HomeMy WebLinkAbout09 - Declaring a Portion of City-Owned Property at the Balboa Yacht Basin (BYB) Located at 829 Harbor Island Drive as Surplus LandQ �EwPpRT
CITY OF
s NEWPORT BEACH
`q44:09 City Council Staff Report
November 14, 2023
Agenda Item No. 9
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Seimone Jurjis, Assistant City Manager/Community Development
Director - 949-644-3232, sjurjis@newportbeachca.gov
PREPARED BY: Lauren Wooding Whitlinger, Real Property Administrator,
Iwooding@newportbeachca.gov
PHONE: 949-644-3236
TITLE: Resolution No. 2023-67: Declaring a Portion of City -Owned Property
at the Balboa Yacht Basin (BYB) Located at 829 Harbor Island Drive
as Surplus Land
At the City Council study session on June 13, 2023, an overview of Balboa Yacht Basin
property was presented to the City Council. The BYB was constructed in the late 1940s,
and is a mixed -use property with a marina, shipyard and other commercial uses. The
improvements on a portion of the BYB have reached the end of their useful life and require
a significant investment to continue operating and generating revenue. City Council
directed staff to solicit proposals to ground lease and redevelop a portion of the BYB. To
do that, the City of Newport Beach must comply with the Surplus Lands Act. For the City
Council's consideration is a resolution to declare a portion of the BYB as surplus property
in compliance with the Surplus Land Act. A notice of availability and a request for
proposals will subsequently be issued to identify potential partners for redevelopment of
the property.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Adopt Resolution No. 2023-67, A Resolution of the City Council of the City of Newport
Beach, California, Declaring a Portion of the Balboa Yacht Basin Located at
829 Harbor Island Drive, Newport Beach, California as Surplus Land Pursuant to the
Surplus Land Act.
DISCUSSION:
BYB is located at 829 Harbor Island Drive, Newport Beach, and includes a 172-slip
marina, on -site parking, a shipyard and marine store, a restaurant, offices, three
residential apartments, and storage garages, which the City of Newport Beach (City)
leases to various tenants.
9-1
Resolution No. 2023-67: Declaring a Portion of City -Owned Property at the
Balboa Yacht Basin (BYB) Located at 829 Harbor Island Drive as Surplus Land
November 14, 2023
Page 2
The building on the north end of the site (highlighted in the photo below) (Premises) was
built in the 1940s and contains approximately 14,362 square feet of improvements on
approximately 17,500 square feet of land. The tenant uses in the Premises include the
Galley Cafe restaurant, three office tenants, three residential apartment units, 32 storage
garages, and various amenities and spaces to support operation of the marina and
property like restrooms and showers, oil collection, impounded vessel storage, and
janitorial and utility closets.
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BYB with proposed redevelopment area highlighted.
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The buildings within the Premises are approaching the end of their useful life and require
substantial investment to continue operating or to renovate. In June 2023, the City Council
was provided an overview of the BYB at a study session and directed staff to solicit
proposals from developers interested in ground leasing the Premises to redevelop, lease,
and operate the aged structures. Before a request for proposals can be issued, the City
must comply with the California Surplus Land Act.
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). These findings are
outlined in the proposed resolution and will be submitted to the California Department of
Housing and Community Development (HCD) for its review. Pursuant to the requirements
under the SLA guidelines, upon approval of the resolution, a Notice of Availability (NOA)
will also be submitted to HCD and made available to qualified housing sponsors and other
public agencies and entities as required by SLA.
9-2
Resolution No. 2023-67: Declaring a Portion of City -Owned Property at the
Balboa Yacht Basin (BYB) Located at 829 Harbor Island Drive as Surplus Land
November 14, 2023
Page 3
The City must wait 60 days from the date of the NOA before issuing a request for
proposals. If the City receives a notice of interest from a qualified entity it must negotiate
in good faith for 90 days, and if the price or terms cannot be agreed upon during those
negotiations then the City may proceed with the request for proposals.
FISCAL IMPACT:
There is no fiscal impact related to this item.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action 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.
Declaring the Property exempt will not result in a physical change to the environment.
Once the City follows the procedures set forth in the Surplus Land Act, if the City ultimately
enters into a lease and/or other arrangement to redevelop the Property, that future
agreement and/or project will be analyzed in accordance to CEQA.
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).
ATTACHMENT:
Attachment A — Resolution No. 2023-67
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ATTACHMENT A
RESOLUTION NO. 2023-67
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, DECLARING A
PORTION OF THE BALBOA YACHT BASIN LOCATED AT
829 HARBOR ISLAND DRIVE, NEWPORT BEACH,
CALIFORNIA AS SURPLUS LAND PURSUANT TO THE
SURPLUS LAND ACT
WHEREAS, the City of Newport Beach ("City") is the owner of that certain real
property commonly referred to as the Balboa Yacht Basin, located at 829 Harbor Island
Drive, Newport Beach, California, identified by Assessor Parcel Number 050-210-02, and
depicted in Exhibit "A," which is attached hereto and incorporated herein by reference
("Property");
WHEREAS, pursuant to the Beacon Bay Bill (Chapter 74 of the Statutes of 1978),
as amended ("Beacon Bay Bill"), the City also acts on behalf of the State of California as
the trustee of Tidelands located within the City's limits, including the Tidelands within the
Property as depicted in Exhibit "B," which is attached hereto and incorporated herein by
reference;
WHEREAS, the improvements on the Property were constructed in the 1940s and
include a marina, open parking lot, and buildings containing a shipyard, restaurant,
offices, and storage garages;
WHEREAS, the improvements located along the northern boundary of the
Property are buildings consisting of approximately 14,362 square feet ("Buildings") and
sit on approximately 17,500 square feet of land that the City owns in fee ("Premises"), as
depicted on Exhibit "C," which is attached hereto and incorporated herein by reference;
WHEREAS, the City manages the Buildings as three residential units, commercial
office space, garage storage, and a cafe;
WHEREAS, the Buildings are approaching the end of their useful life and require
substantial capital to renovate;
Resolution No. 2023-
Page 2 of 3
WHEREAS, on October 9, 2019, Governor Newsom signed Assembly Bill 1486
("AB 1486") which significantly amended California Government Code Section 54220 et
seq., ("Surplus Land Act") effective January 1, 2020 changing the previous, long-standing
definitions of "surplus land" and "exempt surplus land" such that property must be
declared "surplus" before a local agency may take action to either sell or enter into a long-
term lease;
WHEREAS, the Property would fall within the definition of "surplus land" pursuant
to California Government Code Section 54221 such that the City must comply with the
Surplus Land Act in order to pursue new opportunities for its redevelopment; and
WHEREAS, a public meeting was held by the City Council on November 14,
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 ewport-Beach resolves as
follows:
Section 1: The City Council does hereby declare the Premises is non-exempt
surplus land as it meets the definition in California Government Code Section 54221.
Section 2: The City Council hereby authorizes the City Manager or her designee
to comply with the procedures of the Surplus Land Act with respect to the Premises,
including but not limited to issuance of Notice of Availability to all parties entitled to notice
under the Act and to negotiate with parties who submit a Notice of Interest in the
Premises.
Section 3: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 4: 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.
M,
Resolution No. 2023-
Page 3 of 3
Section 5: 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. Declaring the Property exempt will not result in a physical change to the
environment. Once the City follows the procedures set forth in the Surplus Land Act, if
the City ultimately enters into a lease and/or other arrangement to redevelop the Property,
that future agreement and/or project will be analyzed in accordance with CEQA.
Section 6: 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 14th day of November, 2023.
NOAH BLOM
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aaron Crp
City Atto ney
Attachment(s): Exhibit A — Property Depiction
Exhibit B — Tidelands Depiction
Exhibit C — Premises Depiction
EXHIBIT A
PROPERTY DEPICTION
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EXHIBIT B
TIDELANDS DEPICTION
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EXHIBIT C
PREMISES DEPICTION
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