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HomeMy WebLinkAbout02a-Materials Rec'd After Packet PublishedThe Reshaping of Newport Waterfront The Rhine Channel 1966 44 years Ago The Cannery 1966 .PIA Mariners Mile from the Lido Bridge 1966 Office On The Bay Thirty plus years ago property along the Mariners Mile in Newport Beach began to shift from Marine Commercial operations to office buildings. Back then, office space was the highest income producing product. So, developers began to construct big beautiful office buildings in place of boat yards, yacht clubs, retail stores and restaurants. However, the City Council back then stipulated that a portion of the land side square footage be designated for recreational marine or commercial use. Another words, back then it was thought the harbor NEEEDED the marine and commercial element to maintain the boats and preserve the uniqueness and character along the bay front. Developers began constructing the maximum allowable square feet in office buildings along Mariners Mile. The John Dominis building is a prime example. The building completely dominates the site both in blocking views of the harbor and minimizing exposure to retail sales. The underground parking adds to the unfriendly atmosphere it creates by limiting visitors to only those with a long term purpose. It is no wonder why these types of developments have not been profitable for the owners. The building next door also suffers the same fate of high vacancy. Today, we are faced with a new product designed to replace the failed "off icing on the Bay ". Developers have convinced the city that the only solution to Mariners Mile and all other commercial waterfront zones be converted to residential. Today we are being told the highest and best use is now time share condo's and townhomes. All the properties shown have a small "token" marine element to qualify for the office "NowI CONTRIBUTING FACTORS • People say "There's nothing like owning Newport Waterfront Property! It just keeps going up and up and up in value. You can't go wrong" • Waterfront commercial property owners in the RMC_(Recreation Marine Commercial) zone expect a windfall profit due to the residential element that has now become common along the waterfront. • Property owners who inherited waterfront unite with those who recently purchased believing the waterfront value is "priceless ". • The only motivation to sell is when events occur beyond the owners control and then sadly, they are "forced" to sell. • Property listings for sale along the waterfront are set beyond what makes economic sense resulting in few if any transactions. • Long term leases are simply not available to marine uses along the RMC zoned waterfront in Newport Harbor as property owners sit and wait for residential re zoning and the bounty it will bring them. "There's a lot of commercial property there, but not enough demand" Plan'ningDirector Newport Beach Mariner's Mile could redevelop BY MIKE REICHER mike rercner @iatones.corn Mariner's Mile could be the next hot spot to buy a condo. If the city of Newport Beach's proposed zoning ordinance is passed, then the long - troubled commercial corridor on West Coast Highway could have con- dominiums and apartments above ground -floor shops and restaurants. City officials hope the move will attract investment to the area and inject life into some older office See DEVELOPMENT, page A7 DEVELOPMENT Continued from page Al and retail buildings that have 're- mained vacant for years. There's a lot of commercial proper- ty there, but not enough demand," said David Lepo, the city's planning director. "This is an attempt to promote de- velopment on some of the properties, to spruce up the area" ` - It may be working. One of the first new residential projects proposed for that row is at the site of Billy's at the Beach, a Hawaiian - themed restau- rant. Developer and former City Councilman Tod Ridgeway an- nounced earlier this year that he in- tends to tear down the existing build- ing and replace it with a "mixed -use" project with six condos, a space for Billy's and a parking garage. Those sorts of waterfront mixed - use projects must have at least 50% of their buildings devoted to non -resi- dential uses, such as restaurants, retail or office space, according to the pro- posed zoning ordinance. On the inland side, developers would not be able to build condos di- rectly on Coast Highway, but could 4. Mariner's Mile The gray area below could see possible commercial, residential redevelopment. 4J have residential buildings on the land that's closer to the abutting hill — the area currently occupied by many paddrtg lots. To protect residents' views from the Cliff Drive bluff, the new buildings on either side of Coast Highway would be limited to a height of 31 feet. "It would be a continuation of what's up on the hill," said Scott Hook, a vice president of the Newport Beach branch of the real estate farm Marcus & Millichap. He could envision replacing some of the older buildings with residential units. "The whole area has been tired for years," he said. Hook represented a local developer who purchased some of the proper- ties on the east end of Mariner's Mile, near Dover Drive. That area would not be affected by the new zoning ordi- nance, which stretches from Newport Boulevard to the west side of the Boy ScoutBea Base. Local businessman Russell Fluter purchased those properties to the west of Dover Drive in March and spent months repairing broken win- dows and rehabilitating their interi- ors. He is now renting six buildings; one has a large parking lot for boat or car sales and the others have retail and office space. The new zoning ordinance still calls for some marine - related commercial uses along Coast Highway; the exist- ing one limits property owners to, that or retail stores. "The question really is: 'Is office better or is residential better ?'" said Fluter. 'Any residential on the water- front will lease or sell if the price is right." The question really is: "Is office space better residential ?" Russ Fluter Developer or is Recently Property Mariners 36 thousand square feet. That would be over the boatyard Prestigious Newport Beach Waterfront Project 300' on Newport Boy - 36,151 SF Office /Shop Spoce /Retail Onaofo Kind Property Multiple Boat Slips Up to 132 linear feet Potential to Develop Additional 36,000 Square Feet Mixed Use Allowed - Including Residential The Coastal Land Use Plan Policies: 2.4.1 -1 Coastal- dependent and coastal - related commercial uses shall have priority over other commercial uses on or near the shoreline. 2.4.1 -3 Maintain the Marine and Recreational Commercial designation in areas on or near the bay to encourage a continuation of coastal- dependent and coastal - related uses. 2.41-4 Encourage and maintain facilities that serve marine - related businesses and industries unless the demand for such facilities no longer exists. Newport Harbor supports a wide range of coastal dependent and coastal related commercial uses. These include: *Passenger / sight seeing boats -Passenger-fishing boats •Boat rentals -New boat sales -Brokerage boat sales -Boat and ship repair *Boat maintenance -Harbor maintenance facilities These uses play an important role in the character of the harbor and provide the services necessary to sustain one of the world's great small boat harbors. RMC ZONING ALONG WATERFRONT The Marine and Recreational Commercial RMC designation is the primary method for providing the continuation of coastal- dependent and coastal - related uses on or near the bay. The designation is applied to areas that have historically provided marine - related businesses and industries and visitor- serving and recreational areas. • Boat Yards capable of removing large and small vessels from the water • Marine Engine maintenance and repair • Canvas products • Sail making and repair • Rigging and repair • Metal fabrication • Marine Electrical • Painting • Cleaning • Propeller maintenance and repair • Marine Surveyors • Marine Brokers • New and used Boat Sales • All of these businesses would be affected by a zoning change and would result in job and sales tax losses for the allied trades ancillary to the marine commercial industries such as: — Millwrights, canvas, propulsion, metal working, engine and gen set changes, fiberglass repair, and other job and sales tax activities. • Marine commercial and the greater shipyard service activities are essential to safe operation of the bay. These businesses stand ready and do routinely provide: — 24 hour service in the case of emergencies to haul out a sinking vessel. — Available to assist vessels in the bay in a major storm or Tsunami event. — Available to store or remove damaged vessels in the event of a marina fire, or quickly haul vessels that leak fuel or oil upon the bay. • All of these activities produce jobs and sales tax revenue to the City unlike the mixed -use proposals that that have been approved and built to date. Planning should estimate how much sales tax revenue the City will lose replacing them with residential and service orientated businesses that do not produce taxable sales revenue and otherwise consume City services. P r �- y�aA r- Y..T.a..-> - 4 - r y. F� r� • gal We bb �ewPOrt P� Red = Haul out capacity over 35 feet I Balboa Pier Purple = Haul out capacity under 35 feet t` 1� Babes Weed The 1. Newport Shipyard (Leased) 2. Basin Marine (Leased) 3. South Coast Shipyard (Leased) 4. Balboa Boatyard (Leased) 5. La rso n's Shipyard (Leased) Combined Annual Capacity = 4,500 Vessels Per Year • Schock Boats (owner operated) • Duffy Boat Service (Leased) • Sea Spray Boat Yard (owner operated ) Combined Annual Capacity 2,500 Vessels Per Year Boat Yard Scorecard Huntington Harbor and Dana Point Harbor each have only one Boat Yard • Boats from Dana Point routinely come to Newport for haul out and service. • Newport offers Competitive pricing. • Scheduling is reasonable in Newport not the case with Harbors with one boat yard. n 0r'H0A0tj i! 'R1 28TH� STREET A R_ NA June 2010 Cs+Z�p 7 71 PO -K :Z ={ [ 28TH 7�T -STREET 1 v TUNA 1 _"7 April 2004 •28tH street Marina tenant sign showing two marine sales office with no land side showroom. Stan Miller Yacht and Pursuit Boats share the same office space. • Mixed use produced: Architect, Lawyer, Mortgage bankers, insurance agency all businesses non marine related and producing little or no sales tax. • Lofts — no active commercial businesses on ground floor, no enforcement of development standards or agreements. • No parking for customers and little if any space for display of products or services. • No draw of commercial activity possible in this design. • Pushes out commercial marine uses. • Property initially approved to have first floor commercial with residential above. • Project is located between a boat yard and a restaurant by the thickness of a credit card. • Newport Beach Planning Dpt. recommended denial of project- city council approved. • No commercial activity going on at present time or ever has since completed six years ago. • No view corridor from the street to the bay. View is 100% cut off. • Due to the residential aspect of the project it sold for many times the value it would have if it were commercial. jo No commercial use first floor. Note two large banners attached to rail "Private Property" iviixeu use resmerwai k-ornrnerciai Not Compatible This residence is too close to the boat yard. Vessel orientated activities such as polishing, grinding, laminating, painting, sanding, spraying and the like cause excessive noise and odors that nobody should live next to. Therefore, the shipyard gets pushed out even though they were there first and provide an essential activity to the 10 thousand boats in the harbor. Boat Sales and Service Lafayette Road on the Rhine Channel EXISTING TWO RESIDENCES IN THE RMC ZONE REPLACING BOAT YARD AND DOCK BUILDER Does this invite, promote or attract commercial users? Where are the products or services to be displayed in this development? Water side view of property before re- development to mixed use. Property originally used for marine activity boat yard and next door was a mooring maintenance and dock building company. 1989 .4 Street side view of property PUBLIC WALKWAY ALONG BAYFRONT Lafayette Road, Rhine Channel April 2004 June 2010 —� Located on the Rhine Channel in the RMC Zone first floor is commercial element. r 1.110 1 Pi r.*� PIN I i �Sll -11� all 1 e i T h -J• t Marine Businesses Move from Waterfront • Previous slides of existing developments approved for commercial marine activities on first floor with no evidence of such going on. • Planning appears to have no enforcement of the zoning requirements. • Precedence has been set along this stretch of the RMC zone for residential not recreation, marine use, or commercial. • There are no longer any dock builders or mooring maintenance companies on the waterfront. Approved New Development about to Begin Construction a Bertram and Tiara boat dealer was here I U Boat Yard Haul out facility was here Petros Diesel engine repair was here. New Boat Sales on display was here � � l 11: 1a► 11TiVADI W/ q0laul:1► 1t09 1I►[ elel Xd►1 42I N16*1 1: 0:1 Its] : [0]9b %1I: 1:19:Z97►11WATJ1Ia►[Qr H4 ABLE TO SUPPORT ANY OF THE MARINE BUSINESSES IT IS REPLACING. Approved new development will function like these existing buildings yy■■ bhyy I i5� IUA •4 ■ � � ��.� 11� ■li� 1� �7u4 � ,_ . Booms_ WT In Example of Property on Mariners Mile Holding Out for Re- zoning Mixed Use Must Set Guidelines Boat yards, retail space, and restaurants make noise and have no place being immediately next to residential. Any future development must consider a compatible realistic solution. M ilM- A 1 Planning must come up with reasonable set backs for marine uses that do not disturb other tenants. Landlords must maintain the guidelines spelled out specifically in their leases or face penalties. Conclusion The driving force that continues along the remaining commercial waterfront in Newport is purely economical. As long as the City Council continues to make concessions to existing zoning laws, property owners will hold out for a potential windfall profit. Commercial Properties along Newport's precious waterfront effect more than just the property owner. Let there be no doubt that our beautiful harbor is what separates Newport from every other port worldwide. Converting the waterfront properties to 90% residential or greater would have a huge negative impact for all those who derive pleasure and or their livelihood directly or indirecly from the bay.