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Home My WebLink About12 - Proposal of Success Braodcasting Company (Radio Station KOCM)City Council, Newport Beach City Hall 3300 Newport Blvd. Newport Beach, Calif. Gentlemen: KOCM•FM 103.1 THINK ORANGE SUCCESS BROADCASTING COMPANY 951 W. 16TH ST., NEWPORT BEACH CALIFORNIA - PHONE 646.0253 Sdp'tember 8, 1965 � J `. 10 Att: Miss Marjorie Schroeder, City Clerk This letter will serve as notice that Success Broadcasting Company hereby extends the term of that certain lease originally entered into between the City of Newport Beach and Newport -Costa Mesa Broadcasting, Inc., thereafter assigned to Success Broadcasting Company, through November 30, 1968. We wish, at this time, to request that our lease with the City of Newport Beach be amended in order to provide for a 10-year term. Our reason for making this request at the present time is that we are in the course of constructing very substantial improvements to the Station, including increas- ing the height of our tower. We have discovered, in the past few days, that very substantial unanticipated expenses, of a real property improvement nature, will be required in order to successfully complete the heightening of our tower. In view of these very substantial expenses, we feel that we should assure ourselves of a sufficient lease term to allow us to recover these expenses. (more) `e � Y City Council New t Beach Page 2 We propose the following amendments to the amended lease now in effect. Paragraph 1 of said License Agreement to be amended, as follows: "1. License Granted. City hereby grants to Licensee a permit and license to construct and maintain a radio transmitter within the City - owned building on said City land located 38 feet, more or less, from 16th Street and 53 feet, more or less, from the westerly boundary of said City - owned land, and to maintain the existing radio tower thereon which was constructed pursuant to this agreement. Any change in the type of cons- truction or the location of the radio tower is subject to the prior written approval of the City. Licensee may alter said City -owned building to accommodate its needs and may increase the size thereof up to 1,000 square feet; provided, however, that the plans for any such alterations or addition must be sub- mitted to City and approved in writing prior to any such construction." Paragraph 2 of the License Agreement to be amended, as follows: "2. Term. The term of this license began on March 1, 1961, and shall end on November 30, 1975." Paragraph 3 of the License Agreement to be amended, as follows: "3. Consideration. In consideration of this license, Licensee shall make the following payments to City for the periods of time speci- fied: (a) From October 1, 1964, through November 30, 1966, $525 per year. , (b) From December 1, 1966, through November 30, 1968, $600 per year, (c) From December 1, 1968 through November 30, 1971, $750 per year. (d) From December 1, 1971, through November 30, 1975, $900 per year." The balance of Paragraph 3 would remain the same as set forth in the amended lease. The amendments we have set forth above are intended to accomplish the following purposes: (1) Increase the term to ten years, (2) Allow us to expand our studio quarters to a maximum of 1,000 feet, in accordance with the growth of the Station and of the City. (more) City Council Newport Beach Page 3 We have provided for increased rental payments in keeping with the previous annual increases. As many of the Council Members are aware, since commencing operations in Newport Beach, we have invested approximately $50,000.00 in improvements to Station KOCM and have greatly improved the Station's ability to serve Newport Beach and to represent Newport Beach on the air. The requests set forth in this letter indicate, we believe, our faith in Newport Beach and our intention to continue to serve the City in the best way possible through the years. Respectfully submitted, SUCCESS BROADCASTING COMPANY *Philipavis, President 0 PCD:lr copy to: Mr. Harvey Hurlburt, City Manager CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER TO: CITY COUNCIL FROM: City Manager October 21, 1965 SUBJECT: PROPOSAL OF SUCCESS BROADCASTING COMPANY (RADIO STATION KOCM) As you know, Success Broadcasting Company has requested an extension of its lease until November 30, 1975. The existing lease runs until Novem- ber, 1968, with Council option to grant an extension until November 30, 1971. Researched information pertinent to this matter is outlined below. 1. The radio transmitting station, measuring 600 square feet and a 350 foot tower, are now located on a piece of City -owned property in the most westerly portion of Newport Beach. This parcel of land measures 200' by 300' (1.99 acres). Thus, company improvements occupy a very small proportion of this property, the largest portions being vacant.and occupied by two aban- doned City water reservoir tanks. The City has no plans at this time for future use of the property. If the existing lease is extended until 1975, Success Broadcasting proposes to expand the size of its transmitting station from 600 square feet to 1,000 square feet. If the lease is not extended until 1975, they will likely delay construction or possibly seek another suitable location. 2. The land is zoned M-1-A (Controlled Manufacturing). Our master plan of land use indicates that property in the immediate vicinity will be utilized and developed for industry. 3. This parcel of land has an informal appraised value of $85,000. 4. The property is situated in the path of the Inland Corridor route proposed by the City of Newport Beach. 5. We are currently receiving $43.75 per month from Success Broad- casting Company for the use of this property, to change to $50.00 per month as of December 1, 1966, in accordance with the existing lease. If the Council extended the lease through November 30, 1971, the monthly rental would be $62.50 from December 1, 1968. Their new proposal calls for the same rate structure to apply through November 30, 1971, with a monthly rental of $75.00 from then through November, 1975. If we allow an extension of the lease and permit an expansion of the building, it may behoove us to evaluate the current rental structure for a possible adjustment written into the lease amendment. 6. In addition, the City this fiscal year received $91.22 in property taxes from the broadcasting company. -2- 7. There are several manufacturing and industrial firms located near this parcel of land. Because there apparently is an overabundance of manufacturing property on the market at this time, it is doubtful that much additional rental could be received from any manufacturing concern that might be interested in the property. In addition, building starts are off, and financing is becoming more difficult. The residential real estate mar- ket, being off approximately 25%, is another indication that the disposal of the parcel would not yield a good price at this time. In view of the above factors, the following is recommended: 1. That, pending resolvement of the freeway route matter, the Council agree to extend the lease through November 30, 1971, in confor- mance with the terms of the lease (unless the freeway route requires aban- donment of the property before that date.) In addition, the Council might allow Success Broadcasting the option to extend the lease through Novem- ber, 1975, if the property is not affected by the freeway alignment. 2. That if the Council desires Success Broadcasting Company to remain in the City, it consider the feasibility of leasing them another parcel of City -owned land for their operations in the event the freeway route forces the company to relocate. Allowing the Company to lease a portion of the existing Big Canyon Reservoir site is one possibility which would offer them an excellent transmitting location. This, however, would be a costly move and would entail securing appropriate clearances from the Federal Communications Commission and Federal Aviation Agency. 3. That, in the meantime, Success Broadcasting Company be permitted to expand their studio quarters from 600 square feet to a maximum of 1,000 square feet to accommodate the growth of the station. They may not choose to expand and improve their facilities unless their lease is extended until 1975, but they should probably have the opportunity to do so. 4. That if their studio quarters are expanded, consideration be given to making an adjustment in their monthly rental payment. They should possibly be required to pay a larger sum for the privilege of using additional City -owned property. The only likely effect Council action would have on the existing lease at this time would be the amending of Section #1, "License Granted", to provide for expansion of the City -owned building up to 1,000 square feet; Section #2, "Term", to allow for an extension through 1975; and Section #3, "Consideration", to provide for an appropriate rental adjustment. The balance of the lease would remain unchanged. HARVEY L. HURLBURT HLH/JPD/mjc