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HomeMy WebLinkAbout01/14/1974 Item #SS8CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER January 14, 1974 STUDY SESSION NO. TO: MAYOR AND CITY COUNCIL FROM: Lease Review Committee SUBJECT: BALBOA ANGLING CLUB - RENEWAL OF EXISTING LEASE By letters dated November 24, 1973, and December 3, 1973 (Exhibits A and B), the Balboa Angling Club has requested the City Council for an extension. oi the existing lease covering the Club's facilities at "A" Street and East Bay in Balboa for a 25 year term. A 25 year lease extension, instead of the precedent - ed 10 year renewal period, is requested so that capital expenditures of approxi- mately $5,000 to $6,000 can be made on both the clubhouse and dock facilities over a period of time that will not increase the Club's annual budget or detract from their other service programs. The history of the Balboa Angling Club goes back to 1926 when the Club was first organized to promote the conservation of fish in local waters and en- courage rod and reel fishing as a sport. In 1947, the Club built its own build- ing and dock facilities at the "A" Street location, with the approval of the City Council. This original lease, approved on April 28, 1947, was for a ten year term. On October 24, 1955, the City Council extended the lease for an additional ten years, commencing May 1, 1957, and ending on April 30, 1967. A third exten- sion was entered into commencing on May 1, 1967 and ending April 30, 1977.. The property covered by the original lease in 1947, and subsequently renewed, is depicted on Exhibit "C" and is described as follows: All that land within the northerly prolongation of A Street, as shown upon a map of Balboa Tract, recorded in Map Book 4, Page 11, records of Orange County, California and lying be- - 2 - tween the northerly line of Bay Avenue, as shown upon said map and the pierhead line as established by U.S. Government Engineers. The lease provisions; as currently written, and if extended, would provide for:' I. Recreational, educational and civic uses both for the Lessee and the public. 2. That the pier and building on the premises to inure to the benefit of the Lessor on termination of the lease. 3. That the Lessee is to keep said pier and building in good condition and repair. 4. That the Lessee shall not assign or sublet premises or Mort- gage of leasehold interests and improvements. 5. That the Lessee to pay all public improvement assessments due or to become due, all water rates, meter charges, and other charges, and all City, County, and State taxes on premises and leasehold interests. 6. That the Lessee shall insure the building, pier and improvements to maximum amount permitted, with extended insurance in favor of Lessor, and to carry liability clause which shall inure to benefit of Lessor. A summary of the existing lease is attached as Exhibit D. The primary objectives of the Angling Club, as stated in their letter dated December 3,.19.73, are to "promote the conservation of fish in local waters, compile and distribute scientific data relating to sport fishing, promote salt water rod and reel fishing as a sport and to promote sportsmanship among its 3- members and sports fisherman in general." In addition to these objectives the.Club outlined the following services they have provided. 1. Annual fishing`.trips for underprivileged children. 2. Junior fishing tournaments. 3. Official public weigh station. 4. Statistical.information and fish tagging in cooperation with State and Federal agencies. 5. Statistics, information, and specimens available for college and student research. 6. Financial aid to conservation projects, such as coastal kelp restoration and species control programs. 7. Fishing and boating information. 8. Daily manned ship -to -shore radio communications. 9. The building and facilities are available and have been used by civic groups such as the Power Squadron and Balboa Point Association. The facilities maintained by the Balboa Angling Club at their existing location are conducive to the public boating services described. The bayfront zone adjacent to the Club receives relative heavy boat usage because of the im- mediate proximity to Pete Hill's Standard vessel fuel station and the Balboa Pavilion. Attention is called to the requirement in the lease that the Balboa Angling Club make the facilities available to the public. As far as can be determined, the Angling Club has been complying with this requirement and a valuable public need is being met and financed by the Club. The use of this street end for swimming or sunbathing purposes would not be compatible with the existing close commercial vessel use and could constitute a conflicting • 1 • -4 i and hazardous situation for both swimmers and vessel sport fishermen. Section 1402 of the City Charter permits the City to renew the lease with the .following language: "No such property owned by the City shall be leased by the City unless and until the lessee thereof shall have been approved by a majority of the electors voting on such pro-, position at any general or special municipal election pro- vided, however, that this section shall not invalidate any lease of such property in existence at the time of the effective date of the Charter nor the future leasing or re- leasing of any such property under lease at the effective date of this Charter." Inasmuch as the Balboa Angling Club has been under lease and renewed without fault since 1947, the City would be empowered to renew the lease on this property without violating the Charter. ACTION: If the City Council desires, l) execute a 25 year lease.extension agreement; or 2) execute a 10 year lease extension agreement. LWRD ROGERS, MAYOR PRO TEM ROBERT__L_ WYNN, CITY NAGER � 1 ROBERT REED, MARINE SAFE DIRECTOR Attachments: Exhibits A, B C D & E November 24, 1973 City Council of Newport. Beach City IIall 3300 Newport Blvd. Newport Beach, California 92660 Gentlemens EXHIBIT A I The Balboa Angling Club was organized in 1926 with a primary goal "To promote the conservation of fish in local waters and rod and reel fishing as.a sport ". Since 1926 the club has leased its building Harbor from the'City and, during these past veloped a good working relationship with thi a aiunificant role in the community. Also, has become an important historical landmark sceno. site in Newport 47 years, has de- 3 City while playing the "D.A.C. clubhouse" in the Newport Harbor With its open door policy, the club services the entire fishing community acting as the official weigh station and fishing infor- mation center. The club has promoted and continues to promote press releases encouraging Newport Beach as a recreation center and emphasizing community participation. Our Junior Activities program is exten- sive and designed to benefit the youth of our community. Plans are now underway to provide refurbishing of the clubhouse interior while, at the same time, preserve its outside character. The Board of Directors, as trustees of the club funds, believe it advisable to obtain a new signed lease prior to the authorizing of funds for such an expenditure. We would like to extend an almost fifty - year working relationship with the City by respectfully requesting a twenty -five year lease of the Balboa Angling Clubhouso site. Yours truly, BAfL-BOA ANGL NG CLUB ..�9� YlC��GSiS G1� W. W. Anderson President WW`A/h s 3 BALB ®A ANGLING CLUB e BAIJ OIA, �WLIFORNIA "A" Street / Balboa, California 92661 December 3, 1973 The Honorable Mayor and City Counsel City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92660 Re: Request for Renewal of Existing Lease Gentlemen: MEMBER• INTERNATIONAL GAME FISH ASSOCIATION INTERNATIONAL LIGHT TACKLE TOURNAMENT ASSN. Phone 673 -3520 The Balboa Angling Club has been providing valuable public serv- ices to the Newport Beach community since 19.26. It is a non- profit corporation and is currently operating under a year to year lease from the City, terminating in 1975. In 1947, the Club built its own building and dock facilities over the water with only a small portion of the lease involving Upland pro- perty. We receive. no .financial support from the City.. The building and dock is in need of repair and we wish to make improvements involving an estimated capital expenditure of approximately $5,000 to $6,000. The Board of Directors cannot justify to the expenditure of capital funds on this facilit, acquire a renewed lease for a 25 year term. the capital investment to be recaptured over of time without increasing the annual budget our other services. membership the unless we can This will enable a reasonable period or detracting from The improvements are planned to preserve the traditional archi- tectural and landmark characteristics of the existing facilities. The historical significance of the Balboa Angling Club in New- port Beach can best be outlined as follows: 1. The organization was established in 1926 and its objectives are "to promote the conservation of fish in local waters, compile and distribute scientific data relating to sport fishing, promote salt water rod and reel fishing as a sport and to promote sportsmanship among its members and sportsfishermen in general." The Honorable Mayor and -2- 12/3/73 City Counsel' 2. The Ocean Fish Protective Association, a Statewide organization, was originally established by a Club member and has.received substantial financial aid from B.A.C. over the years. 3. We collect, preserve, and make available to all, a wealth of statistical and scientific data concerning fishing and fish in Southern California waters. 4. The Club building and facilities have become a landmark in Newport Bay with the Club and its members having received international recognition. Current public services provided by the Balboa Angling Club include the following: 1. Annual fishing trips for under priviledged children (non members). 2. Junior fishing tournaments, with awards, open to the general public. 3. Official public weigh station and photographic services of which over 65% are provided to the general public. 4. Provide statistical information and specimens to Federal and State agency conducted scientific studies on coastal fisheries including an active fish tagging and release program. 5. Supply colleges and students generally with records, data and specimens. 6. Contribute financial aid for such public orien- ted projects as coastal kelp and habitat restoration and species conservation programs. 7. Provide fishing and boating information to the general public. 8. Provide daily, manned ship to shore radio sta- tion facilities for emergency and general communication. 9.. The building and .facilities are available to, and have been used by, civic groups such as the Power Squadron and Balboa Peninsula Point Association. The Honorable Mayor and -3- 12/3/73 City ,Counsel It is respectfully submitted that the Balboa Angling Club fills a basic, publiq need for numerous special services in our boat and recreationAl community; and does so without cost to the taxpayers. Th4' Club is proud of its achievements over the past 50 years and is anxious to continue its roll of community serv- ice.. It is for that reason, we seek your support and approval by the renewal of our lease for 25 years. Very truly yours, WT W. ANDERSON, President Balboa Angling Club WWA /sah cc: Lease Committee 1. James Bridges 2. Edwin P. Martin 3.,- Helen Smith • • EXHIBIT C R 7' r:", IV I 7 � ._�O /75 QE5 .30 BAY VAC, )3 77 7 7 . vc jo XO 100 � p 2 � � I 6 f- 100 go 901 —73— 60 zo -- 0-, oMc�,- I 0 LOT C . p T y II. CITY OF NTWPORT BEACH OFFICE.OF TIE CITY MANAGER SU %= OF CITY'S BALBOA ANGLING CLUB LEASE GE1fiRAL 4NFORVATION Parties to Lease Date of Current.Lease Lease Duration City Council Approval Land Location Source of Ci Z's Title Approximate Area City of Newport Beach, Lessor The Balboa Angling Club, Lessee May 1, 1967 Ten years Original Lease: Amended: Extension: Extension: EXHIBIT D April 28, 1947 January 26, 1948 October 24, 1955 May 1, 1967 "A" Street and Bay Front. Tidelands and Uplands 2,880 square feet Current and Prior Lease Description The original lease was entered into on April 28, 1947, and subsequently amended on January 26, 1948. Before the expiration of the lease, an extension was entered into as of October 24, 1955. The lease was ex- tended until April 30, 1967. A ten year extension was entered into commencing on May 1, 1967, until April 30, 1977. Parcel An. Legal Description All that land within the northerly prblonga- tion of A Street,. as shown upon a map of Balboa Tract, recorded in Map Book 4, page 11, records of Orange County, California, and lying between the northerly line of Bay Avenue, as shown upon said map and the pierhead line as established by United States Government Engineers. LEASE PROVISIONS Purpose Recreational, educational and civic purposes, both for Lessee and the public. Rental Lessee to construct a pier on demised premises, and to erect an auditorium or build -, ing on said pier, within one year from date of lease. All improvements on premises to inure to the benefit of Lessor on termination of the lease. Maintenance and Repairs Lessee to keep said pier and building in good condition and repair. Assignability No assignment of lease or subletting of premises, and no mortgaging of leasehold interest or any improvements. BALBOA ANGLING CLUB Renewal Lessee to yield up irmhediate possession on termination of lease by forfeiture or lapse of time or pay $300 per month as liquidated damages for such time as possession is withheld. Terms of Default Upon default in any condition of lease by Lessee continuing for 60 days after written notice to Lessee, Lessor may declare term ended, re -enter premises and expel Lessee. Lessee waives compensation for forfeiture and demand for possession. Taxes Lessee to pay all public improvement assess - ments due or to became due, all water rates, meter charges, and other charges, and all city, county and state taxes on premises and leasehold interest. Insurance Lessee to insure building and pier to maximum amount.permitted, and to carry liability clause, which shall.inure to the benefit of the Lessor. III. LEASE ANENMENT PROVISION'S Rental In addition to above, all insurance payable by reason of the substantial destruction of buildings by fire or otherwise shall became the property of Lessor and considered reasonable rent of said building and premises, in event Lessee does not rebuild in six months and lease terminates. Should Lessee elect to rebuild, such insurance proceeds shall be used therefore and Lessee agrees to pay any additional amount required to fully complete building. Insurance Lessee to insure building and improvements to maximum amount permitted, against fire and other unavoidable accidents, with extended insurance in favor of Lessor, and to carry liability clause, which shall inure to benefit of Lessor. EXHIBIT E DRAFT EXTEI4SION OF LEASE AGREEMENT BALBOA ANGLING CLUB This Extension of Lease Agreement made.this day of , 1974, between the CITY OF NEWPORT BEACIi, a municipal corporation, hereinafter referred to as "City ", and the BALBOA ANGLING CLUB, a California corporation, hereinafter referred to as "Angling Club "; WITNESSETH: WHEREAS, The City and Angling Club entered into a lease agreement dated April 1, 1947, which provided for the leasing of certain City -owned real property located at the foot of "A" Street and the Bay Front on the Balboa Peninsula to the Angling Club for a term of ten years; and WHEREAS, said original lease was amended in certain respects by a.subsequent written agreement between the parties dated January 26, 1948; and WHEREAS, prior to the expiration of the term of said original lease, as amended, the parties by a written agreement entered into on October 24, 1955, extended the term of said lease to April 30, 1967; and WHEREAS, prior to the expiration of the.term of said original lease, as amended, the parties by a written agreement entered into on February 11, 1967, extended the term of said lease to April 30, 1977; and WHEREAS, the Angling Club has requested that the City Council approve a twenty -five year extension of the existing lease commencing on (date) , upon the same terms and conditions as contained in said existing lease; and WHEREAS, the City Council has determined that said request for a twenty -five year extension is in the best interests Of the City and the public and should be approved; 0 0 NOW,T11EREFORE, in consideration of their mutual promises and all of the covenants and conditions to be kept by each as set forth in the above mentioned agreements between the parties hereto, it is. agreed as follows. 1. That all of the terms and conditions of said lease agreement dated April 1, 1947, as amended by the subsequent agree- ment dated January 26, 1948, are incorporated herein as though set forth in full, and the parties hereto agree to be bound by all of the terms and conditions of said agreements for an additional period of twenty -five, commencing on (date) , and ending` (date) provided, however, that in the event either party wishes to cancel and terminate said lease prior to its expiration date, it may do so by giving the other party twelve months' prior notice in writing. IN WIT14ESS WHEREOF, the parties have executed this agree- ment as of the day and year first above written. APPROVED AS TO FORM: DENNIS O NEIL City Attorney CITY OF NEWPORT BEACH BY Mayor Attest: City Clerk CITY BALBOA ANGLING CLUB BY President Attest: Secretary ANGLING CLUB i BALBOA ANGLING CLUB • BALBOA, CALIFORNIA 'W' Street / Balboa, California 92661 December 3, 1973 The Honorable Mayor and City Counsel City of Newport Beach 3300 Newport Boulevard. Newport Beach, CA 92660 Re: Request for Renewal.of Existing Lease Gentlemen: MEMBER • INTERNATIONAL GAME FISH ASSOCIATION INTERNATIONAL LIGHT TACKLE TOURNAMENT ASSN. Phone 678 -5520 The Balboa Angling Club has been providing valuable public serv- ices to the Newport Beach community since 1926. It is a.non- profit corporation and is currently operating under a year to year lease from the City, terminating in 1975. In 1947, the Club built its own building and dock facilities over the water with only a small portion of the lease 'involving Upland.pro- perty. We receive no financial support from.the City. The building and dock is in need of repair and we wish to make improvements involving an estimated, capital expenditure of approximately $5,000 to $6,000: The Board of 'Directors cannot justify to the expenditure of capital funds on this facilit acquire a renewed lease for a 25 year term. the capital investment to be recaptured over of time without increasing the annual budget our other services. . membership the t unless we can This. will enable a reasonable period or detracting from The improvements are 'planned `to preserve the traditional archi- tectural and landmark characteristics of the .existing facilities. The historical significance of the Balboa Angling Club in.New- port Beach can best be outlined as follows: 1. The organization was established in _1926 and its objectives are "to promote the conservation of fish in local waters, compile and distribute scientific data relating to sport fishing, promote salt water rod and reel fishing as a. sport and to promote sportsmanship among its members and sportsfishermen in general." 0 • The Honorable Mayor and -2- 12/3/73 City Counsel 2. The ocean Fish Protective Association, a Statewide organization, was originally established by a Club member and has received substantial financial aid from B.A.C. over the years. 3." We collect, preserve, and make available to all, a wealth of statistical and scientific data concerning fishing and fish in Southern California waters. 4.. :The Club building and facilities have become a landmark in Newport Bay with the Club and its members having received international recognition. Current public services provided.by the Balboa Angling Club include the ,following: 1. Annual fishing trips for under priviledged children (non members). 2. Junior fishing tournaments, with awards, open to the general public. 3 Official public weigh station and photographic services of which over 65% are provided to the general public.. 4. Provide statistical information and specimens to Federal and State agency conducted scientific studies on coastal fisheries including an active fish tagging and release program. 5. Supply colleges and students generally with records, data and specimens. 6. .Contribute financial aid for such public orien- ted projects as coastal kelp and habitat restoration and species conservation programs. 7. Provide fishing and boating information to the general public. 8. Provide daily, manned ship to shore radio sta- tion facilities for emergency and general communication. 9. The building and facilities are available to, and have been used by, civic groups such as the Power Squadron and Balboa Peninsula Point Association. The Honorable Mayor and -3- 12/3/73 City.Counsel It is respectfully submitted that the Balboa Angling Club fills a basic., public need for numerous special services in our boat and recreational community; and does so without cost to the taxpayers. The Club is proud of its achievements over the past 50 years and is anxious to continue its roll of community serv- ice._ It is for that reason, we seek your support and approval by the renewal of our lease for 25 years. Very truly yours,. W. W. ANDERSON, President Balboa Angling Club WWA /sah cc: Lease Committee 1. James Bridges 2. Edwin P. Martin 3 ,;.. Helen Smith I i