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HomeMy WebLinkAbout13 - City Hall Reuse - CorrespondenceRieff, Kim From: City Clerk's Office Sent: Wednesday, July 03, 2013 2:56 PM To: Rieff, Kim "RECEIVED AFTER AGENDA Subject: FW: For the record PRINTED:" -/N// From: Kiff, Dave Sent: Wednesday, July 03, 2013 2:55:59 PM (UTC- 08:00) Pacific Time (US & Canada) To: City Clerk's Office Subject: For the record From: Ralph Rodheim [ralph @rodheim - marketing.com) Sent: Wednesday, July 03, 2013 1:01 PM To: Subject: old city hall reuse Subject: old city hall reuse ...as the former chair of the Balboa BID I want to endorse the R.D Olson plan. We met with their team and feel what they are proposing will be the best for the city and the Village of Balboa. Thanks, Ralph RALPH RODHEIM I Boat Rentals of America 125 E. Baker Street I Suite 143 1 Costa Mesa, CA 1 92626 phone 714.557.5100 ex.101 I fax 714.557:5109 I boats4rent.coin Rieff, Kim From: City Clerk's Office Sent: Wednesday, July 03, 2013 2:56 AM "RECEIVED AFTER AGENDA To: Rieff, Kim PRINTED:" /� Subject: FW: reuse of city hall site 719113 From: Patricia Lamb Sent: Wednesday, July 03, 2013 2:53:28 AM (UTC- 08:00) Pacific Time (US & Canada) To: City Clerk's Office Subject: reuse of city hall site We are unable to attend the July 9 city council meeting as we are out of the country. We wish to reiterate our opinion as expressed in a prior e-mail and a petition that we are strongly in favor of a boutique hotel and strongly opposed to apartments on the old city hall site. Cities such as Redondo Beach are including hotels as part of their redevelopment, and simply adding high density housing in Newport Beach would be extremely shortsighted. I hope that the city council will look at the overall picture instead of the short term. This is a wonderful opportunity to halt the blight in West Newport and give our area something exciting. David and Patricia Lamb Residents of Lido Isle 4r July 1, 2013 Brenda Wisneski Deputy Community Dev. Director City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Dear Ms. Wisneski, "RECEIVED AFTER AGENDA PRINTED:" I3 7/9 i3 I am a resident of Newport Beach (1015 Nottingham Rd) and corresponding with you regarding the proposed City Hall Redevelopment project. By background, I am a 30+ year veteran of the hospitality industry and have been on both the principal /ownership and the development /franchise sides of the business. Currently, I am the Senior Managing Director— Hotels with HFF, Inc., a publicly traded intermediary, focused solely on hotel acquisitions /dispositions /financings across the U.S. Additionally, I am a member of the International Society of Hospitality Consultants, an alumnus of the Cornell School of Hotel Administration, and hold a CA real estate license. Through my work, I have interacted with both the principals and their respective companies submitting proposals. Therefore, I believe I am qualified to comment on the proposals regarding this proposed redevelopment. Without question I believe the R.D. Olson proposal offers the City and its residents the best redevelopment option and one which' hould be pursued. My endorsement of the Olson "Lido House Hotel" is based upon the following: • Bob Olson is a resident of the community and therefore has a vested interested in the success of this project. He will oversee each and every aspect of this planned project to ensure its success. • The RD Olson Company is one of the most active developers in Southern California with a track record of success. • The Olson proposal captures and reflects the spirit of the area, is of appropriate density, and offers a well- conceived design /layout with inviting public components. • The Olson firm is well capitalized and can bring appropriate capital resources to this project to ensure a timely and successful development. • Mr. Sonnenblick is not local and has a history of 'walking' projects due to the inability to appropriate funds. He has no vested interest in the success of his project other than obtaining a developers fee. • The Sonnenblick proposal involves a very exclusive boutique brand /affiliation ( Auberge Resorts) which is inappropriate for this location and submarket. Being familiar with the company, Auberge commits to only ultra -luxury Five Star locations with extremely high room rates— neither which are afforded by the City Hall site. No doubt you have visited the Auberge Resorts website (www.aubergeresorts.com) which provides the introduction to their luxury- orientation and exclusive target consumer. • The Olson project, when completed, will provide a catalyst for the redevelopment of the remaining Lido Village which will benefit the residents of Newport as well as visitors and help increase employment as well as bolster the tax base of the city. Thank you for the opportunity to voice my opinion and support for the R.D. Olson proposal. 4,, r ly, a Stadler "RECEIVED AFTER AGENDA Brown, Leilani PRINTEV' 13 7-4Z3 From: Denys Oberman [dho @obermanassociates.comj Sent: Tuesday, July 02, 2013 9:23 AM To: Curry, Keith; Selich, Edward; Mike Henn; Nancy Gardner; Petros, Tony; Daigle, Leslie; Hill, Rush Cc: Kiff, Dave; Brandt, Kim; Brown, Leilani Subject: City Hall Site Reuse - -- For the Public Record Importance: High Sensitivity: Confidential Mayor and City Council: First, I would like to Thank You again for your support of an upscale boutique Hotel at the prior City Hall Site. I will be travelling and unable to attend the City Council Meeting of July 9`" at which a Public Hearing concerning this issue and submitted proposals Is to occur. Please consider ande accept the following comments, in addition to those already provided to the Council and placed into the record. o There can be no doubt that a high quality Destination Anchor is needed in the area to drive desired and necessary economic revitalization and quality of life in the Lido Village /Balboa Penninsula area. The city hall site is well- suited for this purpose. A well- designed,well marketed and well operated Hotel Anchor will benefit Visitors /the public, Residents ,Merchants and the City for many years to come. • The Economic Benefits Of a well- designed and operated Hotel far outweigh the Total Economic Benefit of a large apartment. This was already established by qualified experts and has been proven in our extensive due diligence. • A Hotel such as the concept proposed by RDOlson, Destination Hotels & Resorts and WATG has very high probability of success. It is marketable and attractive to residents, high quality visitors for Leisure, and niche Corporate meeting markets. • The ultimate success, rampup , traction and benefits are highly dependent on the acumen, infrastructure and resources of the Operating Team. Destination Hotels & Resorts /subsid of Loews', has Demonstrated Track Record and Performance to develop a Winning, Sustainable, Financially Successful high end Hotel serving all of the markets above. They will apply the resources of a 90 asset Hospitality group to complete the initial design and amentity profile, input for value add and viability of construction,provide strong national /global ongoing marketing and promotion, and provide the experience to rapidly ramp occupancy and revenue streams, and maintain them through long term. • We have more than enough high density Apartment uses in this zone. NO MORE ARE NEEDED and this use has the least likelihood of realization in the market for which it claims to be intended. In summary, we request that the Council: • Finalize NOW its approval of an Upscale Boutique Hotel as the selected Land Use for the site • Select the RDOlson, Destination Hotel and Resort, WATG team as the proposer with whom to proceed • Make these decisions with confidence that these decisions represent those IN THE BEST INTERESTS OF THE COMMUNITY AND THE PUBLIC, AND THE CITY. 3 Proceed without delay to move forward with this project. THIS IS THE POSITION RESPONSIVE TO THE WILL OF THE PEOPLE. THANK YOU. Denys H. Oberman Resident and stakeholder. Regards, Denys H. Oberman, CEO OBERMAN Strategic Consulting & Transactions 2600 Michelson Drive, Suite 1700 Irvine, CA 92612 Tel (949) 476 -0790 Cell (949) 230 -5868 Fax (949) 752 -8935 Email: dho(a)obermanassociates.com CONFIDENTIALITY NOTICE: The documents accompanying this transmission contain confidential information belonging to the sender which is legally privileged. The information is intended only for the use of the individual or entity named above. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or the taking of any action in reliance on the contents of this telecopied information is strictly prohibited. If you have received this transmission in error, please notify us immediately at 9491476.0790 or the electronic address above, to arrange for the return of the document(s) to us. McDonald, Cristal From: Sent: To: Subject: Lcilani I. Brown, MMC City Clerk City of Newport Beach Brown, Leilani Friday, July 05, 2013 11:21 AM McDonald, Cristal Fwd: Lido House Hotel Proposal "RECEIVED AFTER AGENDA PRINTED:" // 4 11111 -- - - - - -- Original message -- - - - - -- From: "Hill, Rush" <rhill ,newportbeachca.eov> Date: 07/05/2013 9:29 AM (GMT- 08:00) To: Brad Salter <bradsalter cr,aol.com> Cc: Dept - City Council <CityCouncil @newportbeachca.Qov >, "Brown, Leilani" <LBrown(@newportbeachca. pov> Subject: Re: Lido House Hotel Proposal Thank you Mr. Salter for your communication. It has been received and will be entered into the public record. Rush Rush N. Hill, II Mayor Pro Tem City of Newport Beach District Three Office: 115 Twenty Second Street Newport Beach, CA 92663 Phone: 949.723.7202 ext 321 Chairman Newport Resource Management, Inc. RushCNRMservice.com (For scheduling, please contact Alan Limon: Alan(2NRMservice.com) On Jul 5. 2013, at 9:26 AM, "Brad Salter" <bradsalter(@aol.com> wrote: • PLEASE DISTRIBUTE TO ALL MEMBERS OF THE CITY COUNCIL • 1 HAVE ATTACHED THIS DOCUMENT IN WORD OR MAC FORMAT - PLEASE CONFIRM RECEIPT BY RETURN EMAIL > Dear Members of the City of Newport City Council; Please see the attached letter in support of the Lido House Hotel. > Thank you, > Bradley D. Salter > 805 North Bayfront > Balboa Island, CA 92662 > (808) 298 -7873 > <Lido House Hotel Letter to Council Ldoc> Brown, Leilani From: Violet Lorenzen [valorenzen @gmail.comj Sent: Friday, June 28, 2013 11:49 PM To: City Clerk's Office Subject: Old City Hall Follow Up Flag: Follow up Flag Status: Completed Categories: Leilani "RECEIVED AFTE AGENDA PRINTED:" ��- — Wouldn't it be lovely to have a City Library on the grounds of the old City Hall. A huge condominium complex is now being built several blocks south of said property. , Traffic is presently overloading Newport Blvd. No need for more automobiles nor more congestion in the area. A Library would be a wonderful addition and a useful project for the use of Newport Beach citizens on this side of the city. A Library would be an excellent use of the building which is now stands on the property. The savings in dollars would be considerable. Violet Lorenzen Box 2073 Newport Beach, Ca 92659 °t,kCEBV -L Brown, Leilani nonrit; From: Brandt, Kim Sent: Sunday, July 07, 2013 7:02 AM To: Brown, Leilani Cc: Kiff, Dave Subject: Fwd: Petition re Development & Re -Use of Former City Hall Site Attachments: Petitions to CNB.pdf; ATT00001.htm For distribution to the City Council. Kim Sent from my Wad Begin forwarded message: From: ROBERTA FESLER <roberta.fesler(@gmail.com> Date: July 5, 2013, 7:08:06 PM MDT To: 'Brandt, Kim" <KBrandt a,newportbeachca.eov> Subject: Petition re Development & Re -Use of Former City Hall Site Ms. Brandt: Please find attached a scanned copy of a petition signed by residents of Newport Beach who support a hotel on the site of the former City Hall. I request that this signed petition be forwarded to the Mayor and all Members of the City Council, as well as to the City Manager. Additionally, please enter this email and attachment into the record of proceedings for the July 9, 2013, meeting of the City Council at which this issue will be discussed and voted upon. Thank you. Roberta Fesler 105 Via Undine Newport Beach, CA 92663 (949) 675 -6740 DEVELOPMENT fir. RE-USE OF F®IIt109llER CITY HALL SITE To the City Council of Newport Beach: We, the!belowr- signed residents of NEWPORT BEACH, hereby request that the City Council vote to develop a HOTEL in the former City Hall site at 3300 Newport Blvd. We feel that a hotel will help revitalize the Lido !tillage /Balboa Peninsula area and serve the City's community's Interests best. EQl V I )( r ME rfOS7.?.f► ,Trp- ..'�%1� P m �_` .. 4 /111 !'..,, g , IMJJIM�!A_l_a owl Mlff�) IIIIIIIIIS ..��z�n - ors.► •- NO AIMS � )��, , ^•ter ,�Or: -�_ / �. .J! �. �__ _k i� �Iyfrw.! /a7l�I.•�• ►' r , _ 1� lL r mfr �� i/_7Wi' 9-; ;11 .71 KIM :..- M �!1►W, W, 61 M•i71iT��ll_1�! _..:_ -� EQl V I )( r DEVELOPMENT & RE-USE OF FORMER CITY HALL SITE To the City Council of Newport Beach: We, thejbelQw- signed residents of NEWPORT BEACH, hereby request that the City Council vote to develop a HOTEL in the former City Hall site at 3300 Newport Blvd. We feel that a hotel will help revitalize the Lido Village /Balboa Peninsula area and serve the City's community's interests best. r•N1jjjfr-'r* .1m, .i . Nal—MUNIMPM M912 EMMEEK, 9 MPS "M .... r. �5 Mnr,3srW&�r MR-2-717MM BENZ . A • s EE�/7t/r!� =04 'M_ _u -F �I�l .�•�_ ►fir... il/IRMPM 1 4 1 _ IlDEVEILORMENT & RE-USE OF IFQ1!REER C_Q'II Y $t�_'III°II°It 4o the City Council of Newport Beach: We, the,below- signed residents of NEWPORT BEACH, hereby request that thn City Council vote de-vi lop a HOTEL In the former City Mall site at 3300 Newport Blvd. We feel that a hotel 1011 hel ) revit- Mize ti a Lido Village /Balboa Peninsula area and serve the City's community's interesis besf* lLhC�•11��7,�r7����s�sJS��,j► ,�pr Brown, Leilani From: Sent: To: Subject: Another one. PdVI Sent from my iPad Brandt, Kim Monday, July 08, 2013 9:39 AM Brown, Leilani FW: City Hall Complex Re -use Begin forwarded message: � "RECEIU£D ,MTTER !IGCr '°i� t rli.L`tF U. From: Steve Brahs <sabrahs a,cox.net> Date: July 4, 2013, 4:24:14 PM PDT To: "jcamobellaa,newnortbeachea.gov" <jcampbell(cDnewoortbeachea. ov> Subject: City Hall Complex Re -use Mr. Campbell, I read in the paper today that our City is considering three development options for the old City Hall site. 1 reviewed the 3 proposals on your website and was impressed with the actual proposed hotels and the amenities that will be added to our community. My greatest excitement of learning of these proposals was the anticipation of reviewing the revenue projections to see how much our City will recover to offset the cost of the newly constructed City Hall. Unfortunately, the Ground Lease terms were not included in the public documents? I believe a major consideration in deciding the use for our land is the economic value that will be generated frorn the long terns ground lease (leased Fee). These terms are not included with the proposals. I do appreciate that you are working to redevelop our land to provide this enhancement to our City although I want to make sure that the ground lease is structured to benefit our residents throughout the long tern lease and after the lease tennination. Is it possible to get a copy of the ground lease terns for the three proposals? I have been involved in hundreds of millions of dollars in ground leases over the last 30 years and I want to make sure that the City and our residents receive a ground lease that is at market with minimal risk to the City. One of the major challenges today of a ground lease is that there are very few comparable transaction in today's market. The following are my general concerns regarding the proposed ground lease terms: 1). Total lease tern should be no longer than 55 years 2). Fair market value adjustments should be included every 10 years. Ground rent should be the greater of previous rent or appraised land value for highest and best use multiplied by market lease rate (we want to make sure we don't have a low lease rate throughout the lease tern - these terms will protect us against extreme inflation an significant interest rate increases). 3). CPI adjustments should be every 5 years 4). Minimum rent should be paid at lease execution and should be in place throughout lease term 5). Leasehold is required to have business interruption insurance and continue to pay rent throughout term even in the event of a fire, flood, or earthquake. 6). Lessor should also receive percentage rent on the revenue from rooms and from the retail operations if it is greater than the annual ground rent. 7). If FMV adjustments are not agreed upon an arbitrator to determine FMV adjustment 8). If lessee is not current on property taxes lessor will acquire leasehold improvements. 9). Lessor receives leasehold improvements at termination of lease. I did review one of the proposals that included a land residual analysis that was extremely unfavorable to the City. They used an 11 % discount rate resulting in a total value of $350k per room compared to the Ritz Carlton in Dana Point that sold for $850k per room. They also reduced the value for Public improvements ($9 million) that they will benefit from, resulting in an unreasonable total land value for the ground rent determination. Thank you Mr. Campbell for getting this project started. Let's make sure we benefit from your efforts throughout the lease term and beyond. Stephen A Brahs 2208 Port Lerwick Newport Beach Ca 92660. sabrahsP,cox.net Sent from my Wad MA "RECEIVED AFT AG 51! �Y_ IX 0 Brown, Leilani From: Sent: To: Subject: For the record. "RECEIVED Kiff, Dave Monday, July 08, 2013 10:20 AM Brown, Leilani FW: My thoughts on ITEM 13: REUSE OF FORMER CITY HALL COMPLEX. July 09, 2013, Council Meeting. From: Craig Morissette [ mailto :craigmorissette(obhotmail.com] Sent: Sunday, July 07, 2013 9:25 PM To: Dept - City Council Cc: Kiff, Dave Subject: My thoughts on ITEM 13: REUSE OF FORMER CITY HALL COMPLEX. July 09, 2013, Council Meeting. Mr. Mayor and Council Members. Thank you for taking the time to read my thoughts on the old City Hall site redevelopment. As a long -time homeowner and resident on the peninsula, I've taken considerable interest in this project, attended several presentations by the hotel developers, and read the staff report. My conclusions and some rationale for each are summarized in the paragraphs that follow. A hotel is a superior choice to apartments. o Lido businesses need vacationing guest dollars to help sustain them in the winter months. o We should not wait for Lido waterfront development to fill this need. It may never happen. o Apartments on long -term leased land may be problematic if State rent control laws change. The Olson proposal is far superior to the Shopoff proposal. o RD Olson clearly understands the needs and sensitivities of the peninsula community. o The Olson proposal fits the character of the peninsula. A smaller, properly sited and scaled hotel is the obvious choice -- regardless of the revenue opportunities. A generous green set -back from the boulevard and retention of metered parking is very important to the surrounding peninsula community. The Shopoff presentation proposed only valet parking. The presenter also added that they would have large event spaces with "lots of weddings." I understand that events can be a lucrative profit center for a hotel, but lots of day visitors looking for street parking so they can avoid valet parking prices is a recipe for disaster in the immediate neighborhood. In addition, the number of automobile trips generated by extra day -event visitors is far more damaging to our already onerous peninsula traffic than those generated by overnighting hotel guests. C The Shopoff proposal doesn't fit the character of the peninsula. I don't want to see a wall of glass and Newport Center style landscaping when I drive over the PCH bridge each day. It is ideal for Newport Center, but it is not within character for the peninsula. I hope selection of the best alternative is as obvious and compelling to all of you as it is to me. As always, thank you for your dedication of time and service to our city. Sincerely, Craig Morissette Leilani From: Kiff, Dave Sent: Monday, July 08, 2013 12:28 PM Subject: FW: Lido House Project For the record. From: donna.tobertv(a)nm.com rmailto:donna.tobertv(olnm.coml Sent: Monday, July 08, 2013 12:20 PM To: Kiff, Dave Subject: Lido House Project Dear City Manager Kiff: "RECEIVED � -9 -J3 As a citizen and homeowner of the city of Newport Beach for over 18 years, I have come to appreciate all the nuances and specific things that make our city one of the best locations to live, work and play in the world. That being said, I would ask that you vote in favor of the Lido House Resort project that has been submitted by the R.D. Olson Company for the following reasons: Help to revitalize the Lido area and bring in additional tourism dollars G Provides opportunity for use by the community in the form of banquet rooms, spa facilities, weddings, etc. There would be additional tax and tourism dollars to the city, increase foot traffic to the surrounding businesses and restaurants and provide a unique boutique experience to its patrons The R.D. Olson Company has a stellar reputation throughout Orange and Los Angeles Counties and they will produce a boutique hotel that will be top notch in all areas thus reflecting the ambiance of Lido and Newport Beach. Thank you for your time, Kevin P. Healy Donna Toberty Assistant to Kevin P. Healy 1500 Quail Street, Suite 600; Newport Beach, CA 92660 (949) 863-5870; Fax (949) 863 -5940 don na.tobertyP- nm.corn Northwestern Mutual Financial Network is the marketing name for the sales and distribution arm of The Northwestern Mutual Life Insurance Company, Milwaukee, WI and its subsidiaries. Donna Toberty is not a licensed insurance agent, registered representative of a broker - dealer, investment adviser representative of a registered investment adviser, or representative of a federal savings bank. Your transmission of electronic mail to this address represents your consent to two -way communication by Internet e-mail. If you received this in error, please contact the sender and delete the material from any computer on which it exists. Northwestern Mutual, its subsidiaries and affiliates may review and retain incoming and outgoing electronic mail for this e-mail address for quality assurance and regulatory compliance purposes. Communications that are received via the Secure Message Center are secure. Communications that are not received via the Secure Message Center website may not be secure or encrypted, and could be observed by a third party. If you prefer not to receive any e-mail communication from Northwestern Mutual or our Financial Representatives, please click the following link: "E -Mail Opt -out from Northwestern Mutual' In the event that you cannot click on the above link, the Northwestern Mutual E -Mail Opt -out form can be found at the following URL: https: // service. nmfn.com /cbpeopt/EmailOptOut.do. Northwestern Mutual 720 East Wisconsin Avenue Milwaukee, Wisconsin 53202 -4797. ,$ECEIVED.AFTE AGENT . o MEMORANDUM To: Dave Kiff — Newport Beach City Hall _ From: James Fowler Date: JULY 1, 2013 RE: NEWPORT BEACH CITY HALL SITE /HOTEL PROPOSAL Dave, E -mi.1 � Sta.r. .. GOYA....A, Bob Olson is a resident and major stakeholder in the community of Newport Beach, for that reason Bob has a vested .interest in the success of this project. R.D. Olson Development's plan is simple, achievable, and .financially viable and will be successful. R.D. Olson is the most active hotel developer in Southern California, if not the West, with a. recent track record of development. As a resident and an industry expert, the hotel will be a true catalyst for the redevelopment of the rest of Lido Village. To my knowledge, some of the other leading contenders are not developers and have no track record of performing on hotel developments. R.D. Olson has an appropriate design that is high quality and fits well with the community of Newport Beach. The design also aeates a legitimate public park space and is not imposing, but rather inviting to guests and the public alike. An upscale boutique style hotel is very appropriate for the market both from an aesthetic standpoint, but more importantly, from an economic standpoint. I hope that you will please consider R.D. Olson to move this project forward. They are the most qualified and will .deliver the best product. James NL Fowler Brown, Leilani From: cynthia koller [gracenbl @yahoo.com] Sent: Monday, July 08, 2013 4:45 PM To: Curry, Keith; Petros L.; Hill, Rush; Daigle, Brandt, Kim; Kiff, Dave; Brown, Leilani Subject: Old City Hall Re -use City of Newport Beach 100 Civic Center Drive Newport Beach CA 92660 Attention: Mayor Curry -7`'I 13 Leslie; Selich, Edward; Nancy Gardner; Mike Henn; Council Members, Petros, Hill; Daigle, Selich, Gardener and Henn City Manager Dave Kiff, Kim Brandt, Leilani Brown Reference: Old City Hall Reuse FOR THE RECORD All: We have come a long way since staff suggested paving over the old city hall site. Thank you all for your time and diligence on such an important issue for the Peninsula residents and for our city. I have been involved with the "hotel" as best use from the beginning of this process and I am so pleased that all the studies the city has commissioned are in support of what the community feels is the absolute best use for this site, a small upscale boutique Hotel. We understand that economics are a driving factor for the choice of projects for this site but we feel the decision should not be solely based on revenue producing. The community feels your choice should also include what would be the most beneficial use for our immediate area. I have studied all three proposals. I think we can all agree, our community is not in need of more dense residential. We are in need of a beautiful destination anchor Hotel for the revitalization of the Peninsula area and I feel the RD Olson proposal is the best "fit" for our community and the most stable choice. * RD Olson's proposal is the best use of space and design, with large setbacks on Newport Blvd which include public space and keeping our precious ficus trees. RD Olson's proposal is presented by a "local" resident and business owner who will be more "invested in our community" as was represented by the constant dialogue and outreach to our community. * RD Olson's selection of Destination Hotels as the property manager has a 90 plus property proven track record of beautiful high end hotels and an extremely strong marketing team to lend success to this project. * Destination Hotels has been right along side RD Olson and has shown constant support and commitment to our community as we] I. They continue to stress project excellence, community input and a "long haul" mentality. I would encourage you to follow staff recommendations and select the RD Olson proposal for the project site and for the residents of the Balboa Peninsula and Lido Island who are looking to you to do what is right for the entire suiTounding area. This could be the beginning of a complete transformation of our community and I hope you will invest as much thought and consideration in our area of town as you did with the "new" city hall project. Thank you. Respectfully, Cindy Koller West Newport "RECEIVED Brown, Le[lani From: Lori Morris [Icrirmorris @gmail.coml j/ 3 Sent: Monday, July 08, 2013 4:57 PM / 7 To: Curry, Keith; Petros L.; Hill, Rush; Daigle, Leslie; Selich, Edward; Nancy Gardner; Mike Henn; Brandt, Kim; Kiff, Dave; Brown, Leilani Subject: For The Record: Old City Hall Re -Use Plan Mayor, Council, City Manager, City Clerk, Staff: Good Afternoon: I would like my recommendation for the best use for the "Old City Hall" site to be entered into the record. I have read the proposals and met some of those who would like to bring to fruition the 'Best' use for our property on Newport Blvd. As we all know, the area has been in a state of decline for several years. As we move forward with the revitalization of the West Balboa Peninsula I would like to see a small "Upscale Boutique Hotel ". I believe, after careful review, that the RD, Olson proposal would be the perfect addition to our revitalization. Thank you all for your time and effort in bringing a revenue generating, best use to our historical "Old City Hall" site. Thank You, Lori R. Morris K JR PRINTEJCE{VED AFfE AGE/ DA - % -�-�� KARL A. COPA5 L° I ' ;L - 1 r 71'1W1F,Zti 73 6�n1L : "B 1'13 :1'TRYPS9731' _@:EACI1 V LIFOti .TA 19:R,1360 �L., J,41Z(vjl�1.120AC11 July 4, 2013 The City Council of Newport Beach Newport Beach, California .92660 RE: Article _enclosed from 7/4/13 "CURRENT" from O.C. Register (copy enclosed) Ladys and Gentlemen: Whatever the final disposition :of the use of the old city hall site, PLEASE, PLEASE, lets ndt try to compete with Disneyland. They have already done a much better job. You have the oppritunity to truly, help-the economically limping "Peninsulla" in a "forwardw.ord looking" upbeat manner not a "r-etro /passe" complex. Competative offerings for your approval should mandate that submissions express the 21st not 19th CCen- tury regardless of ultimate usage. You took the controversial and daring step in giving us our new City Hall. You additionally are doing so in the planning of the current plans for the projected "Mid - Peninsula" Park and Tower. PLEASE hang in there !! in any expectations from developers for what can become another "Land- mark" site not more of the saame "cute /quaint /b0000ri -ng" Newport Beach, Orange County, the world over, is thought of as an "Idealic Place ", WitH all of our assets of wa"terwys, wide tree lined avenues and street`s and parks, fine resataurant,s and mag- nificent views with Architecture that only reminds them of what they came here to get away from when they visit ?. Thank you for letting me "vent ", Respectfully, vim. 74�- - L. J rmin Roach ASI'D (ret) Ar itectural,Interior Designer Emeritus CC': O.C. Register Daily Pilot reIeP11one 9,19 706 3505 electronic mail jrnkc@cox.ner facsimile 949 7063797 i ik i A rendering of the proposed Lido House hotel displays one of the options for the old C1ty Hall site In Newport Beach. Other options are,the luxury Auberge Resorts Newport Beach or an apartment complex with space for shopping, dlning and community events. ' D City Haltsite nears On Tuesday, Newport Beach City Council will pick from two hotel concepts ,or an apartment proposal for Lido Village BY,DEEPA BNARATH ORANGE COUNTY'REGISTER Boutique hotel or.apartments? That's the decision before the Newport Beach City, Council'on Tuesday as it picks one of three projectsproposed'to replace the old City Hall building at 3300 Newport Blvd. Community members favor a boutique hoteffor a portionof the 17 -acre site, saying it could serve as the economic engine to rpvi- talize'the struggling Lido Village and Lido Isle' neighborhoods. City staff embraced that option in a report released Tuesday. The three proposals heforelthe CityCouncil are a 130 -room bou- tique hotel by Irvine -based RD; Olson Development, a 148 -room hotel project by Los Angeles- based Sonnenblick Development and a 99 -unit upscale apartment complex proposed by Irvine based Shopoff Group, which also is the developer on the large.Up town Newport mixed-use eproject near John Wayne Airport. The three developers present- ed their proposals to council' members in April. Bob Olsom,'a SEE SETE0 PAGE 9:, A McDonald, Cristal "RECEIVEO AF?T AGENDA PRINTED : 55 From: Brandt, Kim Sent: Tuesday, July 09, 2013 8:01 AM To: Brown, Leilani; McDonald, Cristal Subject: FW: Support for Lido House Project Another one. IdW From: Rick Nelson rmailto :rnelson(o)capstonecp.coml Sent: Monday, July 08, 2013 11:01 PM To: Henn, Michael; Petros, Tony; Hill, Rush; lesliedaiale(a)aol.com; Selich, Edward; Gardner, Nancy; Curry, Keith Cc: Kiff, Dave; Badum, Steve; Brandt, Kim; Wisneski, Brenda; Campbell, James Subject: Support for Lido House Project Dear Council Member: As a citizen and homeowner in the city of Newport Beach for over 32 years, I appreciate the wonderful environment we live in. I want to see our community continue to thrive and provide opportunity for future generations. I believe that the Lido House Resort project can help us provide for that future. I ask that you vote in favor of the Lido House Resort project that has been submitted by the R.D. Olson Company for the following reasons: Help to revitalize the Lido area and bring in additional tourism dollars Provides opportunity for use by the community in the form of banquet rooms, spa facilities, weddings, etc. There would be additional tax and tourism dollars to the city, increase foot traffic to the surrounding businesses and restaurants and provide a unique boutique experience to its patrons The R.D. Olson Company has a stellar reputation throughout Orange and Los Angeles Counties and they will produce a boutique hotel that will be top notch in all areas thus reflecting the ambiance of Lido and Newport Beach. Thank you for your time, Richard G. Nelson Residence: 515 Aliso Avenue Newport Beach, CA 92663 in Newport Heights RNelson(dca ostonecp.com 949 - 721 -6984 Exchange' � ° Message Security: Check Authenticity "RECEIVED A R AGENDA PRINTED :" �. Mr., Robert Sonnenblick 7�'/ Sonnenblick Development LLC Los Angeles, California July 9, 2013 To: City Council Members & Staff City of Newport Beach, Calif. On behalf of Sonnenblick Development LLC, I would like to thank the City Council and the City staff for working with us on your City Fall redevelopment project. We believe this is one of the most exciting real estate /hotel projects in all of Southern California. While we are saddened by the direction of this RFF, we are pleased to let you know that we believe you are in very good hands with our friends at IUD Olson Construction. Bob is a very capable builder, and I know that he will provide the City with a wonderful first class project. Thanks very much for considering us and spending time with us, and we look forward to working with you in the future on other projects in your fine City. Yours truly, Mr. Robert Sonnenblick Chairman & LLC Manager McDonald, Cristal From: Brandt, Kim Sent: Tuesday, July 09, 2013 2:47 PM To: Brown, Leilani Cc: McDonald, Cristal Subject: FW: Old City Hall Ruse Issue One more. IGCw,L "RECEIVED AFT AG NDA PRINTED.' From: Claudia Morehead [mailto:cmm(&morehead- law.com] Sent: Tuesday, July 09, 2013 2:40 PM To: Henn, Michael; Petros, Tony; Hill, Rush; Daigle, Leslie; Selich, Edward; Gardner, Nancy; Curry, Keith; Kiff, Dave; Badum, Steve; Brandt, Kim; Wisneski, Brenda; Campbell, James Subject: Old City Hall Ruse Issue Dear Council Members and City Staff, As a resident of Lido Isle, I am writing to you in support the choice of R.D. Olson and his proposal for the "Lido House" hotel on the site of the old City Hall in Newport Beach. Please note that my support of the R.D. Olson proposal is based upon the following: • Significant public benefit will be provided by a boutique hotel to Newport Beach residents and their guests. An upscale hotel will attract quality visitors who will choose a hotel within walking distance of the ocean and bay recreational opportunities, resulting in fewer environmental and traffic impact than a large apartment complex. • The dangers to our community of another apartment /condominium complex, with or without mixed use, is obvious: (1) there are already too many apartments and condominiums in the area, with more already commissioned for development; (2) our community does not need this additional residential density; and (3) an apartment or condominium complex will open the door for more rehabilitation facilities and other transient occupants — which is not compatible with the character or desires of the Lido /Penninsula /West Newport community. • If the City feels that it needs more cash "up front ", it can sell the property to the developer. Funds could then be used to pay down debt for other much - needed infrastructure and community development projects, and to support landscaping and other initiatives currently not underway. • The R.D. Olson team has a much stronger design and operating team that will drive and deliver a marketable, financially successful project through planning, construction AND operation. WATG and Destination Resorts both have strong track record in both new and revitalized sites and operations. Moreover, R.D. Olson is a reliable local builder and a conservative developer. • The Sonnenblick - Auberge Resorts concept continues to present concerns because of the team they have assembled and their lack of experience in this area. Do they really understand and are they behind the market, the site, and the project? The revenue metrics thus far presented are not realistic as their ADR is too high and their stated in -hotel spending figures don't seem plausible. In addition, their designer is not as good as WATG. Finally, whether they can will deliver on their promises within the same time period as R.D. Olson is suspect. a The citizenry of Newport Beach has galvanized support for the upscale hotel concept presented by R.D. Olson. Thank you for your consideration and on behalf of all of us who support the R.D. Olson proposal we hope that you will make the right decision tonight! Best regards, Claudia N. NoreheacC Esq. The Morehead Firm APC 2901 West Coast Hwy. Suite 200 Newport Beach, Ca. 92663 949.322.0813 (mobile) 949.335.1235 (work) 949.335.1236 (facsimile) www.morehead - law.com CONFIDENTIALITY NOTICE: This facsimile /e -mail message is intended only for the person or entity to which it is addressed and may contain CONFIDENTIAL or PRIVILEGED material. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient, please contact the sender and destroy all copies of the original message. If you are the intended recipient but do not wish to receive communications through this medium, please so advise the sender immediately. ** INBOUND NOTIFICATION : FAX RECEIVED SUCCESSFULLY 'T* TIME RECEIVED REMOTE CSID DURATION PAGES STATUS Duly 9, 2013 4:00:54 PM PDT 9496501181 166 6 Received 0 09/201 Z: 6PM FAX 9496501181 HAWKINS LAW OFFICES 40001/0006 "RECEIVED A3? PG PRINTED: 2 (�. ----. Law Offices of Robert C. Hawkins 14 Corporate Plaza, Suite 120 Newport Beach, CaliFomia 92660 (949) 650 -5550 Fax: (949) 650-1181 FAX COVER SHEET TRANSMITTED TO: NAME FAX NUMBER PHONE NUMBER Leilani Brown, City Clerk (949) 644 -3039 From: Robot C. Hawkins Client/Matter: CNB Community Groups Date: July 9, 2013 Documents: Comments on July V' Agenda Item No. 13 Pages: 5* COMMENTS: Original will follow as indicated, The information contained in this facsimile message is Information prweeled by aitorney,client and/or the attarney/wark product privilege. 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HAWKINS July 9, 2013 Via Facsimile Only Keith Curry, Mayor Members of the City Council c/o Leilani Brown, City Clerk City of Newport Beach 3300 Newport Blvd. Newport Beach, California 92663 Re: Comments on July 9, 2013 Agenda item No. 13 for the City hall Reuse Project (the "Proicef ). Greetings: Thank you for the opportunity to comment on the captioned matter. As you know, this firm represents Newport Residents United. Again, a community group based on the original Newport Residents United which lobbied in the early 1970s to establish the original height limit for the Coastal Zone, the Friends of Dolores, a community action group dedicated to ensuring compliance with state and local laws including the CaliforniaEnvironmental Quality Act, Public Resources Code sections 21000 et seq., Friends of City Hall, a community action group dedicated the preservation of the "City Hall" site for civic purposes, and others in the City in connection with the captioned matter. We incorporate all bfour earlier comments on the Draft Mitigated Negative Declaration on the captioned project: the City has never responded to all of our comments and has never certified the environmental document. As Mayor Curry stated at the March 26, 2013 City Council Meeting at which the DMND for the captioned Project was agendi2ed: "This matter has been continued indefinitely" March 26, 2013, streaming video at 1:08:58. Now, the Staff Report for the captioned matter concludes that Project not subject to compliance with the California Environmental Quality Act, Public Resources Code sections 21000 et seq., because: "The selection of a development team to negotiate a lease agreement to develop the former City Hall site and updating the project description 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) oC 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. Future decisions to authorize redevelopment of the property are subject to CEQA and will undergo environmental review prior to approval. These future decisions may include a 14 Corpur"re Plaza, Suite 120 Newport Beach, Califomia 92660 (949) 650 -5550 Pare (949) 650.1181 07/09/2013 2:56PM FAX 8496501181. HAWKINS LAW OFFICES Ia0003 /0006 Keith Curry, Mayor Members of the City Council -2. July 9, 2013 lease agreement for use of the property and of-amendments to the City's General Plan, Coastal Land Use Plan, and 'Zoning Ordinance. In addition, on November 21, 2012, the City published a Notice of Intent to Adopt a Negative Declaration and subsequently prepared a Mitigated Negative Declaration analyzing the impacts of the amendments to the City's General Plan, Coastal Land Use Plan and Zoning Ordinance, if any, pursuant to CEQA and the CEQA Guidelines." July 9, 2013 Staff Report on the captioned Project, page 13. This is incorrect, problematic, and requires that the Council continue this hearing until this environmental work is done. First, it engages in piecemeal analysis of the alleged Project. The Staff Report clearly notes that the captioned agenda item involves two actions by the City Council: "3. Select one of the following development teams to negotiate lease terms: RD Olson Development Shopoff Group Sonnenblick Development;" and "5. Adopt Resolution No. 2013- forming the City Council Ad Hoc Negotiatirig Committee for the Re -Use of the City Hall Site and confirming the Mayor's appointment of two (2) Council Members to the Committee;" However, the only Resolution prepared for these two actions is the Resolution for the establishment of an "Ad Hoc Negotiating Committee." That Resolution notes that, among other things, the City Council finds the following facts: "WHEREAS, the City Council has received and reviewed proposals from three development teams for the redevelopment of the former City Hall site; and "WHEREAS, the City Council has selected one development team with which it desires to initiate negotiations; and "WHEREAS, the City Council desires to provide City staff with guidance on the terms and conditions of an agreement with the selected development team so that the negotiations will provide for the construction of improvements and long -term lease of the City Hall site. The Resolution concludes that the Council should form the Ad Hoc Negotiating Committee. However, there is no action by the Council to support the second "Whereas" clause regarding the selection of the developer. The Council can only act by resolution or ordinance. City Charter, section 412. Ilere, Staff proposes neither and offers no findings to support any selection whatsoever. Indeed, as discussed below, State law requires that specific findings be made. Staff has offered no such resolution with the appropriate findings. We ask: Where is the Resolution supporting the selection of the developer as set forth in State law? 14 Corporate Plnut, Shire 170 Newport Bench, Califomla 92660 (949) 650.5550 Fm: (949) 650 118 1 07/09/2013 2:57PM FAX 9496501181 HAWKINS LAW OFFICES 1a0004 /0006 Keith Curry, Mayor Members of the City Cuuucil - 3 - July 9, 2013 This is not an insignificant matter. The City and its residents need to know the basis of the selection of any developer of City owned property. This belongs to the residents of the City, not the City Council. The community needs to understand the basis of this decision. Also, it is important to the developer: after reviewing the Request for Proposals No. 13- 35, responding t0 the RFP, making presentations to the City Council on numerous occasions, the winning respondent deserves a formal action by the Council in the form of a resolution. Without such a resolution with appropriate findings, the developer is at a loss to understand what action the Council has taken, the community fails to understand what the Council is doing, neither Staff nor the Ad Hoc Negotiating Committee will understand the action and take appropriate steps in negotiations. This matter must be continued until such a resolution is presented in a timely fashion to the community, the developers, the Staff, the Council and the Committee. Second, it is unclear that any of these respondents are responsible respondents. They all propose a 99 year lease. The RFP did not provide a term but the respondents know State law which limits the length of the lease to 55 years. Indeed, Government Code section 37380 provides: "A city may lease property owned or held or controlled by it, or any of its departments, for not to exceed 55 years." (Emphasis supplied.) Subsection (b) authorizes longer leases but only on certain and specific findings which the Council has not made: "(b) Notwithstanding the 55 -year limitation in subdivision (a), a city may lease property owned or held or controlled by it or any of its departments or boards for a period exceeding 55 years but not exceeding 99 years, if all of the following conditions are met: "(1) The lease shall be subject to periodic review by the city and shall take into consideration the theft current market conditions. The local legislative body may, prior to final execution of the lease, establish the lease provisions which will periodically be reviewed, and determine when those provisions are to be reviewed. "(2) Any lease entered into pursuant to this section shall be authorized by an ordinance adopted by the legislative body. The ordinance shall be subject to referendum in the manner prescribed by law for ordinances of cities. "(3) Prior to adopting an ordinance authorizing a lease, the governing body shall hold a public hearing. Notice of the time and place of the hearing shall be published pursuant to Section 6066 in one or more newspapers of general circulation within the city, and shall be mailed to any person requesting special notice, to any present tenant of the public property, and to all owners of land adjoining the property. 14 CoMontc Plna, Suim 120 Newport licach, Califomia 92660 (949) 650.5550 Fax (949) 650.1181 07/09/2013 2:57PM FAX 9496501181 Keirl, Cttrry, Mayor Members of the City Couudl HAWKINS LAW OFFICES 20005 /0008 - 4 - July 9, 3017 "(4) Any lease shall be awarded to the bidder which, in the determination of the legislative body, offers the greatest economic return to the city, after competitive bidding conducted in the manner determined by the legislative body. Notice inviting bids shall be published pursuant to Section 6066 in one or more newspapers of gcneral circulation within the city. "The provisions of paragraphs (2), (3), and (4) do not apply to any charter city, which may utilize a procedure as specified by charter or adopted by ordinance in accordance with its charter." Government Code section 37380(b) (Emphasis supplied). Unfortunately, this latter provision provides no relief for the City. Our Newport Beach City Charter which was amended in 2012 and 2010 provides: "Notwithstanding any other provision of this Charter, the City Council shall have the authority to lease City-owned property, including tide and submerged lands so long as the lease is limited to the term permitted by State law," Newport Beach City Charter section 1402 which was amended in 2010. Hence, under our Charter, we revert to State law or Section 37380(b) which requires substantial findings including section (4) which requires findings of economic benefit which findings are absent here. Without such findings, all respondents are not responsive to the RFP. In that case, the City Council should reject all bids. The alternative is simple: prepare a resolution with the appropriate findings to award the lease to the successful bidder. Further, it is unclear that this hearing was properly noticed as required by Government Code section 37380(b). Without all of this, the Council must continue this action and prepare the appropriate resolution to award the successful bidder the right to negotiate with the City. Third, it is the full Project under consideration: 1. Selection of the developer for the former City I Iall site; and 2. Establishment of the Ad Hoc Committee to Negotiate the Lease with the developer. The environmental analysis must consider and analyze both Project components. Unfortunately, the environmental analysis fails to analyze the full Project: the selection of the developer and the proposed use; and the establishment of the Ad Hoc Negotiating Committee. Indeed, there is no environmental analysis. As indicated above, under its environmental analysis quoted above, the Staff Report concludes that the establishment of the Committee is not a CEQA project. however, with'the second "Whereas" clause, it is a Project: the selection of the developer and the use is a project under CEQA which requires analysis. Next, then the analysis in the Staff Report makes reference 14 Corpomm Plana, Sulu 120 Newport Beach, California 92660 (949) 650.5550 Fm (949) 650-1181 07/09/2013 2:58PM FAX 9496501181 HAWKINS LAW OFFICES 20006 /0006 Keith Curry, Mayor Members of the Ciry Council -5 • July 9, 2013 to the DMND which has been continued indefinitely. We received no notice that the Council would consider the DMND at this hearing. indeed, it cannot consider the DMND, because it was not available to Council, the developers or the community. Further, consideration of the DMND has been continued indefinitely. Staff cannot now spring this on the Council, developers, and the community with notice and the ability to access the document. The selection of the developer and a particular proposed use will have impacts on the physical environment which must be analysed before the selection is made. The City has failed to do this. Of course, we incorporate all comments to the DMND and any Final Mitigated Negative Declaration including all of our comments. Again, the only cure to this failure to do environmental analysis is to continue this hearing, perform the appropriate environmental review, circulate the document for public review and comment, hold hearings on the document, and if appropriate, certify the environmental document. Thank you, again, for the opportunity to comment on the captioned Project. As before and although ignored for this hearing, PLEASE PROVIDE US WITH NOTICES OF ANY AND ALL HEARINGS ON THE CAPTIONED PROJECT AND 1FMND. Also, please provide us with any copies of any and all Notices of Determination in connection with this Project. Of course, should you have any questions, please do not hesitate to contact me. .C,Inr..P.r01v RCH/kw cc: Leilani Brown, City Clerk (Via Facsimile Only) 14 Curl umm Plazu, Suite 120 Newport Beach, Califorrria 92660 (949) 650.5550 Fax: (949) 650.1181 Brown, Leilani From: Kiff, Dave Sent: Tuesday, July 09, 2013 7:30 PM To: Brown, Leilani Subject: Fwd: City Hall Reuse Follow Up Flag: Follow Up Due By: Wednesday, July 10, 2013 8:02 AM Flag Status: Flagged Categories: Regular Meeting Sent from my iPhone Begin forwarded message: "RECEIVED A R A ENDA PRINTER:" From: "Cook, Edward" <ewc ,mccarthycook.com> Date: July 9, 2013, 6:38:13 PM PDT To: Michael Henn <mhenn527(a),hotmail.com >, "RHill @NewportBeachCa.eov" <RHill (&.Newr)ortBeachCa.gov >, "dkiffcr.newportbeachca.eov" <dkiff(a,newportbeachca.gov >, "currvkftfm.com" <currykApfm.com >, "lesliejdaigle(&aol.com" <lesliejdaigleaol.com >, Nancy Gardner <gardnerncy@aol.com >, "edselich .roadrunner.com" <edselich(&roadrunner.com >, "rrush@,usrealtygroup.com" <rrush �usrealtygroup.com >, "MHenn0NewportBeachCa.gov" <MHenn(&,,NewuortBeachCa.¢ov> Subject: City Hall Reuse Dear Council Members, On the eve of your important vote on the reuse of the former City Hall Site, I wished to offer some confirming thoughts. First, compliments to Kimberly Brandt and City Staff for the report released last Tuesday recommending the hotel land use and specifically the RD Olson Lido House Hotel. I too spent considerable time and energy in reviewing the three proposals and in lending my professional opinion as an institutional real estate investment advisor and developer and my personal voice to the public debate. Based on that research and diligence, I supported the RD Olson proposal because it was the only financially viable, publicly supported alternative. I also know Bob Olson personally through a professional association and have spent considerable time vetting his proposal and understanding his intentions. While I have no interest in this hotel other than to see the City of Newport Beach and our neighborhoods benefit from its success, I do know that he is personally and passionately committed to creating a legacy for Newport Beach and himself with this project and will not squander the opportunity. You are no doubt aware that this dream project has captured the hearts and minds of many on Lido and the Peninsula and indeed throughout Newport Beach. I have had countless conversations with citizens across the City and everyone is in full support of a hotel use and believes the City and beach community alike will benefit from this development. The Peninsula and Lido Village area are in dire need of a renaissance and every citizen I talk to believes that a hotel is the most important catalyst for change. The public voice will be heard loudly and enthusiastically tonight with great and high hopes that the City Council follow the professional advice and conclusions of City Staff. Among my numerous meetings and conversations with fellow citizens, virtually every conversation leads to the same conclusion. A hotel is the fitting use and legacy for the former City Hall site and the citizenry believe that this historic opportunity is within its grasp. I would also offer that there are many engaged members of the community that would be steeled for a passionate fight to promote this land use and oppose any other. Obviously, with the City of Newport Beach continuing its ownership of the land, any delay in the commencement of the desired hotel project would hurt the City coffers far more than the relatively minor cost of a citizen led opposition to any another use. I know well from decades of development experience, citizens and community members in the State of California always hold the asymmetric economic war advantage over the land owner. In this case, the City of Newport Beach is the land owner and therefore the party most at risk to any public opposition which could delay the receipt of ground revenues for a long time with lost time representing lost economics that cannot be recovered. Thank you for your effort to create a public process leading to a viable land use and development plan for the former City Hall site. The community can feel the beginnings of great progress for the Peninsula and Lido Village areas. Nothing is more critical to jumpstart that renaissance than an affirmative vote by the Council for the RD Olson hotel use. The community is nervous with excitement at the dream of realizing the first major upscale hotel in the history of the Peninsula. We thank you for your public service and stewardship of our community an anxiously await your historic decision. Respectfully submitted, Edward Edward W. Cook III Co- President McCarthy Cook & Co. ewc(@mccarthycook.com www.mccarthycook.com Orange County Office Metro Center at South Coast 575 Anton Boulevard, Suite 590 Costa Mesa, CA 92626 (714) 427 -1849 Direct (714) 913 -6900 Main (714) 913 -6901 Fax Los Angeles Office The Atrium 2301 Rosecrans Avenue, Suite 4170 El Segundo. CA 90245 (310) 341 -4816 Direct (310) 297 -9300 Fax San Francisco Office China Basin 185 Berry Street, Suite 150 San Francisco. CA 94107 (415) 543 -3838 Main (415) 543 -1623 Fax Destined to become a Newport Beach Landmark The community has spoken and clearly wants a hotel at the former City Hall site. The Lido House Hotel will be the gateway to Lido Village and the Peninsula, and is the best reuse option for many reasons: DESIGN: Perfectly suited for the surrounding area, Lido House Hotel captures the heritage and spirit of Lido and Newport Beach. The design includes truly public open spaces, Including a new 'Bay to Beach Park' for residents and guests. Lido House Hotel will provide four star luxury service with a beach casual sophistication, comparable to Shutters on the Beach or L'Auberge Del Mar. DEVELOPMENT TEAM: R.D. Olson Development and R.D. Olson Construction have a combined 30+ years of experience. We specialize in hotels, having been the most active hotel developer on the West Coast since 2010. Our construction company has put In place over $2 billion in construction projects. The hotel operator, Destination Hotels & Resorts, operates three hotels In SoCal and has an excellent track record in running upscale coastal hotels. ECONOMICS: Lido House Hotel will be a catalyst for reinvestment in Lido Village. The hotel will produce over $400M in economic benefit in the first ten years and direct millions In revenue to the City, based upon a PKF feasibility study. FEASIBILITY: Our proposed hotel is realistic and our plan is financeable. Lido House Hotel will be received more favorably by the Coastal Commission due to being a visitor serving use. This is the best option for the community. COMMITMENT: The owner of R.D. Olson Development, Bob Olson, is a longtime Newport Beach resident that has a personal stake in our community. R.D. Olson is an extremely involved developer /owner from entitlement through hotel opening. We have an extensive track record of developing new hotels and can tour anyone interested in any of our properties that we developed and still own. Lido House Hotel A Luxury Boutique Hotel for Newport Beach Newport Nautical architectural style with Cape Cod influence, creating a new "Gateway to Newport" for Newport Peninsula and Lido Village OProvides .7 acre public park on Newport Blvd. OSaves the two existing old ficus trees ©Preserves and expands public parking on 32nd Street 17 luxury suites with outdoor patios are perfect for out of town guests and vacationers ORooftop deck & lounge offers bay and ocean views UdoHouseHotel.corn © facebook.com /lidohousehotel DESTINATION WnTG sfadesign �VF.I,aPMENT ..0 IlVlllf 6 x4fVxl1