HomeMy WebLinkAbout00 - Non-Agenda - CorrespondenceReceived after Agenda Printed
August 27, 2024
Non -Agenda Item Correspondence
Newport Beach City Council Meeting
os/z7/zoz4
Public Comment —
non -agenda items:
Added Attachments
for, and A. Leverenz
letter dated
August 19, 2024:
17 pgs.
(Areas yellow highlighted for ease of reference)
City of Newport Beach
100 Civic Center Drive
Newport Beach, California 92660
August 19, 2024
Sent via e-mail to:
jstapleton@newportbeachca.gov; bavery@newportbeachca.gov;
eweigand@newportbeachca.gov; rgrant@newportbeachca.gov
nblom@newportbeachca.gov; Ikleiman@newportbeachca.gov
woneill@newportbeachca.gov; citycouncil@newportbeachca.gov
Re: July 23, 2024 Council Meeting, Consent Calendar Agenda item 15. Exclusive
Negotiating Agreement with Burnham -Ward Properties, LLC for the Lease and
Redevelopment of a Portion of the Balboa Yacht Basin Property Located at 829
Harbor Island Drive.
Dear Mayor and Council,
On the basis of disclosure concerns and other irregularities, I respectfully request
that you rescind the Council vote of July 23rd, which approved the Balboa Yacht
Basin — Burnham -Ward Exclusive Negotiating Agreement.
Councilmember Blom and Burnham -Ward appear to have an ongoing business
relationship related to his Arc #1 restaurant at the OC Mix (Attached materials
seem to indicate that Burnham entities developed, previously owned, and now
manage said property).
The fact that the Councilmember has a second restaurant, Arc #2 (at 417 30t")
also involving a property held in the name of a Burnham entity, furthers the
appearance of a conflict of interest. Published articles indicate that Scott Burnham
(Principal of Burnham -Ward) was intimately involved in the development of the Arc
#2 restaurant, which can contribute to the impression of an ongoing business
relationship, especially as relating to a landlord/tenant arrangement defined in the
conflict -of -interest language of the "remote interest" subsection of Government
Code Subsection 1091(b)(5).
Regardless of whether or not these business relationships are with Burnham -
Ward, and/or "sister companies", and/or "related entities and affiliates",
Councilmember Blom, being very supportive of Burnham -Ward on the BYB
contract matter, could be perceived as effort to influence Mayor and Council in the
awarding of the agreement. Stated simply, even such appearances of impropriety
should have motivated recusal from discussion and voting.
see as clearly problematic, the Councilmember's support of City action awarding
Burnham -Ward a favorable, exclusive negotiating agreement to develop and
operate certain structures at the City's Balboa Yacht Basin location, a prime
waterfront and Harbor Marina location. The City subsequently choosing to award
such a valuable property as "exempt surplus land", and "over the course of a 50-
year lease term", is thus, very troubling.
At the related Study Session, and at the Town Hall meeting, many people
expressed concern and/or objected to the Burnham -Ward proposal for this public
lands redevelopment matter. Considering public input, along with the risk of
conflicts of interest, and as we're talking about a term of a half a century, it would
seem a wise course of action for City council to reverse/rescind the BYB vote of
July 23rd, 2024, and put out a new RFP, with more clearly defined goals. Doing so,
would allow opportunity for additional proposals, from a broader range of bidders.
This would aid in determining the best option(s) for this important project site. A
swift reversal, may also help build/maintain public trust in City procurement
processes. To press forward in surplusing these valuable Public Lands/Tidelands
in an "exclusive" manner, for decades, without acknowledging and remedying
potential conflicts, would not be helpful in building trust.
Thank you,
Adam Leverenz
adlever@hotmaikom
cc: Jennifer. Lucchesi@slc.ca.gov; Seth.Blackmon@slc.ca.gov;
Reid.Boggiano@slc.ca.gov; Sahar.Durali@doj.ca.gov;
Kate.Huckelbridge@coastal.ca.gov; Karl. Schwing@coastal.ca.gov;
Aharp@newportbeachca.gov
Attachments:
News Items and
Screenshots:
7 pgs.
(Pertinent passages highlighted and/or enclosed within yellow)
P!
Located in Hmport Beach, California, Brlfrlham USA Equities, Inc.,
together with its related entities and affiliates, has become retagnized
'M as a strong forte in the West Coast commercial real estate market.
I
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Note language: "Burnham USA Equities, Inc., together with its related entities and affiliates,..."
Note SOCO photo location: Does Councilmember Blom do business out of here?
BUSINESS
News
Real estate news: SoCo furniture hub in
Costa Mesa sells for $110 million
Rockwood Capital has sold SoCo in Costa Mesa for $110 million. The buyer was
Baltimore -based Continental Realty Corp. (Photo courtesy of Eastdil Secured LLC)
4&1
By SAMANTHA GOWEN I sgowen&scng.com I Orange County Register
UPDATED: November 3, 2023 at 11:09 a.m.
Rockwood Capital has sold the high -end furniture shopping center SoCo in
Costa Mesa for $110 million.
The price for South Coast Collection was reported by a news division of
Newport Beach -based Green Street.
The buyer was Baltimore -based Continental Realty Corp.
"South Coast Collection is the only shopping venue of its kind in an
extensive, high net worth trade area," stated Josh Dinstein, a senior vice
president at CRC. "The asset's institutional quality and strong value -add
potential, plus its location in the heart of Orange County, make SoCo the
perfect acquisition for our entry into the southern California marketplace."
The 292,000-square-foot retail center sits on 20 acres not far from IKEA
and the new Anduril headquarters in the previous LA Times printing plant.
The shopping center is known for its high -end home furnishing brands and
the dining hub known as The Mix.
Tenants at 3303-3323 Hyland Ave. include COCO Republic, Design Within
Reach, Roche Bobois, Pirch and Paul Mitchell the School, Natuzzi Italia and
Room & Board. Restaurants include Arc Food and Libations, Butcher's
House, Greenleaf Kitchen & Cocktails, Moulin, Paragon and Portola Coffee.
In 2015, the White Plains, New York -based Rockwood bought the 405
freeway -adjacent property from Burnham Ward Properties for $120 million .
Joel Mayer, a managing director at Rockwood, said at the time that the firm
was looking forward "to enhancing the property to create an environment that
is among
the
preeminent
lifestyle centers
in Southern California."
Burnham
USA
Equities, a
sister company
to the developer of the property,
Burnham Ward Properties, was managing the center for Rockwood and also
will run it for the new owner.
Eastdil Secured LLC represented Rockwood Capital in the sale.
Editor's note: This story has been updated to correct the seller of SoCo.
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Tag: arc
Marin Von Blom of ARC PIZZA HOUSE
Posted on February 4, 2018 by Kirby
:"11
Meet Marin Von Blom, half of the team behind ARC PIZZA
HOUSE. Marin and husband Chef Noah recently introduced ARC PIZZA HOUSE at #SOCOandtheOCMix.
The restaurant features a menu of unique wood -fired pizzas. This new concept is now an extension of acclaimed
restaurant, ARC, and is located in the space formerly occupied by Restaurant Marin, which will be relocating to
a new home on the Newport Beach Peninsula in early 2018, when the von Bloms' DirtySexyHappiness
Hospitality Group will debut a new culinary concept.
We chatted with Marin about being an entrepreneur.
1. Tell us about yourself and what you did before opening your restaurants.
Both Noah and I have always worked in restaurants, Noah has trained under some very amazing Chefs
(Restaurant Daniel in NYC) and my first restaurant job was at the OC institution of Tutto Mare at Fashion
Island. Noah had always been true to course, but I dabbled in the IT world. I realized quickly that I was too
much of a people person to be stuck behind a computer on the daily; I worked in restaurants at night and IT
during the day. Even though I decided to be in the restaurant business to avoid computers, I find myself back at
a computer often reconciling the books for the restaurant! I always know that the energy of the restaurant and
the people who work and dine there is waiting for me when I finish up :)
I
2. What challenges do you face as a small business owner, restaurateur and how do you overcome them?
Being a small business is always difficult, I think the hardest thing for Noah and I was getting our business off
the ground. Going from restaurant employee to restaurant owner is a huge step, and many people have to trust
you as a person and rallying people behind our ideas was hard. Once we opened, the idea became a reality and
many more people saw value in what we wanted to create for Orange County.
3. What do you like best about having your restaurant at SOCO and the OC Mix?
Too many things to just say one! But top two —first, the ownership of SOCO, Scott Burnham and Bryon Ward
are both amazing business men and visionaries. These two gentlemen have spent more time with Noah and I,
going over plans, talking about new ideas, and where the business is going. They are mentors more than
landlords!!
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Second, our fellow shop / restaurant owners! We love being amongst other small business owners. Seeing
others who are pursuing their passion in life creates the authenticity and feel of SOCO. Without all the
hardworking people who make it happen, it could just be another strip mall in OC, but together we all make
SOCO a reason to visit.
Posted in Spotli htTagged arc, ARC PIZZA HOUSE, RlKzq, spotlight
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I https://socoandtheocmix.com/tag/arc/
3. What do you like best about having your restaurant at SOCO and the OC Mix?
Too many things to just say one! But top two —first, the ownership of SOCO, Scott Burnham and Bryon Ward
are both amazing business men and visionaries. These two gentlemen have spent more time with Noah and I,
going over plans, talking about new ideas, and where the business is going. They are mentors more than landlords!!
By SAMANTHA GDWEN I saowen Q scncl,coifi I Orange County Reclicter
UPDATED: November 3, 2023 at 11:09 a.m.
Tenants at 3303-3323 Hyland Ave. include
Arc Food and Libations
Burnham USA Equities, a sister company to the developer of the property:
Burnham Ward Properties: was managing the center for Rockwood and also
will run it for the new owner.
tM last (pear dwAdOL Sede +urn �.r tM ,rilly.. Na hpF
AumFar* #p iar rnd CfO of B'ned stmgmxrt wrh a€
Bun*am 05A ar?d Sumhvm M+r+ Cm9a k4 Arra % w
YUard P' WOKih, eeR&W" by wd Alsph I arA ARC B-_rrfirr
and OffmahM + B•k.� s�+d mwa
Recording Requested By and
Mail to:
Driscoll Anderson Reynard LLP
5740 Fleet Street, Suite 125
Carlsbad, CA 92008
Mail Tax Statements To:
Scott T. Burnham
860 Newport Center Drive, Suite 150
Newport Beach, CA 92660
Recorded in Official Records, Orange County
Hugh Nguyen, Clerk -Recorder
II 11 II II I I 1111 I 1111 III II 91.00
*$ R 0 0 1 4 8 9 4 1 6 6 $ *
2024000093399 2:28 pm 04/15/24
480 Sec4A Q01 3
0.00 0.00 0.00 0.00 6.00 0.00 0.000.0075.00 3.00
SPACE ABOVE THIS LINE FOR RECORDER'S USE
QUITCLAIM DEED
APN: 047-042-27
The undersigned declares under penalty of perjury that the following is true and correct:
TIIERE IS NO CONSIDERATION FOR THIS TRANSFER. Documentary Transfer Tax is $0
0 R & T 11930. Transfer is from Grantor's trust interest to a revocable subtrust for the benefit of
Grantor and with no beneficial change in ownership and not pursuant to a sale.
For a Good and Valuable Consideration,
Scott T. Burnham, Trustee of the Keith Orville Burnham and Barbara Baker Burnham Trust
under declaration of trust dated October 6, 1987,
hereby REMISES, RELEASES, and QUITCLAIMS to
Scott T. Burnham, Trustee of the Surviving Spouse's Trust created under the Keith Orville
Burnham Trust, dated August 6, 1987, as a tenant in common
An undivided 50% interest in and to the following described real property in the City of Newport
Beach, County of Orange, State of California:
SEE EXHIBIT "A" ATTACHED HERETO AND MADE A LEGAL PART HEREOF
Commonly known as 417 30"1 Street, Newport Beach, CA, 92663
Dated
Scott T. Burnham, Trustee of the Keith Orville Burnham
and Barbara Balser Burnham Trust under declaration of
trust dated October 6, 1987
APN: 047-042-27
Page 1
SCOTT BURNHAM
CEO / Partner
Scott Burnham established Burnham USA Equities, Inc. in 2990 and along with partner
Bryon Ward, co-founded Burnham Ward Properties in 2004. With more than 40 years'
experience in the real estate industry, he has established himself as an industry leader and
his artistic and contrarian approach to every project has become widely known and has
received national recognition.
Prior to Burnham USA Equities, Inc. he was worked at Nexus Development Corporation as a
principal partner and later co-founded Nexus USA Equities, Inc. where he served as co -
managing partner and co-chairman of the board.
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Dennis G_ Cosso - S134 4662.4
Law Offices of Dennis G. Cosso
414 South First Avenue
Arcadia, California 9006
T alnphonc: 626.5 74. 5900
Facsimile: 626.3 74. 5081
Email; "d yywssa]awC li1!)s h
Atrnrne)^s for Plaintiff Capfive-Aire
Systems, Inc:.
SUPER] OR C017RT OF THE STATE OF CALIFORNIA
FOR ORANGE COUNTY
C'APTIVE-AIRC SYSTEMS, INC:.. a north
C:atolina corporation,
Plainall(s),
vs.
ARC` RESTAURANT LLC:, a CaliforniaJimiLed
I! abil ltr- company; THE BURNHAM FAMILY
IRTJ!; ', a C'a]ifot'nia tmlt entity; 4RC UTT T.
Dt 'RNWL.M. an mdiiidmd acungas 1haTri.iAcc
i'or the BURNHAM FAMILY TRUST dated
tic rmher29.1996;BARBARA B.BURNHAM,
an individual acting as the Trustee of the KEITH
ORVILLE 13URN RAM wid UARI]ARA 13AKFR
BURNHAM TRUST UNDER DECLARATIONi
CIF TRUST daredOctnher6. 1997-m DOES 1
thanagh 50. imAuuivc,
De,fendanUsj
CAST; NO. an �a»-ii14t13461 i"r -Bc-c rc
UNLIMITED
V,1T'HDRAIV.AL OF LIS PENDLNk
NOTICE HAS PREVIOUSLY BEEN GIVEN that an action has been commenced and is
pending in the abDve-Luititicd Court upon a Cumplaim of die abuir-na=d Plaintiff. CAPTIVE-
AIRF, SYSTFMS, FKC., against Defbndants, ARC RESTAURANT LLC; THE BT:RNHAM
_I.
W1TF1DRAWALOF LN PENDINNS
1 FANELY'I-RLST; SGOTI T. BURNHA.UI, an individual acting as the Trustez for the BURNHAM
2 FAWLY 'musT elated September 29. 1996; RARRARA II- BURNHAM, an imc ividml Ming as
3 the Trustceofthe KEITH ORVILLE Bl;RNHA-M and BARBARA BAKER BURNHAM TRUST
4 L:NDI-R DI-V1,49AI-ION 01' 1'lLl.'4'T rJatedOctober6, 1987; t1mithe objectlu adtid acdvnis 10
3 foreehxce and enforce a Meehan ie's Lien upon the premises hereinafter described or Wildings
6 situated thert~nn, for furni4iiiig commercial vetiti latinn Equipment to ARC'. R1.;5TAURA_NT I.LC,
7 which was used on a work of improvement upon the property owned by de#endmm, ARC
S RESTAURANT LLC: THE BURNITIAM FAMILY TRUST; SCOTT T. BL> -HART, an individual
9 avling as the TruNtec fur the BURNHAM FAMILY TRUST dated September 29. 1996.i BARBARA
10 13. BURNHAM, an individUal acling as thn Trustee of the KiXI'H O12Y LLLU BURNHAM and
11 BARBARA BAKER BURNHAM TRUST UNDER DECLARATION OF TRUST dated October 6,
12 1987, and lensed by said awncrs to dcfcndtmL ARCS RI- TALIRANT LLC., amounting to the surn of
13 $29,727.77, togct]icr with intayst and casts; no#icx: and claim of said Amended lien was rewrderl Lin
14 or abDUL Nov mber 7, 2019, Official Rcvurds of County of f mgv, € oiamy C;lerks's offi .
15 Instrumcril Nu. 30] 90*NO2996; dW thuL the property 0licct6d by said I iett and there fcrreeloswe
16 pmcmd'tflgs is situated in the Cavity of Orattge. State of Californiai, and described as fnllewst
17
417 3Chh St., \evTort Beach, CA 92663.3711. AF. # 047.042-27
18
19 PLAINTIFF, CAPTIVE-e5]RE SYSTEMS,1NC., Lcztmby withdraws the Nolive of Ptzd envy
20 at :lotion rocorded b7 fhem in rh£ oilwo of the County romraer of Uri, C.'a 10Tniu, � Janvaq
21 2.3.2019, DoctuneutNo.201900002198L
22 This Notice ofWidi4rawal is recorded tfurstiunt to Bastian 40S.$O of the Code of Civil
23 Procedure.
24
Dined.. February , 2019 The Law Offtoes of 17e lis Cr_ Cosso
25
26
27 r. i nssa,
Attornev for Plaintiff, CAPTIVE -AIRS
28 SYSTEMS, NC
WIT11DRAWAI.01 LIS RPNDENS
From: O'Neill, William <woneill@newportbeachca.gov>
Sent: Tuesday, August 20, 2024 3:51 PM
To: Ad lever <adlever@hotmail.com>
Subject: Re: Balboa Yacht Basin - Burnham -Ward
You are intelligent enough to know what I have said and why I said it.
Will O'Neill
Newport Beach Mayor
From: Ad lever <adlever@hotmail.com>
Date: Tuesday, August 20, 2024 at 10:45 AM
To: O'Neill, William <woneill@newportbeachca.gov>
Subject: Re: Balboa Yacht Basin - Burnham -Ward
Mayor O'Neill,
Thank you for the courtesy of a reply. I know that sometimes when speaking to an issue in instances where
I've failed at efforts using what I'm told is common sense, I can revert to sarcasm or irony. I do not prefer that,
but believe it or not, it has been successful elsewhere... at times. And when it's not, there can be value in
determining where people's positions are on things. To that end here, are you contending that a
Councilmember having a landlord/tenant/business relationship, as indicated by multiple news sources, does
not create any conflict -of -interest, which would/should preclude that Councilmember from discussing/voting
on a matter, if the matter involves "sister companies"; "related entities and affiliates", et al." of the landlord/
tenant/business relationship partners? Seriously, I value your opinion, and am open to the possibility of you
changing my mind on the ethics of subject.
Take care,
Adam
From: O'Neill, William <woneill@newportbeachca.gov>
Sent: Tuesday, August 20, 2024 7:35 AM
To: Ad lever <adlever@hotmail.com>
Subject: Re: Balboa Yacht Basin - Burnham -Ward
Adam - I don't know what part of your life has been successful with this type of snarkiness, but I can
assure that it is having the opposite impact that you seek in your public advocacy.
Sincerely,
Mayor Will O'Neill
woneill@newportbeachca.gov
100 Civic Center Dr.
Newport Beach, CA 92660
On Aug 19, 2024, at 3:40 PM, Ad lever <adlever@hotmail.com> wrote:
Mr. Harp,
Thank you for your prompt reply. I guess we'll have to agree to disagree on this matter. I do not feel that your
apparent efforts to trivialize, or create distance between the parties (Burnham -Ward; Burnham USA; "sister
companies"; "related entities and affiliates", et al.), reflect well on the governmental procurement process in
this instance. I'll continue to hope for better.
Having heard Councilmember Blom state at two public meetings, that he would essentially like to not remain
in office, I'm encouraged to learn from you, that someone else has filed.
I could certainly understand Mr. Blom feeling that he's had enough.
Take care,
Adam
From: Harp, Aaron <aharp@newportbeachca.gov>
Sent: Monday, August 19, 2024 2:39 PM
To: Ad lever <adlever@hotmail.com>
Cc: Jennifer@SLC <Jennifer.Lucchesi @slc.ca.gov>; Seth. Blackmon@slc.ca.gov <Seth.Blackmon @slc.ca.gov>;
Reid.Boggiano@slc.ca.gov <Reid.Boggiano@slc.ca.gov>; Sahar.Durali@doj.ca.gov <Sahar.Durali@doj.ca.gov>;
Kate.Huckelbridge@coastal.ca.gov <Kate.Huckelbridge@ coastal.ca.gov>; Karl.Schwing@coastal.ca.gov
<Karl.Schwing@coastal.ca.gov>; Leung, Grace <gleung@newportbeachca.gov>; Jurjis, Seimone
<sjurjis@newportbeachca.gov>; Finnigan, Tara <TFinnigan@newportbeachca.gov>
Subject: RE: Balboa Yacht Basin - Burnham -Ward
Good afternoon Mr. Lever,
Our office is in receipt of your letter alleging that Council Member Blom has a conflict of interest and should have
recused himself from considering matters related to the Balboa Yacht Basin. Our office has previously discussed these
alleged conflicts with Council Member Blom, and he has authorized our office to respond to these concerns. After
carefully reviewing these allegations (which were previously made by former -Council Member Herdman who is running
against Council Member Blom in the upcoming election), we have determined that Council Member Blom does not have
a conflict of interest.
Specifically, in your correspondence you raise concerns about Arc Food & Libations in Costa Mesa (i.e., Arc #1 in your
correspondence). As you note, Burnham Ward previously developed this property; however, it was sold, and Burnham
Ward no longer has an ownership interest in the property. Also, while the article you cite by Ms. Samanth Gowen states
that Burnham Ward Properties manages the center, the new owner actively manages all financial matters involving the
tenants, and Burnham Ward Properties is not involved in matters that could have a financial impact on Arc Food &
Libations.
Also, you raise concerns about Arc Butcher & Baker in Newport Beach (i.e., Arc #2 in your correspondence). I have
discussed this issue with Council Member Blom and Burnham Ward does not own the property or have any interest
therein. Arc Butcher & Baker's lease for the property is with a trust and Burnham Ward has no interest in the trust.
In conclusion, our office has not identified any financial interest between Burnham Ward and Council Member Blom that
would constitute a conflict of interest.
Please let me know if you have any questions.
From: Ad lever <adlever@hotmail.com>
Sent: August 19, 2024 1:48 PM
To: Stapleton, Joe <jstapleton@newportbeachca.gov>; Avery, Brad <bavery@newportbeachca.gov>; Weigand, Erik
<eweigand@newportbeachca.gov>; Grant, Robyn <rgrant@newportbeachca.gov>; Blom, Noah
<NBlom@newportbeachca.gov>; Kleiman, Lauren <Ikleiman@newportbeachca.gov>; O'Neill, William
<woneill@newportbeachca.gov>; Dept - City Council <CityCouncil@newportbeachca.gov>
Cc: Jennifer@SLC <Jennifer.Lucchesi @slc.ca.gov>; Seth. Blackmon@slc.ca.gov; Reid. Boggiano@slc.ca.gov;
Sahar.Durali@doj.ca.gov; Kate.Huckelbridge@coastal.ca.gov; Karl.Schwing@coastal.ca.gov; Harp, Aaron
<aharp@newportbeachca.gov>
Subject: Re: Balboa Yacht Basin - Burnham -Ward
Good day,
Please find that attached, for your consideration.
Thank you,
Adam Leverenz