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HomeMy WebLinkAboutSS7 - City Owned Lots Between 18th and 19th on Bay AvenueCITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER April 26, 1976 STUDY SESSION No. 7 TO: MAYOR AND CITY COUNCIL FROM: Administrative Assistant to the City Manager SUBJECT: CITY OWNED LOTS BETWEEN 18th and 19th ON BAY AVENUE The City of Newport Beach owns two surplus parcels of land, approximately 50 feet by 25 feet each on Bay Avenue between 18th and 19th Streets (see attached exhibit). Each parcel is now leased to adjoining property owners. An unsolicited offer was made by a private party through the City Manager's Office to purchase both of these parcels for $50,000 in May of 1972. The City Council referred this offer to the Parks, Beaches and Recreation Commission for review and comment. The Commission recommended in 1972 that rather than sell the property, the City retain the parcels, purchase additional adjacent lots and establish a municipal sailing center, as contemplated in the Newport Peninsula Tennis and Aquatic Center (Marina - park area) study plan. The City Council accepted the Parks, Beaches and Recreation Commission's recommendation at that time. In 1974, a recommendation to reconsider the possible sale of these parcels was again referred to the Parks, Beaches and Recreation Commission, and their recommendation at that time was that the two lots be retained until the outcome of the Marinapark was determined. The City Council again accepted the Parks, Beaches and Recreation Commission's recommendation. Recently, the City has completed negotiations of the extension for the Marinapark Mobile Home leases. Also, at the Parks, Beaches and Recreation Commission meeting of April 6, 1976 they adopted a new master plan for the Marinapark area which deleted the possible use of these two lots for a sailing center or any other use. Authorization for Sale. Section 1402 of the City Charter entitled "Waterfront Property" provides, in part, that "The City Council shall not sell or convey any waterfront or beach property excepting to the State or to the County for use as a public beach or park." Although Bay Avenue separates the properties from Newport Harbor, they were held to be "waterfront" properties within the meaning of the Charter. The City Charter was amended by a vote of the people on May 4, 1964, to authorize the City Council to sell the two pr"rcels. Various discussions were then held with the two parties now leasing the parcels. These negotia- tions were not fruitful and no action has been taken regarding the sale since 1966. Existing Leases. Marginal older structures are located on both of the parcels under authority of a lease agreement cancellable without cause upon 30 days written notice. Each lessee pays the City a modest $15 a month for utiliza- tion of this bay front property. The City had the lessee's improvements appraised on April 6, 1965, and the appraiser concluded that "It is our MAYOR AND CITY COUNCIL -2- 4/26/76 Subj: City Owned Lots Between 18th and 19th on Bay Avenue opinion that the present improvements are of no value and that a cost of approximately $350 will have to be absorbed by either the seller or the buyer of the subject property. These improvements consist of a small beach cottage partially on the easterly portion of subject and partially on adjoining Lot 8 to the south. A small detached single car garage is on westerly portion of subject." Summary. It is staff's opinion that these two lots are surplus parcels to the City and that in view of the size of these two lots, and the relation- ship to the adjacent public property, it would appear that future public use would be only problematical without the acquisition of a number of additional adjoining parcels. In view of the pressing demand for other open space and recreational facilities in the City, the feasibility and priority of such a plan should perhaps be reassessed. If Council were to consider selling these parcels, staff would suggest in order to maximize the utility of the land and to preserve a lot size in keeping with the neighborhood, that the two parcels be combined through the resubdivision process and sold as one to the highest responsible bidder. Council should be advised that if these parcels were sold, Council Policy F-8 states, "Revenues from the sale of City property or the sale of material from City property will be placed in the Capital Improvement Fund." Recommendations. If Council desires to sell these two parcels, staff would ask that Council consider the following actions: 1. Instruct staff to prepare the necessary application for resubdivision of the subject parcels and proceed through the Planning Commission; and 2. Instruct staff to prepare specifications for a sealed bid sale of subject parcels to the highest responsible bidder. ROBE T RJL:ib Attachment ny ilk) 4' 416-4e 472.r rolv Rl? 7 12 /.:y I kyt It. 17 /9 re tij f/— ACf // /O 19 i B 7 G � j% j 3 Z � �f0� 46L V40. -41-I-E-Y 1 Z,6-4-6,6D AR,6:4 40CIEWIV CITY OF NEW PORT B"-ACH PUBLIC WORKS DEPARTNIEl"4T BAY AVEINUE" PROPERTIES EASTERLY OF 19TH STR,'----,c_'T (FULTON AND STRAUB LEASES) AROW7* DRAWN-!! DATE APPROVED DRAWING NO. M - -.4