 0 Time Lease From 181MO. Base Adjusted Date 111181 Cwsyundln0 Rent Rental 7181 7 1.072135 x 18,400 • 19,727.29 - 12181 12 11126825, x 18,400 = 20,733.58 - 1192 13 1.138093 x 10,400 - 20,940.92 - 7182 19 11208109 x 18.400 22,229.20 - 12182 24 1.269735 x 18,400 = 23,363.11 - 1183 25 1.282432 x 18,400 - 23,5 96.75 - 12183 36 1.430769 x 18,400 26,326.15 - 1184 37 1.445076 x 18,400 - 26,589.41 - 12184 40 1.612226 x 18,400 29,664.96 - Iles 49 1.628348 x 18,400 = 29,961.61 - 12185 60 1.816697 x 18.400 - 33,427.22 - 1186 61 1.834864 x 18,400 - 33,761.49 - 12186 72 2.047099 x 18,400 = 37,565.63 - 1107 73 2.067570 x 18,400 - 38,043.29 - 12187 64 - 2.306723 x 18,400 = 42,443.70 - 1 /88 85 2.329790 x 18,400 42,868.14 - Less . 8 Change $ 735 1 A 7C f 1 -f 1 • ( C X f) 3 _ R Over $9.667.62 735 • 18,992 x 0.4876140 + (793.76, x 0.512386) = 9.667.62 - 735 - 19,998 x 0.4876140 + (793.76 x 0.512386) 10,158.30 + 5.08 735 20,206 x 0.537849 + (793.76 x 0.462151) 11.234.57 + 16.21 735 21,494 x 0.537849 + (793.76 x 0.462151) = 11.927.47 +2 3.38 735 22,628 x 0.537849 + (793.76 x 0.462151) = 12.537.35 + 29.68 735 22,862 x 0.593991 + (793.76 x 0.406009) • 13,901.95 +43,00 735 = 25,591 x 0.593991 + .(793.76 x 0.406009) = 15,523.18 +60,57 735 25,854 x 0.656898 + (793;76 x 0.343102) - 17,256.04 +70.49 735 • 28,930 x 0.656898 + (793.76 x 0.343102) - 19,276.37 - + 99.39 735 = 29,227 x 0.727591 + (1,292.52 x 0.272409) - 21,617.11 + 123.60 735 • 32,692 x 0.727$91 + (1,292.52 x 0.272409) = 24,138.69 + 149.69 735 = 33,026 x 0.807296 + (1,292.52 x 0.192704) - 26,911.23 + 178.36 735 . 36,932 x 0.807296 + (1,292.52 x 0.192704) - 30.063.83 +210.97 735 • 37,308 x 0.897495 + (1,292,52 x 0.102505) - 33.616.50 +247.72 735 = 41,709 x 0.897495 + (1,292.52 x 0.102505) - 37,565.84 +288.57 900 41, %8 x - - - = 41. 968.14 + 334.10 s l� RESOLUTION NO. J_L0 Q 4• j ►': A RESOLUTION OF THE CITY'.COUNCIL OF THE CITY OF NEWPORT BEACH PLACING A TRUST RESTRICTION UPON THE CITY OWNED PARCEL ADJACENT TO IRVINE AVENUE AND MONTE VISTA AVENUE, CONSISTENT WITH CHAPTER .74 OF STATUTES 1978 WHEREAS, the City of Newport Beach is the trustee of the Newport Beach Tidelands Trust, hereinafter "the Trust," created by Chapter 74 of Statutes of 1978; and WHEREAS, the City of Newport Beach owns a certain parcel of real property overlooking Upper Newport Bay., the legal description of which is attached hereto,.marked Exhibit "A" and incorporated herein by this reference, hereinafter "West Bay parcel "; and WHEREAS, the City of Newport Beach desires to place the West Bay parcel into the Trust in conformance with Chapter 74 of Statutes 1978; and WHEREAS, the State Legislature,.in Chapter 74 of Statutes 1978, hereinafter "the ,Act ", found and.determined that the residential portions of Beacon Bay, defined in the Act as parcels A, B and C, including the streets and beaches,.,being a.re.latively small portion of the granted tide,and submerged lands were no longer required or needed for the promotion,of the Trust, with the exception of producing ,income for the benefit of.the Trust; and WHEREAS, the lots designated in the Act as.parcels A, Band C are filled and reclaimed, are no longer submerged or below the mean high tide line and are no longer needed or required for purposes of .navigation, commerce and fisheries and are to be freed of the public Trust for navigation, commerce and fisheries, consistent with the Act; and WHEREAS, when parcels A, B and C are freed from the Trust for navigation, commerce and fisheries, they shall continue to be held by the City of Newport Beach, subject to the other terms and provisions of the Act and other laws applicable to the tide and submerged lands included in the Grant to the City of Newport Beach; and WHEREAS, to free said parcels A, B and C from the Trust, the City of Newport Beach is required to transfer other property to the Trust; and WHEREAS, the City of Newport Beach desires to transfer the West Bay.parcel to the Trust; and WHEREAS, the transfer of the West Bay parcel to the Trust must be approved by the State Lands Commission, upon a determination that the transfer is appropriate, taking into consideration the size of the area affected by the termination, the Trust purposes that can be accomplished.by the transfer, and the value of the real property.transferred to the Trust; and WHEREAS, the approval of the. State Lands Commission will be reflected on a' document recorded transferring. the property to the Trust;,and WHEREAS, it has been determined by the City Council of the City of Newport Beach that the size o.f.the West Bay parcel, approximately six.(6)..acres compares favorably with the size of the parcels to be.released from the public Trust, approximately four (4) acres and WHEREAS, the State Lands Commission has..also..indicated..its determination that the..transfer of the West Bay parcel to the Trust is appropriate;.and WHEREAS, the.City Council of the City of Newport Beach.. i 0 desires to transfer the W.e.st Bay parcel to the Trust, consistent with The Act, and to provide that the Trust provisions of the Act shall be imposed upon the West Bay parcel, NOW, THEREFORE, BE IT.RESOLVED by the City Council of the City of Newport Beach that the transfer of Municipal property to City of Newport Beach Tidelands Trust, a copy of which document is attached hereto, marked Exhibit "B" and incorporated herein by this reference, be and it is hereby approved. BE IT FURTHER RESOLVED that the Mayor and City Clerk are hereby authorized and directed to cause said transfer of Municipal property to be executed and recorded in.the Office of the Orange County Recorder. Said execution and recordation, however, shall not be accomplished unless.and.until such time as the State Lands Commission Shall, have approved the transfer of Municipal Property.to the City of Newport Beach Tideland Trust, and indicated their approval thereof by executing said document. ADOPTED .this. day of MAY 11 ,.1981. . Mayor 1 ATTEST: City Clerk HRC /pr 5/11/81. 3 - 1 WEST BAY PARK SITE . All that portion of Blocks 4, 5 and 51, Irvine's Subdivision, in the City of Newport Saach, County .of Orange, State of California, as per rap filed in Book 1, Page 88; Miscellaneous Maps; records of said County, described as follows: Beginning at the southwesterly terminus of that certain counne in thS southeasterly right -of -way line of Irvine Avenue shown as North 40 38'10" East 333,39 feat on Sheet 5 of County Surveyor's Map 1 -72 on file in the office of the County S8rveyor.of:said County; thence along said right -of -way line North 40 38'10" East 303._39. feet; thence South 49 22'09 East 160.:00 feet to the beginning of a tangent curve concave..to.the north and having a. radius of 260.08 feet; thence easterly along said curve through a central angle of 64 14'30" a distance of 291.52 feet;..thence nontangegt to said curve South 19022'51" West 349:97 feet; - thence South .70937'09" East 31.97 eat to that certain course having a bearing and length, of South 53 22'27" Vlest 422.40 feet.in. the northerly boundary of that certain parcel of land described.i.n -deed to the State of California'reeorded in` Book 11382, Page.1876 $f Official Records of said'County. ;:thencs along said boundary South 53 24'17" West 338:26 feet; thence North 36 35'43" West 95.87 feet to a- point on a nontangent 175.00 foot radius cure that is concave to the northeast, a radial . to said point bears South 1 18'21" East; thence, northwesterly along said last mentioned curve, through a central angle of 72011'59 ", a distance of 220.52 feet to the beginning of a_ reverse curve concape.to the southwest, and having.a radius of 175.00 feet; thence northw8sterly along said last mentioned curve,.through a cetral angle of. 44 .45'00% ,a distance of, 136'.68 feet; thence North. 63"51 '22" West 23.07 feet to a point in the southeasterly right -of -way line of said Irvine Avenue, said point being in a 725:00 :foot radius curve . concave to the southeast, a..rad.ial to said point bears North 63 51'22" trod + nlnnn CM4,1 Inc+ fihv lln6 n - transferred to the Trust,, the, value of the parcel to be transferred; and the. Trust purposes that can be accomplished by such a.trans•fer; and WHEREAS., it has.been: determined. that.the size of the Subject Parcel, approximately six (6) acres,. compares favorably with the size -of the parcel to be released from the public Trust, approximately four (4) acres; that- the value - requirement is met; and that the Subject Parcel, in its present condition, would further the purposes of'the Trust by,serving as a site for passive recreation, an ecological unit for .scientific study, as open space, by-enhancing the adjacent Department of Fish and Game Wildlife. Preserve, and by providing a. panoramic vista of Upper Newport_ Bay. for public enjoyment; and.' WHEREAS, future development of.the..Subject Parcel will be.in conformance with the terms of the'Trust; and WHEREAS, on , the City Council of the,City'o.f Newport Beach approved this transfer of Municipal property ..to the.Tidelands Trust; and the State Lands Commission took the.action.r.equired by Chapter 74, Statutes of f 1978 with ..respect to the transfer.of the Subject - Property to the Trust on i NOW,. THEREFOREy.. THE CITY, in its Municipal capacity, does, hereby, by, virtue of.Chapter 74 of -the Statutes of 1978, transfer,. :convey and :quitclaim 'to itself in its capacity as Tr.ustee,otthe Tidelands T.rua.t,. .that certain parcel of:rea.l pro p erty, situated in the City of Newport Beach, County of orange:,7State of California, as more. particularly described is "Description.,of Subject, Parcel attached hereto and by this reference incorporated herein 2 �� oli nq J O vC. tl• 2Yy1oi `` �V n o.. tip` 2ti � .V t ; V h @ 07 sue.• , � � � roZ n tN t � J RESOLUTION NO.] :0,04, ! �I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APP.ROVING.AN AGREEMENT TO LEASE AND LEASE OF BEACON BAY RESIDENTIAL.. LOTS AND AGREEMENT TO LEASE AND LEASE OF BEACON BAY COMMON AREA CONSISTENT WITH CHAPTER..74, STATUTES OF 1978 AND THE CHARTER OF.THE'CITY OF NEWPORT BEACH WHEREAS, the City owns certain tidelands 'and uplands in an area known as Beacon Bay; and . WHEREAS, on January 9,.1950 City entered into a master. lease to said property with Carroll B. Beek.., Barton Beek, Joseph Allan Beek, Jr. and Seymour Beek jointly, which master lease expires on December 31, 1987 and WHEREAS, the westerly portion of the Beacon.Bay property has..been divided into individual lots and sublet for residential purposes; and WHEREAS,, all said subleases will.expire on the same' date as the master lease, December 31, 1987,; and WHEREAS, the City Council fi;nds'it.to be in the public interest and the welfare of the City that the 'portion .of Beacon. Bay which is currently leased for,,residential purposes remain residental in character -and that to enter into new agceements.to . lease with the sublessees under terms and conditions ".'set forth in the Agreement to Lease and Lease.is in the public interest; and WHEREAS, the 'City 'Council .,.finds "that it is in the .'best interest and welfare of the City that the streets,.walkways_, l common areas, landscaped areas, beaches and other areas presently leased to.the Beacon Bay Community Association should remain in said status in.consideration of.the Beacon Bay Community Association maintaining said areas at no expense to the City and furthey providing that the areas designated as tidelands within said leased area remain open, available and accessible to the public;. and WHEREAS, Chapter 74, Statutes.of 1978 permits the leasing of the.residential,lots in Beacon Bay which are located on tidelands;.and WHEREAS, said Statute provides that the maximum term of leases of residential lots in Beacon.Bay located on 'tidelands shall not exceed fifty years.; and WHEREAS, Section 1402 of the Charter-of the City of Newport Beach.permits the leasing and re- leasing of water front property, provided.the property was under lease as of January 11, 1957, the date of adoption.of said provision of the Charter of the City of Newport Beach; and WHEREAS, the City Council hereby finds.that. the maximum lease term for the. residential lots in Beacon Bay.shall not e exceed twenty -five years for the following reasons: A. Section 420 of the Charter of. the City of Newport Beach prohibits the City entering into a lease in excess of twenty =five years without voter approval. B.. The City Council finds.it undesirable:to commit the residential portion of Beacon Bay to residential .use for a period longer than twenty -five years. At. the termination of a twenty- five year lease renewal, the City Council of the-City of Newport. 2 � M Beach will be given another opportunity to determine whether or not residential uses on that property are appropriate or whether other uses are more appropriate. A.lease term.longer than twenty - five years would be an excessive commitment for this particular residential use.of tidelands and..uplands . property owned by the City of Newport Beach. C. The extension of the residential lease term beyond twenty -five years would-provide very little financial advantage to the City. :An analysis of- rental values has shown that a 35 year Lease will only increase the rental by. 12.48 per annum. Therefore, the modest increase in lease payments to the City do not offset the disadvantage of committing the land to.residential uses for a.period longer than twenty- five.years; and WHEREAS, the City Council hereby finds and determines that the leasing of.:the sub'jec.t property, it an act by the City of Newport Beach in its proprietary capacity and further that.the execution of the Agreements to Lease the, respective residential ; lots and the common areas in the westerly portion of Beacon Bay .,binds the City.of Newport Beach to execute the Leases of said properties in December, 1987; and said execution of,said Leases by and on behalf of the City of Newport Beach constitutes a ministerial act and.a furtherance of.the obligation of the City of Newport Beach hereby created. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport,Beach that pursuant to.the recitals hereinabove set forth, the Charter of the.City of.N.ewport Beach and Chapter 74, Statutes of 1978, the form of Agreement to Lease and Lease of the residential lots in Beacon Bay, respectively attached hereto, be and they are hereby approved. 3 ... BE IT FURTHER RESOLVED that the Agreement to Lease and Lease of the Common Area of Beacon Bay, respectively attached hereto, be and they are hereby approved. BE, IT FURTHER RESOLVED that the,.Mayor and.City`Clerk are hereby..authorized and directed to execute each individual Agreement to Lease the respective residential lots in the westerly portion of the Beacon Bay property and the common areas in the western portion of the Beacon Bay, property and that the Mayor and City Clerk of the City of Newport Beach are further authorized and directed to execute said Lease for the respective residential lots in the westerly portion of the Beacon Bay property and the common areas of the western portion of the Beacon Bay property during the month of December, .1987, provided that the Sublessees. and the Beacon Bay Community Association and their heirs, devisees, and assigns, as the case might be, have fully performed and executed their obligation under said Agreements to Lease. ADOPTED this _ day of M4Y t } ;01981.