HomeMy WebLinkAbout03 - Declaring a Portion of Eastbluff Park as Exempt Surplus Land, and a Lease Agreement for the Property with Boys and Girls Clubs of Central Orange CoastQ SEW Pp�T
CITY OF
z NEWPORT BEACH
c�<,FORN'P City Council Staff Report
April 25, 2023
Agenda Item No. 3
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Sean Levin, Recreation and Senior Services Director - 949-644-
3151, slevin@newportbeachca.gov
PREPARED BY: Lauren Wooding Whitlinger, Real Property Administrator,
Iwooding@newportbeachca.gov
PHONE: 949-644-3236
TITLE: Resolution No. 2023-20: Declaring a Portion of City -Owned Property
at Eastbluff Park Located at 2401 and 2555 Vista del Oro as Exempt
Surplus Land, and a Lease Agreement for the Property with Boys and
Girls Clubs of Central Orange Coast for Recreation Facilities
ABSTRACT:
Boys and Girls Clubs of Central Orange Coast (BGC) is a non-profit corporation operating
recreational centers throughout Orange County, for children in first through eighth grades.
BGC's club location in Eastbluff Park is open to all Newport Beach residents and
non-residents, and primarily serves students from Eastbluff Elementary School and
Corona del Mar Middle School. BGC is seeking the City Council's consideration to replace
its existing lease agreement with a new 30-year lease agreement (Agreement)
(Attachment B) for continued use of the recreation facilities at Eastbluff Park, located at
2555 Vista del Oro.
RECOMMENDATIONS:
a) Determine this action exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably
foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity
is not a project as defined in Section 15378) of the CEQA Guidelines, California Code
of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical
change to the environment, directly or indirectly;
b) Adopt Resolution No. 2023-20, A Resolution of the City Council of the City of Newport
Beach, California, Declaring a Portion of Eastbluff Park Located at 2401 and
2555 Vista del Oro, Newport Beach, California as Serving an Agency Use and Further
Declaring that Portion as Exempt Surplus Land;
c) Authorize the City Manager and City Clerk to execute a Lease Agreement with
Boys and Girls Clubs of Central Orange Coast for use at the City -owned Eastbluff
Park, located at 2555 Vista del Oro, in a form substantially similar to the agreement
prepared by the City Attorney; and
3-1
Declaring a Portion of City -Owned Property at Eastbluff Park Located at 2401 and
2555 Vista del Oro as Exempt Surplus Land, and a Lease Agreement for the Property
with Boys and Girls Clubs of Central Orange Coast for Recreation Facilities
April 25, 2023
Page 2
d) Approve a waiver of City Council Policy F-7 — Income and Other Property based on
the findings contained in this staff report and the Agreement, that conducting an open
bid process or changing the tenant would result in excessive vacancy, and the use of
the property provides an essential or unique service to the community and is of a
public benefit, and might not otherwise be provided where an open bid or full fair
market value of the property be required, and based on the unique services provided
by tenant, its board members are appointed through a process that ensures board
members maintain the requisite experience and contributions to the tenant's
operations.
DISCUSSION:
Eastbluff Park, located at 2401 and 2555 Vista del Oro (Property) (Attachment C), was
granted to the City of Newport Beach (City) by The Irvine Company in 1965, with deed
restrictions limiting use of the Property to public facilities. The Property was developed by
the City into a citywide recreation resource and operates today as a community park with
a baseball diamond, multi -purpose fields, a playground, and a view of the Back Bay of
Newport Harbor. In 1971, the City and BGC (which previously operated under the entities
Boys and Girls Club of Newport Beach and Boys and Girls Club of the Harbor Area)
entered into a lease for a portion of the Property, and BGC constructed the approximately
12,270-square-foot recreation building, which includes classrooms, offices and a full-size
gymnasium and outdoor basketball court (Premises).
The existing lease agreement was entered into by the City and BGC in 1998, and also
includes a portion of the adjacent Newport -Mesa Unified School District (District) property,
which was being utilized for the outdoor basketball court under a 1978 license agreement
with the District (Attachment C).
In 2018, with the existing lease set to expire in June 2023, BGC requested a new lease
from the City in conjunction with its plans to renovate and modernize the facility. The
$2,000,000 renovation project, completed in 2019, included a complete update of the
facility including electrical, plumbing, HVAC, the roof system and interior finishes. New
fixtures and furnishings were also purchased and installed.
Operation
Under the terms of the proposed Agreement, BGC is permitted to use the Premises to
operate athletic, educational, afterschool care, and technology -based programs to
instruct children of all ages to assist with character development and leadership skills.
The City has shared use of the gymnasium on the Premises in the evenings, three days
per week, for community basketball leagues. Additionally, when the Premises is not in
use by BGC, the City retains the right to utilize it as a community center for City
programming through the Recreation and Senior Services Department. The City may also
allow use of the Premises by youth -based community non-profit organizations through
the City's facility use and rental program. The City and BGC will meet regularly to agree
on programming and maintenance of the Premises.
3-2
Declaring a Portion of City -Owned Property at Eastbluff Park Located at 2401 and
2555 Vista del Oro as Exempt Surplus Land, and a Lease Agreement for the Property
with Boys and Girls Clubs of Central Orange Coast for Recreation Facilities
April 25, 2023
Page 3
Citv Council Policv F-7. Income and Other Propert
Due to BGC's long-term use of the property, the 2019 renovation, and the unique services
provided for children in the community, staff did not conduct an open bid process to solicit
proposals from other operators, as typically required by City Council Policy F-7, Income
and Other Property (Policy) (Attachment D).
An appraisal of the fair market rental value for the building and property was conducted
by R. P. Laurain & Associates, Inc. (Attachment E). The appraisal concluded annual fair
market value rent to be $56,894. Staff believes the following findings can be made, as
required by the Policy, when an open bid is not conducted, when less than fair market
value rent is received, and when the tenant is unable to comply with Section F.7 of the
Policy, and a waiver is requested:
1. Converting the property to another use or changing the operator of the property would
result in excessive vacancy, which would outweigh other financial benefits;
2. BGC provides an essential or unique service to the community that might not
otherwise be provided where full market value of the property be required;
3. With the recreation facility located at a community park with the use available to the
public, and rent charged at less than fair market value, the use provides a public
benefit to the community and is of statewide benefit and might not otherwise be
provided were an open bid or full fair market value of the property be required; and
4. BGC's by-laws and charter documents do not provide for the election of directors that
allows members to vote, however, based on the unique services provided by tenant,
its board members are appointed through a process that ensures board members
maintain the requisite experience and contributions to BGC (Attachment F). Further,
BGC will ensure its by-laws and charter documents has a governance and operational
structure that is consistent with best practices for non-profit corporations.
Summary of Terms
The proposed terms of the Agreement are summarized below-
1. The initial term is 30 years, with two 10-year extension options, for a total possible
term of 50 years, unless terminated earlier as provided by the Agreement.
2. Rent shall be set at $1 per year.
3. Additional consideration under the Agreement includes BGC's performance of any
improvements to the Premises at no cost to the City, (shared) City use of the
gymnasium portion of the Premises, and the right of the City to use the Premises for
additional recreational programming.
3-3
Declaring a Portion of City -Owned Property at Eastbluff Park Located at 2401 and
2555 Vista del Oro as Exempt Surplus Land, and a Lease Agreement for the Property
with Boys and Girls Clubs of Central Orange Coast for Recreation Facilities
April 25, 2023
Page 4
4. BGC shall obtain and maintain during the term of the Agreement all appropriate
permits, licenses, and certifications that may be required by any governmental
agency to operate its business.
5. BGC shall provide certificates of insurance to the satisfaction of the City's Risk
Manager, naming the City as additional insured.
The Agreement has been reviewed by the City Attorney's Office and has been approved
as to form. BGC has reviewed and approved the terms and executed the Agreement.
California Surplus Land Act
Assembly Bill 1486 was signed into law in 2019, went into effect in 2020, and made
significant changes to the California Surplus Land Act (SLA) (Government Code §54222).
In compliance with the updated SLA, prior to taking action to allow non -agency use of
City -owned land, the City Council is required to take formal action at a regular public
meeting to declare the property as surplus land (Attachment A). The Premises meets the
definition of exempt surplus land under the SLA because the area has been used for a
significant period of time as a community -serving recreational center that promotes the
goal of providing a public benefit. The Premises also meets the definition of exempt
surplus land as outlined in the SLA pursuant to Section 54221(f)(1)(G) of the California
Government Code because the property is prohibited from being developed or used for
residential purposes pursuant to the deed restrictions put in place when the property was
transferred to the City. These findings are outlined in the proposed resolution and will be
submitted to the California Department of Housing and Community Development for its
review pursuant to the changes to SLA under the 2019 bill.
FISCAL IMPACT:
Revenues collected pursuant to the proposed Agreement, $1 per year, will be posted to
the rental of property account in the Community Development Department (01050505-
551115).
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find approval of the Agreement is not subject to the
California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
3-4
Declaring a Portion of City -Owned Property at Eastbluff Park Located at 2401 and
2555 Vista del Oro as Exempt Surplus Land, and a Lease Agreement for the Property
with Boys and Girls Clubs of Central Orange Coast for Recreation Facilities
April 25, 2023
Page 5
ATTACHMENTS:
Attachment A — Resolution No. 2023-20
Attachment B — Lease Agreement with Boys and Girls Clubs of Central Orange Coast
Attachment C — Maps
Attachment D — City Council Policy F-7, Income and Other Property
Attachment E — Appraisal Report by R.P. Laurain & Associates, Inc., dated April 23, 2019
Attachment F — Letter from Boys and Girls Clubs of Central Orange Coast
3-5
Attachment A
Resolution No. 2023-20
3-6
RESOLUTION NO. 2023-20
A RESOLUTION OF THE CITY COUNCILOF THE CITY
OF NEWPORT BEACH, CALIFORNIA, DECLARING A
PORTION OF EASTBLUFF PARK LOCATED AT 2401
.AND 2555 VISTA DEL ORO, NEWPORT BEACH,
CALIFORNIA AS SERVING AN AGENCY USE AND
FURTHER DECLARING THAT PORTION AS EXEMPT
SURPLUS LAND
WHEREAS, the City of Newport Beach ("City") is the owner of that certain real
property known as Eastbluff Park located at 2401 and 2555 Vista del Oro, Newport Beach,
California, identified by Assessor Parcel Numbers 440-161-06 and 440-161-05, and
depicted in Exhibit "A," which is attached hereto and incorporated herein by reference
("Property");
WHEREAS, the Property was conveyed to the City by The Irvine Company
("TIC") by grant deed which is attached hereto as Exhibit "B," and incorporated herein
by reference ("Deed");
WHEREAS, the Deed restricts the use of the Property to a public park and other
public facilities including a fire station, public library, and a community center building for
cultural and recreational purposes in addition to its use as a public park ("Deed
Restriction"),
WHEREAS, in accordance with the Deed Restriction, the City established
Eastbluff Park at the Property and is identified in the Recreation Element of the Newport
Beach General Plan as a public park that serves the community;
WHEREAS, since June 30, 1971, in accordance with the Deed Restriction, the
City has leased a portion of the Property as depicted in Exhibit "C," which is attached
hereto and incorporated herein by reference ("Premises") to the Boys & Girls Clubs of
Central Orange Coast ("BGC") and its predecessors, for the operation of a recreation
center for boys and girls;
WHEREAS, on February 1, 1978, the City and Newport -Mesa Unified School
District ("District") entered into a license agreement for the City and BGC to utilize a
portion of the District's property, as depicted in Exhibit "C" ("District Property"), adjacent
to the Premises for use of basketball courts to serve the community;
WHEREAS, BGC has continuously operated both the Premises and the District
Property as a single recreation facility in accordance with the Deed Restriction,
3-7
Resolution No. 2023-
Page 2 of 4
WHEREAS, the City proposes to enter into a new, lease agreement with BCG for
the Premises to continue operating a recreation center to serve the community
consistent with the allowed uses in the Deed Restriction;
WHEREAS, Government Code Section 54220 et seq. ("Surplus Land Act") sets
forth specific requirements for the disposal of real property where the property is no
longer required for the agency's use and is not declared exempt surplus; and
WHEREAS, a public meeting was held by the City Council on April 25, 2023, in
the Council Chambers located at 100 Civic Center Drive, Newport Beach, California. A
notice of time, place and purpose of the public meeting was given in accordance with
California Government Code Section 54950 et seq. ("Ralph M. Brown Act").
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The Premises which is located within Eastbluff Park and identified in
the City of Newport Beach General Plan as a public park serves an "agency use" as that
phrase is defined in Section 54221 of the California Government Code. Therefore, the
Premises are not subject to the Surplus Land Act, The Premises have been utilized for
a significant period of time as a community -serving recreational center that promotes the
goal of providing a public benefit, pursuant to Council Policy F-7 and complies with uses
identified in the Deed Restriction.
Section 2: Additionally, the Premises are exempt surplus land pursuant to
Section 54221(f)(1)(G) of the California Government Code since the Deed Restriction
prohibits the use of the Premises for residential purposes and any violation of the Deed
Restriction would result in reversion of the Premises back to TIC.
Section 3: The City Manager is hereby authorized to do all things which are
necessary or proper to effectuate the purpose of this resolution, and any such actions
previously taken are hereby ratified and confirmed.
Section 4: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
RE
Resolution No. 2023-
Page 3 of 4
Section 5: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality, of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 6: The City Council finds the adoption of this resolution is not subject to
the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly. Additionally, adoption of this resolution is categorically exempt pursuant to
Section 15301 under- Class 1 (Existing Facilities) of the CEQA Guidelines. Section 15301
(Existing Facilities) exemption includes the operation, repair, maintenance, permitting,
leasing, licensing, or minor alteration of public or private structure, facilities, mechanical
equipment, or topographical features, involving negligible or no expansion of use. The
underlying action involves entering a lease, and, meets the criteria for an exemption
pursuant to Section 15301.
3-9
Resolution No. 2023-
Page 4 of 4
Section 7: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 25th day of April, 2023.
Noah Blom
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aa roa rp
City AForney
Attachment(s): Exhibit A — Property Depiction
Exhibit B — Grant Deed
Exhibit C — Premises and District Property Depiction
3-10
EXHIBIT A
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3-12
and northerly 01.58 feet along eaid'.eurne having a radius `.
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a'radial line of said curve to said -point beats South,
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visterly having a radius of, 400.00 feet' thence northessterlj!
SAW northerlj* 322.2g Yeet .along said lsisve through so' angle.
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3-13 .
EXHIBIT C
DEPICTION OF PREMISES AND DISTRICT PROPERTY
3-15
Attachment B
Lease Agreement with Boys and Girls Clubs of Central Orange Coast
3-16
LEASE AGREEMENT BY AND BETWEEN
THE CITY OF NEWPORT BEACH AND
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST
FOR A PORTION OF EASTBLUFF PARK
THIS LEASE AGREEMENT ("Lease") is made and entered into this day
of , 2023 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a
California municipal corporation and charter city ("Lessor"), and BOYS & GIRLS CLUBS
OF CENTRAL ORANGE COAST, a California nonprofit corporation ("Lessee"). Lessor
and Lessee may individually be referred to as "Party" and collectively referred to as
"Parties" herein.
RECITALS
A. Lessor holds title to Eastbluff Park, located at 2401 and 2555 Vista del Oro,
Newport Beach, California 92660, Assessor's Parcel Numbers 440-161-06 and
440-161-05 ("Property"). The Property is more particularly described as set forth
in the legal description in Exhibit "A" and as more particularly depicted in Exhibit
"B," both ofwhich are attached hereto and incorporated by reference.
B. The Property was granted to Lessor by The Irvine Company ("TIC") in a deed
recorded on May 17, 1965 as Document No. 11760 in Book 7522, pages 161-166
inclusive, Official Records of Orange County ("Deed") and, among other things,
the Deed restricts the use of the Property to certain public facility uses.
C. Lessee is a nonprofit corporation created for the principal purpose of constructing,
operating and maintaining recreational centers for boys and girls.
D. Lessee operates a recreational center, currently operating under the name of Boys
& Girls Club of Newport Beach ("BGC Newport Beach") on said Property.
E. On June 30, 1971, Lessor and Boys' and Girls' Club of the Harbor Area ("BGCHA")
entered into a lease agreement ("Original Lease"), whereby Lessor leased to
BGCHA a portion of the Property. The Original Lease expired on June 30, 1996
and BGCHA held over under the terms of the Original Lease on a month -to -month
basis until June 21, 1998.
F. On February 1, 1978, Lessor and Newport -Mesa Unified School District ("District")
entered into a license agreement, allowing Lessor, acting through BGCHA, to go
upon a portion of the District's property, as more particularly depicted in Exhibit "C"
attached hereto and made a part hereof by this reference ("District Property"), for
the purpose of construction, maintenance and operation of a basketball court
("License Agreement").
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G. Over the term of the Original Lease, and pursuant to its terms and the terms of the
License Agreement, improvements were constructed on the Property and District
Property, including an approximately twelve thousand two hundred seventy
(12,270) square foot recreation building ("Recreation Building"), which includes a
full-sized gymnasium ("Gymnasium"), and an outdoor basketball court ("Basketball
Court") (hereafter collectively referred to as "Recreation Facilities").
H. On June 22, 1998, Lessor and BGCHA entered into a new lease agreement
("Existing Lease") whereby Lessor leased to BGCHA a portion of the Property and
the District Property.
On or around July 1, 2016, BGCHA merged with and into the Boys' and Girls' Club
of Santa Ana, a California nonprofit public benefit corporation ("BGCSA"), with
BGCSA continuing as the surviving corporation and immediately changing its
name to Boys & Girls Club of Central Orange Coast and the Existing Lease was
assigned to Lessee in accordance with the Landlord Consent to Assignment and
Assumption of Lease by Operation of Law, dated September 14, 2016.
J. Pursuant to Lessee's written notice to Lessor, in 2019, Lessee performed
renovations to modernize the Recreation Facilities, including increasing capacity,
updating technology, and creating safer and more functional program space, and
requested a fifty (50) year lease extension in order to help obtain funding for the
renovation project.
K. The Existing Lease expires on June 30, 2023, and the Parties desire to enter into
this Lease for a new term subject to the terms and conditions contained herein as
of the Effective Date. Execution of this Lease shall concurrently terminate the
Existing Lease.
L. City Council Policy F-7 provides that if the lessee is not a statewide or national
nonprofit organization, the By -Laws and charter documents of such lessee must
(i) establish a procedure wherein the election of directors of such lessee is
accomplished by an open, democratic and transparent process that allows
members to vote, (ii) has a governance and operational structure that is consistent
with best practices for non-profit public benefit corporations as determined by the
City Council, and (iii) cannot be amended without the prior written consent of the
City as lessor. The City Council hereby waives (i), and correspondingly (iii) to the
extent it applies to (i). Lessee's By -Laws and charter documents do not provide
for the election of directors that allows members to vote. However, based upon
the unique services Lessee provides, its board members are appointed through a
process that ensures board members maintain the requisite experience and
contributions to BGC.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS
hereinafter set forth, it is agreed as follows:
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1. DESCRIPTION OF LEASED PREMISES
Lessor hereby leases the portion of the Property, the District Property, and the
parking lot (collectively "Premises") depicted in Exhibit "D" attached hereto and
incorporated by reference, to Lessee and Lessee leases the Premises from Lessor for
the term specified in Section 2 and on the conditions contained in this Lease. Lessee
agrees that no representations with respect to the condition or improvements on the
Premises have been made by Lessor except as specifically set forth in this Lease, and
are otherwise being delivered in an "as -is" condition.
2.1 Initial Term. Lessor hereby leases the Premises to Lessee for the purposes
only as described in this Lease, and subject to the terms and conditions contained herein,
for a term of thirty (30) years beginning on the Effective Date ("Initial Term").
2.2 Option to Extend. Provided Lessee is not then in default beyond applicable
notice and cure periods provided herein, upon Lessee's request and Lessor's approval of
such request, Lessee may extend the term of this Lease for two (2) additional consecutive
terms of ten (10) years (the "First Option Term" and "Second Option Term" respectively),
the first commencing on expiration of the Initial Term and the second commencing on
expiration of the First Option Term, on the same terms and conditions as contained in this
Lease as it may be amended from time to time. Lessee must exercise the option by giving
Lessor written notice of its intention to extend the Term for the Option Term at least ninety
(90) calendar days prior to expiration of the Initial Term or the expiration of the first Option
Term, as the case may be.
2.3 Terms of Lease. The "Term" as used herein is defined as the Initial Term
and, as exercised, the Option Term(s).
2.4 Holdover. This Lease shall terminate and become null and void without
further notice upon the expiration of the Term of this Lease or any Option Term. Any
holding over by Lessee after the expiration of the Term shall not constitute a renewal or
extension and shall not give Lessee any rights in or to the Property, or any part thereof,
except as expressly provided in this Lease. Any holding over after the expiration of the
Term with the consent of the Lessor shall be construed to be a tenancy from month -to -
month on the same terms and conditions set forth in this Lease insofar as such terms and
conditions may be applicable to a month -to -month tenancy ("Holdover Term"). The
month -to -month tenancy may be terminated without cause by Lessee or Lessor upon
thirty (30) calendar days' prior written notice to the other Party.
2.5 Termination of Use of District Property. Lessor has the right to immediately
terminate Lessee's use of the District Property with written notice to Lessee. If required
by Lessor, Lessee agrees to remove the Basketball Court and any improvements from
the District Property and restore the District Property to, as near as possible, it's original
condition and in a timeframe required by Lessor.
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3. CONSIDERATION
3.1 The consideration for this Lease shall be the payment of rent, Lessee's
agreement to perform any improvements as required under this Lease, the continued
maintenance and operation of the Premises for the Term of the Lease at no cost to
Lessor, the commitment of Lessee to operate the Premises as a boys' and girls'
club as provided in Section 5, and the right of Lessor to utilize the Premises as provided
in Section 6.
3.2 In accordance with City Council Policy F-7, whenever an open bid process
is not conducted or fair market value rent is not received for the use of City property, the
City shall make specific findings setting forth the reasons thereof. The City finds that
Lessee provides an essential or unique service to the community that might not otherwise
be provided were full market value of the property required. Additionally, as the rent being
charged is less than fair market value, the City Council finds this use provides a public
benefit to the community by providing recreational facilities to the public and is therefore
a matter of citywide benefit. These findings by the City are of a citywide concern in that
the beneficial uses of the Property might not otherwise be provided were full market value
of the Property required.
4. RENT
4.1 Lessee shall pay to Lessor, and Lessor shall accept as rent for the
Premises, the sum of One Dollar and 00/100 ($1.00) per year ("Rent"). Rent for the entire
Initial Term shall be due and payable within thirty (30) days of the Effective Date. Rent for
the Option Term(s) shall be due and payable on the expiration of the Initial Term and the
expiration of the first Option Term, respectively.
4.2 Payment Location. All payments of Rent shall be made in lawful money of
the United States of America and shall be paid to Lessor in person or by United States'
mail, or overnight mail service, at the Cashier's Office located at 100 Civic Center Drive,
Newport Beach, California, 92660, or to such other address as Lessor may from time to
time designate in writing to Lessee. If requested by Lessor, Lessee shall make payments
electronically (at www.newportbeachca.gov) or by wire transfer (at Lessee's cost).
Lessee assumes all risk of loss and responsibility for late charges and delinquency rates
if payments are not timely received by Lessor regardless of the method of transmittal.
5. USE OF PREMISES
5.1 Lessee shall use the Premises, solely and exclusively, to manage and
operate an athletic, educational and technology based program, which will, among other
things, instruct children of all ages in fitness and health programs, technology, S.T.E.M.
education, 21St century skill development, character development, and leadership skills.
The Premises will be available to children regardless of their place of residence. Lessee
shall operate and manage the Premises in a manner which does not violate state or
federal discrimination laws. Lessee shall make all services, programs and facilities
available to the public on fair and reasonable terms.
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5.2 Lessee shall not grant any sublease, concession, license, permit or
privilege for the conduct of any business or other operation for profit on the Premises
without the prior written approval of the City Manager.
5.3 When the Premises are not in use by Lessee, the Premises shall be
available for use as a community center by the City's Recreation and Senior Services
Department on a first -priority basis, and by youth -based community non-profit
organizations in accordance with reasonable rules and regulations to be established by
Lessee. Lessee is authorized to charge a reasonable fee to cover maintenance costs to
groups and organizations, other than Lessor, for the use of the Premises.
5.4 If, at any time during the Term of the Lease, it is found that the use of the
Premises is not allowed by TIC per the deed restrictions contained in the Deed, Lessor
has the right to terminate this Lease with thirty (30) calendar days' written notice to
Lessee.
6. SHARED USE OF PREMISES
6.1 The Gymnasium, which includes use of the bleachers, scoreboards,
scoreboard controls, tables and chairs, shall be exclusively used by Lessor every
Monday, Wednesday, and Thursday year-round, from 6:15 p.m. to 10:00 p.m., or as may
be amended by written agreement of both Parties.
6.2 Lessor and Lessee shall meet regularly and proactively as needed to
mutually agree on any desired classes to be offered at the Premises through the City's
Recreation and Senior Services Department ("RSS Department").
6.3 Both Lessor and Lessee shall have access to the Premises including keys,
codes, or other means of access (collectively "locks") for entrance into the Premises.
Lessee and Lessor shall each maintain a list of authorized personnel who have access
to or possession of any locks to the Premises.
6.4 City's use of the Premises shall be for use as a community center or
recreation center by the RSS Department. However, Lessor agrees not to schedule use
by co -sponsored groups with programs that compete with Lessee's club programs without
prior written mutual agreement of the Parties.
6.5 The Parties shall communicate and cooperate, acting reasonably and in
good faith, in scheduling the use of the Premises in a manner which:
6.5.1 Maximizes the use of the Premises;
6.5.2 Promotes community outreach;
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6.5.3 Does not cause any undue noise between the hours of 10:00 p.m.
and 7.00 a.m. (i.e., deliveries, facilities or landscape maintenance);
and
6.5.4 Does not violate any law.
6.6 Notwithstanding any exclusive access to the Premises reserved to either
Party by the terms of this Lease, all conflicts in scheduling for use of the Premises which
are not resolved by staff, shall be discussed between Lessor's Recreation and Senior
Services Director ("RSS Director") or designee and Lessee's Chief Executive Officer. In
the event a conflict in scheduling for use of the Premises cannot be mutually resolved
following good faith and reasonable efforts, the decision of the RSS Director or designee
shall be final.
7. CAPITAL IMPROVEMENTS
7.1 Lessee recently completed a major renovation of the Premises
("Improvements") as further described in Exhibit "E", attached hereto and incorporated
herein by reference. Lessee represents and warrants that the Improvements were
approved by the City's Zoning Administrator and obtained in compliance with the City's
charter, municipal code and zoning code, state or federal law. Lessee shall maintain the
Premises and Improvements in compliance with the terms of this Lease, and more
specifically as set forth under Section 14.
7.2 Lessee may make additional improvements to the Premises throughout the
Term ("Additional Improvements"), with the prior written consent of Lessor. Improvements
and Additional Improvements are collectively referred to as "Improvements" herein.
7.3 Lessee shall be required to obtain, prior to commencing the construction of
any Improvements, all permits, licenses or approvals that may be required from any local,
state or federal entities.
7.4 No Improvements shall be erected or maintained on the Premises unless
and until plans and specifications for the proposed scope of work have first been
submitted to and approved, in writing, by Lessor.
7.5 Lessee shall, at all times, indemnify and hold Lessor harmless from any and
all claims for labor or materials in connection with the construction, repair, or installation
of any structure, capital improvement, equipment or facilities on the Premises and from
the costs of defending such claims, including reasonable attorney's fees. Lessee shall not
suffer or permit to be enforced against the Premises, or any part thereof, any mechanic's,
materialmen's, contractor's or subcontractor's liens arising from, or any claim for damage
growing out of, the work of any construction, repair, restoration, replacement or
improvement or any other claim or demand arising from Lessee's operations under this
Lease. In the event any lien or stop notices imposed or recorded on the Premises as a
result of the construction, repair or alteration of the facility, Lessee shall pay or cause to
be paid all such liens, claims or demands before any action is brought to enforce the
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST Page 6
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same against the leased Premises. Notwithstanding anything to the contrary contained in
this Section 7.5, if Lessee shall in good faith contest the validity of such lien, claim or
demand, then Lessee shall, at its expense, defend itself and Lessor against the same
and shall pay and satisfy any adverse judgment that may be rendered thereon, before the
enforcement thereof against Lessor or the Premises upon the condition that if Lessor shall
require, Lessee shall furnish to Lessor a surety bond satisfactory to Lessor in an amount
equal to such contested lien, claim or demand indemnify Lessor against liability for the
same and holding the leased Premises free from the effect of such lien or claim.
7.6 Before the commencement of any work or construction of any building
structure or other improvement on the Premises, or of any substantial repairs, alterations,
additions, replacement or restoration, in or about the Premises, Lessee shall give Lessor
advanced written notice which specifies the nature and location of the intended work.
Lessee shall coordinate with Lessor for the scheduling of any work so that the work does
not excessively burden Lessor's use of the Premises.
7.7 Lessor reserves the right to require Lessee to obtain performance and/or
labor and materials bonds for Improvements. Lessor shall have the right, in its sole
discretion, to require Lessee to furnish a surety bond satisfactory to Lessor to fully protect
the Premises and Lessor from the effect or enforcement of any lien, claim or demand.
8. TIME OF OPERATIONS
Lessee shall keep the Premises open for use during the periods of time as may
be mutually agreed upon by Lessee and Lessor and shall not close said Premises from
use or substantially alter the type of services provided or facilities offered, without first
obtaining the written approval of the RSS Director.
9. MANAGEMENT
Lessee agrees that at all times during the Term, the BGC Newport Beach will be
managed by a Qualified Manager, as defined below, and operated by Lessee or an
Affiliate of Lessee, as defined below. A Qualified Manager is an experienced operator
with a good reputation for honesty and integrity and experience in the operation and
management of recreational clubs. An Affiliate means any individual, corporation, partner,
partnership, limited liability company, trust or other entity which directly or indirectly
controls, is directly or indirectly controlled by or is under common control, whether it be
direct or indirect, with the Lessee and has the financial ability to perform its obligations
under a management agreement for the management and operation of the BGC Newport
Beach.
10. UTILITIES AND TAXES
10.1 Utilities. Lessee shall make arrangements for and be responsible for
payment, prior to the delinquency date, all charges for utilities furnished to or used on the
Premises including, without limitation, gas, electricity, sewer, water, refuse collection,
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST Page 7
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telephone service, and cable TV. Satisfactory evidence of such payments shall be
delivered to Lessor within seventy-two (72) hours of a written request for such information.
10.2 Refuse Collection. Refuse collection may occur between 7:00 a.m. and 6:00
p.m. on non -holiday weekdays.
10.3 Payment of Taxes. Lessee shall pay directly to the appropriate taxing
authorities all taxes applicable to this Lease, fixtures and Lessee's personal property on
the Premises, that are levied or assessed against Lessee during the Term. Taxes shall
be paid before delinquency and before any fine, interest or penalty is due or imposed by
operation of law. Lessee shall, upon request, promptly furnish to Lessor satisfactory
evidence of payment. Lessor hereby gives notice to Lessee, pursuant to Revenue and
Tax Code Section 107.6 that this Lease may create a possessory interest that is the
subject of property taxes levied on such interest, the payment of which taxes shall be the
sole obligation of Lessee. Lessee shall advise in writing any subtenant, licensee,
concessionaire or third party using the Premises of the requirements of Section 107.6.
Lessee shall pay, before delinquency all taxes, assessments, license fees and other
charges ("Taxes") that are levied or assessed against Lessee's interest in the Premises
or any personal property installed on the Premises.
10.4 Payment of Obligations. Lessee shall promptly pay, when due, any and all
bills, debts, liabilities and obligations incurred by Lessee in connection with Lessee's
occupation and use of the Premises including the construction and/or maintenance of the
Improvements.
10.5 Reserved.
10.6 No Rent Offset. Any payments under this Section 10 shall not reduce or
offset Rent payments. Lessor has no liability for such payments.
11. INSURANCE
Without limiting Lessee's indemnification of Lessor, Lessee shall provide and
maintain at its own expense during the term of this Lease policies of liability insurance
of the type and amounts described in Exhibit "F," which is attached hereto and
incorporated herein by reference.
12. HOLD HARMLESS
12.1 Lessee agrees to indemnify, defend and hold harmless District, and Lessor
and its elected and appointed officers, agents, officials, volunteers, employees and any
person or entity owning or otherwise in legal control of the Property (collectively, the
"Indemnified Parties") from and against any and all claims (including, without limitation,
claims for bodily injury, death or damage to property), demands, obligations, damages,
actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and
expenses (including, without limitation, attorney's fees, disbursements and court costs)
of every kind and nature whatsoever (individually, a "Claim;" collectively, "Claims"), which
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST Page 8
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may arise from or in any manner relate (directly or indirectly) to Lessee's, Lessee's
employees, contractor, subcontractor, agents, guests, invitees, sublessee's possession,
occupation or use of the Premises, specifically including, without limitation, any claim,
liability, loss, or damage arising by reason of:
12.1.1 The death or injury of any person or damage to personal property
related to a condition of the Premises or an act or omission of Lessee or an agent,
contractor, subcontractor, supplier, employee, servant, or sublessee of Lessee,
12.1.2 Any work performed on the Premises including the construction
and/or maintenance of the Improvements, or materials furnished to the Premises at the
request of Lessee or any agent or employee of Lessee; and/or
12.1.3 Lessee's failure to perform any provision of this Lease or to comply
with any requirement of law or any requirement imposed on the Premises by any duly
authorized governmental agency or political subdivision.
12.2 Lessor shall not be liable to Lessee for any Damage to Lessee or Lessee's
property, goodwill, increased Lessee operating costs, or loss of business or income by
Lessee from any cause other than the gross negligent, intentional or willful acts of City or
its elected and appointed officers, agents, officials, volunteers, employees. Except as
otherwise expressly provided in this Agreement, Lessee releases and also waives all
claims against City for damages arising for any reason other than the gross negligent,
intentional or willful acts of City or its elected and appointed officers, agents, officials,
volunteers, employees. City shall not be liable to Lessee for any damage to the Premises,
Lessee's property, Lessee's goodwill, or Lessee's business income, caused in whole or
in part by acts of nature including, without limitation, waves, wind and tidal flows.
This indemnity shall apply to all claims and liability regardless of whether any insurance
policies are applicable.
13. HAZARDOUS SUBSTANCE
13.1 Hazardous Substance means: (i) any substance, product, waste or other
material of any nature whatsoever which is or becomes listed, regulated, or addressed
pursuant to the Comprehensive Environmental Response, Compensation and Liability
Act, 42 U.S.C. Section 9601 et seq. ("CERLCA"); the Hazardous Materials Transportation
Act, 49 U.S.C. Section 1801, et seq.; the Resource Conversation and Recovery Act, 42
U.S.C. Section 6901 et seq. "RCRA"); the Toxic Substances Control Act, 15 U.S.C.
Section 2601 et seq.; the Clean Water Act, 33 U.S.C. Section 1251 et seq.; the California
Hazardous Waste Control Act, Health and Safety Code Section 25100 et seq.; the
California Hazardous Substance Account Act, Health and Safety Code Sections 25330
et seq.; the California Safe Drinking Water and Toxic Enforcement Act, Health and Safety
Code Sections 25249.5 et seq.; California Health and Safety Code Sections 25280
et seq. (Underground Storage of Hazardous Substances); the California Hazardous
Waste of Concern and Public Safety Act, Health and Safety Code Sections 25169.5 et
seq.; California Health and Safety Code Sections 25501 et seq. (Hazardous Materials
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Response Plans and Inventory); or the Porter -Cologne Water Quality Control Act, Water
Code Sections 13000 et seq., all as they, from time -to -time may be amended or re -
codified, (the above -cited statutes are here collectively referred to as the "Hazardous
Substances Laws") or any other Federal, State or local statute, law, ordinance, resolution,
code, rule, regulation, order or decree regulating, relating to, or imposing liability or
standards of conduct concerning, any hazardous, toxic or dangerous waste, substance
or material, as now or at any time hereafter in effect; (ii) any substance, product, waste
or other material of any nature whatsoever which may give rise to liability under any of
the above statutes or under any statutory or common law theory, including but not limited
to negligence, trespass, intentional tort, nuisance, waste or strict liability or under any
reported decisions of a state or federal court; (iii) petroleum or crude oil; and (iv) asbestos.
13.2 From the Effective Date and throughout the Term, Lessee shall not use,
occupy, or permit any portion of the Premises to be used or occupied in violation of any
Hazardous Substance laws.
13.3 Notwithstanding any contrary provision of this Lease, and in addition to the
indemnification duties of Lessee set forth elsewhere in this Lease, Lessee indemnifies,
defends with counsel reasonably acceptable to Lessor, protects, and holds harmless
Lessor and its elected officials, officers, employees, agents, attorneys, volunteers and
representatives from and against any and all losses, fines, penalties, claims, demands,
obligations, actions, causes of action, suits, costs and expenses (including, without
limitation, attorneys' fees, disbursements and court costs), damages, judgments, or
liabilities, including, but not limited to, any repair, cleanup, detoxification, or preparation
and implementation of any remedial, response, closure or other plan of any kind or nature
which the Lessor and its officials, officers, employees, agents, attorneys, volunteers or
assigns may sustain or incur, or which may be imposed upon them, in connection with
any breach of Lessee's obligations or representations in this Lease or the use of the
Premises under this Lease, arising from or attributable to the Lessee Parties (defined
below) storage or deposit of Hazardous Substances in violation of applicable laws. This
section is intended to operate as an agreement pursuant to Section 107(e) of CERCLA,
42 USC Section 9607(e), and California Health and Safety Code Section 25364, to
insure, protect, hold harmless, and indemnify Lessor for any claim pursuant to the
Hazardous Substance laws or the common law.
13.4 Lessee does not, and shall not, authorize any third party to use, generate,
manufacture, maintain, permit, store, or dispose of any Hazardous Substances in
violation of applicable laws on, under, about or within the Premises.
13.5 Upon expiration or earlier termination of this Lease, Lessee shall deliver
possession of the Premises in compliance with Hazardous Substance laws subject to the
last sentence of Section 13.2 above.
13.6 If during the Term of this Lease, Lessee becomes aware of (i) any actual or
threatened release of any Hazardous Substances on, in, under, from, or about the
Premises in violation of Hazardous Substance laws; or (ii) any inquiry, investigation,
proceeding, or claim by any government agency or other person regarding the presence
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of any Hazardous Substances in violation of Hazardous Substance laws on, in, under,
from or about the Premises, Lessee shall give Lessor written notice of the release or
inquiry within five (5) calendar days after Lessee becomes aware or first has reason to
believe there has been a release or inquiry and shall simultaneously furnish to Lessor
copies of any claims, notices of violation, reports, warning or other writings received by
Lessee that concern the release or inquiry.
13.7 If the presence of any Hazardous Substances brought onto the Premises
by Lessee or Lessee's employees, agents, sublessees, licensees, concessionaires,
contractors, or invitees ("Lessee Parties"), or generated by same during the Term of this
Lease, results in contamination of the Premises or adjacent properties in violation of
Hazardous Substance laws, Lessee shall promptly take all necessary actions, at Lessee's
sole expense, to remove or remediate such Hazardous Substances in full compliance
with applicable laws. Lessee shall provide notice to Lessor prior to performing any
removal or remedial action. Lessee shall not propose nor agree to any covenant of use
restriction as part of any removal or remediation required as a result of this provision
without Lessor's written consent. Lessee shall pay any costs Lessor incurs in performing
Lessee's obligation to clean-up contamination resulting from Lessee's operations or use
of the Premises.
13.8 Should any clean-up of Hazardous Substances for which Lessee is
responsible not be completed prior to the expiration or sooner termination of the Lease,
including any extensions thereof, then Lessee shall transfer the amounts required to
complete clean-up into an escrow account, together with Lessor -approved instructions
for the disbursement of such amount in payment of the costs of any remaining clean-up
as it is completed, and (ii) if the nature of the contamination or clean-up required of Lessee
is of such a nature as to make the Premises untenable or unleasable, then Lessee shall
be liable to Lessor as a holdover lessee until the clean-up has been sufficiently completed
to make the Premises suitable for lease to third parties. The estimated cost of the clean-
up shall require approval of the Lessor.
13.9 If Lessor determines, in its reasonable discretion, that Lessee does not have
insurance or other financial resources sufficient to enable Lessee to fulfill its obligations
under this provision, whether or not accrued, liquidated, conditional, or contingent, then
Lessee shall, at the request of Lessor, procure and thereafter maintain in full force and
effect such environmental impairment liability and/or pollution liability insurance policies
and endorsements, or shall otherwise provide such collateral or security reasonably
acceptable to Lessor as is appropriate to assure that Lessee will be able to perform its
duties and obligations hereunder.
13.10 Lessee's obligations in this Section 13 shall survive the expiration or earlier
termination of this Lease.
14. MAINTENANCE OF LANDSCAPING, BUILDINGS AND IMPROVEMENTS
14.1 Lessee Maintenance. Lessee to maintain all landscaping, buildings and
improvements on the Premises:
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14.1.1 Lessee covenants and agrees that during the Term of this Lease it
will, at its sole cost and expense, maintain the grounds, landscaping, including tree
trimming and irrigation, Recreation Building, Gymnasium, Basketball Court,
Improvements, equipment and furniture, in good order and repair and in clean, orderly,
safe and sanitary condition. As part of required ongoing maintenance, Lessee agrees to
paint the interior of the Recreation Building as needed.
14.1.2 Lessee shall provide and maintain parking for the Premises in
compliance with Use Permit 1503, as amended, and which may be further amended from
time to time.
14.1.3 Lessee shall be responsible for the repair of any damage caused by
its members or their invitees.
14.2 Lessor May Elect to Repair and Maintain at Expense of Lessee. If, in the
judgment of the Lessor, such standards of maintenance and repair are not being
maintained, it may at its option, after not less than thirty (30) calendar days prior written
notice thereof to the Lessee and Lessee's failure to commence in good faith to remedy
the same within the time herein provided and thereafter diligently prosecute the same to
completion, elect to correct any deficiency, whether it be in reference to grounds,
landscaping, building or improvements. Lessee covenants and agrees to pay to Lessor
on demand any and all sums expended by it in correcting any such deficiency, together
with interest at the legal rate. If, in the judgment of Lessor, the disrepair or lack of
maintenance constitutes an emergency, the notice herein provided shall be a 24-hour
notice to remedy.
14.3 District Property. Pursuant to the terms of the License Agreement, Lessee
may use the District Property for the operation of a basketball court. Lessee is responsible
for maintaining the Basketball Court at its sole cost and expense, including the portion of
the Basketball Court on the District Property.
14.4 Lessor's Right of Inspection. In addition to Lessor's rights to use the
Premises as provided in this Lease, Lessor reserves the right by its authorized agents,
employees or representatives to enter the Premises at any time, without notice, to inspect
the Premises in order to attend to or protect the Lessor's interest under this Lease.
14.5 Compliance with Laws, Ordinances and Regulations. Lessor and Lessee
covenant and agree to comply with all rules, regulations, statutes, ordinances and laws
of the State of California, County of Orange, the City of Newport Beach, or any other
governmental body or agency having lawful jurisdiction over the Premises or the
business, enterprises, or activities conducted thereon.
14.6 Site Walk. Lessor and Lessee shall annually perform a joint inspection of
the Premises by July 15th of every year to determine what repairs and maintenance shall
be scheduled for the following year.
14.7 Annual Report. Lessee shall provide a written report to Lessor on or before
July 15th of every calendar year during the Term, including any Option Terms, a list of
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST Page 12
3-28
any and all maintenance, repairs, or other work completed, including the costs incurred
thereof, for the prior calendar year.
15. ASSIGNMENT
Lessee shall not assign, transfer, sublease, mortgage, hypothecate or give any
grant of control of this Lease or the Premises, or any part hereof, either voluntarily or
involuntarily, unless first approved by the City Council.
16. RESTORATION
If during the Term the Premises are totally or partially destroyed, rendering the
Premises or any portion thereof totally or partially inaccessible or unusable, Lessee shall,
at its sole cost and expense, repair or restore the Premises to substantially the same
condition as immediately prior to such destruction (including all trade fixtures, personal
property, improvements and alterations as are installed by Lessee, which shall be
replaced by Lessee at its expense). Any such work of repair, restoration or replacement
shall be commenced within one hundred and eighty (180) days after the damage or loss
occurs and shall be completed with due diligence, but not longer than one (1) year after
such work is commenced unless delay is caused by events beyond the control of Lessee.
Alternatively, Lessee may elect to terminate this Lease by giving written notice of such
election to Lessor within sixty (60) calendar days after the date of the occurrence of any
casualty if the cost of the restoration exceeds the amount of any available insurance
proceeds, if the damage has been caused by an uninsured casualty or event, or if Lessee
reasonably estimates that repairs of the Premises will take more than six (6) months.
Upon such termination, insurance proceeds applicable to reconstruction of the Premises
(excluding Lessee's personal property therein) shall be paid to Lessor, and Lessee shall
have no further liability or obligations under this Lease.
17. DEFAULT AND TERMINATION OF LEASE
17.1 Default. Time and each of the terms, covenants and conditions hereof are
expressly made the essence of this Lease. If the Lessee shall fail to comply with any of
the terms, covenants, or conditions of this Lease, including:
17.1.1 Failure of Lessee to keep current on all payments required in
Section 13;
17.1.2 Failure of Lessee to keep the Premises or Improvements in good
order and repair, and in a neat, clean, orderly, safe and sanitary
condition;
17.1.3 Failure of Lessee to maintain the Premises or Improvements in
compliance with any applicable provisions of the City's charter,
municipal code and zoning code, state or federal law;
17.1.4 Failure to make payment of Rent at the time and in the amount
herein required;
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST Page 13
3-29
17.1.5 Violation of Section 6 (Shared Use), Section 9 (Management,
Section 14 (Maintenance), Section 16 (Restoration), or Section 19
(Unlawful Use) of this Lease; or
17.1.6 Failure to provide and maintain valid proof of insurance coverage
as required in Section 11 of this Lease.
and fails to (1) remedy such default within fourteen (14) calendar days after service of a
written notice from Lessor to do so, if the default may be cured by the payment of money
or, (2) remedy any default of Section 17.1.2 that presents a life safety issue within fourteen
(14) days, (3) commence in good faith to remedy any other default within thirty (30)
calendar days and thereafter diligently prosecute the same to completion or, (4) if Lessee
shall abandon or vacate the Premises for more than thirty (30) calendar days other than
for periods of repair or remodel, which shall be approved in advance by Lessor, then
Lessor may, at its option and without further notice or demand, terminate this Lease and
enter upon the Premises and take possession thereof, and remove any and all persons
therefrom in the appropriate manner provided by law.
17.2 Surrender of Possession upon Expiration or Termination. Lessee covenants
and agrees that upon the expiration or sooner termination of this Lease, the Lessee will
peaceably surrender the Premises with all buildings and improvements, in the same
condition as when received or constructed, excepting reasonable use and wear thereof,
and damage by fire, act of God, or by the elements. The Recreation Facilities and all other
improvements built, constructed or placed upon the Premises by the Lessee (excluding
Lessee's fixtures, equipment, furniture, and moveable decorations), or anyone holding
by, under, or through it, shall remain on the Premises and become the property of the
Lessor without any cost to Lessor upon the expiration or termination of this Lease,
whether by lapse of time or by reason of default, unless, at its sole and absolute
discretion, Lessor requires Lessee to remove some or all improvements on the Premises
within sixty (60) days following the expiration or termination of this Lease. The provisions
of this section shall be effective upon expiration or termination of this Lease regardless of
whether Lessee holds over under the provisions of Section 2.4.
17.3 Remedies Cumulative. The rights, powers, elections and remedies of the
Lessor contained in this Lease shall be construed as cumulative and no one of them shall
be considered exclusive of the other or exclusive of any rights or remedies allowed by
law, and the exercise of one or more rights, powers, elections or remedies shall not impair
or be deemed a waiver of Lessor's right to exercise any other.
17.4 No Waiver.
17.4.1 No delay or omission of the Lessor to exercise any right or power
arising from any omission, neglect or default of the Lessee shall impair any such right: or
power or shall be construed as a waiver of any such omission, neglect or default on the
part of the Lessee or any acquiescence therein.
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST Page 14
3-30
17.4.2 No waiver of any breach of any of the terms, covenants,
agreements, restrictions or conditions of this Lease shall be construed as a waiver of any
succeeding breach of the same or of any of the terms covenants, agreements, restrictions
or conditions of this Lease.
18. EMINENT DOMAIN
18.1 In the event the whole or part of the Premises or improvements is
condemned by a public entity in the lawful exercise of the power of eminent domain, this
Lease shall cease as to the part condemned upon the date possession of that part is
taken by the public entity.
18.2 If only a part is condemned and the taking of that part does not substantially
impair the capacity of the remainder to be used for the purposes required in this Lease,
Lessee shall continue to be bound by the terms, covenants and conditions of this Lease.
18.3 If only a part is condemned and the taking of that part substantially impairs
the capacity of the remainder to be used for the purposes required in this Lease, Lessee
shall have the election of:
18.3.1 Terminating this Lease and being absolved of obligations hereunder
which have not accrued at the date possession is taken by the public
entity; or
18.3.2 Continuing to occupy the remainder of the Premises and remaining
bound by the terms, covenants and conditions of this Lease.
18.4 Lessee shall give notice in writing of his election hereunder, within thirty (30)
days of the date possession of the part is taken by the public entity.
18.5 Lessor shall be entitled to receive and shall receive all compensation for the
condemnation of all or any portion of the Premises by exercise of eminent domain.
18.6 Lessee shall be entitled to receive and shall receive all compensation for
the condemnation of all or any portion of the improvements constructed by Lessee on
the Premises by the exercise of eminent domain.
siF' PILIIW—.W111 IM0
Lessee agrees that no improvement shall be erected, constructed or operated on
the Premises, nor any business conducted on the Premises, in violation of the terms of
this Lease or of any regulation, order, law, statute, bylaw, charter provision, or ordinance
of any governmental agency having jurisdiction. Lessee shall not construct, maintain, or
allow any sign upon the Premises or Property, or improvements thereon, except as
approved in writing by Lessor, and further, such sign must be in compliance with the
provisions of the Newport Beach Municipal Code. Lessee shall not discriminate against
any person or class of persons by reason of race, religious creed, color, national origin,
ancestry, age, physical disability, mental disability, medical condition, including the
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST Page 15
3-31
medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition
related thereto, marital status, sex, sexual orientation or any other impermissible basis
under the law. Lessee shall make all of its services, programs and facilities available to
the public on fair and reasonable terms.
20. TERMINATION OF EXISTING LEASE
Concurrently with execution of this Lease by the Parties, the Existing Lease is
hereby terminated.
21. NOTICES
All notices pursuant to this Lease shall be deemed given when personally delivered or
deposited in the United States mail, first class postage prepaid, and addressed as follows:
Lessor: City of Newport Beach
Attention: Real Property Administrator
100 Civic Center Drive
Newport Beach, CA 92660
Lessee: Boys & Girls Clubs of Central Orange Coast
Attention: Executive Director
17701 Cowan, Suite 110
Irvine, CA 92614
4►#k►TIT, Ci7:7_101 B1g11y, to] 04=F34:l
A Memorandum of Lease Agreement ("Memorandum"), in a form and content
similar to that contained in Exhibit "G," which is attached hereto and incorporated by
reference, shall be recorded by the parties promptly upon execution of this Lease. Upon
execution by both Parties, the Memorandum shall be recorded against the Property in the
office of the Orange County Clerk -Recorder, as required by Government Code
Section 37393.
23. COMPLIANCE WITH ALL LAWS
Lessee shall at its own cost and expense comply with all statutes, ordinances,
regulations and requirements of all governmental entities, including federal, state, county
or municipal, whether now in force or hereinafter enacted. In addition, all work prepared
by Lessee shall conform to applicable city, county, state and federal laws, rules,
regulations and permit requirements and be subject to approval of the City Manager or
their designee.
24. WAIVER
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST Page 16
3-32
The waiver by Lessor or Lessee of any breach of this Lease by the other shall not
be deemed to be a waiver of any term, covenant, or condition or any subsequent breach.
The acceptance of Rent by Lessor shall not be deemed a waiver of any breach by Lessee
other than the failure to pay the particular rent accepted.
25. PARTIAL INVALIDITY
If any term or provision of this Lease is declared invalid or unenforceable, the
remainder of this Lease shall not be affected.
The laws of the State of California shall govern this Lease and all matters relating
to it and any action brought relating to this Lease shall be adjudicated in a court of
competent jurisdiction in the County of Orange, State of California. Neither Lessor's
execution of this Lease nor any consent or approval given by the City of Newport Beach
in its capacity as landlord shall affect the City of Newport Beach's powers and duties as
a governmental body. Any consent or approval Lessee is required to obtain from Lessor
pursuant to this Lease is in addition to any permits or approvals Lessee is required to
obtain pursuant to law or ordinance. However, Lessor shall attempt to coordinate its
procedures for giving contractual and governmental approvals so that Lessee's requests
and applications are not unreasonable denied or delayed.
27. ENTIRE AGREEMENT; MODIFICATION
This Lease contains the entire agreement between the Parties. No verbal
agreement or implied covenant shall be held to vary the provisions of this Lease. Each
Party has relied on its own investigation of the Premises and examination of this Lease,
the counsel of its own attorney or other advisors, and has a complete understanding of
the overall warranties, representations, and covenants in this Lease. The failure or refusal
of either Party to inspect the Premises, to read this Lease or other documents, or to obtain
legal or other advice relevant to this transaction shall not be the basis for later claim that
all or part of this Lease is not enforceable or was not understood by a Party when this
Lease was signed. No provision of this Lease may be amended or varied except by an
agreement in writing signed by the Parties or their respective successors.
28. TIME IS OF THE ESSENCE
Time is of the essence with respect to the performance of every provision of this
Lease in which time of performance is a factor. All time deadlines are meant to be strictly
construed. A "day" means a calendar day, with extension if a deadline occurs on a
weekend or day when banks are not open in California.
29. SUCCESSORS
Subject to the provisions of this Lease on assignment and subletting, each and all
of the covenants and conditions of this Lease shall be binding on and shall inure to the
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST Page 17
3-33
benefit of the heirs, successors, executors, administrators, assigns, and personal
representatives of the respective parties.
30. INTERPRETATION
The terms of this Lease shall be construed in accordance with the meaning of the
language used and shall not be construed for or against either party by reason of the
authorship of this Lease or any other rule of construction which might otherwise apply.
31. HEADINGS
The captions of the various sections of this Lease are for convenience and ease
of reference only and do not define, limit augment, or describe the scope, content, or
intent of this Lease.
32. NO BROKERS
Each party warrants to and for the benefit of the other than it has had no dealings
with any real estate broker or other agent (attorneys excepted) in connection with the
negotiation or making of this Lease, and that no commission, fee or other compensation
is owed regarding this Lease by such other Party.
33. GENDER; NUMBER
The neuter gender includes the feminine and masculine, the masculine includes
the feminine and neuter, and the feminine includes the neuter, and each includes
corporation, partnership, or other legal entity whenever the context requires. The singular
number includes the plural whenever the context so requires.
34. EXHIBITS
All exhibits to which reference is made in this Lease are incorporated by reference.
Any reference to "this Lease" includes matters incorporated by reference.
35. CITY BUSINESS LICENSE
Lessee shall obtain and maintain during the duration of this Agreement, a City
business license as required by the Newport Beach Municipal Code
36. NO ATTORNEY'S FEES
The prevailing party in any action brought to enforce the terms and conditions of
this Lease, or arising out of the performance of this Lease, shall not be entitled to recover
its attorneys' fees.
37. NONDISCRIMINATION
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST Page 18
3-34
Lessee, for itself and its successors, agrees that in the performance under this
Lease, Lessee shall not discriminate against any person because of the marital status or
ancestry of that person or any characteristic listed or defined in Section 11135 of the
Government Code.
38. NO THIRD -PARTY BENEFICIARIES
City of Newport Beach (both as a lessor and as the City of Newport Beach) and
Lessee do not intend, by any provision of this Lease, to create in any third party, any
benefit or right owed by one party, under the terms and conditions of this Lease, to the
other party.
39. CALIFORNIA LABOR LAWS
It shall be the obligation of Lessee to comply with all laws, including, but not limited
to, State of California labor laws, rules and regulations and the Parties agree that the
Lessor shall not be liable for any violation by Lessee (or Lessee's agent, sublessee or
any party affiliated with Lessee) thereof.
40. NO DAMAGES
Lessee acknowledges that Lessor would not enter this Lease if it were to be liable
for damages (including, but not limited to, actual damages, economic damages,
consequential damages, lost profits, loss of rents or other revenues, loss of business
opportunity, loss of goodwill or loss of use) under, or relating to, this Lease or any of the
matters referred to in this Lease, including, without limitation, any and all plans, permits,
licenses or regulatory approvals, and CEQA documents. Accordingly, Lessee covenants
and agrees on behalf of itself and its successors and assigns, not to sue the City of
Newport Beach (either in its capacity as lessor in this Lease or in its capacity as the City
of Newport Beach) for damages (including, but not limited to, actual damages, economic
damages, consequential damages, lost profits, loss of rents or other revenues, loss of
business opportunity, loss of goodwill or loss of use) or monetary relief for any breach of
this Lease by Lessor or for any dispute, controversy, or issue between Lessor and Lessee
arising out of or connected with this Lease or any of the matters referred to in this Lease,
including, without limitation, any and all plans, permits, licenses or regulatory approvals,
CEQA documents, or any future amendments or enactments thereto, the parties agreeing
that declaratory relief, injunctive relief, mandate and specific performance shall be
Lessee's sole and exclusive judicial remedies.
Lessee and Lessor agree that in addition to any claims filing or notice requirements
in this Lease, Lessee shall file any claim that Lessee may have against Lessor in strict
conformance with the Government Claims Act (Government Code sections 900 et seq.),
or any successor statute.
42. COUNTERPARTS
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST Page 19
3-35
This Lease may be executed in two (2) or more counterparts, each of which shall
be deemed an original and all of which together shall constitute one (1) and the same
instrument.
[SIGNATURES ON NEXT PAGE]
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST Page 20
3-36
IN WITNESS WHEREOF, we have executed this Lease as of the day and year
written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: 3 �3
By: ]�"
Aaron Harp U 3 • z9.23 wc,
City At rney
Date:
Leilani I. Brown
City Clerk
Attachments
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
Bv:
Grace K. Leung
City Manager
LESSEE: BOYS & GIRLS CLUB OF
CENTRAL ORANGE COAST, a California
nonprofit corporation
Date:
By:
Robert Santana
Chief Executive Officer
Date:
By:
Nicole Carrillo Hall
Chief Financial Officer
[END OF SIGNATURES]
Exhibit A:
Legal Description of Property
Exhibit B:
Depiction of Property
Exhibit C:
Depiction of District Property
Exhibit C-1:
Depiction of District Property
Exhibit C-2:
Depiction of Portion District Property Leased to
BGCSA
Exhibit D:
Depiction of Premises
Exhibit E:
Improvements
Exhibit F:
Insurance Requirements
Exhibit G:
Memorandum of Lease
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST
Page 21
3-37
IN WITNESS WHEREOF, we have executed this Lease as of the day and year
written below.
APPROVED AS TO FORM:
CITY ATTORNEYS OFFICE
Date:_9-D I ayn�
By:_
Aaron . Harp
City At rney
ATTEST:
Date:
Leilani 1, Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Grace K. Leung
City Manager
LESSEE: BOYS & GIRLS CLUB OF
CENTRAL ORANGE COAST, a California
nonprofit corporation
Date:_
By: _
Robert Santana
Chief Executive Officer
Date:
By:
Marcelo Brutti
President, Board of Directors
[END OF SIGNATURES]
Attachments: Exhibit A:
Legal Description of Property
Exhibit B:
Depiction of Property
Exhibit C:
Depiction of District Property
Exhibit C-1:
Depiction of District Property
Exhibit C-2:
Depiction of Portion District Property Leased to
BGCSA
Exhibit D:
Depiction of Premises
Exhibit E:
Improvements
Exhibit F:
Insurance Requirements
Exhibit G:
Memorandum of Lease
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST Page 21
3-38
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
That portion of Block 52 of Irvine's Subdivision in the City of Newport Beach,
County of Orange, State of California, as per map recorded in Book 1, Page 88, of
Miscellaneous Record Maps in the Office of the County Recorder of said County.
APN 440-161-06
Inclusive of Parcel 1 as shown on a map fled in Book 38, Page 9 of Parcel Maps
and a portion of Block 52 of Irvine's Subdivision as shown on a map thereof recorded in
Book 1, Page 88 of Miscellaneous Record Maps, Records of Orange County, California.
APN 440-161-05
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST A-1
3-39
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
That portion of Block 52 of Irvine's Subdivision in the City of Newport Beach,
County of Orange, State of California, as per map recorded in Book 1, Page 88, of
Miscellaneous Record Maps in the Office of the County Recorder of said County,
described as follows:
BEGINNING at the intersection of the centerline of Visa del Oro, 60
feet wide, with the centerline of Visa del Sol, 130 feet wide, as said
intersection is shown on a map of Tract No. 5463 recorded in Book 195,
pages 41 to 44 inclusive of Miscellaneous Maps, records of said County;
thence south 250 47' 00" West 100.00 feet along said centerline of Vista del
Oro to the beginning of a curve concave northwesterly having a radius of
552.00 feet; thence southwesterly and westerly 533.11 feet along said curve
through an angle of 550 20' 08" to a point on a non -tangent line, a radial line
of said curve to said point bears South 8° 52' 52" East; thence North 15" 34'
26" West 30.22 feet to a point, hereinafter referred to as Point "B", on a non -
tangent curve concave northwesterly having a radius of 522.00 feet, said
curve being concentric with and 30.00 feet northwesterly measured radially
form the last mentioned curve having a radius of 552.00 feet, a radial line
of said curve to said Point "B" bears South 80 29' 41" East; thence
continuing North 15' 34' 26" West 487.67 feet; thence North 66' 00' 00"
West 1214.26 feet to a point, hereinafter referred to as Point "C", on a non -
tangent curve concave northwesterly having a radius of 730.00 feet, a radial
line of said curve to said point bears South 40' 57' 15" East; thence North
400 57' 15" West 30.00 feet along said radial line to a point on a non -tangent
curve concave northwesterly having a radius of 700.00 feet, said curve
being concentric with the last mentioned curve having a radius of 730.00
feet, thence northeasterly and northerly 581.58 feet along said curve having
a radius of 700.00 feet through an angle of 47" 16' 12" to a point, a radial
line of said curve to said point bears South 88' 33' 27" East; thence South
88' 33' 27" East 102.52 feet along the easterly prolongation of said radial
line; thence South 1 ° 26' 33" West 30.00 feet to a point hereinafter referred
to as Point "A"; thence South 30 54' 22" East 209.93 feet; thence South 16'
32' 04" East 225.96 feet; thence South 24' 04' 35" East 47.79 feet; thence
South 660 00' 00" East 1030.00 feet; thence North 61 ° 01' 55" East 426.17
feet to a point, hereinafter referred to as Point "D", on a non -tangent curve
concave westerly having a radius of 400.00 feet, a radial line of said curve
to said point bears North 69' 37' 38" East; thence North 69' 37' 38" East
30.00 feet along the northeasterly prolongation of said radial line to a point
on a non -tangent curve concave westerly having a radius of 430.00 feet,
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST A-1
3-40
said curve being concentric with the last mentioned curve having a radius
of 400.00 feet; thence southerly and southwesterly 346.40 feet along said
curve through an angle of 46' 09' 22"; thence South 25' 47' 00" West 100.00
feet to the point of the beginning.
EXCEPTING THEREFROM a strip of land 30 feet wide for a road
and utility purposes, lying easterly, southeasterly and southerly of the
following described line:
BEGINNING at the hereinabove described Point "B"; thence easterly
and northeasterly 507.66 feet along said curve hereinabove described as
concave northwesterly having a radius of 522.00 feet through an angle of
55' 43' 19"; thence North 25' 47' 00" East 200.00 feet to the beginning of
said curve hereinabove described as concave westerly having a radius of
400.00 feet; thence northeasterly and northerly 322.23 feet along said curve
through an angle of 460 09' 22" to the hereinabove described Point "D".
ALSO EXCEPTING THEREFROM a strip of land for road and utility
purposes, lying northwesterly and northerly of the following described line:
BEGINNING at the hereinabove described Point "A", thence North
880 33' 27" West 58.88 feet to the beginning of a curve concave
southeasterly having a radius of 15.00 feet; thence westerly and
southwesterly 22.66 feet along said curve through an angle of 86' 32' 13"
to the beginning of a reverse curve hereinabove described as concave
northwesterly having a radius of 730.00 feet, a radial line to said point bears
North 850 05' 40" West; thence southerly and southwesterly 562.39 feet
along said curve through an angle of 440 08' 25" to hereinabove described
Point "C".
SUBJECT TO:
a) Current taxes and assessments
b) Easements, rights of way and other matters of record, or
apparent.
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST A-2
3-41
EXHIBIT B
DEPICTION OF PROPERTY
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST B-1
3-42
EXHIBIT B
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N E W P 0 R Every reasonable effort has been made to assure the
accuracy of the data provided, however, The City of
Newport Beach and its employees and agents
/1 '9 disclaim any and all responsibility from or relating to
0 417 833 any results obtained in its use.
KU -Z Feet
12/19/201
3-43
EXHIBIT C
Ir]M0to] I to] I•901091601110[do ■w:Zo]»:iwil
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST C-1
3-44
EXHIBIT C-1
Depiction of District Property
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i E WPORT BEAC H Every reasonable effort has been made to assure the
accuracy of the data provided, however, The City of
POD-4,T Newport Beach and its employees and agents
0 200 400 disclaim any and all responsibility from or relating to
any results obtained in its use.
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1211912018
3-45
EXHIBIT C-2
s �
Portion • }'
BGCSA
N E W P O R T R F A C H
or
, o
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t°
Disclaimer:
0 Every reasonable effort has been made to assure the
accuracy of the data provided, however, The City of
Newport Beach and its employees and agents
40 $O disclaim any and all responsibility from or relating to
any results obtained in its use.
Feet
12/19/2018
3-46
EXHIBIT D
DEPICTION OF PREMISES
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST D-1
3-4 7
EXHIBIT D
DEPICTION OF PREMISES
DISL I L PI opefty
f 9
Yi 1
a6u! �fj'S'T
n
•ILI CCIF
BGCSA
Leased
Premises
Disclaimer:
0 Every reasonable effort has been made to assure the
accuracy of the data provided, however, The City of
Newport Beach and its employees and agents
a 4a 8� disclaim any and all responsibility from or relating to
any results obtained in its use.
Feet
EXHIBIT E
IMPROVEMENTS
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST E-1
3-49
Boys & Girls Club Newport Beach 2019 Pursuing Greatness Campaign Renovation Highlights
• 4 STEAM (Science Technology Engineering Arts Math) Labs
o Chromebooks
o ]Pads
o Projectors
o Programs: Arts, Character, Leadership, Entrepreneurship, Coding, etc.
• 1 Kindergarten Lab
• 1 Makerspace
o 3D Printers, Drones, Various Robotics, Laser Cutters, Virtual Gaming Projector, etc.
• Gymnasium
o New flooring, backboards, wall pads, bleachers, & updated design
School Partnerships
o Eastbluff Elementary School o Newport Coast Elementary School
o Lincoln Elementary School o Corona Del Mar HS/MS
o Harbor View Elementary School
(714) 54-3-5540 1 1 0,1 _<-,san, r5liite#110 I Irvfne, CA 92614 1 wwwbcrysandgirlsclub.com
3-50
3-51
EXHIBIT F
INSURANCE REQUIREMENTS
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST
F-1
3-52
EXHIBIT F
INSURANCE REQUIREMENTS
Without limiting Lessee's indemnification of Lessor, Lessee will obtain, provide and
maintain at its own expense during the Term of this Lease, a policy or policies of
insurance of the type, amounts and form acceptable to Lessor. The policy or policies
shall provide, at a minimum, those items described below.
1. Provision of Insurance. Without limiting Lessee's indemnification of Lessor, and
prior to commencement of work on Property by Lessee or Lessee's agents,
representatives, consultants, contractors and/or subcontractors, Lessee shall
obtain, provide and maintain at its own expense during the Term of this Lease
policies of insurance of the type and amounts described below and in a form
satisfactory to Lessor. Lessee agrees to provide insurance in accordance with
requirements set forth herein. If Lessee uses existing coverage to comply and that
coverage does not meet these requirements, Lessee agrees to amend,
supplement or endorse the existing coverage.
2. Acceptable Insurers. All insurance policies shall be issued by an insurance
company currently authorized by the insurance commissioner to transact business
of insurance in the State of California, with an assigned policyholders' rating of A -
(or higher) and financial size category class VII (or larger) in accordance with the
latest edition of best's key rating guide, unless otherwise approved by the City's
Risk Manager.
3. Coverage Requirements.
A. Workers' Compensation insurance. Lessee and Lessee's agents,
representatives, consultants, contractors and/or subcontractors, shall
maintain Workers' Compensation Insurance, statutory limits, and
Employer's Liability Insurance with limits of at least one million dollars
($1,000,000) each accident for bodily injury by accident and each employee
for bodily injury by disease in accordance with the laws of the State of
California, Section 3700 of the Labor Code.
Lessee and Lessee's agents, representatives, consultants, contractors
and/or subcontractors, shall submit to Lessor, along with the certificate of
insurance, a Waiver of Subrogation endorsement in favor of Lessor, its
officers, agents, employees and volunteers.
B. General Liability Insurance. Lessee and Lessee's agents, representatives,
consultants, contractors and/or subcontractors, shall maintain commercial
general liability insurance, and if necessary umbrella liability insurance, with
coverage at least as broad as provided by Insurance Services Office form
CG 00 01, in an amount not less than five million dollars ($5,000,000) per
occurrence, ten million dollars ($10,000,000) general aggregate. The policy
shall cover liability arising from Property, operations, personal and
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST F-1
3-53
advertising injury, and liability assumed under an insured contract (including
the tort liability of another assumed in a business contract) with no
endorsement or modification limiting the scope of coverage for liability
assumed under a contract.
Sexual abuse/molestation coverage shall be included under
Commercial General Liability or obtained in a separate policy with a limit of
not less than $1,000,000 per occurrence and $3,000,000 in the aggregate.
C. Automobile Liability Insurance. Lessee and Lessee's agents,
representatives, consultants, contractors and/or subcontractors, shall
maintain automobile insurance at least as broad as Insurance Services
Office form CA 00 01 covering bodily injury and property damage, including
coverage for any owned, hired, non -owned or rented vehicles, in an amount
not less than five million dollars ($5,000,000) combined single limit each
accident.
D. Professional Liability (Errors & Omissions) Insurance. Lessee shall require
that Lessee's consultants, contractors and/or subcontractors providing any
design, engineering, surveying or architectural services for the Property
maintain professional liability insurance that covers the services to be
performed, in the minimum amount of one million dollars ($1,000,000) per
claim and two million dollars ($2,000,000) in the aggregate. Any policy
inception date, continuity date, or retroactive date must be before the
Effective Date of this Lease and Lessee shall require that Lessee's
consultants, contractors and/or subcontractors agree to maintain
continuous coverage through a period no less than three (3) years after
completion of the services performed.
E. Products -Completed Operations. Lessee shall require and verify that
Lessee's construction contractors and subcontractors maintain commercial
general liability insurance, including products -completed operations, for a
period of at least five (5) years from the time that all work is completed or
obtain coverage for completed operations liability for an equivalent period.
F. Builder's Risk Insurance. During construction, Lessee shall maintain
Builder's Risk Insurance to cover "All Risk" of physical loss including
coverage for loss or damage from collapse resulting from builder's design
error. All property stored off -site or in transit must be covered. The value
insured shall cover 100% of the completed contract cost and include Boiler
& Machinery and Soft Costs and shall be maintained until full acceptance
by Lessor. The "All Risk" coverage shall contain no coinsurance clause.
Earthquake and flood coverage shall be covered to 100% of the completed
contract cost. A waiver of subrogation and primary and non-contributory
endorsements shall be provided to Lessor. Proceeds payable under this
insurance shall be fully payable to Lessor as Loss Payee. Lessee shall be
solely responsible for the payment of any deductible.
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST F-2
3-54
G. Property Insurance. Lessee shall maintain property insurance throughout
the Term of the Lease on an "All Risk" basis equal to the full replacement
cost of the Property. The insurance shall contain no coinsurance clause. A
waiver of subrogation and primary and noncontributory endorsements shall
be provided to Lessor. Proceeds payable under the insurance shall be fully
payable to Lessor as Loss Payee. Earthquake and flood coverage shall be
covered to 100% of the completed contract cost. Lessee shall be solely
responsible for the payment of any deductible.
H. Pollution Liability Insurance. Lessee shall require that Lessee's
construction contractors and subcontractors maintain a policy providing
contractor's pollution liability ("CPL") coverage with a total limit of liability of
no less than two million dollars ($2,000,000) per loss and in the aggregate
per policy period dedicated to this project. The CPL shall be obtained on
an occurrence basis for a policy term inclusive of the entire period of
construction. If all or any portion of CPL coverage is available only on a
claims -made basis, then a 10-year extended reporting period shall also be
purchased. The CPL policy shall include coverage for cleanup costs, third -
party bodily injury and property damage, including loss of use of damaged
property or of property that has not been physically injured or destroyed,
resulting from pollution conditions caused by contracting operations.
Coverage as required in this paragraph shall apply to sudden and non -
sudden pollution conditions resulting from the escape or release of smoke,
vapors, fumes, acids, alkalis, toxic chemicals, liquids, or gases, waste
materials, or other irritants, contaminants, or pollutants. The CPL shall also
provide coverage for transportation and off -site disposal of materials. The
policy shall not contain any provision or exclusion (including any so-called
"insured versus insured" exclusion or "cross -liability" exclusion) the effect of
which would be to prevent, bar, or otherwise preclude any insured or
additional insured under the policy from making a claim which would
otherwise be covered by such policy on the grounds that the claim is
brought by an insured or additional insured against an insured or additional
insured under the policy.
4. Endorsements; Policies shall contain or be endorsed to contain the following
provisions:
A. Additional Insured Status. Lessor, its elected or appointed officers, officials,
employees, agents and volunteers are to be covered as an additional
insured under all general liability, automobile liability and pollution liability
policies with respect to liability arising out of Lessee's activities related to
this Lease and with respect to use or occupancy of the Property.
B. Primary and Non Contributory. Policies shall be considered primary
insurance as respects to Lessor, its elected or appointed officers, officials,
employees, agents and volunteers as respects to all claims, losses, or
liability arising directly or indirectly from Lessee's operations. Any insurance
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST
F-3
3-55
maintained by Lessor, including any self -insured retention Lessor may
have, shall be considered excess insurance only and not contributory with
the insurance provided hereunder.
C. Liability Insurance. Liability insurance shall act for each insured and
additional insured as though a separate policy had been written for each,
except with respect to the limits of liability of the insuring company.
D. Waiver of Subrogation. All insurance coverage maintained or procured
pursuant to this Lease shall be endorsed to waive subrogation against
Lessor, its elected or appointed officers, agents, officials, employees and
volunteers or shall specifically allow Lessee or others providing insurance
evidence in compliance with these requirements to waive their right of
recovery prior to a loss. Lessee hereby waives its own right of recovery
against Lessor, and shall require similar written express waivers from each
of its consultants, contractors or subcontractors.
E. Reporting Provisions. Any failure to comply with reporting provisions of the
policies shall not affect coverage provided to Lessor, its elected or
appointed officers, officials, employees, agents or volunteers.
F. Notice of Cancellation. The insurance required by this Lease shall not be
suspended, voided, canceled, or reduced in coverage or in limits except
after thirty (30) calendar days (ten (10) calendar days written notice of non-
payment of premium) written notice has been received by Lessor. It is
Lessee's obligation to ensure that provisions for such notice have been
established.
5. Additional Requirements.
A. In the event Lessor determines that (i) the Lessee's activities on the
Property creates an increased or decreased risk of loss to the Lessor, (ii)
greater insurance coverage is required due to the passage of time, or (iii)
changes in the industry require different coverage be obtained, Lessee
agrees that the minimum limits of any insurance policy required to be
obtained by Lessee or Lessee's consultants, contractors or subcontractors,
may be changed accordingly upon receipt of written notice from Lessor.
With respect to changes in insurance requirements that are available from
Lessee's then -existing insurance carrier, Lessee shall deposit certificates
evidencing acceptable insurance policies with Lessor incorporating such
changes within thirty (30) calendar days of receipt of such notice. With
respect to changes in insurance requirements that are not available from
Lessee's then- existing insurance carrier, Lessee shall deposit certificates
evidencing acceptable insurance policies with Lessor, incorporating such
changes, within ninety (90) calendar days of receipt of such notice.
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST F-4
3-56
B. Any deductibles or self -insured retentions applicable to the commercial
property or insurance purchased in compliance with the requirements set
forth herein shall be approved by Lessor.
C. Lessee and Lessee's consultants, contractors and/or subcontractors shall
be subject to the insurance requirements contained herein unless otherwise
specified in the provisions above or written approval is granted by Lessor.
Lessee shall verify that all consultants, contractors and/or subcontractors
maintain insurance meeting all the requirements stated herein, and Lessee
shall ensure that Lessor is an additional insured on insurance required from
contractors, consultants and/or subcontractors.
D. For general liability coverage, contractors, consultants and/or
subcontractors shall provide coverage with a format at least as broad as
provided by Insurance Services Office form CG 20 38 04 13. Unless written
approval is granted by Lessor, contractors and/or subcontractors shall also
provide an additional insured endorsement at least as broad as ISO Form
CG 20 37.
E. If Lessee maintains higher limits than the minimums shown above, Lessor
requires and shall be entitled to coverage for the higher limits maintained
by the Lessee. Any available insurance proceeds in excess of the specified
minimum limits of insurance and coverage shall be available to Lessor.
F. Lessee shall give Lessor prompt and timely notice of any claim made or suit
instituted arising out of or resulting from Lessee or Lessee's agents,
representatives, consultants, contractors or subcontractors performance
under this Lease.
G. Lessee shall provide certificates of insurance, with original endorsements
as required above, to Lessor as evidence of the insurance coverage
required herein. Insurance certificates must be approved by Lessor prior to
commencement of work or issuance of any permit. Current certification of
insurance shall be kept on file with Lessor at all times during the term of this
Lease.
H. All required insurance shall be in force on the Effective Date, and shall be
maintained continuously in force throughout the term of this Lease. In
addition, the cost of all required insurance shall be borne by Lessee or by
Lessee's consultants, contractors or subcontractors.
If Lessee or Lessee's consultants, contractors or subcontractors fail or
refuse to maintain insurance as required in this Lease, or fail to provide
proof of insurance, Lessor has the right to declare this Lease in default
without further notice to Lessee, and Lessor shall be entitled to exercise all
available remedies.
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST F-5
3-57
J. Lessee agrees not to use the Property in any manner, even if use is for
purposes stated herein, that will result in the cancellation of any insurance
Lessor may have on the Property or on adjacent Property, or that will cause
cancellation of any other insurance coverage for the Property or adjoining
Property. Lessee further agrees not to keep on the Property or permit to be
kept, used, or sold thereon, anything prohibited by any fire or other
insurance policy covering the Property. Lessee shall, at its sole expense,
comply with all reasonable requirements for maintaining fire and other
insurance coverage on the Property.
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST F-6
3-58
EXHIBIT G
MEMORANDUM OF LEASE
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST G-1
3-59
RECORDING REQUESTED AND
WHEN RECORDED RETURN TO:
City Clerk's Office
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
[Exempt from Recordation Fee - Govt. Code §§ 6103 & 27383]
MEMORANDUM OF LEASE AGREEMENT
This Memorandum of Lease Agreement ("Memorandum") is dated , 2020,
and is made between City of Newport Beach, a California municipal corporation and charter city
("Lessor" or "City") and Boys & Girls Clubs of Central Orange Coast, a California non-profit
corporation ("Lessee"), concerning the premises as described and depicted in Attachments "A"
and "B," respectively, attached hereto and by this reference made a part hereof ("Premises").
For good and adequate consideration, Lessor leases the Premises to Lessee, and Lessee hires
them from Lessor, for the term and on the provisions contained in the Lease Agreement
dated , 2020 ("Agreement"), including without limitation provisions
prohibiting assignment, subleasing, and encumbering said leasehold without the express written
consent of Lessor in each instance, all as more specifically set forth in said Agreement, which
said Agreement is incorporated in this Memorandum by this reference.
The term is thirty (30) years, beginning 1 2020, and
ending , 2050, and two (2) additional successive "Option Terms" of ten (10)
years, on the same terms and conditions contained in the Agreement as it may be amended from
time to time.
This Memorandum is not a complete summary of the Agreement. Provisions in this Memorandum
shall not be used in interpreting the Agreement's provisions. In the event of conflict between this
Memorandum and other parts of the Agreement, the other parts shall control. Execution hereof
constitutes execution of the Agreement itself.
[Signatures on the next page]
3-60
LESSOR
City of Newport Beach,
a California municipal corporation
Grace K. Leung
City Manager
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
Aaron C. Harp
City Attorney
LESSEE
Boys & Girls Clubs of Central Orange Coast,
a California non-profit corporation
Robert Santana
Chief Executive Officer
Wayne Pinnell
President of the Board of Directors
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST G-2
3-61
ACKNOWLEDGMENT
A notary public or other officer completing this certificate
verifies only the identity of the individual who signed the
document to which this certificate is attached, and not
the truthfulness, accuracy, or validity of that document.
State of California
County of I ss.
On , 20 before me, , Notary
Public, personally appeared who proved to me
on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf
of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature (seal)
ACKNOWLEDGMENT
A notary public or other officer completing this certificate
verifies only the identity of the individual who signed the
document to which this certificate is attached, and not
the truthfulness, accuracy, or validity of that document.
State of California
County of } ss.
On , 20 before me, , Notary
Public, personally appeared proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature
(seal)
3-62
ATTACHMENT "A"
DESCRIPTION OF PREMISES
A. That certain parcel of land in the City of Newport Beach, County of Orange, State of California
being all of Parcel 1 as shown on a map filed in Book 58, Page 21 of Parcel Maps in the office
of the County Recorder of said County and a portion of Block 52 of Irvine's Subdivision as
shown on a map recorded in Book 1, Page 88 of Miscellaneous Record Maps in the office of
said Recorder, more particularly described as follows:
Beginning at the most northerly corner of said Parcel 1, said corner being in a
curve in the centerline of Vista Del Oro as shown on said map, concave westerly
and having a radius of 430.00 feet, a radial from said corner bears South 69037'38"
East; thence along the northwesterly boundary of said parcel the following courses:
South 69°37'38" West 30.00 feet; thence South 61 °01'55" West 163.50 feet; thence
leaving said boundary South 61 °01'55" West 63.50 feet; thence South 28058'05" West
55.50 feet; thence North 61 001'55" East 26.83 feet to the most southerly westerly corner
of said parcel; thence along the boundary of said parcel the following courses: South
28°58'05" East 76.00 feet: thence North 61 001'55" East 155.96 feet to a point, said point
being 30.00 feet westerly of the centerline of said Vista Del Oro, a radial from said point
bears South 89°36'00" West; thence radially North 890 3600" East 30.00 feet to said
centerline; thence along said centerline and said curve 149.89 feet through a central angle
of 19°58'22" to the Point of Beginning.
B. That certain parcel of land described in a certain License Agreement dated February 1, 1978
between the City of Newport Beach and the Newport -Mesa Unified School District as shown
on Exhibit B-1 attached hereto and incorporated herein by reference. Subject to the terms and
conditions of the License Agreement.
Assessor's Parcel Numbers 440-161-05 and 440-161-06
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST G-3 3-63
ATTACHMENT °B"
DEPICTION OF PREMISES
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accuracy of the data proviced, hoerever- The City of
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disclaim any and as responsbky 5om cr relatng to
any results obtained in its use.
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST G-4 3-64
Attachment C
Maps
3-65
3-66
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o� 0 417 833 disclaim any and all responsibility from or relating to
any results obtained in its use.
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N E W P O R T B E A C H10 Every reasonable effort has been made to assure the
accuracy of the data provided, however, The City of
�yE,wPp� Newport Beach and its employees and agents
o� 0 40 80 disclaim any and all responsibility from or relating to
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3-68
Attachment D
City Council Policy F-7,
Income and Other Property
3-69
F-7
INCOME AND OTHER PROPERTY
The City owns and manages an extensive and valuable assortment of property including
streets, parks, beaches, public buildings and service facilities. The City also owns or
ground leases and/or operates a yacht basin, resort hotel and apartment property, a
luxury residential development and various other income -producing properties. Much
of the income property is tidelands, filled tidelands or waterfront. Unencumbered fee
value of income property is substantial.
As owner/manager of property, the City is the steward of a public trust, and state law
requires the City to maximize its returns on state -managed property or be subject to a
charge of making a gift of public funds. Nevertheless, the City Council recognizes the
importance of this property not only as a revenue generator, but also as a means to
provide otherwise financially less feasible uses and facilities that benefit the community.
In managing its property, the City will continually evaluate the potential of all City
owned property to produce revenue. This may include leasing or licensing unused land,
renting vacant space, and establishing concessions in recreation areas or other similar
techniques. The City Council will evaluate the appropriateness of establishing new
income generating opportunities on City controlled areas using sound business
principles and after receiving input from neighbors, users and the public.
The policy of the City Council is that income and other property be held and managed in
accordance with the following:
A. Whenever a lease, license, management contract, concession or similar action
regarding income property is considered by the City, an analysis shall be
conducted to determine the maximum or open market value of the property. This
analysis shall be conducted using appraisals or other techniques to determine the
highest and best use of the property and the highest income generating use of the
property.
B. All negotiations regarding the lease, license, management contract, concession, or
similar action regarding income property shall include review of an appraisal or
analysis of the use being considered for the property conducted by a reputable and
independent professional appraiser, real estate consultant, or business consultant.
C. The City shall seek, whenever practical and financially advantageous, both in the
short and long term, to operate or manage all property and facilities directly with
City staff or contractors, provided staff have the expertise needed to competently
do so, or to oversee the work of contractors.
11
3-70
F-7
D. In most negotiations regarding the lease, license, management contract,
concession, or similar action regarding an income or other property, the City shall
seek revenue equivalent to the open market value of the highest and best use; and,
whenever practicable the City shall conduct an open bid or proposal process to
ensure the highest financial return.
E. However, in some circumstances the City may determine that use of a property by
the public for recreational, charitable or other nonprofit purpose is preferred and
has considerable public support, in which case the City may determine that non-
financial benefits justify not maximizing revenue from such property. In such
circumstances, the City has a vested interest in ensuring that the lessee of such
property operates the activities conducted on or from the property in the manner
that has been represented to the City throughout the duration of any lease or
contract with the City.
F. Whenever less than the open market or appraised value is received or when an
open bid process is not conducted, the City shall make specific findings setting
forth the reasons thereof.
Such findings may include but need not be limited to the following:
1. The City is prevented by tideland grants, Coastal Commission guidelines
or other restrictions from converting the property to another use.
2. Redevelopment of the property would require excessive time, resources,
expertise and costs, which would outweigh other financial benefits.
3. Converting the property to another use or changing the operator, manager,
concessionaire, licensee, or lessee of the property would result in excessive
vacancy, relocation or severance costs, real estate commissions, tenant
improvement allowances, expenses or rent concessions which would
outweigh other financial benefits.
4. Converting residential property to another use or opening residential leases
to competitive bid would create recompensable liabilities and other
inequities for long-term residents.
5. The property provides an essential or unique service to the community or
a clearly preferred use that enjoys substantial support in the community
that might not otherwise be provided were full market value of the
property be required.
2
3-71
F-7
6. The property serves to promote other goals of the City such as affordable
housing, preservation of open space, uses available to the public or marine
related services.
7. If the lessee is not (a) a statewide or national nonprofit organization, or (b)
a public entity or subdivision thereof, then the City finds that the By -Laws
and charter documents of such lessee (i) establishes a procedure wherein
the election of directors of such lessee is accomplished by an open,
democratic and transparent process that allows members to vote, (ii) has a
governance and operational structure that is consistent with best practices
for non-profit public benefit corporations as determined by the City
Council, and (iii) cannot be amended to affect subparts (i) or (ii) without the
prior written consent of the City as lessor.
G. Generally, lengths of licenses, leases, management contracts, concessions, or
similar agreements will be limited to the minimum necessary to meet market
standards or encourage high quality improvements and will contain appropriate
reappraisal and inflation protection provisions. Also, all agreements shall contain
provisions to assure complete audits periodically through their terms.
H. All negotiations regarding the license, lease, management contract, concession or
similar action regarding income property shall be conducted by the City Manager
or his/her designee under the direction of any appropriate City committees.
I. To provide an accurate accounting of actual net revenues generated by the City's
income property, all costs directly attributable or allocable to the management of
a specific income property shall be charged against the gross revenues collected
on that property in the fiscal year the costs are incurred. Costs so chargeable
include, but are not limited to, property repairs and maintenance, property
appraisals, and consultant fees, as authorized by the City Council, City Manager,
or by this Income Property Policy.
J. The City Manager or his/her designee is authorized to sign a license, lease,
management contract, concession, or similar agreement or any amendment
thereto, on behalf of the City. Notwithstanding the foregoing, the City Manager
or his/her designee, or a City Council member, may refer any license, lease,
management contract, concession or similar agreement or any amendment
thereto, to the City Council for its consideration and/or action.
K. The City's portfolio of quality income producing properties adds an element of
diversification to a portfolio otherwise invested primarily in financial assets.
Certain of those income properties are restricted from sale by their terms of grant,
state agency regulations or rules, other federal and state guidelines, private
3
3-72
F-7
covenant or agreement or otherwise. For those properties not so restricted from
sale, an analysis shall be prepared to determine the following prior to such
income producing property being offered for sale:
1. The maximum open market value of the City's interest in the property in
its as is condition.
2. If the property is in an important location, a determination of the possible
future consequences of the City no longer controlling that property.
3. If the current rent is contractually low and significant rent increases are
likely within a finite period.
4. The likelihood of significant increases in the ability of the property to
generate income after the expiration of any current lease of the property.
5. The likelihood of a lease extension being requested by the tenant and the
ability to substantially increase rents or require significant improvements
to enhance the utility and the value of the property as consideration for
granting such an extension.
6. The value of the revenue stream from (i) lease income over the life of an
existing lease and/or (ii) likely lease revenue if an existing lease were to be
renewed or the property re -let to a different tenant; and/or (iii) lease
income from the property if it were to be converted to its highest and best
use, compared with the financial benefits of the use of the proceeds of a sale
and if, considering the totality of the circumstances, such use of the
proceeds of a sale is preferable to retaining the property in question.
Adopted - July 27,1992
Amended - January 24,1994
Amended - February 27,1995
Amended - February 24,1997
Amended - May 26,1998
Amended - August 11, 2009
Amended - May 14, 2013
Amended - February 12, 2019
Formerly F-24
0
3-73
Attachment E
Appraisal Report by R.P. Laurain & Associates, Inc., dated April 23, 2019
3-74
APPRAISAL REPORT
MARKET RENTAL VALUE STUDY
NEWPORT BEACH BOYS AND GIRLS CLUB FACILITY
2555 VISTA DEL ORO
NEWPORT BEACH, CALIFORNIA
APN: PORTION OF 440-161-01
R.
P
.
LAURAIN
&
ASSOCIATES
I N
C O R P O R
A T
E D
3-75
APPRAISAL REPORT
MARKET RENTAL VALUE STUDY
NEWPORT BEACH BOYS AND GIRLS CLUB FACILITY
2555 VISTA DEL ORO
NEWPORT BEACH, CALIFORNIA
APN: PORTION OF 440-161-01
Effective Date
of
Market Value Study
April 10, 2019
Prepared for
CITY OF NEWPORT BEACH
100 Civic Center Drive
Newport Beach, California 92660
Prepared by
LAURAIN & ASSOCIATES, INC.
53 Linden Avenue, Suite 200
)ng Beach, California 90807
Date of Report
April 23, 2019
R. P. LAURAIN
& ASSOCIATES
APPRAISERS - ANALYSTS
3-76
R. P. LAURAIN
& ASSOCIATES
INCORPORATED
April 23, 2019
3353 LINDEN AVENUE, SUITE 200
LONG BEACH, CALIFORNIA 90807
TELEPHONE (562) 426-0477
FACSIMILE (562) 988-2927
Ms. Lauren Wooding Whitlinger
Real Property Administrator
City of Newport Beach
Community Development Department
100 Civic Center Drive
Newport Beach, California 92660
Subject: Market Rental Value Study
Newport Beach Boys and Girls Club Facility
2555 Vista Del Oro
Newport Beach, California
APN: Portion of 440-161-01
Dear Ms. Wooding Whitlinger:
In accordance with your request and authorization, I have personally appraised
the above -referenced property as of a current date. The appraisal study included
(1) an inspection of the subject property, (2) a review of market data in the
immediate and general subject market area, and (3) a valuation analysis. The
purpose of this appraisal is to estimate the fair market rental rate applicable to
the subject property, based on the existing special purpose use (Boys and Girls
Club). Further, the appraisal sets forth the allocation of rent for that portion of
the site vested with the Newport Mesa Unified School District (NMUSD).
The subject lease site is part of a larger public park (Eastbluff Park) which larger
public park is identified as APN 440-161-01, containing 13.87f acres of land
area, per Assessor's Mapping. The subject lease site, however, contains
41,500f total square feet, per the City of Newport Beach. It should also be
noted that approximately 2,560 square feet of land area is vested with the
Newport Mesa Unified School District (NMUSD).
The subject lease site is improved with a community recreation building
containing 12,393 total square feet, consisting of (1) 6,161 square feet of
classroom, game room, and office space, as well as restrooms and a kitchen
area, and (2) a gymnasium containing 6,232 square feet. The building was
constructed circa 1975, was remodeled in 2008, and is in overall below average
condition.
APPRAISERS - ANALYSTS
3-77
Ms. Lauren Wooding Whitlinger
Real Property Administrator
City of Newport Beach
April 23, 2019
Page 2
The subject site is located in the PR (Public Recreation) zone district, and is
considered a special purpose property. Given the lack of comparable sale and
rental properties, the market rental value is based on a rate of return applied
to the otherwise market value of the subject property. The Sales Comparison
Approach has been utilized to estimate the underlying land value considering
the public open space/recreation nature of the subject site. The market value of
the building and on -site improvements is based on the Cost Approach.
Refer to the accompanying report for a complete description of the subject
property.
The purpose of the appraisal study is to set forth the market rental rate
applicable to (1) the subject lease site as a whole, plus (2) that portion of the
lease site vested with the Newport Mesa Unified School District (NMUSD). For
each rental value study, the market rental value is allocated between (1) the
underlying land and (2) the building and on -site improvements. After
considering the various factors which influence value, the market rental value
of the subject lease site, as of April 10, 2019, is summarized as follows:
Property as a Whole:
Annual Rent, land only: $ 3,600
Annual Rent, building and site improvements: 52,200
Total Annual Rent: $ 55,800
Total Monthly Rent: $4,650
Allocation of School District Portion;
Annual Rent, land only:
Annual Rent, basketball court improvements:
Total Annual Rent:
Total Monthly Rent:
$ 230
R64
$ 1,U94
$91.17
R. P. L A U R A IN
& A S S O C I A T E S
INCORPORATED
3-78
Ms. Lauren Wooding Whitlinger
Real Property Administrator
City of Newport Beach
April 23, 2019
Page 3
The foregoing values are subject to the assumptions and limiting conditions set
forth in the Preface Section and the valuation study in the Valuation Analysis
Section. No portion of this report shall be amended or deleted.
This appraisal report is submitted in accordance with the Uniform Standards of
Professional Appraisal Practice, per Standard Rule 2-2(a), as a complete
narrative Appraisal Report.
If you require any additional information from our file, it would be appreciated
if you would contact the undersigned at your convenience.
Very truly yours,
R. P. RAIN &ASSOCIATES, INC.
n Ura , MAI, ASA
ertified General Real Estate Appraiser
California Certification No. AG 025754
J PL: cl
R. P. L A U R A IN
& A S S O C I A T E S
INCORPORATED
3-79
TABLE OF CONTENTS
Title Page
Letter of Transmittal
Table of Contents
PREFACE
Location Map
Date of Value
Purpose of the Appraisal
Property Rights Appraised
Client
Intended User of Appraisal
Intended Use of Appraisal
Appraiser's Certification
Scope of the Appraisal
Assumptions and Limiting Conditions
Terms and Definitions
SUBJECT PROPERTY DESCRIPTION
Lessor
Lessee
Property Address
Legal Description
Aerial Site Plan Exhibit
Plat Map
Aerial Photograph
Site Description
Building Improvements
Building Drawing and Floor Plan Drawings
Other Improvements
Furniture, Fixtures, and Equipment
Ownership History
Assessment Data
Tenant Data
Appraisal Inspection
Neighborhood Environment
R. P. LAURA IN
& A S S O C I A T E S
APPRAISERS - ANALYSTS
3-80
TABLE OF CONTENTS (Continued)
VALUATION ANALYSIS
Highest and Best Use Analysis
Valuation Methods
Sales Comparison Approach
Cost Approach
Market Rent
Final Estimate of Rental Value
ADDENDA
Additional Photographs
Qualifications of Appraiser
R. P. LAURAIN
& ASSOCIATES
APPRAISERS - ANALYSTS
3-81
PREFACE
3-82
'� DELORME
DATE OF VALUE
The date of value (effective date) employed in this report, and all opinions and
computations expressed herein, are based on April 10, 2019. Said date being
generally concurrent with the valuation analysis process.
PURPOSE OF THE APPRAISAL
The purpose of this appraisal report is to express an estimate of market rental
value applicable to the subject site. The definitions of market value and rental
value are set forth in the following portion of this section, following the heading
"Terms and Definitions."
Further, it is the purpose of this appraisal report to describe the subject
property, and to render an opinion of the highest and best use based on (1) the
character of potential development of the property appraised, (2) the
requirements of local governmental authorities affecting the subject property,
(3) the reasonable demand in the open market for properties similar to the
subject property, and (4) the location of the subject property considered with
respect to other existing and competitive districts within the immediate and
general subject market area.
Further, it is the purpose of this appraisal report to provide an outline of certain
factual and inferential information which was compiled and analyzed in the
process of completing this appraisal study.
PROPERTY RIGHTS APPRAISED
The property rights appraised herein are those of the fee simple interest in the
subject property. Fee simple is defined as, "An absolute fee; a fee without
limitation to any particular class of heirs, or restrictions, but subject to the
limitations of eminent domain, escheat, police power, and taxation. An inher-
itable estate."
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CLIENT
The client for the subject appraisal assignment is the City of Newport Beach.
INTENDED USER OF APPRAISAL
The intended user of this appraisal is the City of Beach, including representatives
thereof.
INTENDED USE OF APPRAISAL
It is understood that this appraisal will be utilized to establish the fair market
rental rate applicable to the subject property, for the possible lease negotiations
with the existing tenant, and/or for budgetary purposes.
R. P. LAURAIN
& ASSOCIATES
APPRAISERS - ANALYSTS
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CERTIFICATION
The undersigned does hereby certify that:
I have personally inspected the subject property; I have no present or
contemplated future interest in the real estate which is the subject of this appraisal
report. Also, I have no personal interest or bias with respect to the subject matter
of this appraisal report, or the parties involved in this assignment.
My engagement in this assignment and the amount of compensation are not
contingent upon the reporting or development of a predetermined value or
direction in value that favors the cause of the client, the amount of the value
opinion, the attainment of a predetermined or stipulated result, or the occurrence
of a subsequent event directly related to the intended use of this appraisal. Also,
to the best of my knowledge and belief the statements of fact contained in this
appraisal report, upon which the analyses, opinions, and conclusions expressed
herein are based, are true and correct.
This appraisal report sets forth all of the assumptions and limiting conditions
(imposed by the terms of this assignment or by the undersigned), affecting my
personal, impartial, and unbiased professional analyses, opinions, and
conclusions.
The reported analyses, opinions, and conclusions, were developed, and this report
has been prepared, in conformity with the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the Appraisal Institutes, and the
Uniform Standards of Professional Appraisal Practice. As of the date of this report
I have completed the continuing education program for Designated Member of the
Appraisal Institute, the State of California and the American Society of Appraisers;
note that duly authorized representatives of said organizations have the right to
review this report. The use of this report is subject to the requirements of the
Appraisal Institute relating to review by its duly authorized representatives.
No one other than the undersigned prepared the analyses, conclusions, and
opinions for this appraisal study. No other person provided significant professional
assistance. I have not appraised or provided any other services pertaining to the
subject property in the last three years.
John P. L n, MAI, ASA
Certified General Real Estate Appraiser
California Certification No. AG 025754
Renewal Date: April 16, 2021
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SCOPE OF THE APPRAISAL
The appraiser, in connection with the following appraisal study, has:
1. Been retained, and has accepted the assignment, to make an
objective analysis and valuation study, in order to determine
the fair market rental rate applicable to the subject property.
The subject property is particularly described in the following
portion of this report in the section entitled Subject Property
Description.
2. Toured the general area by automobile to become acquainted
with the extent, condition, and quality of nearby developments,
sales and offerings in the area, density and type of
development, topographical features, economic conditions,
trends toward change, etc.
3. Walked within the subject area, and some of the nearby
neighborhood, to become acquainted with the current
particular attributes, or shortcomings, of the subject property.
4. Completed an on -site inspection of the subject property for the
purpose of becoming familiar with certain physical charac-
teristics.
5. Made a visual observation concerning public streets, access,
drainage, and topography of the subject property.
6.Obtained information regarding public utilities and sanitary
sewer available at the subject site.
7. Made, or obtained from other qualified sources, calculations on
the area of land contained within the subject property. Has
made, or caused to be made, plats and plot plan drawings of
the subject property, and has checked such plats and plot plan
drawings for accuracy and fair representation.
8. Taken photographs of the subject property, together with
photographs of the immediate environs.
9. Made, or caused to be made, a search of public records for
factual information regarding recent sales of the subject
property.
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3-87
SCOPE OF THE APPRAISAL (Continued)
10. Reviewed current maps, zoning ordinances, and other material
for additional background information pertaining to the subject
property, and sale properties.
11. Attempted to visualize the subject property as it would be
viewed by a willing and informed buyer, as well as a willing and
informed seller.
12. Interviewed various persons, in both public and private life, for
factual and inferential information helpful in this appraisal
study.
13. Formed an opinion of the highest and best use applicable to
the subject property appraised herein.
14. Made, or caused to be made, a search for recent sales of
comparable properties. Has viewed, confirmed the sale price,
and obtained certain other information pertaining to each sale
property contained in this report.
15. Formed an estimate of the market rental rate applicable to the
subject property, as of the date of value expressed herein, by
application of the Sales Comparison Approach, Cost Approach,
and by employing an appropriate rate of return to the indicated
market value.
16. Prepared and delivered this appraisal report in accordance with
the Uniform Standards of Professional Appraisal Practice, and
in summation of all the activities outlined above.
R. P. LAURA IN
& A S S O C I A T E S
APPRAISERS - ANALYSTS
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ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal is made with the following understanding as set forth in items No.
1 through 17, inclusive:
1. That this narrative Appraisal Report is intended to comply with
reporting requirements set forth in the Uniform Standards of
Professional Appraisal Practice, under Standard Rule 2-2(a),
for an Appraisal Report. The information contained in this
appraisal report is specific to the needs of the client; no
responsibility is assumed for the unauthorized use of this
report.
2. That title to the subject property is assumed to be good and
merchantable. Liens and encumbrances, if any, have not been
deducted from the final estimate of value. The subject
property has been appraised as though under responsible
ownership. The legal description is assumed accurate.
3. That the appraiser assumes there are no hidden or unapparent
conditions of the subject property, subsoil, structures, or other
improvements, if any, which would render them more or less
valuable, unless otherwise stated. Further, the appraiser
assumes no responsibility for such conditions or for the
engineering which might be required to discover such
conditions. That mechanical and electrical systems and
equipment, if any, except as otherwise may be noted in this
report, are assumed to be in good working order. The property
appraised is assumed to meet all governmental codes,
requirements, and restrictions, unless otherwise stated.
4. That no soils report of the subject property was provided to the
appraiser; therefore information, if any, provided by other
qualified sources pertaining to these matters is believed
accurate, but no liability is assumed for such matters. Further,
information, estimates and opinions furnished by others and
contained in this report pertaining to the subject property and
market data were obtained from sources considered reliable
and are believed to be true and correct. No responsibility,
however, for the accuracy of such items can be assumed by
the appraiser.
R. P. LAURA IN
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APPRAISERS - ANALYSTS
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3-89
ASSUMPTIONS AND LIMITING CONDITIONS (Continued)
5. That unless otherwise stated herein, it is assumed there are no
encroachments, easements, soil toxics/contaminants, or other
physical conditions adversely affecting the value of the subject
property.
6. That no report(s) pertaining to mold, organic toxins, or
chemical substances at the subject property was provided to
the appraiser; therefore, information, if any, provided by other
qualified sources pertaining to these matters is believed
accurate, but no liability is assumed by the appraiser for such
matters. That unless otherwise stated herein, the subject
property has been appraised assuming the absence of mold,
organic toxins, the presence of asbestos, or other organic
and/or chemical substances which may adversely affect the
value of the subject property.
7. That no opinion is expressed regarding matters which are legal
in nature or which require specialized investigation or
knowledge ordinarily not employed by real estate appraisers,
even though such matters may be mentioned in the report.
8. That no oil rights have been included in the opinion of value
expressed herein. Further, that oil rights, if existing, are
assumed to be at least 500 feet below the surface of the land,
without the right of surface entry.
9. That the distribution of the total valuation in this report
between land and improvements, if any, applies only under the
existing program of utilization. The separate valuations for
land and improvements must not be used in conjunction with
any other appraisal and are invalid if so used.
10. That the valuation of the property appraised is based upon
economic and financing conditions prevailing as of the date of
value set forth herein. Further, the valuation assumes good,
competent, and aggressive management of the subject
property.
11. That the appraiser has conducted a visual inspection of the
subject property and the market data properties. Should
subsequent information be provided relative to changes or
differences in (1) the quality of title, (2) physical condition or
characteristics of the property, and/or (3) governmental
R. P. LAURA IN
& A S S O C I A T E S
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ASSUMPTIONS AND LIMITING CONDITIONS (Continued)
restrictions and regulations, which would increase or decrease
the value of the subject property, the appraiser reserves the
right to amend the final estimate of value.
12. That the appraiser, by reason of this appraisal, is not required
to give testimony in court or at any governmental or quasi -
governmental hearing with reference to the property
appraised, unless contractual arrangements have been previ-
ously made therefor.
13. That drawings, plats, maps, and other exhibits contained in this
report are for illustration purposes only and are not necessarily
prepared to standard engineering or architectural scale.
14. That this report is effective only when considered in its entire
form, as delivered to the client. No portion of this report will
be considered binding if taken out of context.
15. That possession of this report, or a copy thereof, does not carry
with it the right of publication, nor shall the contents of this
report be copied or conveyed to the public through advertising,
public relations, sales, news, or other media, without the
written consent and approval of the appraiser, particularly with
regard to the valuation of the property appraised and the
identity of the appraiser, or the firm with which he is
connected, or any reference to the Appraisal Institute, or the
American Society of Appraisers, or designations conferred by
said organizations.
16. That the form, format, and phraseology utilized in this report,
except the Certification, and Terms and Definitions, shall not
be provided to, copied, or used by, any other real estate
appraiser, real estate economist, real estate broker, real estate
salesperson, property manager, valuation consultant, invest-
ment counselor, or others, without the written consent and
approval of Ronald P. Laurain.
17. That this appraisal study is considered completely confidential
and will not be disclosed or discussed, in whole or in part, with
anyone other than the client, or persons designated by the
client.
R. P. LAURA IN
& A S S O C I A T E S
APPRAISERS - ANALYSTS
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TERMS AND DEFINITIONS
Certain technical terms have been used in the following report which are
defined, herein, for the benefit of those who may not be fully familiar with said
terms.
MARKET VALUE (or Fair Market Value):
Market value is sometimes referred to as Fair Market Value; the latter is a legal
term, and a common synonym of Market Value. Market value as defined in Title
XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989
(FIRREA) is defined as follows:
"The most probable price which a property should bring in a
competitive and open market under all conditions requisite to a fair
sale, the buyer and seller each acting prudently and knowl-
edgeably, and assuming the price is not affected by undue
stimulus. Implicit in this definition is the consummation of a sale
as of a specified date and the passing of title from seller to buyer
under conditions whereby:
1. Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, and acting in
what they consider their own best interests;
3. A reasonable time is allowed for exposure in the open market;
4. Payment is made in terms of cash in U.S. dollars or in terms of
financial arrangements comparable thereto; and
5. The price represents the normal consideration for the property
sold unaffected by special or creative financing or sales
concessions granted by anyone associated with the sale."
RENTAL VALUE:
The definition of rental value is based generally on the concept of market value,
i.e. willing and informed parties, neither party being under duress or compulsion
to act, etc. The definition of rental value is as follows:
"A fair, proper and reasonable rental which would result from
informed, intelligent, and prudent negotiations in the usual course
of business; the rental which could be expected if the property
were available, under competitive market conditions, as of a
certain date."
R. P. LAURA IN
& A S S O C I A T E S
APPRAISERS - ANALYSTS
1-9
3-92
TERMS AND DEFINITIONS (Continued)
SALES COMPARISON APPROACH:
One of the three accepted methods of estimating Market Value. This approach
consists of the investigation of recent sales of similar properties to determine
the price at which said properties sold. The information so gathered is judged
and considered by the appraiser as to its comparability to the subject properties.
COST -SUMMATION APPROACH:
Another accepted method of estimating Market Value. This approach consists
of estimating the new construction cost of the building and yard improvements
and making allowances for appropriate amount of depreciation. The depreciated
reconstruction value of the improvements is then added to the Land Value
estimate gained from the Sales Comparison Approach. The sum of these two
figures is the value indicated by the Cost -Summation Approach.
INCOME CAPITALIZATION APPROACH:
The Income Capitalization Approach consists of capitalizing the net income of
the property under study. The capitalization method studies the income stream,
allows for (1) vacancy and credit loss, (2) fixed expenses, (3) operating
expenses, and (4) reserves for replacement, and estimates the amount of
money which would be paid by a prudent investor to obtain the net income. The
capitalization rate is usually commensurate with the risk, and is adjusted for
future depreciation or appreciation in value.
DEPRECIATION:
Used in this appraisal to indicate a lessening in value from any one or more of
several causes. Depreciation is not based on age alone, but can result from a
combination of age, condition or repair, functional utility, neighborhood influ-
ences, or any of several outside economic causes. Depreciation applies only to
improvements. The amount of depreciation is a matter for the judgment of the
appraiser.
HIGHEST AND BEST USE:
Used in this appraisal to describe that private use which will (1) yield the
greatest net return on the investment, (2) be permitted or have the reasonable
probability of being permitted under applicable laws and ordinances, and (3) be
appropriate and feasible under a reasonable planning, zoning, and land use
concept.
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3-93
SUBJECT PROPERTY DESCRIPTION
3-94
SUBJECT PROPERTY
View looking northwesterly at the subject property from Vista Del Oro. See aerial
photograph on the following page, and additional photographs in the Addenda
Section.
LESSOR: City of Newport Beach
LESSEE: Newport Beach Boys and Girls Club
PROPERTY ADDRESS: 2555 Vista Del Oro
Newport Beach, California 92660
LEGAL DESCRIPTION: Portion of Lot 223, Block 52, Irvine Subdivision,
per Miscellaneous Maps recorded in Book 1,
Page 88, in the office of the County Recorder,
County of Orange, California. A complete
metes and bounds legal description was not
provided for review. Refer to the aerial map
exhibit on the following page.
R. P. LAURAIN
& ASSOCIATES
APPRAISERS - ANALYSTS
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3-95
"h
a TTPa r
g and,
NIM% I S Disclaimer:
N E W P O R T B E A C H10 Every reasonable effort has been made to assure the
accuracy of the data provided, however, The City of
�yE,wPp� Newport Beach and its employees and agents
o� 0 40 80 disclaim any and all responsibility from or relating to
any results obtained in its use.
v s
cgc�coa�'r
Feet
12/19/2018
3-96
Portion of APN 440-161-01
TH15 MAP WA5 PREPARED FOR ORANGE COUNTY
ASSESSOR DFPT. PURPOSES ONLY. THE ASSES-
SOR MAKES NO GUARANTEE AS TO ITS ACCURACY
NOR ASSUMES ANY LIARLITY FOR OTHER USES.
NOT TO OE REPRODUCED. ALL RIGlRS RESERVED.
"COPYRIGHT ORANGE COUNTY ASSESSOR
2� BC�SA
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s
IRVINE $
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SrREEr "A" Fo° TRACTS
A�s'R AC. N,
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Lorsa
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R.4 A'e-/.Y l 1 ) �.
R. P. LAURAIN
& ASSOCIATES
APPRAISERS - ANALYSTS
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! "=200 ` N
u°
PMSB-9 �
P. M 58-21
N
0
8 O V/STA
DEL SOL
I
3-97
SITE DESCRIPTION
COMMENT: The subject lease site is part of a larger public
park (Eastbluff Park) which larger public park
is identified as APN 440-161-01, containing
13.87f acres of land area, per Assessor's
Mapping. The subject lease site, however,
contains 41,500f total square feet, per the
City of Newport Beach. It should also be noted
that approximately 2,560 square feet of land
area is in turn leased from the Newport Mesa
Unified School District (NMUSD).
LOCATION: The subject property is located on westerly side
of Vista Del Oro, near the terminus intersection
of Vista Del Sol, in the City of Newport Beach.
LAND SHAPE:
Irregular land configuration.
LAND AREA: The subject lease site appraised herein
contains 41,500 square feet of land area, per
the City of Newport Beach. As stated,
approximately 2,560 square feet of land area
is vested with the Newport Mesa Unified School
District (NMUSD), representing a portion of
APN 440-221-02.
TOPOGRAPHY:
Effectively level and generally at street grade.
SOIL STABILITY: Appears to be adequate based on develop-
ments in the immediate area. A soils report,
however, was not provided for review.
SOIL CONTAMINATION:
DRAINAGE:
None known or observed, however, an environ-
mental assessment report was not provided for
review. The subject site has been appraised as
though free of soil contaminants requiring
remediation.
Appears to be adequate.
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3-98
SITE DESCRIPTION (Continued)
EARTHQUAKE FAULT: The subject site does not appear to be located
within an earthquake fault, however, the
greater Southern California area is prone to
earthquakes. Inasmuch as no seismic or
geological studies were provided for review,
the appraisers assume no responsibility for the
possible impact that seismic activity or
earthquakes may have on the subject site.
FRONTAGE/ACCESS: The subject property has frontage on, and
vehicular access from, Vista Del Oro.
RIGHT OF WAY WIDTH: Vista Del Oro: 60 feet
STREET IMPROVEMENTS: Asphalt paved traffic lanes. Concrete curb,
gutter and sidewalk (each side of street).
STREET LIGHTS: Mounted on ornamental standards.
PUBLIC UTILITIES: Water, gas, electric power, telephone service,
and sanitary sewer are available to the site.
ENCROACHMENTS: None apparent, however, a survey of the
subject property was not provided for review.
EASEMENTS: A preliminary title report was not provided for
review. Easements, if existing, are assumed to
be located along the property boundaries, not
interfering with the existing or future highest
and best use development of the subject
property. It is assumed that there are no
NNcross-lot" or "blanket" easements located over
the subject site.
ILLEGAL USES:
PRESENT USE:
None observed.
Community recreation building (Newport
Beach Boys and Girls Club).
R. P. LAURA IN
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3-99
SITE DESCRIPTION (Continued)
ZONING: The subject property is located in the PR (Parks
and Recreation) zone district of the City of
Newport Beach. The PR zone district is intended
to provide for land areas utilized for public and
private recreational uses, such as public parks,
aquatic facilities, golf courses, marina support
facilities, private recreational facilities such as
tennis clubs, and similar recreational facilities.
As such, residential development of the subject
site would not be permitted under the current
zoning.
Note that all uses in the PR zone district require
a Conditional Use Permit (CUP) or a Minor Use
Permit (MUP) with the exception of minor
utilities, which are permitted by right. The
development standards are established during
review of the required permit.
HIGHEST AND BEST USE: The reader is referred to the first portion of the
Valuation Analysis Section for a discussion
regarding the highest and best use of the
subject property.
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BUILDING IMPROVEMENTS
BUILDING LAYOUT: The subject building represents a community
recreation building consisting of a gymnasium
and various classrooms, small office rooms, an
open reception/game room, restrooms, and a
former kitchen area (utilized for storage
purposes).
Refer to the building drawing and evacuation
floor plan drawing on the following pages.
TYPE OF STRUCTURE: Single tenant community recreation building.
YEAR BUILT: Originally constructed circa 1975; remodeled in
2008.
NO. OF STORIES: One story.
BUILDING SIZE: Per the on -site inspection, the subject building
contains 12,393 total square feet, as follows:
Classrooms/offices: 6,161 sq. ft.
Gymnasium: 6,232 sq. ft.
Total: 12,393 sq. ft.
CONSTRUCTION QUALITY: Average quality Class D (wood frame)
construction.
FOUNDATION: Perimeter concrete foundation.
EXTERIOR WALLS: Painted stucco over wood framing.
ROOF: Rolled asphalt roofing, tarred at joints. Mission
tile mansards.
FLOORS: Concrete slab floor with sheet vinyl and vinyl
tile flooring in classroom, game room, and
office area; assumed to be ceramic tile in
restrooms
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BUILDING IMPROVEMENTS (Continued)
Subject Community Recreation Building
t7E S'
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R. P. LAURAIN
& ASSOCIATES
APPRAISERS - ANALYSTS
2-7
3-102
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Parking Lot
Girls Bathroom
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Janitor's Closet
Primary Room
Newport Beach Emergency Evacuation Plan
Kitchen
Athletic Office
Games Room
Office
Games Room
Gym
Classroom
lassraom
I
Classroom
W
T
a
3-103
BUILDING IMPROVEMENTS (Continued)
INTERIOR WALLS: Painted drywall interior walls in classroom and
office areas.
CEILINGS: Painted drywall and sprayed acoustic ceilings in
classroom and office areas.
DOORS: Plate glass set in anodized and metal sheathed
entry doors; double flush solid core and natural
wood solid core interior doors.
WINDOWS: Plate glass set in anodized frame and aluminum
frame sliding windows; certain classrooms
have interior partition wall windows set in wood
frames.
ELECTRICAL: Conventional electrical system; incandescent
and fluorescent lighting.
HEATING AND COOLING: Per information provided by employees, the
easterly (front) "Primary Room" is the only
room with an operating forced air heating and
cooling system. It is assumed the roof -
mounted central forced air heating and cooling
units for the remainder of building require
replacement.
PLUMBING: Conventional plumbing system. There are two
restroom facilities having a total of 9 fixtures.
There is also a sink in the kitchen area,
however, the kitchen area is in fair condition
and appears to be utilized for storage
purposes. Fire sprinkler system throughout
GYMNASIUM: As stated, the gymnasium contains 6,232
square feet and includes wood flooring, open
wood beam ceiling with skylights, wood panel
and drywall walls, with some damage to certain
drywall, basketball hoops, bleachers, and an
electronic scoreboard.
CONDITION: The subject building is in overall below average
condition, considering the age.
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OTHER IMPROVEMENTS
ON -SITE PARKING: The subject property includes an asphalt paved
parking lot containing five standard parking
spaces, one handicap space, and approx-
imately 5,500 square feet of paved area,
inclusive of driveways and the drive aisle.
OTHER: Other on -site improvements include:
Concrete walkways: 4,950f sq.ft.
Outdoor basketball court: 5,760± sq.ft.
Concrete block trash enclosure: 20f In.ft.
Concrete curbing: 375f In.ft.
In addition, there is certain irrigated grass,
shrubbery, and tree landscaping.
FURNITURE, FIXTURES, AND EQUIPMENT
COMMENT: Furniture, fixture, and equipment (FF&E) items
specific to the existing Boys & Girls Club facility
have been excluded from the appraisal study
(furniture, play equipment, pool tables, ping
pong tables, supplies, etc.).
OWNERSHIP HISTORY
COMMENT: The subject property has been vested with the
City of Newport Beach for more than 20 years.
ASSESSMENT DATA
COMMENT: The subject property represents a portion of
APN 440-161-01. The assessed land value is
$1,645,016; the assessed improvement value
is $514,390. The property is tax exempt as
vested with a public agency.
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11i;10/_10ki97_`r_1
COMMENT: It is understood the subject lease site
appraised herein is currently leased to the
Newport Beach Boys and Girls Club for $1 per
year.
APPRAISAL INSPECTION
COMMENT: The appraisal inspection was conducted on
March 21, 2019, with the permission of the
tenant.
NEIGHBORHOOD ENVIRONMENT
LOCATION: The subject property is located in the
northwest portion of the City of Newport
Beach; the City of Costa Mesa boundary is
located westerly of the subject neighborhood
and the City of Irvine boundary is located north
and northeasterly of the subject neighborhood.
The City of Newport Beach was incorporated in
1906 and includes 16,654 acres of land area,
14,894 acres of ocean water area, 800 acres of
Bay water area, and 800 acres of Harbor water
area.
LAND USES: The predominant uses in the City of Newport
Beach are single family and multiple family
residential developments, which account for
approximately 50% of the total land area,
followed by open space and recreational uses
which account for 36±% of the total land area.
Commercial, institutional, and industrial uses
generally account for remaining land area.
There are also a number of hotel developments
within the City. The John Wayne Airport is
located adjacent to the extreme northerly
portion of the City boundary. The University of
California Irvine campus is located within two
miles easterly of the subject property.
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NEIGHBORHOOD ENVIRONMENT (Continued)
LAND USES: (Continued) Commercial office, retail, and restaurant uses
are located on primary street. Fashion Island,
a major retail center, is located within 1 1/2
miles south of the subject property. Upper
Newport Bay and an ecological preserve are
located immediately westerly of the subject
neighborhood. The Big Canyon Country Club
and golf course is located within one mile
southeasterly of the subject neighborhood.
ACCESS: Primary thoroughfares in the general subject
neighborhood include Coast Highway,
Jamboree Road, MacArthur Boulevard. The San
Joaquin Hills Transportation Corridor (73)
Freeway, a toll road, is located at the northerly
boundary of the City. The Costa Mesa (55)
Freeway is located approximately 1/2 mile
northwesterly of the westerly City Boundary,
and terminates on Newport Boulevard. The San
Diego (405) Freeway is located approximately
one mile north of the extreme northerly portion
of the City. Said freeways are part of the
freeway network serving the Southern
California region.
OCCUPANCY: Residential: 75f% owners
25f% tenants
Commercial: 25f owners
75f tenants
PRICE RANGE: Older single family and low density multiple
family residential properties, generally range in
value from $1,000,000 to exceeding
$5,000,000 for properties having close
proximity to the beach or bay. Residential
properties at the lower end of the range
generally represent older dwellings that are
acquired based on the underlying land value.
Single family and multiple family properties
having frontage on the beach or bay, can range
in value from $3,000,000 to exceeding
$20,000,000.
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NEIGHBORHOOD ENVIRONMENT (Continued)
TREND: Real estate values, in general, were declining
between 1991 and 1995. The value trend,
however, generally stabilized during 1996 and
1997. Beginning in 1998, there was evidence
of increased real estate market activity. There
was an upward value trend affecting residential
properties within the immediate and general
subject market area, from 2003 through the
mid portion of 2006, after which property
values generally stabilized. In the early part of
2007, residential property values began to
decrease significantly, and the decrease
continued through the mid to latter portion of
2009, due primarily to the subprime credit and
housing crisis.
The residential real estate market generally
stabilized in the latter portion of 2009. Begin-
ning in 2010, certain markets began to
experience varying monthly increases and
decreases in sales volumes and pricing, due
primarily to abnormally low interest rates and
first time home buyer's tax credits. Overall,
property values remained relatively stable from
the first portion of 2010 through the latter
portion of 2012, after which property values
and sales activity began to experience
increases through the mid to latter portion of
2018. It appears the property values have
begun to stabilize in recent months.
AGE RANGE: The age range of all types of improved prop-
erties is rather broad. Generally, the age range
for single family residences is effectively new
to 30 years. Certain commercial and mixed use
properties were constructed as far back as the
early 1900s, however, commercial and mixed
use properties typically undergo significant
renovation in the immediate subject area (as
opposed to demolition and clearing for new
development). As such, the effective age of
commercial and mixed use properties ranges
widely from 5 years to exceeding 50 years.
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NEIGHBORHOOD ENVIRONMENT (Continued)
PROPERTY MAINTENANCE: Property maintenance in the immediate and
general neighborhood, evidenced by an on-
going maintenance program, ranges from
above average to very good.
PUBLIC/PRIVATE FACILITIES: The availability and adequacy of public
facilities, transportation, schools, commercial
facilities, recreational opportunities, and resi-
dential housing are rated average. The City of
Newport Beach provides police and fire
protection.
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VALUATION ANALYSIS
3-110
VALUATION ANALYSIS
The purpose of this appraisal is to estimate the fair market rental rate applicable
to the subject property, based on the existing special purpose use (Boys and
Girls Club) and taking into consideration the location of the site within a larger
public park (Eastbluff Park). Prior to the application of the appraisal process, it
is necessary to determine the highest and best use of the subject property.
HIGHEST AND BEST USE ANALYSIS;
The 14th Edition of The Appraisal of Real Estate, by the Appraisal Institute,
defines highest and best use on Page 332, as follows:
"The reasonably probable use of property that results in the highest value."
In the analysis of which uses are reasonably probable, three criteria are applied
in the following order to develop adequate support for the determination of
highest and best use:
1. Physically possible
2. Legally permissible
3. Financially feasible
These criteria are generally considered sequentially; however, the tests of phys-
ical possibility and legal permissibility can be applied in either order, but they
must both be applied before the test of financial feasibility. Uses that meet all
three criteria of being reasonably probable are then tested for economic pro-
ductivity, to identify the maximally productive use. The reasonably probable use
with the highest value (i.e. maximally productive) is the highest and best use.
In the process of forming an opinion of highest and best use, consideration must
be given to various factors such as zoning restrictions, probability of zone
change, private deed restrictions, location, land size and configuration, topogra-
phy, and the character/quality of land uses in the subject market area.
Conclusion;
The subject lease site is part of a larger public park (Eastbluff Park), which public
park is identified as APN 440-161-01, containing 13.87f acres of land area, per
Assessor's Mapping. The subject lease site, however, contains 41,500 total
square feet, per the City of Newport Beach. It should also be noted that
approximately 2,560 square feet of land area is vested with the Newport Mesa
Unified School District (NMUSD).
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VALUATION ANALYSIS (Continued)
HIGHEST AND BEST USE ANALYSIS; (Continued)
Both the subject lease site, as well as the greater Eastbluff Park site, have
irregular land configurations, and an effective inside location on a secondary
street. The topography at the subject site is effectively level. All public utilities
including water, gas, electric power, telephone, and sanitary sewer are available
in the immediate area. The physical characteristics of the subject parcel are
considered adequate to accommodate legally permissible uses.
Land uses in the immediate area include low and medium density residential
uses on secondary streets. Commercial uses are located on primary streets;
however, the subject site is located in a residential neighborhood and
commercial or industrial uses are not considered reasonably probable.
Further, the subject property is located in the PR (Parks and Recreation) zone
district of the City of Newport Beach. The PR zone district is intended to provide
for land areas utilized for public and private recreational uses, such as public
parks, aquatic facilities, golf courses, marina support facilities, private
recreational facilities such as tennis clubs, and similar recreational facilities. As
such, residential development of the subject site would not be permitted under
the current zoning.
While the purpose of the appraisal study is to estimate the fair market rent of
the subject Boys & Girls club facility (land and improvements), it is also noted
that the highest and best use of the subject site, as presently zoned, is limited
to an open space (public park) or similar recreational use. As such, the existing
Boys & Girls Club building, and related site improvements, are considered the
highest and best use under the current zoning. The subject lease site has been
appraised accordingly.
VALUATION METHODS;
There are three conventional methods (approaches) which can be used to
estimate value. They are the Sales Comparison Approach, Cost Approach, and
Income Capitalization Approach. The reader is referred to the last portion of the
Preface Section, following the heading "Terms and Definitions," for a description
of each approach to value.
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VALUATION ANALYSIS (Continued)
VALUATION METHODS: (Continued)
Inasmuch as the subject property is located within the Parks and Recreation
zone district, and is developed with a non-profit use (Boys and Girls Club), the
subject lease site is considered a special use property. Special-purpose
properties are unique with respect to design, construction, and/or utility; they
generally fall within one of two categories, i.e. those capable of producing
income and having an economic value (until such time as the improvements
become functionally obsolete), and those which are private service, public
service, or community amenity properties. Those having economic value
(capable of generating net income to support the value of the land and
improvements) include special processing and manufacturing plants, airports,
marinas, athletic stadiums, amusement and theme parks, convention facilities,
etc.; those without economic production capabilities include houses of worship,
service club facilities, nonprofit community facilities, public schools, public
parks, and public buildings, e.g. library, city hall, fire station, community center,
police station, public health service building, court building, etc. Special-purpose
properties are limited -market properties; they rarely, if ever, sell. Likewise,
there is a lack of rental data in which to derive market rental rates for special
purpose properties.
The conventional and long-standing method of appraising special-purpose
private and public properties has been employed in the subject case. The
method includes, as indicated above, (1) the valuation of the land based on the
limited effective open space and/or recreational use, plus (2) the addition of the
depreciated value of the improvements. Said method describes the
characteristics of the Cost Approach, one of the three conventional valuation
methods. The value of the subject land, one of the components of the Cost -
Summation Approach, is based on the fair market value concept by the
application of the Sales Comparison Approach; the depreciated value of the
improvements is based on the cost new, less depreciation from all causes (age,
condition, functional inutility, etc.).
Lastly, in the subject case the purpose of the appraisal study is to set forth the
market rental rate applicable to (1) the subject lease site as a whole, plus (2)
that portion of the lease site vested with the Newport Mesa Unified School
District (NMUSD). As such, and given that there is a lack of direct rental data
pertaining to the subject site, the market rent estimated is based a market rate
of return applied to the indicated market value of the underlying land and
improvements (as derived via the Sales Comparison and Cost Approaches).
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VALUATION ANALYSIS (Continued)
SALES COMPARISON APPROACH;
In the Sales Comparison Approach, the value of a property is estimated by
comparing it with similar, recently sold properties in the surrounding area.
Inherent in this approach is the principle of substitution, which holds that when
a property is replaceable in the market, its value tends to be set by the cost of
acquiring an equally desirable substitute property, assuming that no costly delay
is encountered in making the substitution. Thus, the Sales Comparison Approach
attempts to equate the subject property with sales of comparable properties by
analyzing and weighing the various elements of comparability.
The Sales Comparison Approach has been applied to the subject property after
an investigation was conducted of comparable vacant land parcels which sold in
the subject market area.
The reader is referred to the summary of Recreational and Open Space Land
Value Indicators on the following page. Due to the limited sales data, and
infrequency of recreational and open space land sales, both the chronological
time frame and the geographic search area were expanded, in order to obtain
a representative number of comparable sale properties.
A detailed discussion of each land sale utilized herein is contained in the latter
portion of this section, as part of the overall analysis.
The properties surveyed consist of vacant land parcels ranging in size from 1.20
to 688.00 acres. The purchase prices per square foot of land area range from
$0.39 to $6.43. The sales are set forth in chronological order and took place
between October 2011 and October 2018. Data 1, 3 and 4 represent recreation
use sites, however Data 3 sold as improved with a golf course. Data 5 represents
a limited entertainment use site. Data 2,6 and 7 represent open space sites.
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Recreational and Open Space Land Value Indicators :
Data Date Zoning Land Size Use
1 10-11 Rec 4,334,656 sf 99.51 ac. campground
23100-23800 East Fork Rd., Azusa
2 8-14 OS 25,700 sf 0.59 ac. Open Space
39f La Paz Rd., adjacent to railroad, Mission Viejo
K,
El
C
Sale Price $ Per SF
$5,250,000 $1.21
$10,000 $0.39
11-14 OSPR 2,070,407 sf 47.53 ac. Golf course $8,400,000 $4.06
16782 Graham St., Huntington Beach with 11,149 sf clubhouse
1-15 OCGP, P 29,969,280 sf 688.00 ac. recreation/
Portion of Orange County Great Park, Irvine parkland
5-16 ECSP 380,850 sf 8.74 ac. Butterfly
7711-33 Beach Blvd., Buena Park Paladium
$19,171,000 $0.64
$2,450,000 $6.43
8-16 OS 52,272 sf 1.20 ac. Open Space
100f Pacific Coast Hwy., Dana Point
10-18 GOS 74,052 sf 1.70 ac. Open Space
SEC Camino Las Ramblas and Via California, San Juan Capistrano
$30,000 $0.57
$70,000 $0.95
3-115
VALUATION ANALYSIS (Continued)
SALES COMPARISON APPROACH: (Continued)
The first adjustments applied to the sale properties, when warranted, are known
as transactional adjustments. Said transactional adjustments are generally
applied to the sale properties in the sequence listed below, and are made cumu-
latively (i.e. the base changes before applying the next adjustment). Following
is the list of transactional adjustments:
• Property rights conveyed
• Financing (cash equivalency)
• Conditions of sale
• Expenditures after sale
• Market conditions
Property Rights Conveyed:
An adjustment is required when a sale transaction conveyed a different set of
property rights, compared to the property rights being appraised, such as leased
fee estate vs. fee simple estate. None of the comparable land sales utilized
herein required an adjustment for property rights conveyed, as all of the land
sale properties conveyed title to the fee simple interest in each property.
Financing and Cash Equivalency:
Sale properties are adjusted for financing arrangements involved in transactions
which are not market -typical. A cash equivalency adjustment is required when
the financing of a particular property caused a higher purchase price. Common
examples include seller financing, or assumption of existing financing, at non -
market terms. Inasmuch as all of the sales involved all cash transactions, a cash
equivalency adjustment is not warranted for any of the sale transactions.
Conditions of Sale:
An adjustment for conditions of sale is required when a property sold under
atypical conditions, such as (1) a seller being under duress (REO transactions
or other distressed sales), (2) a property selling as part of a bulk portfolio sale,
(3) a developer paying a premium to acquire an adjacent property as part of
assembling a larger development site, or (4) other similar situations where the
motivation of a buyer or seller affects the price paid for a property. None of the
sale properties required an adjustment for conditions of sale.
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VALUATION ANALYSIS (Continued)
SALES COMPARISON APPROACH: (Continued)
Expenditures after Sale:
An adjustment is required when a buyer anticipates a particular expenditure
that he/she will have to expend shortly after purchasing a property; the price
paid by a knowledgeable buyer considers any required expenditures. Such
expenditures can include (1) the cost to remediate known environmental conta-
mination, (2) the cost to cure deferred maintenance at a building, or (3) similar
costs that a buyer anticipates making upon purchase of a property, such as
demolition costs when an improved site is purchased for redevelopment. While
demolition costs can be accounted for as expenditures after sale, in the subject
case, building improvements at the various sales, if any, were accounted for on
a qualitative basis, in the "elements of comparability" portion of this report. As
such, none of the land sales required an adjustment for expenditures after sale.
Market Conditions:
Consideration of the market conditions (date of sale) is appropriate when sales
occur during a rising or declining market. Said consideration is based upon
observation of the real estate market and value appreciation/declining cycles
dating back more than 15 years.
Residential real estate values in the subject market area were largely flat (level)
from the latter portion of 2009 through the mid to latter portion of 2013, after
which residential real estate values began increasing. Said price increase has
generally continued through the mid to latter portion of 2018, due in part to the
continued availability of low mortgage interest rates. Certain residential
markets, however, appear to have stabilized from the first portion of 2019,
through the present time.
The following graph, which was obtained from truila.com, sets forth the median
sale price of single family homes and condominiums in the City of Newport
Beach, over the past five years. As noted, there can be fluctuations in the
median price due, in part, to the large fluctuation in home values in differing
portions of Newport Beach.
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VALUATION ANALYSIS (Continued)
SALES COMPARISON APPROACH: (Continued)
Median Bales Price in Newport Beach
❑ 1 Br ❑ 2 Bf ❑ 3 Br 114 Br 0 All properties
Median Sales Price
32 M
S1.9M
S1.8M
S1.TM
$1.frM
S 1.5M
S1.4M
S1.3M
f r r f
4G o9 4 m O C}
2 Z Z Z Z
All pfoperties
Note that recreational land, along with other nonutilitarian or limited -utility land
(i.e. open space, agricultural land, etc.), does not appreciate in value as quickly
as conventional -use properties offering increased economic benefits (i.e. land
zoned for residential, commercial, or industrial use).
The market conditions adjustments utilized herein are based on (1) discussions
with various market participants (brokers, property managers, etc.),
(2) observations of local real estate market trends (sales activity, development
activity, etc.) and (3) a review of sale prices and current asking prices at
comparable vacant land parcels in the immediate and general subject market
area. While there has been an upward trend in single family residential values
over the last few years as stated the open space, agricultural, recreational, and
related markets for limited utility property do not typically experience the same
extent of price appreciation, due primarily to the more speculative nature of
open space land sale acquisitions.
Based on the foregoing, adjustments are applied to the various sale properties
based on an annual appreciation rate of 3.0% per year (0.25% per month) for
those years seeing more substantial residential price appreciation, and 0%
(level) per year for those years seeing more moderate residential price
appreciation, as follows:
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lid
3-118
VALUATION ANALYSIS (Continued)
SALES COMPARISON APPROACH: (Continued)
The adjustments applied to the sale properties for market conditions are based
on the following schedule:
January -December
2012:
January -December
2013:
January -December
2014:
January -December
2015:
January -December
2016:
January -December
2017:
January -December
2018:
January -March
2019:
Elements of Comparability:
0.0%
per year or 0.00%
per month
0.0%
per year or + 0.00%
per month
+ 3.0%
per year or + 0.25%
per month
+ 3.0%
per year or + 0.25%
per month
+ 3.0%
per year or + 0.25%
per month
+ 3.0%
per year or + 0.25%
per month
0.0%
per year or 0.00%
per month
0.0%
per year or 0.00%
per month
After considering the transactional adjustments, the appraiser analyzed the fol-
lowing elements of comparability at the sales, as compared to the subject site:
General location
Access
Land size
Best use/zoning
Land Sales Comparison Analysis:
Land configuration/utility
Topography
Improvements
Plans/entitlements
The comparability adjustments applied to the sale properties are judgment
estimates which are intended to equate the subject land parcel with the
respective land sale properties. Adjustments for the various elements of
comparability were applied on a qualitative basis due to the lack of direct market
evidence regarding quantitative adjustments in the subject market.
The reader is referred to the Land Sales Comparison Grid on the following page.
As can be noted, Data 1 through 6 required adjustments for market conditions,
ranging from 4.0% to 12.0%. None of the sales required adjustments for
property rights, financing, conditions of sale, or expenditures after sale.
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W
3-120
VALUATION ANALYSIS (Continued)
SALES COMPARISON APPROACH: (Continued)
Lastly, note that while subject lease site contains 41,500 square feet of land
area, or 0.953f acres, the larger park parcel contains 13.87f acres. Larger
parcels, whether vacant or improved, typically sell at overall lower rates per
square foot of land area. As such, Data 1, containing 99.51 acres, and Data 4,
containing 688 acres, are deemed inferior and far inferior regarding land size.
Following are comments and aerial photographs regarding the various sale
properties.
Data 1 — Follows Campground
` E11111 N
!�
Data 1 represents the sale of Follows Camp, a former RV campground that
suffered significant flood damage, was effectively vacant at the time of sale, and
was declared a public nuisance. The property is zoned for Recreational and
Resort use, though portions of the site are within the A-1 (agricultural) and W
(watershed) zone districts. The site has an extremely large land area of just
under 100 acres, is located in unincorporated Los Angeles County, in the Angeles
National Forest (Azusa mailing address) and was purchased by the City of
Industry for undisclosed purposes. The site is not currently being utilized, and
is being considered for potential disposition by the City. The site has limited
economic potential via potential camping fees, however, it would require
significant rehabilitation, per published records.
R. P. LAURA IN
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3-121
VALUATION ANALYSIS (Continued)
SALES COMPARISON APPROACH: (Continued)
The purchase price was $5,250,000, all cash, which equates to $1.21 per square
foot of land area. The market conditions adjusted purchase price is $1.36 per
square foot of land area. The deed recorded October 24, 2011, as Document
No. 139268. Data 1 is considered inferior to the subject property, due primarily
to the land size, rural location, irregular and non-contiguous land area, and
overall condition.
Data 2 — Open Space site, Mission Viejo
The sale property is a remnant open space land parcel, and represents a strip
of land located between a railroad right of way and public park. The site is
below the grade (bridge) of adjacent La Paz Road; there is no physical vehicular
access to the site. The property is zoned OS (Open Space) consistent with the
zoning of the adjacent park. The site was acquired on a speculative basis.
The purchase price was $10,000, all cash, which equates to $0.39 per square
foot of land area. The market conditions adjusted purchase price is $0.43 per
square foot of land area. The deed recorded August 4, 2014, as Document No.
310724. Data 2 is considered far inferior to the subject property, due primarily
to the far inferior access, and configuration, as well as the inferior best
use/zoning.
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3-122
VALUATION ANALYSIS (Continued)
SALES COMPARISON APPROACH: (Continued)
Data 3 — Golf Course
Data 3 represents the sale of the Meadowlark Golf Course facility in Huntington
Beach. The facility is relatively small for a golf course, containing only 47.530
acres of land area. The site is zoned OSPR (Open Space Parks and Recreation)
and is improved with an 18-hole golf course, club house building containing
11,149 square feet, constructed in 1980f, and related on -site improvements.
The purchase price equates to $4.06 per square foot of land area, as improved
with the existing golf course facility, implying the underlying recreation land
area, as vacant, would be significantly less than $4.06 per square foot.
It is noted that the subject PR (Parks and Recreation) zone district does allow
golf course facilities, however, the subject site is considered to be too small in
land size to support a golf course. Regardless, Data 3 does have a similar zone,
and is in a similar inland area.
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3-123
VALUATION ANALYSIS (Continued)
SALES COMPARISON APPROACH: (Continued)
The purchase price was $8,400,000, all cash, which equates to $4.06 per square
foot of land area. The market conditions adjusted purchase price is $4.44 per
square foot of land area. The sale occurred November 19, 2014, as an LLC
company transfer. Data 3 is considered far superior to the subject property, due
primarily to the existing golf course improvements and superior best use (as
the sale OSPR zone, and land size combined, allow for golf course use).
Data 4 - Great Park, Irvine
i _I
1
-
UPPER SEE CANYON
BOSQUE
99AC
I
'-
-
AGRICULTURE!
GOLF COURSE
259AC
_
SPORTS PARK
WILDLIFE
CORRIDOR
178AC
DEVELOPMENTGREAT PARK
Data 4 represents the sale of a portion of the former El Toro Marine Corps base,
which portion is commonly known as the "Great Park." The site is zoned for
OCGP (Orange County Great Park) and P (Preservation), and contains 688 acres
of land area. The site was acquired by a home developer, from the City of
Irvine, for related open space use, and will be developed and utilized for various
sports fields as part of a public park, a wildlife corridor, a golf course, and some
agricultural use. Note however, the buyer is responsible for approximately
$10,000,000 in infrastructure costs applied toward Marine Way.
R. P. LAURA IN
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3-124
VALUATION ANALYSIS (Continued)
SALES COMPARISON APPROACH: (Continued)
The purchase price was $19,171,000, all cash, which equates to $0.64 per
square foot of land area. The market conditions adjusted purchase price is $0.70
per square foot of land area. The deed recorded January 30, 2015, as Document
No. 48405. Data 4 is considered far inferior to the subject property, due
primarily to the extraordinarily large land size which is deemed far inferior (on
a rate per square foot basis), and the inferior improvements, due to the required
infrastructure costs.
Data 5 — Butterfly Palladium, Buena Park
Data 5 represents the sale of the former Movieland Wax Museum site, which
use was vacated in 2005. Data 5 is located in Subdistrict 132(a) of the ECSP,
which subdistrict only allows entertainment uses as a primary use; museums,
hotels, and restaurants are permitted as incidental uses. The site was improved
with the former Movieland Wax Museum building containing over 67,000 square
feet of building area, plus ancillary buildings. Further, the southerly portion of
the site is encumbered with a KV highline.
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3-125
VALUATION ANALYSIS (Continued)
SALES COMPARISON APPROACH: (Continued)
The site required extensive demolition, and the former museum building
included asbestos; the sale price of $2,450,000 was "net" of estimated
demolition costs of $1,360,000. The site is currently being developed with a
Butterfly Palladium, which will include (1) a 40,000± square foot building
consisting of a rainforest atrium, honey bee exhibit, Amazon -Aqua life
presentation, 3-D theater, education room, party room, caf6, gift shop, and
related exhibits, (2) a 10,000 square themed restaurant and family
entertainment center, and/or (3) a future skydiving experience venue. Note
that restaurant use is only permitted in conjunction with an entertainment use
(i.e. independent restaurant development is not permitted under the current
entertainment zoning).
The purchase price was $2,450,000, all cash, which equates to $6.43 per square
foot of land area. The market conditions adjusted purchase price is $6.74 per
square foot of land area. The deed May 4, 2016, as Document No. 198773. Data
5 is considered far superior to the subject property, due primarily to the far
superior entertainment zoning which allows a greater variety of economic uses,
which is considered to more than offset the inferior location.
Data 6 — Open Space site, Dana Point
R. P. LAURA IN
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3-16
3-126
VALUATION ANALYSIS (Continued)
SALES COMPARISON APPROACH: (Continued)
The sale property is a remnant open space land parcel, and represents a
relatively long and narrow parcel of land located on the north side of Pacific
Coast Highway, across from the ocean, in the City of Dana Point. The site is
zoned OS (Open Space) and does not permit development. The seller was a real
estate agent that had previously obtained a permit to utilize the site for real
estate sales/signage purposes. The site has level to sloping topography, with no
drive apron access. The site was acquired on a speculative basis and could
reasonably be utilized for signage purposes or for potential sale to adjacent
(northerly) property owners as a backyard extension.
The purchase price was $30,000, all cash, which equates to $0.57 per square
foot of land area. The market conditions adjusted purchase price is $0.59 per
square foot of land area. The deed recorded August 31, 2016, as Document No.
414988. Data 6 is considered inferior to the subject property, due primarily to
the inferior best use/zoning and topography, which is considered to outweigh
the superior beach location.
Data 7 — Open Space site, San Juan Capistrano
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3-127
VALUATION ANALYSIS (Continued)
SALES COMPARISON APPROACH: (Continued)
The sale property is a remnant open space land parcel, and represents a
relatively long and narrow parcel of land located in close proximity to the ocean,
in the City of San Juan Capistrano. The site is zoned GOS (General Open Space)
and does not permit development. The site was marketed and sold as a non -
developable site, on a speculative basis, and could reasonably be utilized for
(1) potential sale to adjacent (southerly) property owners as a backyard
extension, or (2) speculative zone change or variance for potential one dwelling
site near the corner intersection.
The purchase price was $70,000, all cash, which equates to $0.95 per square
foot of land area. An adjustment for market conditions was not warranted. The
deed recorded October 10, 2018, as Document No. 368414. Data 6 is considered
inferior to the subject property, due primarily to the inferior best use/zoning
and topography.
Refer to the following array of land sales, which have been placed in the array
by rating with respect to overall comparability. The rates applicable to Data 1
to Data 6 have been adjusted for market conditions (date of sale); an
adjustment for market conditions was not warranted for Data 7. The adjusted
rates range from $0.43 to $6.74 per square foot, as follows:
Overall
Rate Per
Data
Comparability
SF Land
5
far superior
$6.74
3
far superior
$4.44
Subject
- - -
$1.50
1
inferior
$1.36
7
inferior
$0.95
4
far inferior
$0.70
6
inferior
$0.59
2
far inferior
$0.43
R. P. LAURA IN
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3-128
VALUATION ANALYSIS (Continued)
SALES COMPARISON APPROACH: (Continued)
Land Value Conclusion:
Based on the foregoing analysis, the rate applicable to the subject property is
estimated at $1.50 per square foot of land area, as follows:
41,500 SF @ $1.50 = $62,250
Adjusted: $60,000
FINAL ESTIMATE OF LAND VALUE:
Based on the foregoing analysis, the market value of the fee simple interest in
the subject land parcel, as of April 10, 2019, is $60,000.
See Cost Approach beginning on the following page.
R. P. LAURAIN
& ASSOCIATES
APPRAISERS - ANALYSTS
3-19
3-129
VALUATION ANALYSIS (Continued)
COST APPROACH:
The Cost Approach is based on the replacement cost new of the subject building
and on -site improvements, less accrued depreciation, plus the value of the
underlying land parcel. The replacement costs new of the subject property have
been categorized as (1) direct building costs, (2) indirect building costs, and
(3) entrepreneurial profit. The value of the underlying land parcel was estimated
in the preceding Sales Comparison Analysis.
Direct and Certain Indirect Building Costs:
The direct cost estimates employed in the following Cost Approach Analysis are
based on (1) development projects wherein construction costs were available,
and (2) cost estimates obtained from Marshall & Swift, a national cost service
handbook that provides building costs and site improvement costs for a wide
variety of construction classes and materials. The national cost service is
considered a guide for estimating replacement costs, plus other related costs.
It should be noted, however, that Marshall & Swift does not generally include
an allocation between the direct and indirect costs. Further, cost estimates
published by Marshall & Swift generally exclude the following: (1) legal and
accounting fees, as well as recording fees, (2) consulting fees to obtain required
reports, such as environmental impact report (EIR), a geotechnical report,
traffic studies, etc., (3) real estate taxes, (4) a contingency factor, (5) financing
points, and (6) entrepreneurial profit.
Direct costs are those expenditures for labor and materials directly employed in
the construction of the improvements. The overhead and profit of the general
contractor and various subcontractors are part of the usual construction
contract, and represent direct costs. Other costs associated with a project such
as the subject development will include the following:
• Architectural, design, and engineering fees
• Building permit and review fees
• Materials, products, and equipment
• Labor force
• Security during construction
• Temporary contractor's office and fencing
• Material storage facilities
• Powerline installation and utility costs
• Contractor's overhead and profit
• Developer's administrative expenses
• Performance bond(s)
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3-130
VALUATION ANALYSIS (Continued)
COST APPROACH: (Continued)
The base direct replacement cost includes regional and local adjustments. The
"base" cost new for the subject building, based on average quality Class D (wood
frame and stucco) construction, and allocating between (1) the gymnasium
portion of the building, containing 6,232 square feet, and (2) the remaining
building area (classrooms, offices, game rooms, etc.), containing 6,161 square
feet, is estimated at:
Classrooms: $138.00 per square foot
Gymnasium: $110.00 per square foot
Additional Indirect Building Costs:
In addition to the direct building costs (which include certain indirect costs), a
number of additional indirect building costs or allowances will be encountered
when developing an industrial warehouse similar to the subject property. Said
indirect costs, while necessary for construction, (1) are not typically included in
the base (direct) building cost rates, and (2) include the following:
Professional services (legal/accounting)
Consulting (EIR, geotechnical, etc.)
Real estate taxes
Contingency factor
Financing points
In the subject case, additional indirect costs, exclusive of profit, are based on
10% of the base construction costs and are in the total amount of $153,574.
Entrepreneurial Profit:
Entrepreneurial profit, or developer's profit, reflects the amount a developer
expects to receive for his or her contribution in a particular project. Additionally,
it represents the degree of risk and expertise associated with the development.
Developers and real estate brokers familiar with the intricacies of real estate
development indicate that the pro forma profit margins for building develop-
ments are generally within a relatively wide range of 10% to exceeding 20% of
the direct and indirect development costs. The actual profit margin, upon
completion of a particular project, however, can vary considerably depending
on a number of factors such as cost overruns, unanticipated additional
expenses, labor force negotiations, etc.
R. P. LAURA IN
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3-131
VALUATION ANALYSIS (Continued)
COST APPROACH: (Continued)
After considering current economic conditions, an entrepreneurial profit based
on 15% of the total direct and indirect building costs has been employed in the
subject cost study. The entrepreneurial profit for the subject development is
estimated at $253,397.
Accrued Depreciation:
Accrued depreciation is a loss in property value due to any cause. The five basic
types of accrued depreciation that affect building structures are summarized as
follows:
• Curable physical deterioration
• Incurable physical deterioration
• Curable functional obsolescence
• Incurable functional obsolescence
• External obsolescence
Depreciation resulting from incurable physical deterioration has been based
upon an effective age -life technique, which is a straight line method. The
depreciation was estimated after (1) conducting a physical interior and exterior
inspection of the subject building, and (2) considering the effective age and
remaining physical and economic life of the building improvements, based on
the physical characteristics, as well as the immediate environmental influences,
land values in the subject market, trends pertaining to industrial redevelopment,
etc.
Note that the remaining "life" of the subject building takes into consideration all
of the factors which influence the remaining economic life, including the location
of the subject property, land values in the subject vicinity, the current cost
necessary to redevelop the subject site, the physical condition of the building
and overall functional utility, the state of the current real estate market, plus
the state of the local and national economy.
The subject building was originally constructed in 1975f, having an actual age
of approximately 44 years, however, the building was remodeled in 2008.
Considering the below average condition of the subject building, the overall
effective age of the subject building is estimated at 30 years. The remaining life,
considering the present utility and contributory benefit to the land, is estimated
at 20 years. The indicated overall depreciation attributable to the subject
building, therefore, is 60% (30/50).
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3-132
VALUATION ANALYSIS (Continued)
COST APPROACH: (Continued)
Cost Approach Analysis:
The Cost Approach Analysis applicable to the existing subject development is
set forth following; the land value was estimated in the preceding portion of this
section.
Cost Analysis:
Recreation Center Building:
Direct and Certain Indirect Costs:
Classrooms/offices/game rooms:
6,161 sf x $138.00 =
Gymnasium:
6,232 sf x $110.00 =
Subtotal:
Additional indirect costs (10%):
Total direct and indirect costs:
Entrepreneurial Profit (15%):
Total building cost new:
Depreciation:
Typical Age/Life: 60%
Deprecaited value of building:
Depreciated value of on -site improvements:
Asphalt paving (driveways and pkg lot):
5,500 sf x $2.15 x 0.75*
Concrete walkways:
4,950 sf x $8.00 x 0.75*
Outdoor basketball court:
5,760 sf x $7.50 x 0.75*
Trash enlcosure, conc. blk., 6' high:
20 If x $115 x 0.50*
Concrete curbing:
375 If x $20.50 x 0.75*
Subtotal:
Contributory value of landscaping:
* Reciprocal of depreciation rate.
Total, depreciated value of on -site improvements:
850,218
685,520
$1,535,738
153,574
$1,689,312
253,397
$1,942,709
- 1,165,625
29,700
32,400
= 1,150
5,766
$ 77,885
15,000
$777,084
92,885
Total, depreciated value of building and on -site improvements: $869,969
Adjusted: $870,000
Land value (via Sales Comparison Approach): 60,000
Total market value of subject property: $930,000
R. P. LAU RAIN
& A S S O C I A T E S
APPRAISERS - ANALYSTS
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3-133
VALUATION ANALYSIS (Continued)
MARKET RENT:
The purpose of this appraisal is to estimate the market rent applicable to the
subject property. Further, an allocation is included for the NMUSD portion of the
site containing 2,560 square feet of land area, and improved with a portion of
the existing basketball court.
As noted, there is a lack of comparable recreation and/or community center
properties in the open market in which a market rental rate can be derived via
direct comparison. As such, in order to estimate the rental value of the subject
property, it is necessary to apply an appropriate rate of return to the market
value of the subject property (land and improvements).
Rate of Return:
In determining the appropriate rate of return to apply to the subject property,
the appraiser considered (1) gross annual rates of return received by public
agencies and large land -holding private corporations, (2) national capitalization
rates and yield rates, obtained by large private real estate investment firms,
and (3) range of capitalization rates for conventional properties in the
immediate and general subject market area.
Following is the gross annual return rates received by public agencies and large
real estate corporations:
City of Long Beach:
7-10%
City of Los Angeles:
8-10%
County of Los Angeles:
6-9%
County of Orange:
8-10%
Irvine Company:
9-10%
Watson Land Company:
8-10%
Newhall Land Company:
8-10%
The rates in the above -mentioned table effectively represent those rates which
the public agency seeks to obtain at their sites over a long-term holding period
(20+ years). Sites located in areas of high demand and/or limited availability
can achieve the higher rates (as quoted in the table above), while sites which
are more "typical" or "common" are often leased at lower rates. Further, note
that short term capitalization rates are generally 2% to 4% lower than the public
agency rates of return.
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3-24
3-134
VALUATION ANALYSIS (Continued)
MARKET RENT: (Continued)
As stated, in addition to the rates of return sought by public agencies and private
real estate companies, a review was conducted of national yield rates (internal
rates of return) obtained by private real estate investors, on a quarterly basis.
The rates were obtained from the Price Waterhouse Cooper (PWC) Investor
Survey. The overall capitalization rates, as well as the investment yield rates
(also known as discount rates) were obtained from the PwC Investor Survey,
First Quarter, 2019. The PWC is a quarterly publication based on a survey of
real estate investors and developers. Said survey includes economic and
financial information, plus rates produced by acquisitions and dispositions of
large income -producing properties. Following is a summary of certain average
yield rates, as obtained from Korpacz:
Cap Rate Yield Rate
Los Angeles Office Market: 5.98% 7.63%
National Net Lease Market 6.77% 7.52%
National Strip Shopping Center Market: 6.63% 7.73%
Pacific Region Apartment Market: 4.54% 6.63%
As noted, the overall yield rates (discount rates) are generally 1% to 2.5%
greater than the capitalization rates (which are based on a single year income).
Note, however, the yield rates are generally based on long term investments,
and include the return on capital and appreciation of the underlying real estate
investment. As such, in the subject case, the capitalization rate range is
deemed more appropriate, which range (excluding apartments) is 5.98% to
6.77%. As will be demonstrated, however, capitalization rates for conventional
commercial property (office and retail), in the Orange County and Newport
Beach area, are generally at the lower end of the range, as follows:
Cap Rate
Orange County Office Market: 5.5%-5.7%
Orange County Retail Market 5.20/o-5.4%
Newport Beach Office Market: 5.3%-5.4%
Newport Beach Retail Market: 4.60/o-5.1%
R. P. LAURA IN
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3-25
3-135
VALUATION ANALYSIS (Continued)
MARKET RENT: (Continued)
Although the capitalization rates for conventional retail properties in Newport
Beach and Orange County are at the lower end of the range, the subject Boys
and Girls Club is an atypical special use property which, by nature, has a lower
value and higher risk (i.e. higher rate of return). As such, the rate of return
deemed applicable to the subject property, as applied to both the underlying
land and the existing improvements, is estimated at 6.0%.
Market Rent Conclusion — Property as a whole:
Based on the foregoing analysis, the market rent deemed applicable to the
subject property as a whole, allocated between the underlying land and
improvements, is estimated at $55,800 per year, or $4,650 per month, as
follows:
Fair market rent - Property as a whole:
Land Value: $60,000
Rate of Return: 6.0%
Annual Rent, land only: $3,600
Monthly Rent, land only: $300
Value of building and site improvements: $870,000
Rate of Return: 6.0%
Annual Rent, building and site improvements: $52,200
Monthly Rent, building and site improvements: $4,350
Reconciliation - property as a whole:
Annual Rent, land only: $ 3,600
Annual Rent, building and site improvements: 52,200
Total Annual Rent: $ 55,800
Total Monthly Rent: $4,650
R. P. LAURA IN
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3-136
VALUATION ANALYSIS (Continued)
MARKET RENT: (Continued)
Allocation of School District Portion:
As stated, the appraisal study also sets forth the market rent for the allocated
portion of the Newport Mesa Unified School District (NMUSD) site. Said NMUSD
site contains 2,560 square feet of land area, valued at $1.50 per square foot
($3,840). The NMUSD site is improved with a portion of the basketball court,
which site improvement is valued at $7.50 per square foot (cost new), and
depreciated 25%. The rate of return applied to the allocated portion of the
NMUSD is 6.0% (as part of the whole).
Market Rent Conclusion — NMUSD Allocated Portion:
Based on the foregoing analysis, the market rent deemed applicable to the
NMUSD portion of the site, allocated between the underlying land and
improvements, is estimated at $1,094 per year, or $91.17 per month, as
follows:
Allocation of Newport Mesa Unified School District portion:
Land Value:
2,560 sf x $1.50 = $ 3,840
Rate of Return: 6.0%
Annual Rent, land only: $230
Monthly Rent, land only: $19.17
Value of allocated basketball court improvements:
2,560 sf x $7.50 x 0.75* = 14,400
Rate of Return: 6.0%
Annual Rent, land only: $864
Monthly Rent, land only: $72.00
Reconciliation - Allocation of School District portion:
Annual Rent, land only: $ 230
Annual Rent, basketball court improvements: 864
Total Annual Rent: $ 1,094
Total Monthly Rent: $91.17
R. P. LAURA IN
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3-137
VALUATION ANALYSIS (Continued)
FINAL ESTIMATE OF RENTAL VALUE:
Based on the foregoing analysis, the fair market rental rate applicable to the
subject property, as of April 10, 2019, is summarized as follows:
Property as a Whole:
Annual Rent, land only: $ 3,600
Annual Rent, building and site improvements: 52,200
Total Annual Rent: $ 55,800
Total Monthly Rent: $4,650
Allocation of School District Portion:
Annual Rent, land only: $ 230
Annual Rent, basketball court improvements: 864
Total Annual Rent: $ 1,094
Total Monthly Rent: $91.17
Said rental rates are based on a triple net (NNN) rental arrangement wherein
the lessee (tenant) would be responsible for the payment of real estate taxes
(if any), insurance premiums, utilities, maintenance, etc. Further, the applicable
rental rate would be subject to annual adjustments, typically based on the
Consumer Price Index (CPI), with re -adjustment to market levels at set intervals
(every 3, 5 or 10 years).
R. P. LAURA IN
& A S S O C I A T E S
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3-138
ADDENDA
3-139
See Photo No. 1 on first page of Subject Property Description Section.
PHOTO NO. 2: View looking southwesterly at the subject
property from Vista Del Oro..
PHOTO NO. 3: View looking southeasterly at the rear elevation
of the subject building and basketball court.
R. P. LAURAIN
& ASSOCIATES
APPRAISERS - ANALYSTS
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3-140
PHOTO NO. 4: Interior view of main game room.
PHOTO NO. 5: Interior view of typical classroom.
R. P. LAURAIN
& ASSOCIATES
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5-2
3-141
PHOTO NO. 6 Interior view of gymnasium.
PHOTO NO. 7: Interior view of hallway.
R. P. LAURAIN
& ASSOCIATES
APPRAISERS - ANALYSTS
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3-142
PHOTO NO. 8: Interior view of kitchen area.
PHOTO NO. 9: View looking southerly along Vista Del Oro from a
point adjacent to the subject property.
R. P. LAURAIN _
& ASSOCIATES
APPRAISERS - ANALYSTS
5-4
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m
MONS
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R A I N
A J J V 1, I A I L S
APPRAISERS -ANALYSTS
3-144
BACKGROUND AND QUALIFICATIONS
John P. Laurain, MAI, ASA
Certified General Real Estate Appraiser
California Certification No. AG 025754
PRESIDENT;
R. P. Laurain & Associates, Inc.
3353 Linden Avenue, Suite 200
Long Beach, California 90807
Office: (562) 426-0477 - Fax: (562) 988-2927
rpla@rplaurain.com
PROFESSIONAL ORGANIZATION AFFILIATIONS;
The Appraisal Institute
MAI Designated Member
American Society of Appraisers
Senior member; hold professional endorsement and
designation "ASA" in urban real estate.
American Arbitration Association
Associate arbitrator in title insurance matter.
Certified General Real Estate Appraiser by the
Office of Real Estate Appraisers, State of California.
Certification No. AG 025754.
APPRAISAL BACKGROUND;
Real estate appraisal and valuation consultation services conducted for public
purposes include eminent domain studies, street widening and grade separation
(bridge) projects, public school and university expansion projects, relocation
studies, housing and public loan programs, Navy housing, senior housing, public
bond measures, leasing of publicly -owned properties, Quimby Act park fee
studies, Fair Political Practices Commission analyses, budgetary studies, and
transfers (exchanges) of properties between public agencies. Private real estate
appraisal services have been conducted for lending institutions, insurance
companies, attorneys, estates for tax and donation purposes, private
subdivision development studies, and other private uses.
R. P. LAURA IN _
& A S S O C I A T E S
APPRAISERS - ANALYSTS
1
3-145
BACKGROUND AND QUALIFICATIONS (Continued)
APPRAISAL BACKGROUND: (Continued)
Residential Property:
Residential properties appraised include single family, condominiums, own -
your -own, townhouse, low and medium density multiple family, 100+ unit
apartment complexes, waterfront properties, boat docks, mobile home parks,
vacant single-family lot and acreage parcels, and low to high density vacant
land parcels.
Commercial and Industrial Property:
Commercial property appraisal studies have included single and multi -tenant
retail, strip centers, shopping centers, low-rise and high-rise office buildings,
medical offices, restaurants and fast-food developments, nightclubs, con-
venience stores, theaters, automobile repair and service facilities, service
stations, truck fueling and washing stations, car wash facilities, automobile
sales, mixed -use properties including single resident occupancy (SRO)
developments, as well as hotel and motel properties, and vacant land.
Industrial property appraisals have included warehouses, light and heavy
manufacturing, distribution and transit facilities, food processing, cold storage,
lumber yards, recycling centers, open storage, vacant land, remnant and
landlocked parcels, properties encumbered with oil and water injection wells,
sites with soil contamination and land fill properties.
Special Purpose and Special Use Properties:
Appraisal services and valuation studies of public, quasi -public, special use, and
nonprofit facilities include, among others, seaport properties, airport properties
(FBO, hangars, warehouse, office, land, etc.), submerged land, river rights -of -
way, reservoirs, agricultural land, conservation/mitigation and wetland
properties, utility and railroad rights -of -way, flood control channels, city hall
buildings and civic center complexes, courthouses, libraries, fire and police
stations, post offices, public parking structures, parks, public and private
schools, adult learning centers, athletic facilities and gyms, bowling alleys,
tennis centers, youth homes, after school facilities, daycare facilities, hospitals,
skilled nursing facilities, churches, meeting halls and veteran facilities.
Valuation Methodologies:
In addition to the three conventional valuation methods (Sales Comparison
Approach, Cost -Summation Approach, and Income Capitalization Approach),
valuation methodologies have included discounted cash flow analyses, leased
fee, and leasehold analyses, absorption discounts, deferred maintenance, cost -
to -cure, bonus value, excess rent, across -the -fence, value -in -use, fractional
interests, hypothetical valuations, and reuse studies.
_ R. P. LAURA IN
& A S S O C I A T E S
APPRAISERS - ANALYSTS
2
3-146
BACKGROUND AND QUALIFICATIONS (Continued)
APPRAISAL BACKGROUND: (Continued)
Property interests appraised for eminent domain purposes include full and
partial takings, as well as severance damage and project benefit studies.
Valuation of various types of easements have included permanent surface,
street, temporary construction, slope, utility, pipeline and subsurface, aerial,
bridge structure, signal light, exclusive and nonexclusive surface rights, multi -
layered, battered pilings, tie -back, railroad, drainage ditch, and flood control
easements.
Clients:
Real estate research, analysis and appraisal services performed on projects for
the following public agencies and private corporations while associated with
R. P. Laurain & Associates, Inc., since 1986:
Cities:
City of Alhambra
City of Artesia
City of Azusa
City of Baldwin Park
City of Bell
City of Bell Gardens
City of Bellflower
City of Buena Park
City of Burbank
City of Carson
City of Cathedral City
City of Chino Hills
City of Compton
City of Covina
City of Cudahy
City of Cypress
City of Diamond Bar
City of Downey
City of El Monte
City of El Segundo
City of Glendale
City of Hawaiian Gardens
City of Huntington Beach
City of Huntington Park
City of Industry
City of Irwindale
City of La Mirada
City of Lawndale
City of Long Beach
City of Los Alamitos
City of Los Angeles
City of Monrovia
City of Monterey Park
City of Newport Beach
City of Norwalk
City of Ontario
R. P. LAURA IN
& A S S O C I A T E S
APPRAISERS - ANALYSTS
City of Palmdale
City of Palm Springs
City of Paramount
City of Pasadena
City of Riverside
City of Rosemead
City of San Juan Capistrano
City of Santa Ana
City of Santa Fe Springs
City of Seal Beach
City of Signal Hill
City of South El Monte
City of South Gate
City of Tustin
City of Upland
City of West Hollywood
City of Whittier
3
3-147
BACKGROUND AND QUALIFICATIONS (Continued)
APPRAISAL BACKGROUND: (Continued)
Other Public and Quasi -Public Agencies:
Other:
Alameda Corridor Engineering Team
Alameda Corridor Transportation Authority
California High Speed Rail Authority
Caltrans
Castaic Lake Water Agency
Hawthorne School District
Kern County
Long Beach Community College District
Long Beach Airport
Long Beach Unified School District
Long Beach Water Department
Los Angeles County Department of Beaches and Harbors
Los Angeles County Chief Executive Office
Los Angeles County Internal Services Department
Los Angeles County Metropolitan Transportation Authority
Los Angeles County Public Works
Los Angeles Unified School District
Los Angeles World Airports
Lynwood Unified School District
Orange County Transportation Authority
Orange County Public Works
Port of Los Angeles
Port of Long Beach
Riverside County Transportation Commission
San Bernardino County
Southern California Edison
State of California, Santa Monica Mountains Conservancy
U. S. Department of the Navy
U. S. Postal Service
Various attorneys, corporations, lending institutions, and
private individuals.
Gold Coast Appraisals, Inc.:
Associate appraiser, as independent contractor, during portions
of 1991 and 1992, specializing in appraisal of single family
residential through four -unit residential properties.
_ R. P. LAURA IN
& A S S O C I A T E S
APPRAISERS - ANALYSTS
3-148
BACKGROUND AND QUALIFICATIONS (Continued)
EXPERT WITNESS;
Qualified as an expert witness in the Los Angeles County Superior Court, Central
District.
Qualified as an expert witness Orange County Superior Court.
Qualified as an expert witness in an arbitration matter before Judicial Arbitration
and Mediation Services in the Counties of Los Angeles and Orange.
Provided testimony as an expert witness in conjunction with eminent domain
matters before the San Bernardino and Riverside County Superior Courts.
ACADEMIC BACKGROUND:
Cypress Community College - Basic curriculum.
Long Beach Community College - Basic curriculum.
Real estate and related courses taken through and at various Community
Colleges, Universities, the Appraisal Institute, and business schools, in
accordance with the Continuing Education Requirements of the State of
California, as follows:
Fundamentals of Real Estate Appraisal
Appraisal Principles and Techniques
California Real Estate Principles
Real Estate Appraisal: Residential
Principles of Economics
California Real Estate Economics
Basic Income Capitalization Approach
Advanced Income Capitalization Approach
Advanced Market Analysis and Highest & Best Use
Advanced Applications
Advanced Concepts and Case Studies
Real Estate Escrow
California Real Estate Law
Uniform Standards of Professional Appraisal Practice, Part A
Uniform Standards of Professional Appraisal Practice, Part B
Federal and State Laws and Regulations
Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book)
Valuation of Conservation Easements
R. P. LAURA IN _
& A S S O C I A T E S
APPRAISERS - ANALYSTS
5
3-149
Attachment F
Letter from Boys and Girls Clubs of Central Orange Coast
3-150
m I'll,
x��_
BOYS & GIRLS CLUBS
OF CENTRAL ORANGE COAST
Costa Mesa Irvine Newport Beach Orange Santa Ana
City Council of Newport Beach,
For more than 80 years, our Boys & Girls Club has served the youth and families in Orange County and we
have been incredibly proud to partner closely with city of Newport Beach over many of those years. Our
Boys & Girls Club is innovative, community -focused, and committed to providing quality programming, a
safe space, and mentoring relationships that equip today's youth —our next generation of leaders —with
the skills they need to unlock their true potential.
Our Club's mission is to ensure our youth have access to mentors who help guide them through life's
obstacles and champions who help them reach for their own personal greatness. These mentors and
champions provide immeasurable value to the youth and families in our community. The impact we bring
as a Boys & Girls Club through this partnership with the City of Newport Beach is our collective impact and
is as much your success as it ours. Through this facility partnership and the extension of our lease
agreement, the Boys & Girls Clubs of Central Orange Coast will continue to invest millions of dollars into
programming and impact to benefit our Newport Beach community for decades to come.
Additionally, our Club serves as a complement to other youth programming by fostering relationships with
similarly -minded organizations to best serve Newport Beach's youth and their families.
In 2019 the Boys & Girls Club completed our Pursuing Greatness Capital Campaign and invested over $2M
into the renovation of our Newport Beach Club making it one of the most innovative and world -class Clubs
across the country. During the pandemic, our Club stepped up to keep our doors open to working families
with priority given to the families of healthcare and essential workers.
We collaborate regularly with the Parks & Recreation Team of the City of Newport Beach and are truly
grateful for our relationship. As part of our long-term lease renewal process with the city, there was a
section in your City Council Policy (Section F-7) that needs to be addressed prior to your formal approval.
After reviewing this section with your staff, we all agreed the Boys & Girls Club meets the intent of the
parameters for a successful partnership and the extension of our lease. We have provided staff with some
supporting documents (Attached) from our Boys & Girls Club as well as from our National Organization
Boys & Girls Clubs of America to ensure your confidence in our processes for appointing our Board of
Directors. We are confident you will agree our bylaws and processes exceed the standard of best practices
3-151
BOYS & GIRLS CLUBS
OF CENTRAL ORANGE COAST
Costa Mesa Irvine Newport Beach I orange I Santa Ana
to ensure we continue to not only provide world -class services to the residents of Newport Beach, but also
maintain our reputation as one of Orange County's most respected nonprofits.
Given the original intent when this building and surrounding park area was first gifted to the City of
Newport Beach by the Irvine Company for the purpose of serving the community and this facility being
dedicated as a Boys & Girls Club along with our current and previous lease agreements by prior City
Councils, we look forward to continuing to strengthening our community with you through the extension of
the lease.
We respectfully request the City Council of Newport Beach to please waive section F-7 of the City Council
Policy and approve the extension of our lease. We have had incredible impact together on the families of
Newport Beach over several decades through this collaboration and the recent investment we made of
over $21VI into the facility and infrastructure has prepared us to serve the next generation of leaders! We
look forward to continuing our work together.
With gratitude,
Robert Santana, CEO
Boys & Girls Clubs of Central Orange Coast
3-152
Alk
BOYS & GIRLS CLUBS
OF CENTRAL ORANGE COAST
costa Mesa I Irvine I Newport Beach I Orange I Santa
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OFCENTRAL ORANGE COOT
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Our family of Clubs
is united under
one mission...
one vision...
one core value.
MISSION
To ensure every child has
mentors and champions in life.
1VA&2KO1►J
All children will build positive
<Z> life-long memories, achieve
their greatest potential and
inspire future generations.
CORE VALUE
q* Pursue greatness.
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i
A Letter From
Robert Santana
On behalf of every family we impacted this year, thank you for investing in our mission!
Your support enables us to reach deeper to serve those most vulnerable.
You supported the expansion of our Family Strengthening Initiatives food distribution
and safety net services across our high -risk communities. You funded the expansion of
our Mental Wellness Strategy that strengthened our outreach to families facing crisis
and young people needing support. You helped us launch 4 new elementary school
sites in the Westside of Costa Mesa, 2 new College Bound sites in Santa Ana, and
increased our capacity to serve more youth in 3 elementary school sites in Orange.
And you supported the launch of our new Workforce Development Initiative that
prepares teens for future careers. Thanks to you, our Club was ready when families
needed us most!
As we look forward, our Club continues to prepare our young people for success while
identifying the following 3 focus areas as the greatest challenges facing our community:
1. Achievement Gap - Expand academic intervention services to address the learning
loss, digital divide, and the achievement gap
2. Family Strengthening & Emergency Support Services - Expand essential resources
to support families most impacted by the loss of employment, inflationarypressures,
or food insecurity
3. Mentoring & Mental Wellness - Deepen our mentor relationships with young
people and expand our mental health resources for youth, teens, and parents.
Last year our Club celebrated 80 years of service and impact! But we are even more
excited about the future and how we continue to be the organization families count on!
We promise to listen to our communities, evolve as needed, and rise to challenges that
unlock the amazing potential of our young people!
Thank you for believing in our kids and supporting our mission!
Robert Santana, CEO
3-154
80VO-1
OF COLLEGE BOUND
MEMBERS ARE 1ST
GENERATION
67%
OF OUR CLUB FAMILIES
ARE BELOW THE FEDERAL
POVERTY LEVEL
93%
OF OUR CLUB FAMILIES
ARE LOW INCOME IN
ORANGE COUNTY
Addressing the
Community's Needs
AS OUR SHARED COMMUNITY MOVES BEYOND THE CURRENT PHASE
pa"PoO
Z5/
OF THE PANDEMIC, THE FAMILIES OUR CLUB SERVES FACE GREATER
DECREASE IN
23%
CHALLENGES AND NEEDS THAN WE HAVE SEEN IN THE PAST. AS OUR CLUB
READING
DECREASE IN MATH ACHIEVEMENT
LOOKS TO THE FUTURE AND HOW WE RESPOND, WE SEE THE ACADEMIC
ACHIEVEMENT
ACHIEVEMENT GAP WIDENING FOR LOW INCOME STUDENTS, CREATING A
POTENTIALLY INSURMOUNTABLE DEFICIT FOR STUDENTS TO ESCAPE FROM
OF TEENS SUFFERED A
" MAJOR DEPRESSIVE EPISODE
-� THIS YEAR
of Q O
MEMBERS RE BOUND
FIN CEIVE
. T 1
Is ASS/S KC, AL
2022
VCEIN
PF—
$3 ,OOO
IS THE NATIONAL AVERAGE
STUDENT LOAN DEBT
IN 2022
13%
GROCERY STORE
PRICES HAVE
RISEN B
FROM AUGUST
2021 - AUGUST
2022.
ft
AW■
GENERATIONAL CYCLES OF POVERTY... WE SEE
A GROWING NEED FOR ACCESS TO MENTAL
HEALTH SUPPORT FOR YOUTH... AND WE SEE
MORE FAMILIES FACING FOOD INSECURITY
AND NEEDING ASSISTANCE AS INFLATION
PRESSURES FAMILIES WITH LIMITED
BUDGETS.
To address the challenges our communities face, our Club looks to
the future with optimism and has created a strategic vision
that will make critical investments in:
• Strengthening the mentor relationships for
every youth we serve;
• Continuing to expand our College Bound and
Workforce Development Programs;
• Expanding our reach and impact to new
families in the communities we serve.
Our key to success, and foundation for
the Club's vision, is to grow capacity
through strategic initiatives while enhancing
relationships with partners, donors and volu
who help us provide more equitable access
the resources and opportunities that deliver
change.
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Expanding Teen Members'
Future Options
As we look forward, we continue to drive impact for
the teens we serve by expanding our teen impact
strategy.
Our goal is to help teens break the cycle of
poverty through the power of higher education, or
securing an above livable wage career upon high
school graduation. Through a continued focus on
our Workforce Development and College Bound
initiatives, more teens and alumni will attain a brighter
future.
Higher education must remain financially attainable
for our members. We plan to grow our Scholarship
Fund to ensure members have a sustainable plan to
obtain a higher education degree, as well as establish
support for those students pursuing alternate paths to
future careers beyond high school.
5 // BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST / ANNUAL REPORT
Enhancing Every Member's
Experience
Over the next three years, we commit to deepening our
engagement with the children and parents we serve by
providing investments needed to close resource gaps.
We will drive greater attention and quality of service to
every member through lower staff -to -member ratios,
greatly improving and enhacing mentor relationships.
Additionally, through an expansion of our partner
network, members will access improved early literacy
intervention, writing and math support that establish
a foundation for future learning and educational
development.
Growing Resources that
Support the Entire Family
Our Club believes in empowering the community to
improve their personal situation through our early
Childhood and Family Strengthening programs.
Through expansion of our partner network and worki
to secure additional resources and support services t
serve the entire family holistically.
■ NED GREATNE
TNESS r # BOYS &GIRLS CLU
� A
CENTRAL ORANGE
RN E!
REATNESS
College Bound
0
Year At=A=Glance
O �
O
21st Century Clubs/
Impact Model
720
YOUTH AGES 6 18
served every day a,
our 4 club locations
Meals Distributed
2849000
MEALS
distributed this year with
help from 386 volunteers
4
Ll
8
School -Based
N EqPrograms
RLY
300
students served
annu
at partner school itesY
4W
--411� a
1
$2,100
462
in financial cial assistance secu
$148,125 in red, including
Club scholarship aWarde
to 40 graduating seniors d
JsSkr al-S c+LV�`
b r-Trtne import �neP ` or��`finti
4�4 2,9239
TEENS
served at 12 sites last year
with 163 graduating seniors
# -0,
d� eying
miiy Strength
Fa
v
io 0�
�p►M1`1ES
E
N`a Xs year `N�t u01ty
s n pr f� r9 njt pD5
na partner o
College Bound Alumni
219
MEMBERS
supported this year
0
r'
99
Food Distribution
40,232
INDIVIDUALS
M
IL served through 42 food
��..r.� distribution events- k
SGC Actit,e
e?Sports `ed9/4
18 is s
basic
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4
School -Based Programs
Our school -based programs provide on -campus, after -
school enrichment services to students who attend our
elementary and middle school partner sites in the cities
of Costa Mesa, Orange, and Santa Ana.
n response to
COVID-19, we held
programs at 3 school
sites this year.
21st Century Clubs/
Impact Model
Our Impact Model provides a structured, daily rotation
of academic reinforcement, physical fitness, and
enrichment opportunities. It is customized to deliver
age -appropriate curriculum that encourages curiosity,
discovery, creativity and teamwork. Through our
Impacr Model, members are motivated to adapt and
grow, develop 21st century skills, graduate on time with
a plan for their futures, and prepare for success.
15001
member -to -
mentor ratio
Family Strengthening
By strengthening the entire family unit, our Family
Strengthening program focuses on empowering
parents to invest in their own education and
employment skills to strengthen their finances and
health. Through a strategic network of nonprofit
and community partners, our Family Strengthening
program provides youth and their families a clear path
to improve their greatness within. lab.,
71 Non-profit and
community partners
BGC Active Sports Leagues
BGC Active offers health and wellness services
through youth sports leagues at our Clubs. The
cornerstone of this initiative is our Youth Basketball
League, which has been an integral part of our
community for over 40 years. The goal for our
leagues is to teach all participants the fundamentals
of sports, sportsmanship, and teamwork.
SEGl�l51'AQK
9 // BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST / ANNUAL REPORT 2021-2022 BOYS & GIRLS CLUMNNEPII!71 RAL OkAg%NAL R
pull
Mental Health
Since the onset of the COVID-19 pandemic, we have
seen a rise in the need for mental health resources. As
a response, we have taken strategic investments to
support our staff and youth to ensure they have access
to mental health resources. Our Boys & Girls Club will:
o Work together with community partners so
our youth can be educated on the importance
of their mental wellbeing, develop self-
awareness, and improve their interpersonal
skills,
o Train our staff to recognize and respond to
the signs, symptoms, and be aware of the
risks to our youths' mental health; and
Increase our network of
community partners to provide
specialized support for our
<4 11 1
College Bound
College Bound is a college and career readiness program
that works to ensure high school students graduate on
time with a customized plan for the future. At the heart of
the program is the academic case management through
which students receive the individualized guidance,
encouragement, and resources they need to set and
obtain their educational goals, whether that be through
college, military, or trade school pursuits.
o Over $2.1 million in financial assistance secured
for 2022 graduates
o Average $12,886 in financial assistance
per student
o 100% of seniors graduated on time and moved
on to higher education despite the interruption
to their education caused by COVID-19
members
rough
virtual
advising
College Bound Alumni
Our College Bound Alumni program was forma
launched with our 2019 graduating class so we
continue to provide our alumni with academic,
and social -emotional support to ensure they en
in, engage, and graduate from college. This yea
round mentorship program offers monthly chec
ins, access to workshops and resources, networ
opportunities, and peer mentoring.
o 219 members supported this year
o Percentage of members on schedule to
move on to following school year
o Class of 2019: 82%
o Class of 2020: 98%
"Ni
Workforce Development
Our Workforce Development program was piloted
in Spring 2022 with the goal to help ensure
teens have equitable access to resources and
career opportunities post -graduation. Our focus
is to provide services such as direct mentorship,
professional networking opportunities, internships/
externships, and career fairs. The program's
objective is to offer career exploration opportunities
in:
o Business Administration
O Civic Services
o Construction & Trade
o Healthcare
o Sales
o Service Industry
o S.T.E.M.
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST / ANNUAL REPORT 2021-2022 // 12
3-159
Financials
Audited figures for fiscal year ended June 30, 2022
Revenue
SPECIAL EVENTS 6%
BGC CENTRAL OC —
FOUNDATION 2%
CONTRIBUTIONS 16%
OTHER INCOME 14%
GRANT INCOME 10%
SPORTS &
PROGRAM FEES 14%
TRUSTS &
FOUNDATIONS 38%
Expenses
TEEN SERVICES 25%
Teen Empowerment, College Bound, YEP for Kids,
School -Based Programs, 21st Century Clubs
FAMILY
STRENGTHENING 4%
EMERGENCY COVID RESPONSE 9%
IMPACT MODEL 62%
21st Century Clubs, School -Based Programs,
Triple Play, BGC Active Sports Leagues
13 // BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST / ANNUAL REPORT 20212022
BOYS & GIRLS CLtM
OF CENTRAL ORANGE Coem
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST / ANNUAL REPORT 2021-2022
a
Donor List
Champion of Youth Circle $100,000+
Anonymous
Anonymous
nM GlRvstoms
Curci Family
of ENFu datim DAFT
From My Heart
Charitable Fund
Joe MacPherson
Foundation Inc.
O.L. Halsell Foundation
Sharon D. Lund
Foundation
Benefactor Circle $50,000-$99,999
The Annenberg Foundation The Devto Support
Cheng Family Foundation Foundation
County of Orange Donald Bren
Foundation
Robert Cryer*
President Circle $25,000-$49,999
Bank of America Charitable
Marcelo & Maura Brutti
Foundation
Croul Family Foundation
Bluebird Legacy
Tad Danz
Brethren Community
James Krueger
Foundation
Director Circle $10,000-$24,999
3M Company
Allen & Friedmann Families
Antis Roofing & Waterproofing
Eric & Connie Boden
Boys & Girls Club of America
Nicole Carrillo Hall and
Keith Hall
City National Bank
City of Santa Ana
Dhont Family Foundation
Draper Family Foundation
Mark & Jaclyn Dreschler
Fifth Third Bank
First Bank
Alison Gooding & Sean Barry
Haskell & White, LLP
The Holden Family Foundation
Club Circle $5,000-$9,999
Anonymous
Anonymous
Cara & Craig Abrahams
Leslie Alvarado
William & Floriana Anhood
Santino & Aline Blumetti
Brown -Forman
Cassidy Castleman
CHOC Children's Hospital
Veronica & William Coffie
CoreLogic
haloitte & Touche
Adam & Lisa Dooley
Goodwin Family Memorial Trust
Mike & Mary Kay Groff
Jeffrey & Jenny Gross
Heritage Foods, LLC
Hester Family Foundation
Doug & Lisa Holte
Hyundai Capital America
Charlene & Mike Immell
JM Family Enterprises, Inc.
Roger T. Kirwan
Kimberley Korinke
KPMG
Marterra Real Estate
Timothy Miller
Marla Noel
Zachary Parker
Wayne & Karen Pinnell
Redline Detection
Richard & Darlene Sanchez
Robin C Shanahan
SPEC Services Inc.
John Stedman
Claire Sweetland
RLS CLUBS OF CENTRAL ORANGE COAST / ANNUAL REPORT 2021-2022
For donations made July 1, 2021 through June 30, 2022
Sun Family Foundation PETER ERR
to UEBRROTH
Tarsadia Foundation FAMILY FOUNDATION
The Roberto
Foundation Iva
PACIFIC LIFE
IoanDepot
James S. MacPherson
Anne MacPherson &
Peter West
Jerome Schneider
David & Robyn Stauffer
Swayne Family Foundation
Frank & Shannon Tucker
Peggy Hutchinson & Randy Trost
Martfam Foundation
Helen & Peter Maxwell
PIMCO Foundation
The McBeth Foundation
Travis & Candice Whitten
Profit Recovery Partners
SageView Foundation
Stadium Nissan
Kayhan & Liz Mirza Cathy & Rick Stahl
Multi -Ethnic Collaborative of Donald Steiner
Community Agencies TJX Foundation
Orange County Community '990
Foundation AO
County United Way
40 #V 4e
Crevier Family
The Edwards Lifesciences Fund
Robert D. & Judy Threshie
George N. Ujkic
Ted Verdon & Jillyn
Hess-Verdon
Paul Westhead
Woodside Credit
Xerox Corporation
Robert & Lisa Young
Joseph & Christine Yurosek
I40
Partner $2,500-$4,999
Tim & Cheryl Alders
American Business Bank
Sunny An
Donor Anonymous
Beach Cities Car Wash
Larry & Debbie Bridges
Buffalo Wild Wings, Irvine &
Randy Yamamoto
Charles B. Caldwell
Thomas Callister
Rick & Danielle Chan
Cox Communications
Creative Package McKahan Inc
Ed & Donna De La Torre
First American Trust
David & Michelle Fisher
Yohei & Katie Fukuda
Advocate $1,000-$2,499
Jonathan & Kristine Batista
Mark & Ginger Beckel
Christine Binder
The Brethren, INC DBA Fire
Safety First
Capco
Michael & Meredith Chandra
Dr. Mark & Jennifer Colon
Brian & Laura Cox
Culligan Water
Dicks Sporting Goods
Cleo Dougherty
Anders Eisner
Scot Ellingson
Enterprise Data Solutions
Financial Communications
Society
Jessica Gilbert
Ryan Grant
Mike Guyot
Harry's Heroes
Bradford Hoover
Howard A. & Shirley V. Jones
Family Foundation
Raul Jara
Ken Kathcart
Bindiya Khurana
Elizaeth Koen
Julee Koncak
Carlos Lariz
Johnny Lee
Rhea Leigh Graf
Lions Club of Costa Mesa -
Newport Harbor
Livingston Family Foundation
Christine Long
Gregg & Mary Anne Haly
Hays of California Insurance
Services
Yvonne Herrell
Rebecca & Alex Intfen
Dr. Jeffrey Joseph
Sean & Courtney Kacer
Jennifer Kim
Dirk Manelski
Gary McArdell
Modern Woodmen Fraternal
Financial
Mark Moehlman
Naeem Morris
Chi Nguyen Cox
Dawn Nicolaisen
Vicki and Tom Otterbein
Caleb Patterson
Boris Piskun
Playtika Holdings Corp
Rita Prizio
QWQER Services LLC
Edward & Lizbeth Reilly
Kay Ridgeway
Peter & Lesley Riley
Lifetime Giving Society
Philanthropist $2,500,000+
Joe MacPherson Foundation Anonymous
Benefactor $1,000,000-$2,499,999
Boys & Girls Clubs of Central
Orange Coast Foundation
Julia & George Argyros
From My Heart Charitable Fund
O.L. Halsell Foundation
Orange County United Way
Pacific Life Foundation
Tarsadia Foundation
The Ueberroth Family
Foundation
Leader $250,000-$499,999
The Annenberg Foundation
Anonymous
AT&T
Bank of America Charitable
Foundation
Wanda Bose -Kemper*
Boys & Girls Club of America
Croul Family Foundation
Curci Family
Ross & Phyllis Escalette*
Haskell & White, LLP
IoanDepot
The Long Family Foundation
The McBeth Foundation
King Cole Ducks
Meghna Sinha & Maya
Purandare Philanthropy Fund
Regina Oswald
Dee Dee Owens
Greg Sharenow
Snell & Wilmer, L.L.P.
Bart Van Aardenne
Roberto's Auto Trim
Dan & Catherine Robinson
Maleny Rodriguez
Jesse & Jenny Rodriquez
Saks Fifth Avenue
John F Schaefer
Audrey Schneider
Jeffrey Shepard
David B Smith
Southern California Gas
Company
Spinnaker Investment Group
Starbucks Neighborhood
Grants Fund
Strategic Global Advisors
Dana & Bryan Su
Christine Velascc
Mentor $500,000-$999,999
Tad & Barbara Danz
Anne MacPherson & Peter
West
James S. MacPherson
PIMCO Foundation
Orange County Community
Foundation
David & Robyn Stauffer
Sun Family Foundation
Keith Swayne
Swayne Family Foundation
Robert & Judy Threshie
David Pyle
The Roberto Foundation
Sharon D. Lund Foundation
Taco Bell
Frank & Shannon Tucker
Waste Management of
Southern California
Weingart Foundation
Ruth D. Wetherbee*
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST / ANNUAL REPORT 2021-2022 // 16
3-161
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Join Our
Heritage Club
A gift to the Foundation is truly an investment in
the future of the Club, and generations of children
yet to be served. Through Legacy donations to
the Foundation the assets can grow over time and
maximize the impact of the principal investment.
By making a planned gift, you will receive recognition
as a member of our Heritage Club, a special group
of donors who believe in our kids and have chosen
to leave a legacy of greatness. Donors may choose
gifts of stock, real estate, life insurance, IRA's,
charitable bequests and more that maximize tax
benefits while at the same time creating lasting
impact for future generations.
THE
eER�ITAGE
WLUu
BB
THANK YOU TO THE DONORS WHO HAVE ALREADY
COMMITTED TO LEAVING A LEGACY OF GREATNESS:
WANDA BOSE-KEMPER*
V.
V41clf CHIP CALDWELL
Vr THOMAS CALLISTER
ROBERT CRYER*
HARDING FAMILY TRUST
ROBERT INGOLD JR.*
"aiG�CUMS MICHAEL & KATHI MCLEAN
`ITRNA'+�eM� aCO.Aa�+uM,
ill MARLA NOEL
WAYNE & KAREN PINNELL
ROBERT & JAMIE SANTANA
FRANK & SHANNON TUCKER
ANNE MACPHERSON WEST
& PETER WEST
TRAVIS & CANDICE WHITTEN
RUTH D. WETHERBEE*
ERMIN WOJCIK
5 DONORS WHO PREFER
TO REMAIN ANONYMOUS
*in memoriam
For more information, please contact Travis Whitten, Chief Philanthropy Officer (714) 543-5540, Ext. 302
twhitten@boysandgirlsclub.com
BOYS & GIRLS CLUBS OF CENTRAL ORANGE COAST / ANNUAL REPORT 2021-2022 //
Volunteer
Opportunities are available for individuals
and corporate partners to provide hands-on
mentorship for our kids.
Donate
Your gift directly supports the strategic programs
and initiatives that are key in creating impact in
the lives of the children and families we serve.
Advocate
Collect supplies for any of our annual drives: back -
to -school, books, and toys; provide in -kind goods
and services for our kids or our Clubs.
To discuss other ways you can make an impact on
our kids, our Clubs, and the communities we serve,
please contact Travis Whitten, Chief Philanthropy
Officer, at twhitten@boysandgirlsclub.com or
(714) 543-5540, ext. 302.
BOYS & GIRLS CLUBS
OF CENTRAL ORANGE COAST
costa Mesa I Irvine I Newport Beach I Orange I Santa Ana
(714) 543-5540 1 boysandgirlsclub.com