HomeMy WebLinkAbout2012-84 - Approving Balboa Village Master Plan PA2011-224RESOLUTION NO. 2012 -84
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH APPROVING THE BALBOA VILLAGE
MASTER PLAN (PA2011 -224)
THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH HEREBY FINDS AS FOLLOWS:
SECTION 1. STATEMENT OF FACTS.
1. In 2011, City Council established a goal to revitalize several neighborhoods. Balboa
Village was one of several areas that was prioritized. The City Council established the
Neighborhood Revitalization Committee ( "NRC ") to guide the effort. The NRC
established a Citizens Advisory Panel ( "CAP ") consisting of several community leaders
and residents to assist the NRC with the effort.
2. The CAP held 11 noticed public meetings associated with the preparation of the
Balboa Village Implementation Plan.
3. The NRC received periodic updates on the progress of the Balboa Village CAP, and
the NRC conducted 3 noticed meetings to specifically discuss the Balboa Village
Implementation Plan that was subsequently re- titled the Balboa Village Master Plan
( "Plan ").
4. The Plan identifies a new vision and direction for Balboa Village and it outlines key
steps to be taken over time with the goal of revitalizing the area. Strategies are
included with the intent to create new revenues in the district to support
implementation programs, while minimizing the impact to the general fund. The Plan
includes a prioritization matrix that would be used as a guide to implementing identified
revitalization strategies.
5. The Balboa Village Implementation Plan was reviewed by the Harbor Commission on
July 11, 2012. The Harbor Commission is supportive of efforts to revitalize Balboa
Village. Commissioners felt that improving access to and from the bay could provide
additional support for area businesses. Commissioners also expressed the opinion
that a parking validation program might improve patronage of local businesses. The
potential loss of public parking in the Palm Street parking lot due to redevelopment
should be avoided. Lastly, Commissioners expressed the need to emphasize
attracting businesses that can thrive year -round and those that can be supported by
locals.
6. The Balboa Village Implementation Plan was reviewed by the Planning Commission
on July 19, 2012. The Planning Commission is supportive of efforts to revitalize Balboa
Village. The Planning Commission focused on the suggestion to reduce off - street
parking requirements and to eliminate the in -lieu parking program. Comments in favor
City Council Resolution No. 2012 -84
Page 2 of 3
of reducing the parking requirements were made but concern over potential parking
shortfalls was also expressed.
7. The City Council conducted a public hearing on September 25, 2012, in the City Hall
Council Chambers, 3300 Newport Boulevard, Newport Beach, California. Property
owners within the area covered by the Plan were notified of the time, place and purpose
of the meeting.
SECTION 2. CALIFORNIA ENVIRONMENTAL QUALITY ACT DETERMINATION.
The City Council finds this project exempt from the California Environmental Quality Act
( "CEQA ") pursuant to Section 15262 (Feasibility and Planning Studies) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because the Implementation
Plan only identifies possible future actions and has no legally binding effect. Therefore,
adoption of the Implementation Plan itself has no potential to have a significant effect on the
environment. Implementation of future actions identified in the Implementation Plan may
require environmental review prior to adoption if those possible future actions are defined as
a project pursuant to CEQA and could result in a direct or reasonably foreseeable indirect
physical change in the environment.
SECTION 3. FINDINGS.
1. Execution of the Balboa Village Master Plan should provide a needed stimulus to the
area over time that will benefit the entire community. Execution of the Plan is
dependent upon the availability of resources and other priorities established by the
City Council.
2. The strategic recommendations identified in the Plan will require further study and
subsequent and independent action by the City. If said further study reveals that a
particular recommended strategy is not appropriate, the recommended strategy may
be modified or eliminated to achieve the primary goal of the Plan or avoid other
negative consequences.
3. Approval of the Plan does not bind future discretion of the City in regards to execution
of the Plan.
SECTION 4. DECISION.
NOW, THEREFORE, BE IT RESOLVED:
1. The City Council of the City of Newport Beach hereby approves the Balboa Village Master
Plan attached as Exhibit "A ".
City Council Resolution No. 2012 -84
Page 3 of 3
Passed and adopted by the City Council of Newport Beach at a regular meeting held on
September 25, 2012.
NANCY GAR- ,ONER, MAYOR
A;Zan fl
LEILANI MOWN, CITY CLERK
City of Newport Beach
BALBOA VILLAGE
MASTER PLAN
September 2012
BALBOA VILLAGE
MASTER PLAN
TABLE OF CONTENTS
Page
Introduction .................. ............................... 1
Vision for Balboa Village ......... ............................... 3
Expanded Fun Zone ........ ............................... 5
Brand Name, Vision Statement, Promise ....................... 6
Overview of Market Conditions ... ............................... 6
Economic Development
Commercial Facade Improvement Program ..................... 7
Targeted Tenant Attraction Program ............................ 9
Cultural Amenities ........... ............................... 10
Special Events Initiative ....... ............................... 11
Development Opportunities .... ............................... 11
Funding for Marketing .... ............................... 12
Business Improvement District . ............................... 12
Planning /Zoning Recommendations . ............................... 13
Parking
Summary................. ............................... 15
Recommendations .......... ............................... 16
Public Infrastructure /Streetscape .... ............................... 20
Administrative Recommendation .... ............................... 23
Conclusion....................... ............................... 23
Exhibit 1: Overview of Brand Development Process
Exhibit 2: Keyser Marston Associates Market Opportunities Analysis and
Balboa Village Implementation Strategies
Exhibit 3: Nelson/Nygaard Consulting Associates Parking Management Plan
Exhibit 4: Balboa Village Master Plan Matrix
City of Newport Beach
Balboa Village Master Plan
September 2012
INTRODUCTION
As part of its budget planning process for FY 2011 -12, the City Council identified several
priority objectives to be addressed. To accomplish these key objectives in a timely
fashion, the City Council appointed three of its members to serve on the Neighborhood
Revitalization Committee (NRC) to study and develop recommendations for the City
Council on various improvement projects in five areas: West Newport Beach, Mariner's
Mile, Santa Ana Heights, Lido Village, Corona del Mar, and Balboa Village. The type
and level of study and improvements in each of the areas varied widely, ranging from a
landscape median design to a more comprehensive land use and parking study for both
Lido Village and Balboa Village.
The City Council appointed a five- member Citizen Advisory Panel (CAP) in June 2011
to set a new vision and implementation strategy for the revitalization of Balboa Village.
A map of the study area for purposes of this report is shown below as Figure 1. The
members of the CAP are all residents of Newport Beach, and include: Mark Hoover,
Terri Pasquale, Ralph Rodheim, Craig Smith, and James Stratton. The City Council
representative to the CAP is Council Member Mike Henn.
Since its inception, the CAP has met monthly at the Nautical Museum. Meetings were
well attended by area residents and business owners, and their interest in the future of
Balboa Village was evident by their comments, suggestions, and regular participation.
Additional meetings were held with Balboa Village property owners and business owners
in an effort to obtain more specific information about their needs and concerns in the
area. Further, residents within the Central Newport Beach Neighborhood Association
played a key role in the development of the proposed parking management plan.
Balboa Village Master Plan
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Figure 1 - Map of Revitalization Area
The City engaged the firm of Keyser Marston Associates and Nelson/Nygaard Consulting
to conduct two key studies for the area: 1) a market analysis of the greater Balboa
Peninsula area along with a specific feasibility analysis and implementation strategies for
future development opportunities in Balboa Village; and 2) a parking analysis to
specifically identify actions to address current and future demands in the area.
The CAP was clear in its intention to recommend implementation strategies that were
feasible and could be realized within a reasonable time frame. The CAP identified
several key areas to be addressed which are discussed in further detail in this report,
including parking, zoning, appearance and new commercial investment.
Balboa Village Master Plan
VISION FOR BALBOA VILLAGE
The initial discussions of the CAP focused on the vision for Balboa Village. The CAP
and community residents/businesses are very desirous of maintaining the unique
character and history of Balboa Village. Enhancing the family - friendly environment is
important, as well as providing quality dining, entertainment and shopping experiences to
visitors and area residents. Following the initial visioning exercise, a draft vision
statement was created: 'Balboa Village ... a unique destination between the bay and
sea where history meets the excitement of the future." Gary Sherwin of Visit
Newport Beach subsequently made a presentation to the CAP on the vision and brand
promise for the entire city as it relates to visitor attraction. Balboa Village is viewed as a
key player in the overall experience one has when spending time in Newport Beach. It is,
therefore, important that the vision for Balboa Village be consistent with the overall
vision/brand for the city. The CAP formed a working group, comprised of Ralph
Rodheim, Jim Stratton, and Council Member Henn to work with Visit Newport Beach to
further refine the Balboa Village vision and develop a brand promise for the area. The
City engaged the firm of Destination Consulting Group to conduct opinion research on
the area to assist in developing a consumer research -based vision that would lead to
creative execution of the proposed Master Plan.
Effective destination/district branding is about defining an experience that leaves visitors
and residents with a clear memory of a unique occasion that connects with them
emotionally. It is important to engage in a brand visioning exercise in order to affect
image building, create a greater competitive advantage, and enhance awareness and
market conversion. An effective brand vision strategy will result in increased spending
new investment, and enhanced experiences, as well as improve the quality of life in
Balboa Village.
The data collection was comprised of three surveys sent to visitors, Newport Beach
residents, and business owners /operators in Balboa Village. A summary of the process
and data collection is attached as Exhibit 1. Below are key highlights resulting from the
surveys:
• The Top 6 descriptive statements for Balboa Village were: good weather, unique
destination, beautiful nature and scenery, peaceful and relaxed, safe, many
opportunities for marine recreation.
• The Bottom 6 statements were: a variety of shopping options, nightlife and
entertainment, affordable accommodation choices, interesting cultural activities, a
good variety of accommodation choices, and a well - developed infrastructure is in
place (i.e., clean, attractive public areas).
• The Top 10 attractions were: Balboa Island Ferry, the Wedge, Balboa Peninsula
beach, Catalina Flyer, Balboa Pier, the Pavilion, Fun Zone harbor cruises, Balboa
Fun Zone and boardwalk, Balboa hm, and ExplorOcean/Newport Harbor Nautical
Museum.
Balboa Village Master Plan
• 90% of the visitors come to Balboa Village for the day (average stay of
approximately 4 hours)
• The majority of visitors and residents identify the area as Balboa, Balboa Island or
the Fun Zone; none to few selected Balboa Village.
• If given their choice, the preferred name identifier for the area would be Balboa
Fun Zone.
The survey results validated issues that were raised by CAP members, area residents, and
businesses during the initial visioning exercise. Overall, one's experience when in
Balboa Village is a pleasant and memorable one. Areas of opportunity include:
upgrading the general appearance of the area; creating additional dining, shopping and
cultural experiences; and providing enhanced wayfimding signage and parking. Another
area of opportunity is creating reasons for visitors to extend their stay in the Village.
A final key point resulting from the survey results and discussion with the Branding
Working Group is that the assumed boundary of the "Fun Zone" should be expanded as
the new vision and brand promise encompasses the entire commercial district of Balboa
Village (see Figure 2 below). The effects of such a change will have an impact on
wayfinding signage (both Citywide and within Balboa Village), monument signage
(existing and new), and various other marketing related activities and collateral.
BALBOA
VILLAGE
CITY OF
N E W P O R T B E A C H
Balboa Village Master Plan
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Figure 2 - Expanded Balboa Village Fun Zone
Existing Fun Zone
Expanded Fun Zone
Based on the research collected, and after further review by the Branding Working
Group, the following Brand Name, 2020 Brand Vision Statement, and 2012 Brand
Promise Statement are recommended to be endorsed by the City Council and
incorporated into all marketing materials for the City of Newport Beach. Most
importantly, the brand vision and promise should serve as the guide post for all
future policy decisions, programs and activities of the City, property owners,
businesses and residents to ensure that the vision is realized for the area.
Brand Name
Balboa Village Fun Zone
Balboa Village Master Plan
Brand Vision Statement - 2020
Balboa Village Fun Zone is a unique piece of the heart and soul of Newport Beach, and is
an inviting, family- friendly entertainment, shopping and dining district. Recognized as
Newport Beach's original town site, the revitalized neighborhood is anchored by a
complementary mix of large and small scale attractions, including the dynamic new
ExplorOcean interactive center, the restored Balboa Performing Arts Theater and event
center, and the renovated iconic Pavilion. The expanded Fun Zone is a quaint and
engaging environment that offers an array of harbor and beachfront activities for many
age groups, and is a celebration of the classic Southern California beach life that is
contemporary in personality yet steeped in tradition.
Brand Promise Statement - 2012
Balboa Village Fun Zone is a unique piece of the heart and soul of Newport Beach. It
embraces the role of a classic Southern California beachside neighborhood that honors its
entertainment heritage and provides a variety of active and passive harbor and beach
activities, dining, and casual shopping. It is here that you can find an environment that
offers a nostalgic and relaxed celebration of good times and family memories.
OVERVIEW OF MARKET CONDITIONS
Keyser Marston Associates (KMA) conducted a general market analysis of Mariner's
Mile and Balboa Peninsula (including Lido Village and Balboa Village), and then further
identified opportunities and constraints for future private and public investment in Balboa
Village based on their findings in the marketplace, along with recommended
implementation strategies based on market conditions. The full report is included as
Exhibit 2. A summary of their findings as it relates to Balboa Village is noted below:
Constraints:
• Small, close -in population limits new commercial development
• Access and visibility constraints limit development opportunities
• There is a significant number of intervening commercial opportunities along the
route to Balboa Village
• Parking is difficult during peak times
• The project entitlement process can be lengthy and complex due to Coastal
Commission requirements.
• Existing parcel patterns and city parking requirements make it difficult to
redevelop properties
Opportunities:
• Market support for a small, boutique hotel but City may need to provide
assistance given the high cost of land in the area
• Strong market for residential rental and ownership housing
Balboa Village Master Plan
• Residential development is an economic engine for mixed -use development
opportunities; carries the cost of ground floor commercial
• Cultural catalysts - ExplorOcean and Balboa Theater
• City -owned parking lot on Palm Street may be developed and serve as a catalyst
to promote economic development in Balboa Village
Strategies:
• Pursue adoption of a Local Coastal Plan to expedite project review /permit
issuance
• Eliminate parking requirements for new or intensified commercial uses
• Support/facilitate development of ExplorOcean/Balboa Theater
• Create financial incentive programs to encourage facade improvement and
rehabilitation of commercial properties
• Support and encourage a variety of events and activities in the Village to improve
community interest and increase business sales for local merchants
• Consider developing the Palm Street parking lot with a mixed use project, either
hotel or residential with a small amount of ground -floor commercial
• Identify new revenue sources to assist in funding programs and projects
recommended for Balboa Village
The following recommendations were made by the CAP in order of priority by category
based on need and the ability to make the greatest impact with the limited resources
available.
ECONOMIC DEVELOPMENT
A number of economic development related tools and strategies must be employed in
Balboa Village to enhance its ability to be a viable commercial and tourist district. The
following priority recommendations are ranked in the order provided:
1. Develop and Implement a Commercial Facade Improvement Program
There are approximately 55 commercial buildings located in Balboa Village, some of
which contain residential units above the ground floor commercial space. Many of these
buildings are in need of exterior renovations, such as paint, signage, awnings, window
casings, and structural repairs. The KMA report concluded that, while commercial space
rents in this area are adequate by market comparison, on balance, the property owners do
not perceive that investing in exterior improvements will generate significant rent
increases. The deterioration of these buildings is a key contributor to the overall declining
appearance and appeal of the area to residents and visitors alike.
In an effort to incentivize property owners to invest in the rehabilitation of their
buildings, it is recommended that the City Council create a facade improvement program
and fund a portion of the costs to rehabilitate these commercial structures. These types of
Balboa Village Master Plan
programs are common in special districts such as Balboa Village, and the success of such
a program would lead to a renewed sense of place.
As noted in the KMA study, there are several options the City could consider when
developing such a program. The CAP is recommending that a tiered, matching fund
grant program be created. The program would be designed to insure that City funds are
not expended until such time as the owner's funds are available, such as requiring an
escrow account for draw -down purposes. The City should consider a range of rebates
based on the extent of improvements needed for a particular building, as suggested
below:
Minor Building Improvements
These would include items such as sign removal and replacement, and exterior painting
(no major repairs involved). The rebate would be based on scope as opposed to building
frontage, with a not to exceed rebate of $15,000 per building.
Major Building Improvements
Up to 25' frontage $15,000
25' to 50' frontage $25,000
50' to 75' frontage $37,500
75' and above $50,000
Key to the program's success will be the targeting of initial funding to a model block that
will have the most impact upon completion. This will demonstrate to the owners the
potential for their buildings, and give tenants, residents and visitors renewed hope in the
Balboa Village Master Plan
revitalization of the area's commercial district. Often, these building improvements will
lead to interior tenant improvements with existing businesses and /or attract new tenants
to better serve the area. The specifics of such a program and potential funding sources
will be developed if, and when, the City Council approves moving forward with such an
incentive. A potential funding source would be the use of CDBG funding which is
discussed in further detail below.
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2. Develop and Implement a Targeted Tenant Attraction Program.
A complementary effort to the Facade Improvement Program is a key tenant, targeted
marketing program. Based on the findings of the KMA market study, there exists a
limited opportunity to attract a few key tenants and developments to the area(e.g., sit -
down restaurant, quality boutique retail, and a boutique hotel). To do so, however, may
require financial incentives on the part of the City to encourage such uses to locate in the
Village. These might include fee waivers for plan check and building permits, and
perhaps a tenant improvement loan program to offset the expense of opening a new
restaurant in the area. Once the incentive programs are developed, a method to provide
outreach will be needed to make potential tenants aware of the opportunities. First
Balboa Village Master Plan
priority should be given to implementing the Facade Improvement Program to make an
immediate impact on the visual appearance of the area, followed by a targeted tenant
attraction effort.
3. Support new cultural amenities such as ExplorOcean and Balboa Theater.
Balboa Village is in need of catalytic projects to bring a new energy and vitality to the
area. Cultural venues are often these types of opportunities, and two planned projects
that can positively influence economic change in the Village are ExplorOcean and the
Balboa Theater.
Balboa Theater as a commercial music and theatrical venue should create new demand
for dining experiences in the Village for both area residents and others. In addition, once
completed, the Theater will become a valuable community asset for educational purposes
(youth and adult) and become a local resource venue for area residents, businesses and
non -profit organizations. The project is at a critical fundraising juncture, and the City
should be open to lease modifications if needed, as well as provide necessary support to
assist in their fundraising strategies and offer responsive city services as needed during
the construction phase.
While ExplorOcean's construction horizon is some five years out, the time is now to build
community understanding and support for the facility. These types of projects require a
partnership between all the parties to fully realize their potential. The front and center
location of ExplorOcean along the bay front is the cornerstone of visitor activity in
Balboa Village. The City's support will be required in the interim to assist the museum
staff in the improvement and programming of their existing space to demonstrate that
positive change is in the making for all to enjoy. Please note below further discussion
regarding events and programs in the area.
Balboa Village Master Plan
4. Develop a special events initiative for Balboa Village.
Balboa Village's unique location between the bay and sea creates a natural environment
to host community activities and events to showcase the local business, recreation and
cultural attributes of the area. A carefully planned and executed special events program
will further support the new vision and brand promise for Balboa Village. It is especially
timely given the status of the Balboa Theater and ExplorOcean projects. Many of the
comments made during the visioning discussions centered on creating more opportunities
for families to come and enjoy what the area has to offer. Key is developing a plan that
does not regularly attract hoards of new visitors to the area during peak season. If
anything, the events and activities should be programmed during non -peak season when
parking is readily available and the merchants could benefit from the customer support.
The major challenge with such an initiative is identifying events and activities that are not
a drain on city resources, both staff and financial, during difficult economic times. Both
Balboa Theater and ExplorOcean are embarking on their own marketing plans to raise
funds and awareness for their projects. The City should capitalize on these efforts, and
expand the opportunities where possible. To that end, it is recommended that the city
engage a professional promoter to develop the framework for a special events initiative in
Balboa Village. It is estimated that the cost to prepare such a plan is approximately
$15,000 to $20,000.
5. Consider development of the City-owned Palm Street parking lot for future
mixed -use development to generate additional revenues for the area.
The KMA report identified three development scenarios for the City-owned parking lot,
including 1) a stand -alone parking structure that would require an annual City subsidy of
Balboa Village Master Plan
$532,000 per year; 2) a 45 room hotel above a level of structured parking would
potentially yield the City $26,000 in annual ground lease income; and 3) a mixed -use
retail /residential project that would generate $206,000 to $250,000 per year in ground
lease payments but would not provide any additional public parking.
It is recommended that a final decision as to the development of the City -owned parking
lot not be made until the development plan for ExplorOcean has been refined and a
financing plan is in place for the project. It is critical that whatever gets developed on the
City parcel is complimentary to the ExplorOcean and that the project feasibility study
concurs that adequate parking exists in the area to support the project should the City lot
be developed.
Any revenues generated from the sale or lease of the City-owned lot may be available for
future capital improvements or City approved programs in Balboa Village in furtherance
of this proposed Master Plan, subject to City Council direction.
6. Allocate additional funding to the Balboa Village Business Improvement District
to enhance its marketing program for the area.
The Balboa Village BID currently generates approximately $35,000 per year in revenues
to be used for capital improvements, marketing and promotions on behalf of the business
community in the area. This level of funding is really not adequate to engage in a
thoughtful and professional marketing program. The City is in the process of securing a
Business Improvement District Administrator who will have daily management/oversight
of the 5 BIDS in the city, as well as be responsible for developing an overall BID vision
and brand for the 5 areas that will be in keeping with the City's vision and brand
developed by Visit Newport Beach.
If the recommended strategies are adopted by the City Council, then an enhanced
marketing and communications plan will be warranted for the area, and the BID seems to
be the likely organization to carry out that plan with input from staff and the selected BID
Administrator. Such a plan should be carefully executed in partnership with the City's
proposed special events plan, ExplorOcean and Balboa Theater to capitalize on each
other's resources and strengths.
It is recommended that an additional $25,000 per year be allocated to the Balboa Village
BID for specific marketing, communications and events as jointly agreed to by the BID
Advisory Board and City Council.
7. Modify the boundaries of the Balboa Village BID to delete the area between
Adams and Coronado Streets.
During deliberations on the Residential Permit Parking Plan, it became apparent that
certain residential properties are included within the BID boundaries that should be
removed. The BID only collects assessments from business licenses associated with
commercial businesses. There are approximately 24 residential properties and 2 legal,
Balboa Village Master Plan
non - conforming commercial properties in the proposed area to be deleted. The BID
Board has indicated its desire to initiate the requisite public process to make these
modifications, subject to final City Council approval.
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Figure 3 - Balboa Village Business Improvement District
—' Residential area recommended to be removed from
the Business Improvement District
PLANNING /ZONING
Design Guidelines: The City Council adopted Design Guidelines for Balboa Village in
November 2002. These guidelines are not contained in the City's zoning code as
development standards; rather, they are intended to guide owners, developers and staff in
the review of new development in Balboa Village whether it be new construction or
substantial rehabilitation of an existing building. The guidelines address building form,
setbacks, architectural features and signage considerations.
The CAP appointed a working group to review the existing Design Guidelines in context
with others, such as the recently approved Design Guidelines for Lido Village. The
conclusion of the working group was that the current guidelines are still applicable, and
Balboa Village Master Plan
further change is not warranted. Further, when reviewing projects, staff should ensure
that the project design is in keeping with the Brand Vision and Promise.
In addition, the CAP discussed whether a design "theme" was appropriate for Balboa
Village. Places like Solvang, California and Leavenworth, Washington were discussed as
examples of areas with much defined theme architecture. The CAP felt such an extreme
application of design standards was not appropriate for Balboa Village, and preferred the
eclectic mix of architecture that exists in the Village today. However, it was felt that
enhanced streetscape treatments would be a better option to improve the appearance of
the Village. This could be accomplished through concentrated code enforcement efforts,
enhanced maintenance of the public right -of -way, and the creation of an incentive
program for facade improvements on the commercial buildings. These topics are
discussed in further detail below.
Zoning Recommendations
Considerable discussion took place regarding existing parking requirements and their
impact on future development in Balboa Village. The KMA report also identified the
off - street parking requirements for commercial uses as one impediment to new
development and tenant attraction in the area. As a result, the CAP recommends the
following strategies:
I. Eliminate parking requirements for new commercial development and
intensification of use applications. The parking study affirmed that there is adequate
parking in Balboa Village to meet the demands of commercial users, current and
proposed for the future. A major challenge with the recycling of commercial properties in
Balboa Village is the burdensome off - street parking requirement that currently exists in
the city's zoning code that is reinforced by Coastal Commission guidelines and practices.
Removing this barrier will greatly enhance future opportunities for new investment, and
can be viewed as an incentive to stimulate new private investment in the area.
2. Eliminate the in lieu parking fee permanently (a moratorium currently exists) for
those properties in Balboa Village, and those paying annually in the program should
be terminated concurrently. It should be noted that the City currently collects $13,500
per year from Balboa Village business or property owners participating in the citywide in
lieu fee program. These revenues will no longer be available should the program be
terminated.
3. Within five years after initial implementation, evaluate Strategies 1 and 2 above
to determine if they have had a favorable impact on new investment in Balboa
Village.
4. Continue to encourage mixed -use development pursuant to recently adopted land
use designations in the City's General Plan. New stand -alone commercial
development is not economically viable as confirmed by KMA. Limited new
Balboa Village Master Plan
commercial uses can be supported, but only if incorporated into a mixed use development
such as residential or hotel.
5. Pursue adoption of a certified Local Coastal Plan to streamline the development
review process. The current entitlement process requires the review of projects by the
Coastal Commission, which can significantly extend the review period and have a
resultant impact on the economic viability of a project. If the City obtains certification of
a Local Coastal Plan (LCP), then all new projects that meet the requirements contained in
the LCP will only require City review and approval, thus eliminating the risk of unknown
conditions imposed by an outside agency such as the Coastal Commission. There is an
extensive amount of staff work required to develop such a plan; hence, this
recommendation is noted as a mid -year objective in the Implementation Matrix.
PARKING SUMMARY
As part of its scope of services, KMA engaged Nelson/Nygaard Consulting Associates to
study the current parking needs and issues in Balboa Village, taking into account
previous parking studies, including the 2008 study conducted by Walker Parking as well
as the Central Newport Beach Neighborhood Association response to the Walker report.
The general boundaries of the parking study were Coronado Street to the west, the
Newport Bay to the north, B Street to the east, and the public beach parking lot to the
south. A complete copy of the Nelson/Nygaard report is attached as Exhibit 3. A
summary of their key findings is noted below:
• Balboa Village has a large supply of parking, the majority of which is located in
off - street facilities.
• Balboa Village's parking supply is underutilized for all but the busiest summer
weekends.
• While the parking supply is underutilized, various "hot spots" of demand exist,
even during non -peak months.
• Balboa Village exhibits a drastic seasonal peak parking demand with capacity
highly constrained on summer weekends.
• Current pricing schemes discourage the use of off - street facilities, encourage
excessive "cruising" for available on- street spaces, and cause parking spillover
into surrounding residential streets. During peak summer months, these trends are
exacerbated.
• Parking turnover is relatively low, as most vehicles stay parked in off - street
spaces for long periods of time.
Balboa Village Master Plan
The report further finds that parking has been built at an average rate of 1.84 stalls per
1,000 gross square feet of development within the commercial core. This rate provides
approximately the right amount of parking for commercial land uses which generate
parking demand ratios of approximately 1.78 vehicles per 1,000 gross square feet during
peak times. Parking demand during the balance of the year is far below 1.78. This
finding is key to one of the implementation recommendations noted later in this report.
Recommendations
The following summarizes the CAP's recommendations with regard to parking after
extensive discussion and input of the CAP, area residents, staff, consultants and
preliminary discussions with the Coastal Commission staff':
1. Remove time limits for all metered spaces. Implement demand -based pricing for
on and off street parking facilities.
It is proposed that summer rates (peak periods) for on- street meters be increased to $2.00
per hour up to 2 hours; and $2.50 per hour thereafter. Off peak rates would be $1.00 per
hour up to 2 hours; and $1.50 per hour thereafter. Off - street parking would be $1.50 per
hour, no maximum, during peak periods; and $0.50 per hour, no maximum, during off
peak times. The rates can be adjusted with the current meters and the City will need to
periodically evaluate parking utilization and the effectiveness of the new rates and make
adjustments as needed. The goal is to ensure that adequate parking exists for business
patrons, while carefully managing the impacts from long -term users (e.g., beach parking).
2. Establish a commercial parking benefit district in Balboa Village to create a
permanent, ongoing revenue source for eligible programs and activities.
Parking benefit districts (PBDs) are defined geographic areas in which any revenue
generated from on- street and off - street parking facilities within the district is returned to
the district to fund area improvements. There are two Neighborhood Enhancement Areas
(i.e., parking districts) established along the Balboa Peninsula, including those in Balboa
Village (see Figure 4). The revenues collected in those districts are used to improve and
maintain public parking within those areas, as well as offset ongoing capital and
maintenance costs for Tidelands operations. Revenues from Neighborhood Enhancement
Area B that encompasses Balboa Village are presently directed to the General Fund for
the next several years to reimburse costs associated with the purchase and construction of
the expanded Palm Street parking lot. The redirection of revenues for new activities in
Balboa Village would require a shift in current City Council policy; however, the CAP
felt strongly that a permanent, ongoing source of revenue was critical to ensure the
proposed recommendations are implemented within a reasonable time frame. The CAP
is recommending that a portion of the parking revenues within the study area boundaries
' Consultation with Coastal Commission staff did not include a detailed discussion of the recommendations
provided in this report and should not be viewed as any form of endorsement or approval of recommended
parking strategies by the Coastal Commission or their staff.
Balboa Village Master Plan
be set -aside annually for eligible programs and activities identified in this report as well
as additional programs and activities that may be needed in the future. The proper legal
mechanism to accomplish this will need to be determined once City Council direction is
provided.
Ove,.new. Gnu....A• 8 •.9•
Figure 4 - Neighborhood Enhancement Areas A & B
3. Establish an overnight residential parking permit program.
The primary goal of a residential parking permit program (RPPP) is to manage parking
"spillover" into residential neighborhoods. This has been a long- standing issue in Balboa
Village for area residents, particularly during the peak season from Memorial Day to
Labor Day. The following program parameters are recommended:
• District boundaries: All residential streets between 7th Street and Adams Street,
except for on- street metered stalls on Balboa Boulevard. In addition, Bay Island
is included in the boundary in order to offer the residents permits to park their
vehicles on streets within the area (see Figure 5 below).
• Program eligibility: All residences (homes, condos) within the proposed zone may
purchase permits, including rental homeowners. City residents living on boats
and who store their vehicles in the district would not be eligible to purchase
permits.
• Hours of Operation: No parking 4 p.m. — 9 a.m., 7 days per week, excluding
holidays. Permit holders exempt.
Balboa Village Master Plan
• Maximum number of permits: 4 per household; guest permits to be studied further
to determine the most appropriate pricing and issuance structure.
• Permit Type: Rearview mirror "hangtag" that is a solid color (to change annually)
and clearly indicates the year of the permit issued.
• Permit Cost
1 st Permit:
$20 per year
2nd Permit:
$20 per year
3rd Permit:
$60 per year
4th Permit:
$100 per year
The implementation of an RPPP will require the review and approval of the Coastal
Commission. The recommendations suggested are mindful of this process, and
modifications to the proposed plan may result.
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Figure 5- Proposed RPPP District
4. Establish an employee parking permit program.
Employers or employees may purchase a permit for priority parking in a designated area.
The following program parameters are recommended:
• Eligibility: all employers and employees within Balboa Village
Balboa Village Master Plan
• Designated area: approximately 100 spaces in the north western portion of the
Balboa Village municipal beach parking lot
• Hours of operation: 6 a.m. - 10 a.m., weekdays
• Number of permits issued: 1 per employee
• Permit Cost: $50 per year, no proration
• Compliance with California Coastal Commission
5. Revise minimum parking requirements for new development, and terminate in
lieu parking program for existing participants.
As noted above, there is adequate parking in Balboa Village to serve existing commercial
uses as well as proposed future development opportunities, such as the Balboa Theater,
ExplorOcean and the limited amount of new commercial development that might occur.
This also takes into consideration the intensification of existing land uses, e.g., retail
converting to restaurant. See recommendations in the Planning/Zoning section below.
6. Formally establish Balboa Village as a shared parking district.
Shared parking is the most effective tool in parking management. Due to different
periods of peak demand, uses can easily share parking facilities, thereby limiting the need
to provide additional off - street parking. Key policy recommendations are noted below:
• Work with existing owners and businesses to ensure private parking is made
available to the public when not needed for its primary commercial use
• Develop mutually agreeable operating and liability arrangements for public use of
private parking facilities
• Require as a condition of approval that all newly constructed private parking in
any non - residential development or adaptive reuse project be made available to
the public.
• Allow parking to be shared among different uses within a single mixed -use
building by right.
• If new public parking supply is needed in the future, fast purchase or lease
existing private parking lots or structures from willing sellers, and add to the
public parking supply before building new lots /garages.
7. Develop a coordinated wayfinding program for Balboa Village.
Wayfinding signage helps orient visitors, shoppers and residents alike, pointing them to
area parking facilities, restaurants, retail establishments, pedestrian and bicycle routes,
and other important destinations. Parking wayfinding signs can also display real -time
availability data.
The City of Newport Beach currently has a theme wayfinding sign program for key areas
of the city. Further study of this program is warranted to identify additional signage
needs in Balboa Village to enhance the effectiveness and visibility for visitors, customers,
and residents.
Balboa Village Master Plan
8. In coordination with the City's Bicycle Safety Committee, identify and implement
targeted improvements to bicycle and pedestrian facilities in Balboa Village.
The City's Bicycle Safety Committee is currently in the process of developing a plan and
set of strategies to improve bicycle safety and conditions, including Balboa Village.
Their recommendations should be implemented in collaboration with the strategies
identified in this plan.
PUBLIC INFRASTRUCTURE /STREETSCAPE
The streetscape and public rights -of -way in Balboa Village are generally in good
condition, but there is room for improvement. Since 2000, the City has invested over $12
million in the area, including new decorative sidewalks, street trees, and planters. In
addition, the City acquired property and expanded the Palm Street public parking lot. A
walking tour of the area revealed the need for new or improved streetscape, street
furniture, wayfmding /parking signage and enhanced maintenance of the area.
Balboa Village Master Plan
The following actions are recommended to address the physical appearance of the public
areas in Balboa Village:
l_ Engage an architectural firm to update the original conceptual streetscape and
public signage (wayfinding and parking) plan for the Village, taking into
consideration the improvements made to date by the City and the future
development plans of ExplorOcean along the bay front.
The intent with this recommendation is not to reinvent the wheel, but rather take into
account the various public improvements made in the area over the last ten years such as
the planter pots along Main Street and Balboa Boulevard, enhanced pavement, street
trees, street furniture and signage. In addition, the boardwalk area will be added to the
modified streetscape plan. The intent is to incorporate existing improvements to the
extent possible, and build upon the original work for the plan into the future. Creating
an enhanced landscape /streetscape design plan will also guide future development in the
area, such as ExplorOcean, along key public access routes such as the Boardwalk. A
unified streetscape will then become the "theme" if you will, rather than imposing a
theme design for the commercial buildings in the Village. The plan will also address
additional public signage in the area, which was a recommended action by the parking
consultant in order to ease traffic congestion and direct people easily to public parking
options, etc.
The cost to undertake an updated
conceptual landscape design is
approximately $20,000. Once
completed, then the next steps would
be replacement of the planting in the
pots along Main Street and Balboa
Boulevard, and refurbishment,
replacement or installation of new
trash receptacles, benches and other
streetscape items identified in the
plan. There is currently $100,000
allocated to improve disability street
access citywide (curb access ramps)
in Community Development Block
Grant funds. Upon approval of the Master Plan, the City Council could re- consider
allocating these funds or allocate future funds for the enhanced streetscape design and
improvements. Installation of additional enhanced streetscape improvements will be
build upon the improvements previously installed and will further unify and enhance the
physical appearance of Balboa Village.
Balboa Village Master Plan
2. Regular maintenance of the boardwalk area should be incorporated into the
City's streetscape maintenance contract under direction of the Operations
Department.
The boardwalk area between Main and Adams Streets is maintained by the individual
property owners fronting the boardwalk. An easement exists in favor of the City to
provide a public access walkway along the water's edge. It is apparent that not all owners
share the same level of maintenance standards. Further, the street furniture is dated and
not appealing. Any new street furniture along the Boardwalk will be addressed in the
conceptual plan discussed above.
The appearance of the Boardwalk makes an impression on those enjoying the Village
offerings. It is important, therefore, that regular cleaning and upgrading of its appearance
be undertaken by the City to ensure the level of quality and long -term visual appearance
of this frequently used amenity.
The estimated cost of steam cleaning is $630.00 per cleaning, or $7,525 annually for
monthly cleaning and $15,050 annually for bi- weekly cleaning. Given the amount of
traffic experienced on the boardwalk year round, it is recommended that the bi- weekly
cleaning be undertaken as soon as possible to address peak season usage. Frequency
during off -peak season can be determined at a later date. Once the conceptual landscape
plan is developed, it is recommended that new trash receptacles and street furniture be
installed as soon as is practical.
Balboa Village Master Plan
ADMINISTRATIVE RECOMMENDATION
Finally, the CAP is recommending that the City Council establish a governance structure
to provide ongoing oversight to ensure that resources (financial and staff) are allocated as
needed to effectuate the final Master Plan recommendations. It is envisioned that Balboa
Village residents and business owners would be participants in the proposed governance
body.
CONCLUSION
Balboa Village is a special place that offers memorable experiences for all to enjoy. It is
deserving of its preservation as a unique piece of the heart and soul of Newport Beach.
Implementation of the recommended strategies is necessary to ensure that the vision and
brand promise for the area can be realized. It is recognized that City resources (both staff
and financial) to undertake the actions recommended are limited; therefore, a short, mid
and long -term implementation strategy has been developed, along with estimated costs to
implement the programs suggested (Exhibit 4). Please note that these costs do not reflect
the staff resources needed to implement the recommendations.
The CAP would like to thank the City Council for having the foresight to identify Balboa
Village as an important asset in the community, and for its willingness to consider
allocating resources to implement the revitalization strategies discussed in this report.
Balboa Village Master Plan
BALBOA VILLAGE
MASTER PLAN
Exhibit 1
Brand Developmeni
September 2012
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BALBOA VILLAGE
MASTER PLAN
Exhibit 2
Keyser Marston Associates
Balboa Village Implem
Strategies
September 2012
3010,.
KEYSER MARSTON ASSOCIATES.
ADVISORS IN PUBLIC /PRIVATE REAL ESTATE DEVELOPMENT
MEMORANDUM
AINISORy IN',
Kathleen Head
REAL ESTATE To:
Kimberly Brandt, Director Community Development Department
REDEVELOPMENT
APPOKIAAILE HOUSING
City of Newport Beach
ECONOMIC DEVELOPMENT
March 29, 2012
%AN IRANLIM. From:
Kathleen Head
A. JERRY KEYSI, .
Kevin Engstrom
TIMOTHYC. KEm
KATE EARLS FLINT.
pursuant to our request, Keyser Marston Associates, Inc. KMA evaluated the market
Y `I Y ( )
DEBBIE M. KER, Date:
March 29, 2012
ROBERT I. VVETMORI
conditions for the following three areas in the City of Newport Beach (Study Areas):
REED T. KAWAHARI
The analysis is summarized in the following sections:
• Socio- Economic Characteristics — Identifying the current and projected socio-
economic conditions of the market area residents is required to evaluate potential
market opportunities. KMA evaluated the socio- economic characteristics of the
market area for the Study Areas, the City of Newport Beach (City) and Orange
County (County) based on data provided by Claritas.
• Employment & Business — Provides a summary of existing employment and
businesses in the Study Areas.
• Retail Overview - Includes estimates of current retail productivity levels, a surplus
/ leakage analysis and current real estate market conditions.
• Office Overview - Includes data from regional brokerage houses and current
asking rents.
500 SOUTH GRAND AVENUE, SUITE 14801, LOS ANGELES, CALIFORNIA 90071 ► PHONE: 2136228095 B, FAx:2136225204
1202002_6; NB:KHH
W W W.KEYSERMARSTON.COM 16092.001/001
Subject: Newport Beach Market Opportunities Analysis
LOSANGEII'
KATHLEEN H. HEAP
JAMES A, MBE
pursuant to our request, Keyser Marston Associates, Inc. KMA evaluated the market
Y `I Y ( )
ANDERSON
PAUL C,ANDERSON
GREGORY D. Soo -HOU
conditions for the following three areas in the City of Newport Beach (Study Areas):
KEVIN E. ENGSTROM
JULIE L- ROMEY
DENISE BICKERSTATP
• Lido Village
S.N DII GO
• Balboa Village
GERALD M. TREMBLE
PAUL C. MARRA
• Mariner's Mile
The analysis is summarized in the following sections:
• Socio- Economic Characteristics — Identifying the current and projected socio-
economic conditions of the market area residents is required to evaluate potential
market opportunities. KMA evaluated the socio- economic characteristics of the
market area for the Study Areas, the City of Newport Beach (City) and Orange
County (County) based on data provided by Claritas.
• Employment & Business — Provides a summary of existing employment and
businesses in the Study Areas.
• Retail Overview - Includes estimates of current retail productivity levels, a surplus
/ leakage analysis and current real estate market conditions.
• Office Overview - Includes data from regional brokerage houses and current
asking rents.
500 SOUTH GRAND AVENUE, SUITE 14801, LOS ANGELES, CALIFORNIA 90071 ► PHONE: 2136228095 B, FAx:2136225204
1202002_6; NB:KHH
W W W.KEYSERMARSTON.COM 16092.001/001
To: Kimberly Brandt, City of Newport Beach March 29, 2012
Subject: Newport Beach Market Opportunities Analysis Page 2
• Residential Overview — Summarizes recent residential sales activity in the market
area and the City.
• Hotel Overview — Summarizes recent hotel industry market conditions in Coastal
Orange County and the overall County.
EXECUTIVE SUMMARY
Based on the assessment of market conditions KMA identified the strengths,
weaknesses and opportunities for each Study Area.
Lido Village
For Lido Village the market strengths, weaknesses and opportunities include the
following:
Market Strengths
The market strengths for Lido Village include:
1. The income levels of area residents are very high.
2. The area has quick access from Pacific Coast Highway and the mainland.
3. Retail rents in the area can be very high, with newly remodeled centers achieving
asking rents that exceed $4.00 per square foot per month.
4. The nearby Hoag Hospital may provide opportunities for medical office
development and leasing.
5. Residential:
a. The sales prices for residential units are currently lower than the peak
levels. However, the prices are still extremely high and well exceed the
County average.
b. A very strong market exists for rental residential development. Rents for
high -end apartments are very high, particularly for two and three bedroom
units.
6. The existing City Hall site offers a great opportunity for catalyzing development
opportunities in the area.
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Subject: Newport Beach Market Opportunities Analysis Page 3
Market Weaknesses
The market weaknesses for Lido Village include:
Until consensus is reached on the redevelopment of the existing City Hall site,
leasing will likely remain stagnant and development opportunities will remain on
hold.
A wide range of rents are currently being achieved in the Lido Village Study Area.
Rents are very high for projects with good visibility and quality finishes.
However, much of the commercial space in this area has limited visibility and
poor access; consequently rents are relatively low and vacancies are high.
3. Development opportunities in the area are negatively impacted by ownership
patterns and parcelization, including multiple ground leases under Lido Marina
Village.
4. The retail development along Newport Boulevard has limited parking. As a
result, patrons of these establishments often seek spaces in nearby commercial
centers and the City Hall parking lot.
5. Retail tenants in the area do not appear to benefit from the commercial boating
enterprises that use the marina. In fact, some tenants believe these uses hinder
the retail opportunities due to their heavy use of parking.
Market Opportunities
Based on the market conditions, KMA summarized the opportunities for retail, office,
residential and hotel development in Lido Village.
Retail
Lido Village is a strong location; with high income levels, good access and waterfront
properties. However, the existing development patterns, which include a significant
inventory of small shop space, poor circulation patterns and limited visibility have
resulted in relatively high vacancy rates and lower than expected rents. Further, the
uncertainty over the redevelopment of the City Hall site will continue to limit market
opportunities in the near term.
Tenant types that appear to have market support for this area include: quick- service
dining, small -scale electronics, bookstores and other miscellaneous retailers. Mixed -use
projects with ground -floor retail and residential above would likely have strong support.
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Subject: Newport Beach Market Opportunities Analysis Page 4
In the long -term, larger -scale commercial opportunities could be available assuming
access and visibility issues are addressed.
Office
Overall, the office market in the region is still recovering from the recession, with
vacancy rates remaining relatively high. Lido Village is not viewed as a major office
destination, and as such demand will likely be limited. Typically, smaller professional
firms, such as attorneys, architects, consultants, and insurance agents are tenants in
those secondary locations. However, the area benefits from its proximity to Hoag
Hospital, which could be leveraged to attract medical related tenants to the area.
Existing zoning permits offices uses in Lido Village. However, it is important to note that
there is a limitation that medical and dental office can only be located above the first
floor of any building.
Residential
Overall, the residential market in the region is still recovering from the recession.
However, Lido Village has significant appeal for residential development. Given the
densities along the Peninsula and level of existing development in Lido Village, the area
is best suited for multi - family development likely with some ground -floor commercial.
The City's current zoning guidelines for mixed -use development allows for up to a .50
Floor Area Ratio (FAR) for commercial and up to a 1.0 FAR for residential. This density
level is consistent with the surrounding area, and would likely be well received in the
market. Current market conditions suggest for -rent residential would be the best suited
product type. A review of high end apartments in the City indicates larger units (two and
three bedrooms) would have strong support.
Hotel
A boutique hotel with fewer than 100 rooms could have market support in the mid -term.
A hotel would be best suited for a waterfront location; however, the waterfront land in
Lido Village is under private ownership. This is a significant constraint, because hotels
are notoriously difficult to finance, so they typically require investment returns that
exceed that of other land uses. As a result, hotels typically support land values that are
lower than retail, residential or office uses. These lower land values are unlikely to
incentivize the owners to redevelop their properties with a hotel use.
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Subject: Newport Beach Market Opportunities Analysis Page 5
Balboa Village
For Balboa Village the market strengths, weaknesses and opportunities include the
following:
Market Strengths
The market strengths for Balboa Village include:
1. The income levels of area residents are very high.
2. Retail spaces with strong visibility characteristics are achieving rents at upwards
of $4 per square foot per month. However, these spaces represent only a small
percentage of the retail uses in Balboa Village.
3. The Fun Zone, marine operators and other commercial enterprises take
advantage of the waterfront location. This connection and opportunity needs to
be strengthened as much as possible to further enhance market opportunities.
4. Residential:
a. The sales prices for residential units remain extremely high.
b. A strong for -rent residential market exists, as rents are very high,
particularly for two- and three - bedroom units.
5. The proposed Balboa Performing Arts Theater and ExplorOcean are uses that
can potentially mitigate the seasonal demand exhibited in the Balboa Village
Study Area. This may in turn catalyze other development:
a. The Balboa Theater operators are currently projecting that the venue will
be active over 220 days /nights per year.
b. The ExplorOcean project is anticipated to include up to 40,000 square
feet of space, including a 10,000 square foot Event Deck.
6. The City owns a 32,000 square foot, surface parking lot at the intersection of
Palm Street and Balboa Boulevard. This site offers an excellent opportunity for
catalytic development.
Market Weaknesses
The market weaknesses for Balboa Village include:
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Subject: Newport Beach Market Opportunities Analysis Page 6
1. There are significant access concerns for Balboa Village, including high traffic
volumes in the summer, and the long distance down the Peninsula.
2. There are a significant number of competing uses located along the route to
Balboa Village. Both Lido Village and McFadden Square are located along the
route to Balboa Village, and they currently offer a mix of restaurant and retail
uses. It is difficult to entice consumers to drive past these locations to reach
Balboa Village.
3. The perception exists that there is too much commercial development towards
the end of the Peninsula. The low sales volumes of commercial tenants in
Balboa Village support this notion.
4. Parking counts and anecdotal evidence indicate the area is extremely busy
during the peak summer months, for the balance of the year, activity is relatively
low.
5. A shortage of parking is a significant concern during the peak summer months.
6. The relatively small close -in population base limits potential demand for
commercial development. The significant seasonality of the current visitation
patterns further impacts the potential for commercial development.
Market Opportunities
Based on the market conditions, KMA summarized the opportunities for retail, office,
residential and hotel development in Balboa Village.
Retail
Typically, retail demand is primarily driven by residents with support provided by visitors.
While the income levels around Balboa Village are healthy, and the area benefits from a
spectacular waterfront, there is a limited population base to support significant
commercial development. For this reason, retail development will rely on visitors from
outside the area to be sustainable.
The demand for retail development is constrained by the fact that drive times to access
Balboa Village can be lengthy, and there are a number of intervening commercial
opportunities along the way. These issues do not detract visitors in the peak summer
months, but do limit opportunities during off -peak times.
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Subject: Newport Beach Market Opportunities Analysis Page 7
The development of the ExplorOcean project and the opening of the Balboa Performing
Arts Theater could create visitor demand during the off -peak season. This, in turn, could
prove catalytic for commercial development. However, retail opportunities in Balboa
Village will likely be limited, with demand focused on small -scale dining (particularly sit -
down restaurants), local serving uses, and retailers that can benefit from visitor demand
and the development of the catalytic projects. Potential tenancies are sundries shops;
beach and sports equipment shops; a small neighborhood hardware store; florists;
stationers; etc.
Office
Given access issues, Balboa Village is not viewed as an office destination, as such
demand will likely be limited. Typically, smaller professional firms, such as attorneys,
architects, consultants, insurance agents are tenants in these tertiary locations.
However, demand for this type of space is anticipated to be minimal.
Residential
Overall, the residential market in the region is still recovering from the recession;
however, Balboa Village still has appeal for residential development. Balboa Village
includes a significant share of Mixed -Use Vertical zone parcels. These guidelines allow
a .35 to .50 FAR for commercial and up to a 1.0 FAR for residential. Given the limited
retail demand in Balboa Village, a mixed -use project in this area would likely be
developed at a .35 FAR and 1.0 residential FAR. Current market conditions suggest for -
rent residential would be the best suited product type for a mixed -use development.
Hotel
For Balboa Village, market demand may support a smaller hotel property in the 35 to 45
room range. However, it is important to note that it can be difficult to attract this type of
hotel due to economies of scale, marketing and financing issues. Given these factors, it
is unlikely that a private property owner would undertake this type of development. As
such, this development type may be best suited for the City owned parking lot at Palm
Street and Balboa Boulevard.
Mariner's Mile
For Mariner's Mile the market strengths, weaknesses and opportunities include the
following:
Market Strengths
The market strengths for Mariner's Mile include:
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Subject: Newport Beach Market Opportunities Analysis Page 8
1. The income levels of area residents are very high.
2. Retail and Restaurant Uses:
a. Retail rents in the area can be high for shops with good visibility. Overall,
rents in the area are starting to increase again after having fallen during
2008 and 2009.
b. A new two -story commercial development is currently being constructed
in the Study Area.
C. The recent opening of Pizzeria Mozza demonstrates the Study Area's
attractiveness for restaurants.
3. A vertical mixed -use project that includes ground -floor retail with residential
above is in the planning stages. This demonstrates that there are mixed -use
development opportunities in the Study Area.
4. As is the case with the other Study Areas strong market opportunities exist for
both high -end apartment development and for -sale residential products.
5. Support has been identified for maintaining a place for marine uses in Newport
Beach, and the Mariner's Mile Study Area is suited for these uses.
Market Weaknesses
The market weaknesses for Mariner's Mile include:
1. Physical constraints to development include height limits and narrow parcel
depths.
2. High traffic volumes along Pacific Coast Highway limit the ability to provide on-
street parking, and also make building ingress and egress challenging.
3. There is significant retail and office competition in the market area (e.g. Newport
Center).
Market Opportunities
Based on the market conditions, KMA summarized the opportunities for retail, office,
residential and hotel development in Mariner's Mile.
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Subject: Newport Beach Market Opportunities Analysis Page 9
Retail
The recently proposed commercial project at Dover Drive and Pacific Coast Highway is
projecting rents that are nearing $5.00 per square foot. Achievable rents of this
magnitude clearly support new construction. Tenant types that appear to have market
support for this area include: restaurants, additional high -end auto dealerships and
retailers such as jewelry stores, small -scale electronics, etc.
It is also anticipated that retail in a mixed -use configuration with residential above would
have strong support. The area could also continue to offer a home for marine related
retail; however, the perception exists that this type of development is not compatible with
other tenant types already in the area.
Office
Overall, the office market in the region is still recovering from the recession, with
vacancy rates remaining relatively high. Similar to Lido Village, Mariner's Mile could be
well suited for medical office development due to its proximity to Hoag Hospital. Overall,
Mariner's Mile is not viewed as a major office destination, as such demand will likely be
limited. Typically, smaller professional firms, such as attorneys, architects, consultants,
insurance agents are tenants in these secondary locations.
Residential
Overall, the residential market in the region is still recovering from the recession;
however, Mariner's Mile has some appeal for residential development. Given the
densities along the Pacific Coast Highway, the area is only suited for rental or
condominium development. The area could be particularly well suited for condominium
development, as sales prices exceeding $1,500 per square foot were identified as
potentially having market support.
Hotel
The Balboa Bay Club demonstrates the viability of hotel development in Mariner's Mile.
However, other land uses will support higher land values, and therefore private property
owners are unlikely to pursue hotel development absent the provision of public financial
incentives. The opportunity for hotel development may be stronger in the other two
Study Areas given the availability of publicly owned land that can be used to incentivize
development.
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Subject: Newport Beach Market Opportunities Analysis Page 10
SOCIO- ECONOMIC CHARACTERISTICS
Attachment 1 - Tables 1A, 1B and IC provide summaries of the salient socio- economic
characteristics for one -half mile, one -mile and three -mile market areas surrounding each
of the Study Areas; the City; and the County.' These socio- economic characteristics are
summarized in this section of the analysis.
Population
The City's 2011 population totals 72,500 persons. For the one -half mile market areas
the population levels are:
• Lido Village — 4,600
• Balboa Village — 3,100
• Mariner's Mile — 3,500
The population density for the market areas is relatively low due to the overall
development patterns, as well as the existence of ocean and the bay. In particular the
population levels for Balboa Village are very low.
Households
There are 33,400 households in the City, with an average household size of 2.1 persons.
This is much smaller than the County average of 3.1 persons per household. Given the
relatively low population base, the number of households in the one -half mile market
area for the Study Areas is also relatively low:
• Lido Village — 2,200 households (2.0 persons per household)
• Balboa Village — 1,600 households (1.9 persons per household)
• Mariner's Mile — 1,500 households (2.3 persons per household)
1 The following locations were utilized for the market areas: City Hall site for Lido Village,
intersection of Palm Street and Balboa Boulevard for Balboa Village and the intersection of Tustin
Avenue and Pacific Coast Highway for Mariner's Mile.
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Subject: Newport Beach Market Opportunities Analysis Page 11
Income
Incomes in the City average $67,400 per person, and $145,300 per household. For
reference purposes, the household income in the City is 52% higher than the County
average of $95,400. Given that the Orange County average income falls within the top
2% of the counties in the United States, it can be concluded that the Newport Beach
population exhibits very-high incomes.
For the one -half mile ring around the Study Areas, the incomes levels are also relatively
high:
• Lido Village - $58,400 per capita, $119,500 per household
• Balboa Village - $62,600 per capita, $116,600 per household
• Mariner's Mile - $65,400 per capita, $151,000 per household
As can be seen above, the per capita incomes in the market areas are lower than the
City average, but are still significantly higher than the County average. In addition, in
both Lido Village and Balboa Village, the household income levels are significantly lower
than the City average. Comparatively, for Mariner's Mile the household income levels
are comparable to the City; however, when the market area is expanded to one -mile,
then Mariner's Mile is more consistent with Lido Village and Balboa Village.
Nearly 50% of the households in the City have household incomes over $100,000,
compared to one -third of the households in the County. For the one -half mile ring
around the Study Areas, the share of households earning over $100,000 is also very
high:
• Lido Village — 41.8%
• Balboa Village — 39.0%
• Mariner's Mile — 48.6%
Demographic Characteristics
Key demographic characteristics affecting market conditions include age, education and
race. The results of the KMA analysis are summarized as follows:
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Age
The distribution of residents by age indicates a concentration of persons over the age of
65 in the City (19.8 %) as compared to the County (11.8 %). Given the larger share of
older residents, the City also has a smaller share of residents under the age of 18
(15.3 %) when compared to the County (24.8 %). For the one -half mile ring around the
Study Areas, the mix of residents differs depending on location:
1. Lido Village — This market area has a significant concentration of residents
between 18 and 34 (36.0 %) compared to the City (19.4 %) and County (23.7 %)
2. Balboa Village — The market area has very few residents under 18
(approximately 10 %) and a concentration of residents over 65 (approximately
20 %).
3. Mariner's Mile — The one -half mile market area has a slight concentration of
residents under 18, and between 55 and 64. Comparatively, the one -mile market
area shows concentrations of residents over 65, and residents between 18 and
34.
Education
Residents of the City are highly educated, as 62% of the residents over the age of 25
are college graduates, compared to 35% within the County. Within a one -half mile ring
of the Study Areas, the residents are also highly educated:
1. Lido Village — 60% college graduates
2. Balboa Village — 57% college graduates
3. Mariner's Mile — 60% college graduates
Race
The population of Newport Beach is relatively homogeneous, as 89.8% of the residents
are White, compared to 59.5% within the County. The populations within the one -half
mile market area for the Study Areas, are generally consistent with the City:
1. Lido Village — 91 % White
2. Balboa Village — 93% White
3. Mariner's Mile — 89% White
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To: Kimberly Brandt, City of Newport Beach March 29, 2012
Subject: Newport Beach Market Opportunities Analysis Page 13
Population, Household and Employment Projections
Attachment 1 - Table 2 provides Southern California Association of Governments
(SCAG) population, household and employment projections for the region .2 As shown in
the table, key SCAG projections are:
Population
In 2010, Newport Beach represented approximately 2.6% of the total County
population, and 12.9% of the population in the five city region.
2. Between 2010 and 2015, the population growth in the City is projected at 3.4 %.
Comparatively, the growth in the region is estimated at 4.6% and the growth in
the County is estimated at 4.1 %.
3. The rate of population growth is expected to slowly decrease over time. By
2035, the annual growth is projected at approximately .5% per year for the
region, .7% per year for the County and .9% per year for the City.
4. Between 2003 and 2035, the City's population is projected to increase by 19.6 %,
while the regional growth is estimated at 26 %, and the County growth is
estimated at 21.8 %.
Employment
In 2010, Newport Beach currently represented 4.4% of the employment in the
County and 14.5% of the employment in the five city region.
2. Between 2010 and 2015, employment in the City is projected to grow by .8 %.
During the same period the growth in the region is estimated at 5.9% and the
growth in the County is estimated at 4.7 %.
3. Between 2003 and 2035, employment is estimated to grow by 5.4 %, while
employment in the region is estimated to grow by 37.8°/x, and the County growth
is estimated at 26.4 %.
Employment and Business
Attachment 1 - Tables 3 and 4 provide a KMA review of the employment and business
patterns in the one -mile ring around each of the Study Areas, the City and County. The
results are summarized in the following sections of this analysis:
2 The region includes Newport Beach, Costa Mesa, Huntington Beach, Irvine and Laguna Beach.
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Lido Village
Employment within the Lido Village market area can be summarized as follows:
1. The share of retail trade and finance, insurance and real estate (FIRE)
employment is generally consistent with the Countywide distribution.
2. Service sectors include health services, personal services, business services and
legal services. The share of employment in service sectors in Lido Village is
significantly higher than the County average (64% compared to 39 %). This is
largely attributable to health and business services that draw support from Hoag
Hospital. The balance of the service business areas are actually relatively
underrepresented in Lido Village.
3. Given the development patterns in the area, there are relatively few
manufacturing jobs.
4. Overall, the market exhibits a relatively high ratio of jobs to population as
compared to the County average (.9 residents per employee versus 2.1 residents
per employee.)
The distribution of businesses within the Lido Village market area can be summarized as
follows:
1. The share of retail and FIRE businesses in the market area is lower than the
County average.
2. The share of service businesses in the market area is substantial (54%
compared 46% in the County).
3. Overall, the number of employees per business in the market area is slightly
smaller than the County (9.7 employees and 10.3 employees respectively).
4. Overall, there is a significant concentration of businesses in the market area, as
there are 8.6 residents per business compared to 21.5 residents per business in
the County.
Balboa Village
Employment within the Balboa Village market area can be summarized as follows:
1. The share of retail trade and FIRE employment is higher than the County.
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2. There are relatively few employees in the service sector when compared to the
County. The service sector includes health services, personal services, business
services and legal services.
3. Balboa Village is dominated by residential uses. The ratio of the residential
population to the employment population is 3:1 in Balboa Village, while the ratio
in the County is 2.1:1.
The distribution of businesses within the Balboa Village market area can be summarized
as follows:
1. Approximately 36% of the businesses In Balboa Village fall within the retail trade
category. Comparatively, 14% of the businesses in the City are in this category,
and 20% of the businesses in the County are in this category. In particular, there
is a significant concentration of dining establishments and miscellaneous retail
stores. These stores include sports and surf shops; souvenir shops; and stores
that carry a variety of goods including sundries, accessories and apparel.
2. The share of service businesses in the market area is lower than the County
(35% versus 46 %).
3. The businesses in the market area are much smaller than the County (6.2
employees and 10.3 employees respectively).
4. The number of businesses in the market area is generally consistent with the
County; there are 18.4 residents per business compared to 21.5 in the County.
Mariner's Mile
Employment within the Mariner's Mile market area can be summarized as follows:
1. The share of retail trade employment is generally consistent with the County.
2. Services businesses, such as health, business, legal and personal services,
represent 60% of the businesses in Mariner's Mile. This is significantly higher
than the 39% share exhibited in the County. In particular, Mariner's Mile has
concentrations of health services employment in businesses that benefit from the
proximity of Hoag Hospital.
3. Overall, there are a relatively high number of jobs to residents in the market area.
There are 1.0 residents per job in the market area, compared to the County
average of 2.1 residents perjob.
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The distribution of businesses within the Mariner's Mile market area can be summarized
as follows:
1. The share of retail and FIRE businesses in the market area is consistent with the
County average.
2. There is a healthy share of service businesses in the market area, due primarily
to Hoag Hospital and its related ventures.
3. Overall, the businesses in the market area are slightly smaller than the County
(9.1 employees and 10.3 employees, respectively).
4. There is a significant concentration of businesses in the market area, as there
are 8.9 residents per business compared to 21.5 in the County.
RETAIL OVERVIEW
The following section of this analysis describes the various issues that influence the
demand for retail development.
Retail Sales
As shown in Attachment 2 — Table 1, the taxable retail store sales in the City are much
higher than the sales at the County and the State. In addition, the sales are higher than
all the cities in the five city region except Costa Mesa. Within the City, the per capita
taxable sales are particularly high for the following establishment types:
• Food & Beverage Stores
• Clothing & Clothing Accessories Stores
• General Merchandise Stores
• Food Services & Drinking Places
• Other Retail Group (e.g. florists, bookstores, stationers, sporting goods stores,
etc.)
As shown in Attachment 2 — Table 2, the taxable sales per permit for all retail stores in
the City are generally consistent with the County and State, but are higher than all the
cities in the five city region except Irvine.
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Surplus /Leakage Analysis
Attachment 2 - Tables 3 and 4 estimate the retail surplus /leakage for the City in 2011
and 2016, respectively. The projections are based on the following:
1. The base year for the projections is 2009, and the data source is the taxable
sales recorded by the State Board of Equalization (SBE).
2. The taxable sales are adjusted to reflect the non - taxable nature of some sales.
3. The resulting sales are adjusted at an inflationary rate to estimate the 2011 and
2016 productivity levels.
4. The estimated retail potential is estimated based on the assumption that the
residents exhibit expenditure patterns consistent with Countywide expenditures
patterns.
The analysis indicates the following establishment types are leaking sales to the
surrounding region:
• Home furnishings & supplies
• Building materials & garden equipment
• General merchandise stores
• Other retail stores
Attachment 2 — Table 5 provides estimates of the surplus /leakage for the City and the
one -mile market areas around the Study Areas based on data supplied by Claritas. As
shown in the table, the following establishment types demonstrate potential demand:
• For Lido Village the establishment types include: furniture & home furnishings,
electronic & appliances, building materials, food & beverage, health & personal
care, clothing, sporting goods, general merchandise and miscellaneous retailers.
• For Balboa Village the establishment types include: furniture & home furnishings,
electronics & appliances, building materials, health and personal care, sporting
goods, general merchandise and miscellaneous retailers.
• For Mariner's Mile the establishment types include: furniture & home furnishings,
electronics & appliances, building materials, food & beverage, clothing, sporting
goods and general merchandise.
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All of the Study Areas demonstrate potential demand for the following tenant types:
home furnishings, electronics & appliances, building materials, sporting goods and
general merchandise.
Retail Rents
As shown in Attachment 2 — Table 6, the asking rents for retail shop space in the market
area are relatively high. The list of comparables includes listings on the Newport Beach
Peninsula and along Mariner's Mile. For this area, the rents range from $1.75 to $4.50
per square foot per month on a triple net (NNN) basis. The average rent in the market
area is $2.65 per square foot per month.
• Lido Village - For space along Via Oporto in the Lido Village area, the asking
rents are $2.00 per square foot per month and less. Comparatively, some of the
highest asking rents in the area are for the Landing project at Newport and 30"'
($4.25 per square foot per month). The significant range in rents for this area
reflects importance of quality finishes, good visibility and easy access.
• Balboa Village — Only two current listings were identified for retail space in the
Balboa Village area. The asking rents for space at 514 Oceanfront are $2.95 to
$4.50 per square foot per month, with the high end of the range being charged
for space with boardwalk frontage. The asking rent for 705 Balboa is $2.50 per
square foot per month.
• Mariner's Mile — The asking rents in this area range between $1.75 and $3.50
per square foot per month depending on location, visibility and building quality.
Retail Building Sales
As shown in Attachment 2 — Table 7, the average sales price for retail buildings in the
market area ranges considerably, from $400 to $1,000 per square foot, depending on
location, quality of the building and the tenants. The average price for these buildings is
$600 per square foot.
Retail Sales Volumes
To better understand the retail real estate conditions in Balboa Village, KMA reviewed
the sales productivity levels being achieved by establishments in the Study Area.
Specifically, the sales per square foot for retail establishments in the area were
compared to regional and national norms. Sales per square foot that are higher than the
norm indicate that additional development can potentially be supported. When sales are
below the norms, there may be too many tenants vying for limited demand.
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To conduct this analysis, the City provided sales tax and square footage data for Balboa
Village businesses, KMA then conducted a site visit to confirm these assumptions. Due
to confidentiality issues, KMA has not presented any numbers when discussing the sales
volumes in Balboa Village. The analysis found the following:
There is significant seasonality in the sales; area wide sales in the peak season
are nearly double the sales in the low season.
2. The average sales per square foot for clothing stores and miscellaneous retail
stores in Balboa Village are very low when compared to regional and national
norms.
3. The average sales per square foot for dining establishments in the area are
much higher than the sales generated by clothing and miscellaneous retail
stores. This is consistent with national and regional trends, where restaurant
sales typically range from $400 to $500 per square foot, while the sales for most
retail tenant types range from $250 to $350 per square foot.
4. While the restaurant productivity levels are relatively higher than other retailers in
Balboa Village, the average sales per square foot are still lower than regional and
national norms.
5. A small number of restaurants and retail shops in Balboa Village generate sales
that meet or exceed regional and national averages. This illustrates the potential
for well executed concepts in the area.
6. Overall, the commercial square footage in the area is generating sales that are
significantly below what would be considered healthy for retail centers in
Southern California and the nation.
The current sales volumes in Balboa Village suggest that there is a surplus of
commercial space in Balboa Village. This can lead to property owners being forced to
accept less desirable tenants, at lower rents, in order to keep the space occupied. This,
in turn, can create to cash flow shortfalls that lead to owners deferring maintenance on
the properties.
Typically, areas with low sales volumes also have low rental rates. Within Balboa
Village current asking rents are still healthy, with owners seeking rates that exceed
$2.50 per square foot, per month. However, these high rental rates coupled with the low
sales volumes, will have a significant impact on retail feasibility, as tenants will struggle
to remain viable.
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Real Estate Professionals
KMA contacted a number of real estate professionals active in the Study Areas. Their
general comments can be summarized as follows:
1. The Peninsula and Mariner's Mile are perceived as desirable locations.
2. Market conditions are improving as potential tenants are becoming more active.
3. There appears to be demand for both quick serve and sit -down restaurants in all
three Study Areas.
4. City Constraints:
a. The City's parking requirements make development difficult.
b. There is a significant amount of public oversight for development projects,
which makes development difficult.
The professionals contacted by KMA offered a variety of comments directly related to
each Study Area. The range of comments can be summarized as follows:
Lido Village
1. Rents:
a. Rents range significantly in the area, from less than $2.00 per square foot
per month to over $4.00 per square foot per month.
b. Rents are low and vacancies are high for Lido Marina Village because of
visibility and access issues.
C. The high rents and success of the repositioning of the Landing project at
Newport Boulevard and 30`h Street demonstrates the viability of
commercial in the Lido Village area.
2. Development Constraints:
a. Limited parking for retail space along Newport Boulevard strains shopping
center parking lots in Lido Village area.
b. Diverse ownership and ground lease restrictions inhibit redevelopment
opportunities in Lido Village.
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C. The party boats do not have a positive impact on commercial activities in
Lido Village. Patrons embark and disembark without shopping. Further,
the boats utilize a significant amount of parking.
3. Development Opportunities:
a. Residential and lodging uses could benefit commercial development in
Lido Village.
b. Some tenants are in a holding pattern until the City decides what to do
with the existing City Hall site.
C. Anchor space in Via Lido Plaza likely to be filled in the next 12 to 18
months.
Balboa Village
1. Commercial space can generate rents of up to $3.00 per square foot per month.
2. Development Constraints:
a. Access issues for Balboa Village will continue to inhibit commercial
opportunities.
b. Relatively small population base will limit commercial demand in Balboa
Village.
C. Balboa Village is difficult to redevelop. It works decently as it is now, but
long -term opportunities are limited.
3. Development Opportunities:
4. Balboa Theater and ExplorOcean may act as catalytic developments for Balboa
Village.
5. A public parking structure on the City lot located at Palm Street and Balboa
Boulevard could enhance development opportunities.
6. Waterfront activities and accessibility can promote opportunities in Balboa
Village.
7. Sprucing up existing Balboa Village retail would make the area more attractive.
8. Potential tenancies:
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a. Outdoor dining;
b. Small retailers such as sundries shops, florists, stationers, etc.; and
C. A small, neighborhood serving, hardware store.
Mariner's Mile
1. Rents:
a. Rents along Mariner's Mile have declined by 20% from their peak in 2007
and 2008.
b. Rents for existing space range from $3.00 to $4.00 per square foot per
month.
C. New retail projects are asking rents near $5.00 per square foot per
month.
2. Development Constraints:
a. Parking is an issue along Mariner's Mile, particularly as there is a limited
amount of peripheral parking along Pacific Coast Highway.
b. High traffic speeds on Pacific Coast Highway adds to ingress and egress
difficulty.
C. The multiple boatyards in Mariner's Mile can make development difficult.
There are also a lot of small users and to redevelop the area will be
difficult.
3. Development Opportunities:
a. Healthy interest from restaurants still exists for Mariner's Mile. In
addition, demand appears to exist from small -scale electronic stores (e.g.
mobile devices) personal trainers /gyms and fast -food restaurant tenants.
b. There is potential demand for medical office space.
C. Eclectic mix of tenant types along Mariner's Mile is likely to continue (e.g.
automotive, marine, restaurants).
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Retail Summary
Overall, the retail market can be characterized as follows:
Newport Beach is exporting sales in the following retail categories: home
furnishings, building materials, general merchandise and miscellaneous retail.
2. Opportunities for retail development in the Study Areas, include: home
furnishings, electronics, building materials, sporting goods and general
merchandise.
A wide range of retail rents are being achieved in the Study Areas ($1.75 to
$5.00 per square foot). The rent range reflects variations in location, visibility,
access and building condition. New and updated projects with convenient
location and good visibility can achieve very strong rents.
4. Retail building sales prices vary considerably ($400 to $1,000 per square foot).
There have been relatively few sales, with prices varying based on location,
tenancies and building quality.
OFFICE OVERVIEW
Market Conditions
A summary of the current office market conditions follows:
As shown in Attachment 3 — Table 1, CB Richard Ellis survey information
indicates that the average rent for office space in the Greater Airport market area
is $2.00 per square foot per month on a full - service gross (FSG) basis.
2. Attachment 3 — Table 2 presents Cushman and Wakefield's summary of office
market conditions for the City. According to their report, the average monthly
rent is $2.30 per square foot per month, with an overall vacancy rate of 15.1 %.
3. Attachment 3 — Table 3 shows office asking rents for space on the Newport
Peninsula and Mariner's Mile. Rents range from $1.85 to $3.50 per square foot
per month. The weighted average is $2.55 per square foot per month These
rents are generally higher the City average.
3 Some of the rents are NNN, which means that the expenses are passed on to the tenant.
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4. Attachment 3 — Table 4 shows a summary of recent office building sales in the
market area, with five transfers occurring during in the last two years. The sales
prices average $340 per square foot of building area.
Office Summary
In general, the office market can be characterized as follows:
Vacancy rates in the market are still relatively high, but are decreasing.
2. The rents being achieved in the market area are relatively high.
3. Little new office development is currently occurring in the region.
Both the Lido Village and Mariner's Mile Study Areas have the potential to capitalize on
the demand for medical office space created by Hoag Hospital. The balance of the
office development potential is likely to be focused on small professional spaces; this
type of development may be supported in each of the Study Areas. However, given
location and accessibility issues, it is likely that the demand for office development will
very limited in the Balboa Village area.
RESIDENTIAL OVERVIEW
Over the last decade, the region experienced significant residential price increases,
followed by a decelerating and depreciating market during the past three plus years. A
review of the existing residential market follows.
Housing Stock
A review of the City's housing stock is shown in Attachment 4 — Tables 1 and 2. Since
2000, the number of residential units in the City increased at a faster rate (16.7 %) than
both the State (11.3 %) and the County (7.3 %). In addition, the housing stock in the City
has a smaller share of detached single - family homes (46 %) when compared to the
County (52 %) and State (60 %).
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For -Sale Residential
Detached Units
Recent residential sales prices for detached units in the Peninsula market area are
shown in Attachment 4 — Table 3.° As shown in the table, the median sales price, and
the average price per square foot for the unit types are as follows:
Attached Units
Recent residential sales prices for attached units in the Peninsula market area are
shown in Attachment 4 — Table 4. As shown in the table, the median sales price and
average price per square foot for the unit types are as follows:
Median Sales
Average Price Per
Number of Bedrooms
Price
Square Foot
One Bedroom 5
$1,200,000
$2,400
Two Bedrooms
$950,000
$1,170
Three Bedrooms
$1,100,000
$660
Four Bedrooms
$1,400,000
$1,000
Attached Units
Recent residential sales prices for attached units in the Peninsula market area are
shown in Attachment 4 — Table 4. As shown in the table, the median sales price and
average price per square foot for the unit types are as follows:
Sales Price Trends
Attachment 4 — Table 5 shows the sales activity for single - family homes and
condominium units in the City during 2008 and 2010. The following summarizes the
changes in the single - family home prices in the 92663 zip code between 2008 and 2010:
° Data is from November 2010 to November 2011.
5 The sample only includes six sales.
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Median Sales
Average Price Per
Number of Bedrooms
Price
Square Foot
One Bedroom
$259,000
$340
Two Bedrooms
$460,000
$500
Three Bedrooms
$555,000
$330
Four Bedrooms
$570,000
$300
Sales Price Trends
Attachment 4 — Table 5 shows the sales activity for single - family homes and
condominium units in the City during 2008 and 2010. The following summarizes the
changes in the single - family home prices in the 92663 zip code between 2008 and 2010:
° Data is from November 2010 to November 2011.
5 The sample only includes six sales.
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The following summarizes the changes in single - family home prices in the 92661 zip
code between 2008 and 2010:
Average
Average Price
Number of
Rental Rate
Median Sales
Per Square
Units in the
Year
Price
Foot
Sample
2008
$2,000,000
$1,170
99
2010
$1,300,000
$858
136
Change
27% decrease
37% increase
The following summarizes the changes in single - family home prices in the 92661 zip
code between 2008 and 2010:
For -Rent Residential
Based on data supplied by RealFacts, Attachment 4 — Table 6 presents the trend of
rents and occupancy levels from 2003 through 2011. In 2011, the average asking rent
was $1,950 per month, and the average occupancy rate was 96 %. Attachment 4 —
Table 7 shows the average asking rents for the various unit configurations in the City.
In addition, to the collecting data from RealFacts, KMA also conducted a survey of high -
end apartment projects in the City. The results of this survey are summarized in
Attachment 4 — Table 8. As shown in the following table, the average rental rate and
price per square foot for the unit types are:
Average
Average Price
Number of
Rental Rate
Median Sales
Per Square
Units in the
Year
Price
Foot
Sample
2008
$2,000,000
$1,747
27
2010
$2,000,000
$1,233
48
Change
29% decrease
78% increase
For -Rent Residential
Based on data supplied by RealFacts, Attachment 4 — Table 6 presents the trend of
rents and occupancy levels from 2003 through 2011. In 2011, the average asking rent
was $1,950 per month, and the average occupancy rate was 96 %. Attachment 4 —
Table 7 shows the average asking rents for the various unit configurations in the City.
In addition, to the collecting data from RealFacts, KMA also conducted a survey of high -
end apartment projects in the City. The results of this survey are summarized in
Attachment 4 — Table 8. As shown in the following table, the average rental rate and
price per square foot for the unit types are:
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Average
Average Rent
Number of Bedrooms
Rental Rate
Per Square Foot
Studio
$2,100
$2.90
One Bedroom
$2,280
$2.70
Two Bedrooms
$2,270
$2.40
Three Bedrooms
$5,000
$2.70
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The rents being achieved in the high -end projects are very strong. In addition, an
extraordinary premium is being achieved for large three - bedroom units.
Residential Summary
The for -sale housing market within Southern California and Orange County is currently
in a state of retrenchment. The for -sale housing market within the City began weakening
in the beginning of 2008, and the per square foot sales prices have declined in much of
the City. However, the currently achievable sales prices are potentially high enough to
attract new development.
The achievable apartment rents at projects in the City are very strong. In particular the
rents generated at projects such as The Colony, Promontory Point and The Terrace
Apartments at Balboa Bay Club are very high. Given these rents, and occupancy levels,
luxury apartment projects in the Study Areas would likely demonstrate healthy market
support.
HOTEL OVERVIEW
Market Conditions
The market conditions for hotels can be summarized as follows:
1. Attachment 5 — Table 1, presents the occupancy levels for Coastal Orange
County hotels between 2005 and 2011:
a. Both Coastal Orange County and Orange County hotels reached peak
occupancy levels during 2007. The occupancy rates declined in 2008
and 2009, and began rebounding in 2010.
b. The current occupancy rates in Coastal Orange County are estimated at
67 %. The occupancy rate for Orange County is approximately 70 %.
2. Attachment 5 — Table 2 shows the changes in Average Daily Rate (ADR) for
hotels between 2005 and 2011:
a. As was the case with the occupancy levels, both Coastal Orange County
and Orange County reached peak ADR's in 2007.
b. For Coastal Orange County, the 2011 ADR is estimated at $230, which is
higher than 2005, but lower than the peak year of 2007. The Countywide
pattern is similar, with a 2011 ADR of $120, which is lower than the peak
year of 2007.
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3. To assess a hotel's cash flow, the occupancy rates and the achievable room
rates are combined to arrive at the Revenue per Available Room (RevPAR).
Attachment 5 — Table 3 shows the changes in RevPAR) during this period.
RevPAR between 2005 and 2011:
a. For Coastal Orange County, the RevPAR reached its height in 2007
($180) and its nadir in 2009 ($130). The pattern was similar for the
County, which exhibited its lowest RevPAR in 2009.
b. For 2011, RevPAR is projected at $160 for Coastal Orange County and
$80 in the County.
C. These trends follow much of the nation, which saw a slowing in the hotel
industry beginning in 2007 and continuing through 2010. Since 2010, the
hotel industry has demonstrated signs of improvement.
4. Attachment 5 - Table 4 summarizes much of the information presented in the
previous tables. In addition, these tables show the annual number of room nights
occupied in each area:
a. For Coastal Orange County, the number of occupied room nights reached
its lowest point in 2009 at 1.1 million room nights.
b. Between 2009 and 2011, the number of occupied room nights is
projected to increase 18% to 1.3 million.
C. The healthy increase in occupied room nights, in conjunction with the
RevPAR, indicates a healthier hotel market for Coastal Orange County.
Hotel Summary
The lodging market can be summarized as follows:
1. The ADR and RevPAR numbers for Coastal Orange County significantly exceed
the County.
2. The hotel market fluctuated between 2005 and 2011, with high RevPARs
achieved in 2006 and 2007 followed by two declining years.
3. Since 2009, the hotel market has begun to stabilize, with occupied room nights
and RevPAR increasing for both Coastal Orange County and Orange County.
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The hotel market in the five city region is currently improving. For Coastal Orange
County, occupancy levels and ADRs have increased since 2009. Given these
improvements, the possibility of hotel development is improving.
LIMITING CONDITIONS
The analysis contained in this document is based, in part, on data from
secondary sources such as state and local government, planning agencies, real
estate brokers, and other third parties. While KMA believes that these sources
are reliable, we cannot guarantee their accuracy.
2. The analysis assumes that neither the local nor national economy will experience
a major recession. If an unforeseen change occurs in the economy, the
conclusions contained herein may no longer be valid.
3. The findings are based on economic rather than political considerations.
Therefore, they should be construed neither as a representation nor opinion that
government approvals for development can be secured.
4. Market feasibility is not equivalent to financial feasibility; other factors apart from
the level of demand for a land use are of crucial importance in determining
feasibility. These factors include the cost of acquiring sites, relocation burdens,
traffic impacts, remediation of toxics (if any), and mitigation measures required
through the approval process.
5. Development opportunities are assumed to be achievable during the specified
time frame. A change in development schedule requires that the conclusions
contained herein be reviewed for validity.
6. The analysis, opinions, recommendations and conclusions of this document are
KMA's informed judgment based on market and economic conditions as of the
date of this report. Due to the volatility of market conditions and complex
dynamics influencing the economic conditions of the building and development
industry, conclusions and recommended actions contained herein should not be
relied upon as sole input for final business decisions regarding current and future
development and planning.
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ATTACHMENT 1
DEMOGRAPHIC INFORMATION
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ATTACHMENTI -TABLE IA
2011 SOCIO- ECONOMIC CHARACTERISTICS
LIDO VILLAGE
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Population
0.5 Mile Ring
4,600
1 Mile Ring
15,400
3 Mile Ring
101,100
Newport Beach
72,500
Orange County
3,063,500
Households
0.5 Mile Ring
2,200
1 Mile Ring
7,100
3 Mile Ring
38,500
Newport Beach
33,400
Orange County
984,100
Average Persons Per Hhold
0.5 Mile Ring
2.01
1 Mile Ring
2.08
3 Mile Ring
2.52
Newport Beach
2.14
Orange County
3.07
Source: Claritas 1112011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11A; trb Page 1 of 19
Population
125,000
100,000
75,000
50,000
25,000
0
m
�t c
m c
0
Households
50,000
40,000
30,000
20,000
10,000
0
u no
0
Average Persons Per Household
4.00
3.00
2.00
1.00
0.00
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Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11A; trb Page 1 of 19
ATTACHMENT 1 -TABLE 1A (Continued)
2011 SOCIO- ECONOMIC CHARACTERISTICS
LIDO VILLAGE
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH. CALIFORNIA
Per Capita Income
0.5 Mile Ring
$58,400
1 Mile Ring
$58,600
3 Mile Ring
$40,100
Newport Beach
$67,400
Orange County
$31,000
Average Household Income
0.5 Mile Ring
$119,500
1 Mile Ring
$124,400
3 Mile Ring
$101,600
Newport Beach
$145,300
Orange County
$95,400
Source: Claritas 1112011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11A; trb Page 2 of 19
Per Capita Income
Average Household Income
$80,000
$200,000
$60,000
$150,000
$100,000
$40,000
$50,000
$20,000
$0
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Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11A; trb Page 2 of 19
Average Household Income
$200,000
$150,000
$100,000
$50,000
$0
d
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Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11A; trb Page 2 of 19
ATTACHMENT 1 - TABLE 1A (Continued)
2011 SOCIO- ECONOMIC CHARACTERISTICS
LIDO VILLAGE
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Household Income Distribution
$75,000 to $99,999
$100,000+
Under $25,000
$25,000 to $49,999
0.5 Mile Ring
13.31%
13.36%
1 Mile Ring
12.92%
13.79%
3 Mile Ring
14.85%
20.54%
Newport Beach
10.05%
14.11%
Orange County
13.42%
20.37%
$50,000 to $74,999
$75,000 to $99,999
$100,000+
15.02%
16.55%
41.78%
17.01%
14.75%
41.55%
18.41%
13.21%
32.97%
13.79%
12.38%
49.66%
18.74%
14.44%
33.05%
Household Income Distribution
60.00%
50.00%
18 to 34
40.00%
55 to 64
Over 65
0.5 Mile Ring
30.00%
35.99%
30.56%
10.85%
20.00%
1 Mile Ring
11.36%
27.80%
30.24%
10.00%
18.42%
3 Mile Ring
20.29%
24.29%
31.37%
11.05%
�4A
Newport Beach
15.28%
19.38%
0.00%
Under $25,000 $25,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000+
00.5 Mile Ring 01 Mile Ring 03 Mile Ring 13 Newport Beach OOrange County
19.79%
Age Distribution
40.00%
30.00%
20.00%
10.00%
0.00%
Age Distribution
Under 18 18 to 34 35 to 54 55 to 64 Over 65
80.5 Mile Ring 01 Mile Ring 03 Mile Ring ONewport Beach mOrange County
Source: Claritas 1112011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11A; trb Page 3 of 19
Under 18
18 to 34
35 to 54
55 to 64
Over 65
0.5 Mile Ring
7.35%
35.99%
30.56%
10.85%
1526%
1 Mile Ring
11.36%
27.80%
30.24%
12.18%
18.42%
3 Mile Ring
20.29%
24.29%
31.37%
11.05%
13.01%
Newport Beach
15.28%
19.38%
30.09%
15.45%
19.79%
Orange County
24.83%
23.68%
29.05%
10.69%
11.76%
40.00%
30.00%
20.00%
10.00%
0.00%
Age Distribution
Under 18 18 to 34 35 to 54 55 to 64 Over 65
80.5 Mile Ring 01 Mile Ring 03 Mile Ring ONewport Beach mOrange County
Source: Claritas 1112011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11A; trb Page 3 of 19
ATTACHMENT 1 -TABLE 1A (Continued)
2011 SOCIO- ECONOMIC CHARACTERISTICS
LIDO VILLAGE
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH. CALIFORNIA
Education Level of Residents Over 25 Years
No HS Degree
HS Degree
Some College
0.5 Mile Ring
2.89%
13.91%
23.28%
1 Mile Ring
3.67%
12.63%
27.30%
3 Mile Ring
13.49%
15.62%
28.96%
Newport Beach
2.35%
9.65%
25.66%
Orange County
16.95%
18.73%
29.18%
80.00%
60.00%
40.00%
20.00%
0.00%
College Grad.
59.90%
56.41%
41.92%
62.34%
35.13%
Education Level of Residents Over 25 Years
No HS Degree HS Degree Some College College Grad.
00.5 Mile Ring ■1 Mile Ring 03 Mile Ring 0Newport Beach MOrange County
Race Classification
White
Black
American Indian
Asian
Hawaiian or PI
Other
Two or More
0.5 Mile Ring
90.15%
1.03%
0.31%
3.27%
0.13%
2.25%
2.86%
1 Mile Ring
90.92%
0.96%
0.29%
3.12%
0.18%
2.15%
2.38%
3 Mile Ring
72.66%
0.97%
0.70%
3.98%
0.32%
17.59%
3.78%
Newport Beach
89.80%
0.73%
0.26%
5.38%
0.12%
1.48%
2.23%
Orange County
59.45%
1.74%
0.73%
16.49%
0.33%
16.55%
4.71%
Race Classification
100.00%
80.00% M.
60.00%
40.00%
20.00%
0.00% F1 Fn
White Black .American Asian Hawaiian or PI Other Two or More
Indian
00.5 Mile Ring ■ 1 Mile Ring 03 Mile Ring ONewport Beach mOrange County
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11A; trb Page 4 of 19
ATTACHMENTI -TABLE IB
2011 SOCIO- ECONOMIC CHARACTERISTICS
BALBOA VILLAGE
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Population
0.5 Mile Ring
3,100
1 Mile Ring
8,500
3 Mile Ring
72,400
Newport Beach
72,500
Orange County
3,063,500
Households
0.5 Mile Ring
1,600
1 Mile Ring
4,400
3 Mile Ring
33,200
Newport Beach
33,400
Orange County
984,100
Average Persons Per Hhold
0.5 Mile Ring
1.87
1 Mile Ring
1.92
3 Mile Ring
2.15
Newport Beach
2.14
Orange County
3.07
Source: Claritas 1112011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11B; trb Page 5 of 19
Population
100,000
75,000
50,000
25,000
0
m
�t c
m c
0
Households
40,000
30,000
20,000
10,000
0
u no
0
Average Persons Per Household
4.00
3.00
2.00
1.00
0.00
d
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o
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m
r
m
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d E
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00
r
M
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11B; trb Page 5 of 19
ATTACHMENT 1 -TABLE 1B (Continued)
2011 SOCIO- ECONOMIC CHARACTERISTICS
BALBOA VILLAGE
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH. CALIFORNIA
Per Capita Income
0.5 Mile Ring
$62,600
1 Mile Ring
$73,000
3 Mile Ring
$61,500
Newport Beach
$67,400
Orange County
$31,000
Average Household Income
0.5 Mile Ring
$116,600
1 Mile Ring
$139,700
3 Mile Ring
$133,100
Newport Beach
$145,300
Orange County
$95,400
Source: Claritas 1112011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11B; trb Page 6 of 19
Per Capita Income
Average Household Income
$80,000
$200,000
$60,000
$150,000
$100,000
$40,000
$50,000
$20,000
$0
d
rn
m m c
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0
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Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11B; trb Page 6 of 19
Average Household Income
$200,000
$150,000
$100,000
$50,000
$0
d
rn
m m c
_c
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0
d>
m �-
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Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11B; trb Page 6 of 19
ATTACHMENT 1 -TABLE 1B (Continued)
2011 SOCIO- ECONOMIC CHARACTERISTICS
BALBOA VILLAGE
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Household Income Distribution
$75,000 to $99,999
$100,000+
Under $25,000
$25,000 to $49,999
0.5 Mile Ring
11.37%
16.86%
1 Mile Ring
9.87%
15.78%
3 Mile Ring
11.43%
15.82%
Newport Beach
10.05%
14.11%
Orange County
13.42%
20.37%
$50,000 to $74,999
$75,000 to $99,999
$100,000+
20.46%
12.16%
39.03%
14.89%
11.09%
48.37%
15.18%
12.85%
44.71%
13.79%
12.38%
49.66%
18.74%
14.44%
33.05%
Household Income Distribution
60.00%
50.00%
18 to 34
40.00%
55 to 64
Over 65
0.5 Mile Ring
30.00%
19.92%
34.61%
16.55%
20.00%
1 Mile Ring
10.37%
16.74%
32.02%
10.00%
22.52%
3 Mile Ring
15.54%
20.03%
30.65%
14.74%
19.03%
Newport Beach
15.28%
19.38%
0.00%
Under $25,000 $25,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000+
00.5 Mile Ring 01 Mile Ring 03 Mile Ring 13 Newport Beach OOrange County
19.79%
Age Distribution
40.00%
30.00%
20.00%
10.00%
0.00%
Age Distribution
Under 18 18 to 34 35 to 54 55 to 64 Over 65
80.5 Mile Ring 01 Mile Ring 03 Mile Ring DNewport Beach mOrange County
Source: Claritas 1112011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11B; trb Page 7 of 19
Under 18
18 to 34
35 to 54
55 to 64
Over 65
0.5 Mile Ring
9.88%
19.92%
34.61%
16.55%
19.01%
1 Mile Ring
10.37%
16.74%
32.02%
18.35%
22.52%
3 Mile Ring
15.54%
20.03%
30.65%
14.74%
19.03%
Newport Beach
15.28%
19.38%
30.09%
15.45%
19.79%
Orange County
24.83%
23.68%
29.05%
10.69%
11.76%
40.00%
30.00%
20.00%
10.00%
0.00%
Age Distribution
Under 18 18 to 34 35 to 54 55 to 64 Over 65
80.5 Mile Ring 01 Mile Ring 03 Mile Ring DNewport Beach mOrange County
Source: Claritas 1112011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11B; trb Page 7 of 19
ATTACHMENT 1 -TABLE 1B (Continued)
2011 SOCIO- ECONOMIC CHARACTERISTICS
BALBOA VILLAGE
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH. CALIFORNIA
Education Level of Residents Over 25 Years
No HS Degree
HS Degree
Some College
0.5 Mile Ring
1.75%
9.76%
31.29%
1 Mile Ring
1.42%
8.41%
28.01%
3 Mile Ring
3.61%
11.16%
27.41%
Newport Beach
2.35%
9.65%
25.66%
Orange County
16.95%
18.73%
29.18%
80.00%
60.00%
40.00%
20.00%
0.00%
College Grad.
57.17%
62.17%
57.62%
62.34%
35.13%
Education Level of Residents Over 25 Years
No HS Degree HS Degree Some College College Grad.
00.5 Mile Ring ■1 Mile Ring 03 Mile Ring 0Newport Beach MOrange County
Race Classification
White
Black
American Indian
Asian
Hawaiian or PI
Other
Two or More
0.5 Mile Ring
91.99%
1.31%
0.56%
2.06%
0.26%
1.73%
2.09%
1 Mile Ring
92.71%
0.94%
0.29%
2.76%
0.14%
1.42%
1.75%
3 Mile Ring
88.67%
0.75%
0.31%
4.23%
0.17%
3.43%
2.45%
Newport Beach
89.80%
0.73%
0.26%
5.38%
0.12%
1.48%
2.23%
Orange County
59.45%
1.74%
0.73%
16.49%
0.33%
16.55%
4.71%
Race Classification
100.00%
80.00%
60.00%
40.00%
20.00%
0.00% Fn
White Black .American Asian Hawaiian or PI Other Two or More
Indian
00.5 Mile Ring ■ 1 Mile Ring 03 Mile Ring ONewport Beach mOrange County
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11B; trb Page 8 of 19
ATTACHMENTI -TABLE IC
2011 SOCIO- ECONOMIC CHARACTERISTICS
MARINER'S MILE
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Population
0.5 Mile Ring
3,500
1 Mile Ring
19,700
3 Mile Ring
111,300
Newport Beach
72,500
Orange County
3,063,500
Households
0.5 Mile Ring
1,500
1 Mile Ring
9,200
3 Mile Ring
44,400
Newport Beach
33,400
Orange County
984,100
Average Persons Per Hhold
0.5 Mile Ring
2.30
1 Mile Ring
2.08
3 Mile Ring
2.46
Newport Beach
2.14
Orange County
3.07
Source: Claritas 1112011
Population
125,000
100,000
75,000
3.00
50,000
2.00
25,000
0
m �t c m c
Ln
0
Households
50,000
1.00
40,000
0.00
30,000
20,000
10,000
d
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0
Average Persons Per Household
4.00
3.00
2.00
1.00
0.00
d
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6K
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m
m
m
C_
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Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11C; trb Page 9 of 19
ATTACHMENT 1 -TABLE 1C (Continued)
2011 SOCIO- ECONOMIC CHARACTERISTICS
MARINER'S MILE
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH. CALIFORNIA
Per Capita Income
0.5 Mile Ring
$65,400
1 Mile Ring
$55,200
3 Mile Ring
$40,800
Newport Beach
$67,400
Orange County
$31,000
Average Household Income
0.5 Mile Ring
$151,000
1 Mile Ring
$116,500
3 Mile Ring
$101,300
Newport Beach
$145,300
Orange County
$95,400
Source: Claritas 1112011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11C; trb Page 10 of 19
Per Capita Income
Average Household Income
$80,000
$200,000
$150,000
$60,000
$100,000
$40,000
$50,000
$20,000
$0
d
rn
m m
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o r
d>
m
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$0
in ix
Z m
d
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os
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Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11C; trb Page 10 of 19
Average Household Income
$200,000
$150,000
$100,000
$50,000
$0
d
rn
m m
_c c
r
o r
d>
m
'o
in ix
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Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11C; trb Page 10 of 19
ATTACHMENT 1 - TABLE 1C (Continued)
2011 SOCIO- ECONOMIC CHARACTERISTICS
MARINER'S MILE
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Household Income Distribution
$75,000 to $99,999
$100,000+
Under $25,000
$25,000 to $49,999
0.5 Mile Ring
9.79%
12.61%
1 Mile Ring
13.31%
16.63%
3 Mile Ring
14.65%
20.67%
Newport Beach
10.05%
14.11%
Orange County
13.42%
20.37%
$50,000 to $74,999
$75,000 to $99,999
$100,000+
15.83%
13.14%
48.56%
17.33%
14.61%
38.10%
18.62%
13.33%
32.75%
13.79%
12.38%
49.66%
18.74%
14.44%
33.05%
Household Income Distribution
60.00%
50.00%
18 to 34
40.00%
55 to 64
Over 65
0.5 Mile Ring
30.00%
15.89%
28.45%
16.41%
20.00%
1 Mile Ring
12.97%
25.36%
31.90%
10.00%
17.16%
3 Mile Ring
19.87%
23.84%
31.60%
11.30%
13.39%
Newport Beach
15.28%
19.38%
0.00%
Under $25,000 $25,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000+
00.5 Mile Ring 01 Mile Ring 03 Mile Ring 13 Newport Beach OOrange County
19.79 %
Age Distribution
40.00%
30.00%
20.00%
10.00%
0.00%
Age Distribution
Under 18 18 to 34 35 to 54 55 to 64 Over 65
80.5 Mile Ring 01 Mile Ring 03 Mile Ring ONewport Beach mOrange County
Source: Claritas 1112011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11C; trb Page 11 of 19
Under 18
18 to 34
35 to 54
55 to 64
Over 65
0.5 Mile Ring
17.65%
15.89%
28.45%
16.41%
21.60%
1 Mile Ring
12.97%
25.36%
31.90%
12.60%
17.16%
3 Mile Ring
19.87%
23.84%
31.60%
11.30%
13.39%
Newport Beach
15.28%
19.38%
30.09%
15.45%
19.79 %
Orange County
24.83%
23.68%
29.05%
10.69%
11.76%
40.00%
30.00%
20.00%
10.00%
0.00%
Age Distribution
Under 18 18 to 34 35 to 54 55 to 64 Over 65
80.5 Mile Ring 01 Mile Ring 03 Mile Ring ONewport Beach mOrange County
Source: Claritas 1112011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11C; trb Page 11 of 19
ATTACHMENT 1 -TABLE 1C (Continued)
2011 SOCIO- ECONOMIC CHARACTERISTICS
MARINER'S MILE
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH. CALIFORNIA
Education Level of Residents Over 25 Years
No HS Degree
HS Degree
Some College
0.5 Mile Ring
3.45%
10.57%
25.68%
1 Mile Ring
3.58%
12.28%
28.83%
3 Mile Ring
12.58%
15.52%
29.12%
Newport Beach
2.35%
9.65%
25.66%
Orange County
16.95%
18.73%
29.18%
80.00%
60.00%
40.00%
20.00%
0.00%
College Grad.
60.31%
55.32%
42.78%
62.34%
35.13%
Education Level of Residents Over 25 Years
No HS Degree HS Degree Some College College Grad.
00.5 Mile Ring ■1 Mile Ring 03 Mile Ring 0Newport Beach MOrange County
Race Classification
White
Black
American Indian
Asian
Hawaiian or PI
Other
Two or More
0.5 Mile Ring
95.15%
0.34%
0.23%
1.79%
0.06%
0.82%
1.56%
1 Mile Ring
89.47%
0.78%
0.33%
3.97%
0.16%
2.60%
2.69%
3 Mile Ring
73.53%
0.98%
0.68%
4.11%
0.34%
16.65%
3.72%
Newport Beach
89.80%
0.73%
0.26%
5.38%
0.12%
1.48%
2.23%
Orange County
59.45%
1.74%
0.73%
16.49%
0.33%
16.55%
4.71%
Race Classification
100.00%
80.00% M.
60.00%
40.00%
20.00%
0.00%
White Black .American Asian Hawaiian or PI Other Two or More
Indian
00.5 Mile Ring ■ 1 Mile Ring 03 Mile Ring ONewport Beach mOrange County
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11C; trb Page 12 of 19
L \6GCy:L414:Y an L•\ :144K
SCAG POPULATION, HOUSEHOLD & EMPLOYMENT PROJECTIONS
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
1 Includes Newport Beach, Costa Mesa, Huntington Beach, Irvine and Laguna Beach.
Source: Southern California Association of Governments
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 1_2; trb Page 13 of 19
POPULATION
2003
2005
2010
2015
2020
2025
2030
2035
Newport Beach
81,739
83,652
88,340
91,320
93,195
95,428
96,892
97,766
Costa Mesa
111,450
113,137
120,501
122,828
124,692
125,675
126,492
126,958
Huntington Beach
197,084
200,349
212,957
217,822
220,892
222,569
224,788
225,815
Irvine
178,516
191,808
235,633
256,721
264,322
265,965
268,246
269,802
Laguna Beach
24,429
24,931
25,886
26,371
26,670
26,787
26,950
27,045
Regional Market Total'
593,218
613,877
683,317
715,062
729,771
736,424
743,368
747,386
Orange County
2,999,320
3,059,952
3,314,948
3,451,755
3,533,935
3,586,283
3,629,539
3,653,990
Change
2003 -2005
2005 -2010
2010 -2015
2015 -2020
2020 -2025
2025 -2030
2030 -2035
2003 -2035
Newport Beach
2.3%
5.6%
3.4%
2.1%
2.4%
1.5%
0.9%
19.6%
Costa Mesa
1.5%
6.5%
1.9%
1.5%
0.8%
0.7%
0.4%
13.9%
Huntington Beach
1.7%
6.3%
2.3%
1.4%
0.8%
1.0%
0.5%
14.6%
Irvine
7.4%
22.8%
8.9%
3.0%
0.6%
0.9%
0.6%
51.1%
Laguna Beach
2.1%
3.8%
1.9%
1.1%
0.4%
0.6%
0.4%
10.7%
Regional Market Total
3.5%
11.3%
4.6%
2.1%
0.9%
0.9%
0.5%
26.0%
Orange County
2.0%
8.3%
4.1%
2.4%
1.5%
1.2%
0.7%
21.8%
1 Includes Newport Beach, Costa Mesa, Huntington Beach, Irvine and Laguna Beach.
Source: Southern California Association of Governments
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 1_2; trb Page 13 of 19
ATTACHMENT 1 - TABLE 2 (continued)
SCAG POPULATION, HOUSEHOLD & EMPLOYMENT PROJECTIONS
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
1 Includes Newport Beach, Costa Mesa, Huntington Beach, Irvine and Laguna Beach.
Source: Southern California Association of Governments
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 1_2; trb Page 14 of 19
HOUSEHOLDS
2003
2005
2010
2015
2020
2025
2030
2035
Newport Beach
37,258
38,011
38,980
40,086
40,688
41,751
42,272
42,764
Costa Mesa
39,735
39,841
41,214
41,453
41,628
41,818
41,937
42,126
Huntington Beach
75,082
75,601
77,237
77,720
77,968
78,315
78,839
79,241
Irvine
59,065
65,421
82,479
90,937
93,098
93,421
93,498
94,168
Laguna Beach
11,645
11,644
11,661
11,688
11,706
11,719
11,753
11,797
Regional Market Total
222,785
230,518
251,571
261,684
265,088
267,024
268,299
270,096
Orange County
964,090
980,964
1,039,201
1,071,810
1,088,375
1,102,370
1,110,659
1,118,490
Change
2003 -2005
2005 -2010
2010 -2015
2015 -2020
2020 -2025
2025 -2030
2030 -2035
2003 -2035
Newport Beach
2.0%
2.5%
2.8%
1.5%
2.6%
1.2%
1.2%
14.6%
Costa Mesa
0.3%
3.4%
0.6%
0.4%
0.5%
0.3%
0.5%
6.0%
Huntington Beach
0.7%
2.2%
0.6%
0.3%
0.4%
0.7%
0.5%
5.5%
Irvine
10.8%
26.1%
10.3%
2.4%
0.3%
0.1%
0.7%
59.4%
Laguna Beach
0.0%
0.1%
0.2%
0.2%
0.1%
0.3%
0.4%
1.3%
Regional Market Total'
3.5%
9.1%
4.1%
1.2%
0.7%
0.5%
0.7%
21.2%
Orange County
1.8%
5.9%
3.1%
1.5%
1.3%
0.8%
0.7%
16.0%
1 Includes Newport Beach, Costa Mesa, Huntington Beach, Irvine and Laguna Beach.
Source: Southern California Association of Governments
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 1_2; trb Page 14 of 19
ATTACHMENT 1 - TABLE 2 (continued)
SCAG POPULATION, HOUSEHOLD & EMPLOYMENT PROJECTIONS
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
1 Includes Newport Beach, Costa Mesa, Huntington Beach, Irvine and Laguna Beach.
Source: Southern California Association of Governments
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 1_2; trb Page 15 of 19
EMPLOYMENT
2003
2005
2010
2015
2020
2025
2030
2035
Newport Beach
74,898
76,439
77,319
77,940
78,198
78,366
78,624
78,979
Costa Mesa
88,780
91,305
99,562
100,478
102,245
102,631
103,565
103,816
Huntington Beach
78,924
81,599
92,028
96,842
98,226
98,752
99,830
100,085
Irvine
208,796
219,454
247,713
272,183
292,558
309,741
324,848
341,977
Laguna Beach
13,040
13,402
14,254
14,642
14,818
14,930
15,019
15,067
Regional Market Total
464,438
482,199
530,876
562,085
586,045
604,420
622,086
639,924
Orange County
1,567,389
1,615,936
1,755,167
1,837,771
1,897,352
1,933,058
1,960,633
1,981,901
Change
2003 -2005
2005 -2010
2010 -2015
2015 -2020
2020 -2025
2025 -2030
2030 -2035
2003 -2035
Newport Beach
2.1%
1.2%
0.8%
0.3%
0.2%
0.6%
0.2%
5.4%
Costa Mesa
2.8%
9.0%
0.9%
1.8%
0.4%
0.9%
0.2%
16.9%
Huntington Beach
3.4%
12.8%
5.2%
1.4%
0.5%
1.1%
0.3%
26.8%
Irvine
5.1%
12.9%
9.9%
7.5%
5.9%
4.9%
5.3%
63.8%
Laguna Beach
2.8%
6.4%
2.7%
1.2%
0.8%
0.6%
0.3%
15.5%
Regional Market Total'
3.8%
10.1%
5.9%
4.3%
3.1%
2.9%
2.9%
37.8%
Orange County
3.1%
8.6%
4.7%
3.2%
1.9%
1.4%
1.1%
26.4%
1 Includes Newport Beach, Costa Mesa, Huntington Beach, Irvine and Laguna Beach.
Source: Southern California Association of Governments
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 1_2; trb Page 15 of 19
L \6GCy:L414:Y an C- 1 :14=r1
144'W119 I17�14111E:1 :111111114- 1*1
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Retail Trade
Bus.
LIDO VILLAGE - 1 -MILE RADIUS
Emp. Pop. /Bus. Pop. /Emp.
Emp. /Bus.
Bus.
BALBOA VILLAGE - 1 -MILE RADIUS
Emp. Pop. /Bus. Pop. /Emp.
Emp. /Bus.
320 2,816 48 5.5 8.8
168 1,163 51 7.3
6.9
Home Improvement Stores
16
53
960
289.8
3.3
2
9
4,265
947.7
4.5
General Merchandise Stores
1
2
15,357
7,678.5
2.0
0
0
NA
NA
NA
Food Stores
13
87
1,181
176.5
6.7
13
131
656
65.1
10.1
Auto Dealers & Gas Stations
56
499
274
30.8
8.9
13
125
656
68.2
9.6
Apparel & Accessory Stores
27
91
569
168.8
3.4
38
94
224
90.7
2.5
Furniture /Home Furnishings
24
75
640
204.8
3.1
6
17
1,422
501.7
2.8
Eating & Drinking Places
95
1,747
162
8.8
18.4
45
656
190
13.0
14.6
Miscellaneous Retail Stores
88
262
175
58.6
3.0
51
131
167
65.1
2.6
Finance, Insurance & Real Estate
199
841
77
18.3
4.2
64
444
133
19.2
6.9
Banks, Savings & Lending Inst.
30
215
512
71.4
7.2
9
50
948
170.6
5.6
Securities Brokers & Investors
29
89
530
173
3.1
10
47
853
181.5
4.7
Insurance Carriers & Agents
33
118
465
130.1
3.6
5
17
1,706
501.7
3.4
Real Estate - Trust - Holding Co.
107
419
144
36.7
3.9
40
330
213
25.8
8.3
Services
962
10,990
16
1.4
11.4
164
798
52
10.7
4.9
Hotels & Lodging
7
549
2,194
28.0
78.4
4
21
2,132
406.1
5.3
Personal Services
161
497
95
30.9
3.1
28
114
305
74.8
4.1
Business Services
255
1,140
60
13.5
4.5
55
164
155
52.0
3.0
Motion Pictures & Amusement
60
1,002
256
15.3
16.7
21
195
406
43.7
9.3
Health Services
306
6,675
50
2.3
21.8
14
94
609
90.7
6.7
Legal Services
54
188
284
81.7
3.5
7
13
1,218
656.1
1.9
Education Services
16
222
960
69.2
13.9
5
9
1,706
947.7
1.8
Social Services
21
399
731
38.5
19.0
1
1
8,529
8,529.0
1.0
Other Services
82
318
187
48.3
3.9
29
187
294
45.6
6.4
Agriculture
23
310
668
49.5
13.5
2
6
7,679
2,559.5
3.0
Mining
0
0
NA
NA
NA
0
0
NA
NA
NA
Construction
95
472
162
32.5
5.0
19
61
449
139.8
3.2
Manufacturing
47
357
327
43.0
7.6
9
43
948
198.3
4.8
Trans., Comm. & Pub. Util.
51
440
301
34.9
8.6
20
147
426
58.0
7.4
Wholesale Trade
66
247
233
62.2
3.7
14
81
609
105.3
5.8
Government
17
778
903
19.7
45.8
4
115
2,132
74.2
28.8
Total
1,780
17,251
9
0.9
9.7
464
2,858
18
3.0
6.2
Source: Claritas 11/2011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 1_3; trb Page 16 of 19
FIN GCtl:k`d=12Y id 61-18493
1��4195 .]�2il�2tea- 1rb9121X- Y-7X -9
LIDO VILLAGE, BALBOA VILLAGE, MARINE
NEWPORT BEACH, CALIFORNIA
Retail Trade
Bus.
MARINER'S MILE - 1 -MILE RADIUS
Emp. Pop. /Bus. Pop. /Emp.
Emp./Bus.
434 3,934 45 5.0
9.1
Home Improvement Stores
23
74
855
265.8
3.2
General Merchandise Stores
1
2
19,667
9,833.5
2.0
Food Stores
19
290
1,035
67.8
15.3
Auto Dealers & Gas Stations
73
768
269
25.6
10.5
Apparel & Accessory Stores
40
121
492
162.5
3.0
Furniture /Home Furnishings
33
99
596
198.7
3.0
Eating & Drinking Places
126
2,162
156
9.1
17.2
Miscellaneous Retail Stores
119
418
165
47.1
3.5
Finance, Insurance & Real Estate
232
959
85
20.5
4.1
Banks, Savings & Lending Inst.
34
226
578
87.0
6.6
Securities Brokers & Investors
33
85
596
231.4
2.6
Insurance Carriers & Agents
41
137
480
143.6
3.3
Real Estate - Trust - Holding Co.
124
511
159
38.5
4.1
Services
1,192
12,172
16
1.6
10.2
Hotels & Lodging
9
563
2,185
34.9
62.6
Personal Services
239
887
82
22.2
3.7
Business Services
301
1,364
65
14.4
4.5
Motion Pictures & Amusement
71
1,034
277
19.0
14.6
Health Services
357
7,011
55
2.8
19.6
Legal Services
57
194
345
101 A
3.4
Education Services
20
230
983
85.5
11.5
Social Services
35
496
562
39.7
14.2
Other Services
103
393
191
50.0
3.8
Agriculture
31
418
634
47.1
13.5
Mining
0
0
NA
NA
NA
Construction
100
512
197
38.4
5.1
Manufacturing
63
563
312
34.9
8.9
Trans., Comm. & Pub. Util.
69
486
285
40.5
7.0
Wholesale Trade
83
361
237
54.5
4.3
Government
17
778
1,157
25.3
45.8
Total
2,221
20,183
9
1.0
9.1
Source: Claritas 11/2011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 1_3; trb Page 17 of 19
FIN GCtl:k`d=12Y id 61-18493
1��4195 .]�2il�2tea- 1rb9121X- Y-7X -9
LIDO VILLAGE, BALBOA VILLAGE, MARINE
NEWPORT BEACH, CALIFORNIA
Retail Trade
Bus.
CITY OF NEWPORT BEACH
Emp. Pop. /Bus. Pop. /Emp.
Emp./Bus.
Bus.
ORANGE COUNTY
Emp. Pop. /Bus. Pop. /Emp.
Emp. /Bus.
1,635 19,749 44 3.7 12.1
27,762 316,244 110 9.7
11.4
Home Improvement Stores
69
738
1,050
98.2
10.7
1,529
16,756
2,004
182.8
11.0
General Merchandise Stores
22
846
3,294
85.7
38.5
686
27,412
4,466
111.8
40.0
Food Stores
89
1,450
814
50.0
16.3
2,259
31,727
1,356
96.6
14.0
Auto Dealers & Gas Stations
155
2,092
467
34.6
13.5
2,439
28,305
1,256
108.2
11.6
Apparel & Accessory Stores
213
1,605
340
45.1
7.5
2,471
21,697
1,240
141.2
8.8
Furniture /Home Furnishings
211
1,357
343
53.4
6.4
3,616
30,050
847
101.9
8.3
Eating & Drinking Places
417
8,746
174
8.3
21.0
7,347
115,315
417
26.6
15.7
Miscellaneous Retail Stores
459
2,915
158
24.9
6.4
7,415
44,982
413
68.1
6.1
Finance, Insurance & Real Estate
2,188
22,698
33
3.2
10.4
16,530
137,892
185
22.2
8.3
Banks, Savings & Lending Inst.
432
4,415
168
16.4
10.2
4,009
34,193
764
89.6
8.5
Securities Brokers & Investors
486
3,443
149
21.0
7.1
2,152
14,375
1,424
213.1
6.7
Insurance Carriers & Agents
299
5,943
242
12.2
19.9
3,257
31,218
941
98.1
9.6
Real Estate - Trust - Holding Co.
971
8,897
75
8.1
9.2
7,112
58,106
431
52.7
8.2
Services
5,974
56,444
12
1.3
9.4
65,746
574,583
47
5.3
8.7
Hotels & Lodging
41
3,378
1,767
21.5
82.4
621
23,610
4,933
129.8
38.0
Personal Services
727
4,194
100
17.3
5.8
13,033
54,996
235
55.7
4.2
Business Services
2,057
18,908
35
3.8
9.2
19,764
163,980
155
18.7
8.3
Motion Pictures & Amusement
238
2,827
304
25.6
11.9
3,181
31,256
963
98.0
9.8
Health Services
1,184
15,833
61
4.6
13.4
12,317
122,524
249
25.0
9.9
Legal Services
866
5,191
84
14.0
6.0
4,556
23,993
672
127.7
5.3
Education Services
127
2,549
571
28.4
20.1
2,491
91,540
1,230
33.5
36.7
Social Services
194
1,313
374
55.2
6.8
2,861
29,585
1,071
103.5
10.3
Other Services
540
2,251
134
32.2
4.2
6,922
33,099
443
92.6
4.8
Agriculture
105
1,178
690
61.5
11.2
1,932
16,922
1,586
181.0
8.8
Mining
5
25
14,492
2,898.4
5.0
82
1,328
37,360
2,306.9
16.2
Construction
419
2,609
173
27.8
6.2
9,656
65,589
317
46.7
6.8
Manufacturing
380
10,577
191
6.9
27.8
7,918
176,672
387
17.3
22.3
Trans., Comm. & Pub. Util.
292
2,795
248
25.9
9.6
4,183
43,622
732
70.2
10.4
Wholesale Trade
372
2,856
195
25.4
7.7
7,182
61,530
427
37.6
11.4
Government
68
4,032
1,066
18.0
59.3
1,322
53,246
2,317
57.5
40.3
Total
11,438
122,963
6
0.6
10.8
142,313
1,467,628
22
2.1
10.3
Source: Claritas 11/2011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 1_3; trb Page 18 of 19
ATTACHMENT 1- TABLE 4
SHARE OF TOTAL BUSINESSES & EMPLOYMENT
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH. CALIFORNIA
11/2011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 1_4; trb Page 19 of 19
LIDO VILLAGE - 1 -MILE RADIUS
BALBOA VILLAGE - 1 -MILE RADIUS
MARINER'S MILE - 1 -MILE RADIUS
CITY OF NEWPORT BEACH
ORANGE COUNTY
Businesses
Employees
Businesses
Employees
Businesses
Employees
Businesses
Employees
Businesses
Employees
Retail Trade
18.0%
16.3%
36.2%
40.7%
19.5%
19.5%
14.3%
16.1%
19.5%
21.5%
Home Improvement Stores
0.9%
0.3%
0.4%
0.3%
1.0%
0.4%
0.6%
0.6%
1.1%
1.1%
General Merchandise Stores
0.1%
0.0%
0.0%
0.0%
0.0%
0.0%
0.2%
0.7%
0.5%
1.9%
Food Stores
0.7%
0.5%
2.8%
4.6%
0.9%
1.4%
0.8%
1.2%
1.6%
2.2%
Auto Dealers &Gas Stations
3.1%
2.9%
2.8%
4.4%
3.3%
3.8%
1.4%
1.7%
1.7%
1.9%
Apparel& Accessory Stores
1.5%
0.5%
8.2%
3.3%
1.8%
0.6%
1.9%
1.3%
1.7%
1.5%
Furniture /Name Furnishings
1.3%
0.4%
1.3%
0.6%
1.5%
0.5%
1.8%
1.1%
2.5%
2.0%
Eating & Drinking Places
5.3%
10.1%
9.7%
23.0%
5.7%
10.7%
3.6%
7.1%
5.2%
7.9%
Miscellaneous Retail Stores
4.9%
1.5%
11.0%
4.60/
5.4%
2.1%
4.0%
2.4P/
5.2%
3.1%
Finance, Insurance &Real Estate
11.2%
4.9%
13.8%
15.5%
10.4%
4.8%
19.1%
18.5%
11.6%
9.4%
Banks, Savings & Lending Inst.
1.7%
1.2%
1.9%
1.7%
1.5%
1.1%
3.8%
3.6%
2.8%
2.3%
Securities Brokers & Investors
1.6%
0.5%
2.2%
1.6%
1.5%
0.4%
4.2%
2.8%
1.5%
1.0%
Insurance Carriers &Agents
1.9%
0.7%
1.1%
0.6%
1.8%
0.7%
2.6%
4.8%
2.3%
2.1%
Real Estate- Trust - Holding Co.
6.0%
2.4%
8.6%
11.5%
5.6%
2.5%
8.5%
7.2%
5.0%
4.0%
Services
54.0%
63.7%
35.3%
27.9%
53.7%
60.3%
52.2%
45.9%
46.2%
39.2%
Hotels & Lodging
0.4%
3.2%
0.9%
0.7%
0.4%
2.8%
0.4%
2.7%
0.4%
1.6%
Personal Services
9.0%
2.9%
6.0%
4.0%
10.8%
4.4%
6.4%
3.4%
9.2%
3.7%
Business Services
14.3%
6.6%
11.9%
5.7%
13.6%
6.8%
18.0%
15.4%
13.9%
11.2%
Motion Pictures &Amusement
3.4%
5.8%
4.5%
6.8%
3.2%
5.1%
2.1%
2.3%
2.2%
2.1%
Health Services
17.2%
38.7%
3.0%
3.3%
16.1%
34.7%
10.4%
12.9%
8.7%
8.3%
Legal Services
3.0%
1.1%
1.5%
0.5%
2.6%
1.0%
7.6%
4.2%
3.2%
1.6%
Education Services
0.9%
1.3%
1.1%
0.3%
0.9%
1.1%
1.1%
2.1%
1.8%
6.2%
Social Services
1.2%
2.3%
0.2%
0.0%
1.6%
2.5%
1.7%
1.1%
2.0%
2.0%
Other Services
4.6%
1.8%
6.3%
6.5%
4.6%
1.9%
4.7%
1.8%
4.9%
2.3%
Agriculture
1.3%
1.8%
0.4%
0.2%
1.4%
2.1%
0.9%
1.0%
1.4%
1.2%
Mining
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.1%
0.1%
Construction
5.3%
2.7%
4.1%
2.1%
4.5%
2.5%
3.7%
2.1%
6.8%
4.5%
Manufacturing
2.6%
2.1%
1.9%
1.5%
2.8%
2.8%
3.3%
8.6%
5.6%
12.0%
Trans., Comm. &Pub. Util.
2.9%
2.6%
4.3%
5.1%
3.1%
2.4%
2.6%
2.3%
2.9%
3.0%
Wholesale Trade
3.7%
1.4%
3.0%
2.8%
3.7%
1.8%
3.3%
2.3%
5.0%
5.6%
Government
1.0%
4.5%
0.9%
4.0%
0.8%
3.9%
0.6%
3.3%
0.9%
3.6%
Total Businesses
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
11/2011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 1_4; trb Page 19 of 19
ATTACHMENT 2
RETAIL MARKET ANALYSIS
12020026; NB:KHH
16092.001/001
L \6GCy:L414:Y/'4m liI =1111
TOTAL & PER CAPITA RETAIL SALES
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Source: California State Board of Equalization; and California State Department of Finance (Table E1, population as of 1/1/09)
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; I11; trb Page 1 of 8
Total Taxable Sales (000's)
2009
Population
Newport
Huntington
212,793
Laguna
Costa
Five -City
Orange
State of
Beach
Beach
Irvine
Beach
Mesa
Region
Coun
California
Home Furnishing & Appliances
$40,242
$77,385
$282,865
$5,064
$259,031
$664,587
$2,829,758
$21,865,359
Building Materials & Garden Equipment
43,636
126,341
71,913
12,755
101,276
355,921
2,039,686
23,978,313
Food & Beverage Stores
96,597
143,136
121,813
24,383
125,904
511,833
1,894,642
22,546,285
Clothing & Clothing Accessories
161,013
95,231
167,816
24,297
737,172
1,185,529
2,742,626
25,641,272
General Merchandise
155,230
163,612
282,394
614
346,776
948,626
4,376,154
44,921,639
Food Services & Drinking Places
358,898
308,763
437,132
109,056
321,946
1,535,795
5,024,380
49,921,542
Other Retail Group
142,201
239.179
290,6
48429
239.127
959.620
3.969.219
38,774.164
Retail Stores Total
$997,817
$1,153,647
$1,654,617
$224,598
$2,131,232
$6,161,911
$22,876,465
$227,648,574
Source: California State Board of Equalization; and California State Department of Finance (Table E1, population as of 1/1/09)
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; I11; trb Page 1 of 8
Per Capita Sales
2009
Population
86,252
202,480
212,793
25,208
116,479
643,212
3,139,017
37,883,992
Newport
Huntington
Laguna
Costa
Five -City
Orange
State of
Beach
Beach
Irvine
Beach
Mesa
Re ion
Countv
California
Home Furnishing & Appliances
$467
$382
$1,329
$201
$2,224
$1,033
$901
$577
Building Materials & Garden Equipment
506
624
338
506
869
553
650
633
Food & Beverage Stores
1,120
707
572
967
1,081
796
604
595
Clothing & Clothing Accessories
1,867
470
789
964
6,329
1,843
874
677
General Merchandise
1,800
808
1,327
24
2,977
1,475
1,394
1,186
Food Services & Drinking Places
4,161
1,525
2,054
4,326
2,764
2,388
1,601
1,318
Other Retail Group
1 649
1 181
1 266
1 921
2 053
1 492
1 264
1 023
Retail Stores Total
$11,569
$5,698
$7,776
$8,910
$18,297
$9,580
$7,288
$6,009
Source: California State Board of Equalization; and California State Department of Finance (Table E1, population as of 1/1/09)
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; I11; trb Page 1 of 8
L \6GCy:L414:Y/'J112 L•\ :144K
TOTAL PERMITS & SALES PER PERMIT
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Source: California State Board of Equalization; and California State Department of Finance (Table E1, population as of 1/1/09)
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11 _2; trb Page 2 of 8
Total Permits
2009
2009
Population
Newport
Newport
Huntington
Laguna
Laguna
Costa
Five -City
Orange
State of
Beach
Beach
Beach
Irvine
Beach
Mesa
Region
Count v
California
Home Furnishing & Appliances
249
250
553
82
456
1,590
4,761
38,751
Building Materials & Garden Equipment
42
87
75
25
129
358
1,298
16,335
Food & Beverage Stores
75
122
97
20
114
428
2,090
28,205
Clothing & Clothing Accessories
324
413
343
151
1,054
2,285
5,947
60,999
General Merchandise
33
142
76
20
218
489
1,385
15,024
Food Services & Drinking Places
369
495
568
108
465
2,005
7,960
90,797
Other Retail Group
1 269
2 200
124
806
4 091
10390
29230
332.222
Retail Stores Total
2,361
4,009
3,436
1,212
6,527
17,545
52,671
582,333
Source: California State Board of Equalization; and California State Department of Finance (Table E1, population as of 1/1/09)
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11 _2; trb Page 2 of 8
Taxable Sales Per Permit
2009
Population
Newport
Huntington
212,793
Laguna
Costa
Five -City
Orange
State of
Beach
Beach
Irvine
Beach
Mesa
Region
Count v
California
Home Furnishing & Appliances
$161,614
$309,540
$511,510
$61,756
$568,050
$417,979
$594,362
$564,253
Building Materials & Garden Equipment
1,038,952
1,452,195
958,840
510,200
785,085
994,193
1,571,407
1,467,910
Food & Beverage Stores
1,287,960
1,173,246
1,255,804
1,219,150
1,104,421
1,195,871
906,527
799,372
Clothing & Clothing Accessories
496,954
230,584
489,259
160,907
699,404
518,831
461,178
420,356
General Merchandise
4,703,939
1,152,197
3,715,711
30,700
1,590,716
1,939,930
3,159,678
2,989,992
Food Services & Drinking Places
972,623
623,764
769,599
1,009,778
692,357
765,983
631,204
549,815
Other Retail Group
112,058
95 672
168,610
60 086
58452
92360
135.793
116.712
Retail Stores Average
$422,625
$287,764
$481,553
$185,312
$326,526
$351,206
$434,328
$390,925
Source: California State Board of Equalization; and California State Department of Finance (Table E1, population as of 1/1/09)
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11 _2; trb Page 2 of 8
Residents Per Permit
2009
Population
86,252
202,480
212,793
25,208
116,479
643,212
3,139,017
37,883,992
Newport
Huntington
Laguna
Costa
Five -City
Orange
State of
Beach
Beach
Irvine
Beach
Mesa
Region
Count v
California
Home Furnishing & Appliances
346
N/A
385
307
255
405
659
978
Building Materials & Garden Equipment
2,054
2,327
2,837
1,008
903
1,797
2,418
2,319
Food & Beverage Stores
1,150
1,660
2,194
1,260
1,022
1,503
1,502
1,343
Clothing & Clothing Accessories
266
490
620
167
111
281
528
621
General Merchandise
2,614
1,426
2,800
1,260
534
1,315
2,266
2,522
Food Services & Drinking Places
234
409
375
233
250
321
394
417
Other Retail Group
68
81
123
31
28
62
107
114
Retail Stores Average
37
51
62
21
18
37
60
65
Source: California State Board of Equalization; and California State Department of Finance (Table E1, population as of 1/1/09)
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11 _2; trb Page 2 of 8
L \6GCy:L414:Y1plim L•1 :14=r1
I*91UJil i=Ir]!Jt1NA=1 ill =11Y1L1M *:11..111Z[c][9I9]I ULI[a]I&]
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Population in City of Newport Beach'
Per Capita Income'
Gross City Income
Establishment Tvoe
Home Furnishing & Appliances
Building Materials & Garden Equipment
Food & Beverage Stores'
Clothing & Clothing Accessories
General Merchandise"
Food Services & Drinking Places
Other Retail Group
Retail Stores Total
72,461
$67,400
$4,883,871,000
Source: California State Board of Equalization; Bureau of Labor Statistics -CPI (Los Angeles- Riverside - Orange County; All items); DOF; and Claritas.
1 Based on estimates from Claritas.
2 Sales in 2011 assume annual rate of change between 2009 and 2011 for the CPI (Los Angeles- Riverside - Orange County) during this period.
3 Assumes food store sales are 35% taxable.
4 Assumes general merchandise store sales are 95% taxable.
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11 _3; trb Page 3 of 8
Additional
Development
304,200
154,000
0
0
179,800
0
172,900
810,900
Newport Beach
Newport Beach
Newport Beach
Newport Beach
Potential
Surplus/
Typical
(2009)
(2011)2
(2011)
(Leakage)
Productivity
$40,242,000
$41,688,400
$148,163,000
($106,474,600)
$350
43,636,000
45,204,300
106,796,000
(61,591,700)
$400
275,991,400
285,911,000
283,432,000
2,479,000
$450
161,013,000
166,800,100
143,601,000
23,199,100
$450
163,400,000
169,272,900
241,190,000
(71,917,100)
$400
358,898,000
371,797,400
263,071,000
108,726,400
$400
142,201,000
147,311,900
207,824,000
(60,512,100)
$350
$1,185,381,400
$1,227,986,000
$1,394,077,000
($166,091,000)
Source: California State Board of Equalization; Bureau of Labor Statistics -CPI (Los Angeles- Riverside - Orange County; All items); DOF; and Claritas.
1 Based on estimates from Claritas.
2 Sales in 2011 assume annual rate of change between 2009 and 2011 for the CPI (Los Angeles- Riverside - Orange County) during this period.
3 Assumes food store sales are 35% taxable.
4 Assumes general merchandise store sales are 95% taxable.
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11 _3; trb Page 3 of 8
Additional
Development
304,200
154,000
0
0
179,800
0
172,900
810,900
L \6GCy:L414:YIll L•\ :14x!
ESTIMATED MARKET POTENTIAL - FUTURE CONDITIONS 2016
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Population in City of Newport Beach'
Per Capita Income'
Gross City Income
Establishment Type
Home Furnishing & Appliances
Building Materials & Garden Equipment
Food & Beverage Stores'
Clothing & Clothing Accessones
General Merchandise"
Food Services & Drinking Places
Other Retail Group
Retail Stores Total
Newport Beach
(2016)
$49,738,000
53,933,000
341,120,000
199,009,000
201,959,000
443,591,000
175,758,000
$1,465,108,000
75,502
$73,600
$5,556,947,000
Newport Beach
Potential
(2016)
$168,582,000
121,514,000
322,494,000
163,391,000
274,430,000
299,326,000
236,465,000
$1,586,202,000
Newport Beach
Surplus/
(Leakage)
($118,844,000)
(67,581,000)
18,626,000
35,618,000
(72,471,000)
144,265,000
(60,707,000)
($121,094,000)
Typical Additional
Productivity Development
$350
339,600
$400
169,000
$450
0
$450
0
$400
181,200
$400
0
$350
173,400
863,200
Source: California State Board of Equalization; Bureau of Labor Statistics -CPI (Los Angeles- Riverside - Orange County; All items); DOF; and Claritas.
1 Based on estimates from Claritas.
2 Sales in 2016 assume annual rate of change between 2009 and 2011 for the CPI Los Angeles- Riverside- Orange County Region and no new development.
3 Assumes food store sales are 35% taxable.
4 Assumes general merchandise store sales are 95% taxable.
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11 _4; trb Page 4 of 8
ATTACHMENT 2- TABLE S
I:7 X /c11149e14 X-11.1111:7 J 41--11 "11 ZCH X1 oL•\ G6I11R, I'Jil ;fit
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11 _5; trb Page 5 of 8
Total
City of Newport Beach
Expenditures
Sales
Gap /Surplus
Sales PSF
Potential (SF)
Motor Vehicle and Parts Dealers -441
$313,149,710
$539,592,284
($226,442,574)
NA
NA
Furniture and Home Furnishings Stores -442
43,920,094
20,254,562
23,665,532
$300
78,885
Electronics and Appliance Stores -443
42,811,767
9,904,671
32,907,096
$400
82,268
Building Material, Garden Equip Stores -444
165,925,146
58,167,538
107,757,608
$300
359,192
Food and Beverage Stores -445
198,555,016
182,205,050
16,349,966
$400
40,875
Health and Personal Care Stores -446
89,211,228
77,714,869
11,496,359
$33
348,375
Gasoline Stations -447
140,462,386
124,640,938
15,821,448
NA
NA
Clothing and Clothing Accessories Stores -448
88,090,806
185,152,017
(97,061,211)
$300
0
Sporting Goods, Hobby, Book, Music Stores -451
38,885,364
39,865,080
(979,716)
$300
0
General Merchandise Stores -452
217,541,888
156,223,895
61,317,993
$300
204,393
Miscellaneous Store Retailers -453
43,337,629
25,808,024
17,529,605
$300
58,432
Non -Store Retailers -454
133,397,901
70,795,894
62,602,007
NA
NA
Foodservice and Drinking Places -722
184,115,881
322,419,976
(138,304,095)
$400
0
Total Retail Sales Incl Eating and Drinking Places
$1,699,404,816
$1,81.2,744,798
($113,339,982)
1,172,420
Total
Lido Village- 1 Mile Market
Expenditures
Sales
Gap /Surplus
Sales PSF
Potential (SF)
Motor Vehicle and Parts Dealers -441
$62,847,400
$64,967,330
($2,119,930)
NA
NA
Furniture and Home Furnishings Stores -442
8,165,530
2,904,855
5,260,675
$300
17,536
Electronics and Appliance Stores -443
8,327,719
2,495,372
5,832,347
$400
14,581
Building Material, Garden Equip Stores -444
31,321,599
9,509,539
21,812,060
$300
72,707
Food and Beverage Stores -445
39,356,367
24,567,142
14,789,225
$400
36,973
Health and Personal Care Stores -446
16,511,277
13,637,775
2,873,502
$33
87,076
Gasoline Stations -447
29,121,047
62,432,228
(33,311,181)
NA
NA
Clothing and Clothing Accessories Stores -448
16,846,231
10,195,483
6,650,748
$300
22,169
Sporting Goods, Hobby, Book, Music Stores -451
7,384,401
5,953,903
1,430,498
$300
4,768
General Merchandise Stores -452
41,982,928
1,016,962
40,965,966
$300
136,553
Miscellaneous Store Retailers -453
8,484,322
4,359,253
4,125,069
$300
13,750
Non -Store Retailers -454
25,437,704
17,143,408
8,294,296
NA
NA
Foodservice and Drinking Places -722
36,871,547
75,462,821
(38,591,274)
$400
0
Total Retail Sales Incl Eating and Drinking Places
$332,658,072
$294,646,071
$38,012,001
406,113
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11 _5; trb Page 5 of 8
ATTACHMENT 2- TABLE 5
RETAIL SALES SURPLUS /LEAKAGE DATA SUMMARY
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Source: Claritas; KMA
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11 _5; trb Page 6 of 8
Total
Balboa Village -1 Mile Market
Expenditures
Sales
Gap /Surplus
Sales PSF
Potential (SF)
Motor Vehicle and Parts Dealers -441
$40,281,870
$73,358,401
($33,076,531)
NA
NA
Furniture and Home Furnishings Stores -442
5,567,277
621,900
4,945,377
$300
16,485
Electronics and Appliance Stores -443
5,455,171
513,232
4,941,939
$400
12,355
Building Material, Garden Equip Stores -444
20,753,944
3,131,245
17,622,699
$300
58,742
Food and Beverage Stores -445
25,279,273
29,209,445
(3,930,172)
$400
0
Health and Personal Care Stores -446
11,717,376
8,033,047
3,684,329
$33
111,646
Gasoline Stations -447
18,278,396
4,697,449
13,580,947
NA
NA
Clothing and Clothing Accessories Stores -448
10,923,680
17,400,968
(6,477,288)
$300
0
Sporting Goods, Hobby, Book, Music Stores -451
4,855,057
2,125,042
2,730,015
$300
9,100
General Merchandise Stores -452
27,387,301
465,187
26,922,114
$300
89,740
Miscellaneous Store Retailers -453
5,532,250
3,464,862
2,067,388
$300
6,891
Non -Store Retailers -454
17,042,939
692,059
16,350,880
NA
NA
Foodservice and Drinking Places -722
23,724,615
43,208,949
(19,484,334)
$400
0
Total Retail Sales Incl Eating and Drinking Places
$216,799,149
$186,921,786
$29,877,363
304,960
Source: Claritas; KMA
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11 _5; trb Page 6 of 8
Total
Mariner's Mile - 1 Mile Market
Expenditures
Sales
Gap /Surplus
Sales PSF
Potential (SFI
Motor Vehicle and Parts Dealers -441
$76,429,645
$111,230,099
($34,800,454)
NA
NA
Furniture and Home Furnishings Stores -442
10,081,638
4,560,485
5,521,153
$300
18,404
Electronics and Appliance Stores -443
10,425,055
3,480,746
6,944,309
$400
17,361
Building Material, Garden Equip Stores -444
39,033,797
12,292,129
26,741,668
$300
89,139
Food and Beverage Stares -445
50,821,772
35,848,973
14,972,799
$400
37,432
Health and Personal Care Stores -446
21,211,298
29,842,567
(8,631,269)
$33
0
Gasoline Stations -447
37,283,032
58,394,326
(21,111,294)
NA
NA
Clothing and Clothing Accessories Stores -448
21,054,659
15,052,244
6,002,415
$300
20,008
Sporting Goods, Hobby, Book, Music Stores -451
9,242,380
8,910,319
332,061
$300
1,107
General Merchandise Stores -452
53,375,161
9,212,358
44,162,803
$300
147,209
Miscellaneous Store Retailers -453
10,738,649
11,363,514
(624,865)
$300
0
Non -Store Retailers -454
32,180,225
17,771,759
14,408,466
NA
NA
Foodservice and Drinking Places -722
47,008,768
109,176,140
(62,167,372)
$400
0
Total Retail Sales Incl Eating and Drinking Places
$418,886,079
$427,135,659
($8,249,580)
330,660
Source: Claritas; KMA
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11 _5; trb Page 6 of 8
ATTACHMENT 2- TABLE 6
RETAIL LEASE RATE COMPARABLES
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Total
Lease Rate Range $1.75 - $4.50
Weighted Average Lease Rate $2.65
Note: Data search includes the Newport Beach Peninsula and Mariner's Mile.
Source: LoopNet.com 1112011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11 _6; trb Page 7 of 8
85,000
Asking
Building
SF
No.
Address
Property Type
Rent
Type
Size
Available
Vacancy
1
120 Tustin Ave
Street Retail
$3.50
NNN
10,000
500
5%
2
2900 Newport Blvd
Restaurant
$3.17
NNN
3,000
3,000
100%
3
3424 -3432 Vio Oporto
Creative /Loft
$1.95
FS
13,074
1,934
47%
Creative /Loft
$2.35
FS
1,260
Creative /Loft
$1.92
FS
481
Retail
$1.75
NNN
2,410
4
3431 Via Oporto
Street Retail
$1.75
NNN
16,264
1,871
12%
5
3400 Via Oporto
Street Retail
$1.95
NNN
5,703
1,173
21%
6
3400 Via Lido
Street Retail
$2.00
NNN
2,593
2,593
100%
7
3440 -3446 Via Oporto
Retail
$1.75
NNN
8,393
1,711
20%
8
3408 -3412 Via Oporto
Creative /Loft
$1.95
FS
19,077
1,338
17%
Restaurant
$2.00
NNN
985
Street Retail
$1.75
NNN
957
9
3444 Via Lido
Street Retail
$3.00
NNN
11,074
11,074
100%
10
514 E. Oceanfront
Street Retail
$2.95
NNN
10,000
2,250
73%
Anchor
$4.50
NNN
5,000
11
3404 Via Oporto
Street Retail
$1.75
NNN
5,636
998
33%
Creative /Loft
$1.95
FS
870
12
3636 Newport Blvd
Free Standing Retail
$2.25
NNN
1,846
1,846
100%
13
3450 Via Oporto
Restaurant
$2.50
NNN
15,658
9,441
100%
Retail
$2.50
NNN
6,217
14
Newport Blvd & 30th St
Neighborhood Center
$4.25
NNN
50,000
1,998
4%
15
1100 W. Coast Hwy
Vehicle Showcase Bldg
$2.58
MG
10,468
10,468
100%
16
1910 W. Balboa Blvd
Street Retail
$2.50
NNN
3,629
1,229
34%
17
2700 W. Coast Hwy
Retail /Office
$2.65
FS
2,475
2,475
100%
18
2233 W. Balboa Blvd
Retail
$2.50
NNN
10,260
1,220
54%
$1.75
NNN
4,370
19
3201 Newport Blvd
Free Standing Retail
$3.46
NNN
4,275
4,275
100%
20
705 Balboa
Retail
$2.50
1,100
1,100
100%
Total
Lease Rate Range $1.75 - $4.50
Weighted Average Lease Rate $2.65
Note: Data search includes the Newport Beach Peninsula and Mariner's Mile.
Source: LoopNet.com 1112011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11 _6; trb Page 7 of 8
85,000
ATTACHMENT 2- TABLE 7
RETAIL BUILDING SALES
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Weighted Average $601
Note, Data search includes the Newport Beach peninsula and Manner's Mile from 1112812009 to 11/2812011. Non -arms length transactions, multi - property sales and sales transactions without
Source: Costar 11/2011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11 _7; trb Page 8 of 8
Year Built /
Price Per
No.
Building Type
Address
Sale Date
Renovated
GLA SF
Sales Price
SF
Zonin
1
Retail Storefront
415 29th Street
12/30/2010
NA
3,200
$1,350,000
$422
SP -6
2
Retail Storefront
419 31st Street
11/4/2011
1999
3,600
$2,340,000
$650
MU -CV
3
Freestanding Retail
608 E. Balboa Blvd
3/812010
1935
5,700
$3,500,000
$614
SP -8
4
Retail Storefront/Residential
703 E. Balboa Blvd
1/14/2011
1975
2,355
$915,000
$389
MU -V
5
Freestanding Retail
1910 -1920 W. Balboa Blvd
6/23/2011
1975
4,080
$1,540,000
$377
SP -6
6
Retail Storefront
2633 W. Coast Highway
1/18/2011
1995
5,900
$5,800,000
$983
MUW -1
7
Retail /Restaurant
3400 Via Lido
10/26/2010
1953
2,696
$1,100,000
$408
RSC
Weighted Average $601
Note, Data search includes the Newport Beach peninsula and Manner's Mile from 1112812009 to 11/2812011. Non -arms length transactions, multi - property sales and sales transactions without
Source: Costar 11/2011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 11 _7; trb Page 8 of 8
ATTACHMENT 3
OFFICE MARKET ANALYSIS
12020026; NB:KHH
16092.001/001
L \BGCy:L414z11 on L•\ :18 =111i 1
3RD QUARTER 2011 OFFICE MARKET - ORANGE COUNTY OFFICE REPORT
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
(1) City is located within the Greater Airport Area Submarket.
Source: CBRE Orange County Office Report 3rd Quarter 2011.
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; II111; trb Page 1 of 4
Square Feet
Vacancy
Net Absorption
Under
Average Asking
Building Type
(Net Rentable Area)
Rate
(Year -to -date)
Construction
Lease Rate
Class A
25,049,013
19.80%
(75,386)
0
$2.17
Class B
20,323,662
12.40%
88,563
0
$1.79
Class C
1,759,275
18.30%
(5,799)
0
$1.58
Total
47,131,950
7,378
0
(1) City is located within the Greater Airport Area Submarket.
Source: CBRE Orange County Office Report 3rd Quarter 2011.
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; II111; trb Page 1 of 4
L \6GCy:L414z 11 on L•\ :144K
3RD QUARTER 2011 OFFICE MARKET - ORANGE COUNTY OFFICE REPORT
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Overall Direct Overall Direct Weighted Overall
Square Feet Vacancy Vacancy Absorption Under Completed Average Rental Rate Average Rental Rate
Submarket (Net Rentable Area) Rate Rate (Year -to -date) Construction Construction (Class A) (All Classes)
Newport Beach 7,336,698 15.10% 14.80% 200,408 0 0 $2.43 $2.27
Total 7,336,698 15.10% 14.80% 200,408 0 0 $2.43 $2.27
Source: Cushman & Wakefield Marketbeat Orange County Office Report 3rd Quarter 2011.
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 111 _2; trb Page 2 of 4
ATTACHMENT 3- TABLE 3
OFFICE LEASE RATE COMPARABLES
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
No.
Address
Property Type
Year
Built
Asking
Rent
Type
Building
Size
SF
Available
Vacancy
1
2244 W. Pacific Coast Hwy
Class B Office
1981
$2.30
FS
17,108
12,708
74%
2
3300 W. Coast Hwy
Class A Office - Medical
NA
$3.50
NNN
16,513
4,301
26%
3
3101 W. Coast Hwy
Office
NA
$2.75
FS
40,140
3,008
31%
$3.25
FS
6,994
$2.50
FS
1,902
$3.25
NNN
690
4
3416 -3420 Via Oporto
Class B - Creative /Loft
NA
$2.01
FS
19,077
386
11%
$2.25
FS
1,795
5
3408 -3412 Via Oporto
Class B - Creative /Loft
NA
$1.95
FS
19,077
1,338
7%
6
3700 Newport Blvd
Office
NA
$1.96
FS
17,130
369
44%
$2.00
FS
1,387
$2.11
FS
471
$1.87
FS
428
$2.25
FS
1,289
$2.15
FS
585
$2.16
FS
340
$2.28
FS
186
$2.10
FS
762
$1.85
FS
723
$1.97
FS
394
$1.95
FS
589
7
514 E. Oceanfront
Office /Retail
NA
$3.50
NNN
10,000
1,050
11%
8
3404 Via Oporto
Office - Creative /Loft
NA
$1.95
FS
5,636
870
15%
9
30th Street Loft
Class A - Creative /Loft
2005
$3.38
MG
800
800
100%
10
509 31 st Street
Class B - Creative /Loft
NA
$2.46
NA
2,550
650
25%
11
151 Shipyard Way, Ste. 7
Class A Office
NA
$1.99
NA
5,000
600
17%
$2.55
NA
240
12
3471 Via Lido Plaza
Class A Office
NA
$2.25
MG
12,000
4,891
41%
13
2436 W. Coast Hwy
Class C Office
NA
$1.99
MG
9,512
1,249
13%
Total
Lease Rate Range $1.85 - $3.50
Weighted Average Lease Rate $2.55
Note: Data search includes the Newport Beach Peninsula and Mariner's Mile.
Source: LoopNet.com 11/2011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; III_3; trb Page 3 of 4
51,000
ATTACHMENT 3- TABLE 4
OFFICE BUILDING SALES
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Weighted Average $341
Note: Data search includes the Newport Beach peninsula and Mariner's Mile from 11/28/2009 to 1112812011. Non -arms length transactions, multi - property sales and sales transactions without sales
Source: Costar 11/2011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 111 _4; trb Page 4 of 4
Price Per
Parking
No.
Buildina Type
Address
Sale Date
Year Built
RBA SF
Sales Price
Sf
Zonin
(Spaces /1000sf)
1
Class B Office/Residential
411 29th Street
10/20/2010
2005
3,376
$1,387,000
$411
SP -6
1.2
2
Class C Office
417 29th Street
5/412010
1946
1,221
$950,000
$778
SP -6
2.5
3
Class C Office Live/Work
505 30th Street
3/19/2010
2004
2,450
$1,425,000
$582
SP -6
2.5
4
Class C Office w /Street Retail
3355 Via Lido
1012812011
1957
31,885
$7,262,500
$228
RSC
1.3
5
Class B Office /Residential
3388 Via Lido
1012812011
1954
21,279
$9,514,000
$447
APF
3.0
Weighted Average $341
Note: Data search includes the Newport Beach peninsula and Mariner's Mile from 11/28/2009 to 1112812011. Non -arms length transactions, multi - property sales and sales transactions without sales
Source: Costar 11/2011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; 111 _4; trb Page 4 of 4
ATTACHMENT 4
RESIDENTIAL MARKET ANALYSIS
12020026; NB:KHH
16092.001/001
L \6GCy:L414:Y Cld L•\ :1I=111111
KEY HOUSING STATISTICS
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
California
2000
2005
2010
Change 2000 -2010
Percent
Absolute
Orange Countv
2000
2005
2010
Change 2000 -2010
Percent
Absolute
City of Newport Beach
2000
2005
2010
Change 2000 -2010
Percent
Absolute
Source: California Department of Finance
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; IV 1; trb Page 1 of 10
Single - Family Homes
Multi- Family Homes
Mobile
Percent
Size of
Total
Detached
Attached
2 t 4
5 Plus
Homes
Occupied
Vacant
Household
12,214,550
6,883,107
931,928
1,024,896
2,804,931
569,688
11,502,871
5.83
2.87
12,941,231
7,401,694
943,086
1,045,690
2,969,952
580,809
12,184,048
5.85
2.94
13,591,866
7,780,117
967,176
1,072,187
3,175,448
596,938
12,790,143
5.90
2.96
11.28%
13.03%
3.78%
4.61%
13.21%
4.78%
11.19%
1.24%
2.85%
1,377,316
897,010
35,248
47,291
370,517
27,250
1,287,272
0.07
0.08
969,484
489,657
124,702
88,804
233,871
32,450
935,287
3.53
3.00
1,013,634
513,079
126,832
90,823
250,547
32,353
977,547
3.56
3.07
1,040,544
521.,768
130,118
91,400
265,146
32,112
1,005,502
3.37
3.11
7.33%
6.56%
4.34%
2.92%
13.37%
-1.04%
7.51%
-4.53%
3.60%
71,060
32,111
5,416
2,596
31,275
(338)
70,215
(0.16)
0.11
37,288
16,095
6,685
5,351
8,294
863
33,071
11.31
2.09
42,143
18,918
7,166
5,475
9,721
863
37,561
10.87
2.18
43,515
19,467
7,166
5,599
10,420
863
38,784
10.87
2.21
16.70%
20.95%
7.20%
4.63%
25.63%
0.00%
17.27%
-3.87%
5.89%
6,227
3,372
481
248
2,126
0
5,713
(0.44)
0.12
Source: California Department of Finance
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; IV 1; trb Page 1 of 10
L \6GCy:L414:YCld L•\ :144K
HISTORIC DISTRIBUTION OF HOUSING UNIT MIX AND GROWTH
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
California
2000
2005
2010
Orange County
2000
2005
2010
11,644,862
Single - Family Homes
59%
931,928
Multi - Family Homes
1,024,896
9%
Total'
As a %
Detached of Total Attached
As a %1
of Total
2 to 4 As a %
I Attached of Total
5 Plus As a %
Attached of Total
Multiple
Subtotal
As a
of Total
11,644,862
6,883,107
59%
931,928
8%
1,024,896
9%
2,804,931
24%
3,829,827
33%
12,360,422
7,401,694
60%
943,086
8%
1,045,690
8%
2,969,952
24%
4,015,642
32%
12,994,928
7,780,117
60%
967,176
7%
1,072,187
8%
3,175,448
24%
4,247,635
33%
937,034
489,657
52%
124,702
13%
88,804
9%
233,871
25%
322,675
34%
981,281
513,079
52%
126,832
13%
90,823
9 %
250,547
26%
341,370
35%
1,008,432
521,768
52%
130,118
13%
91,400
9%
265,146
26%
356,546
35%
City of Newport Beach
2000
2005
2010
36,425
16,095
44%
6,685
18%
5,351
15%
8,294
23%
13,645
37%
41,280
18,918
46%
7,166
17%
5,475
13%
9,721
24%
15,196
37%
42,652
19,467
46%
7,166
17%
5,599
13%
10,420
24%
16,019
389/o
Source: California Department of Finance
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; IV 2; trb Page 2 of 10
L \6 @Cy:L 414 at Ill CXII=*I
SUMMARY OF RECENT DETACHED HOME SALES WITHIN ONE MILE OF LIDO VILLAGE (January 2010 -September 2011)
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Unit Size (Sf) Sales Price Price Per Square Foot
Average Year
Count Built Low Hioh Low Hioh Median Low Hioh Averaoe
1 Bedroom - 1 Bath 6 1936 268 1,151 $555,000 $3,900,000 $1,191,208 $721 $5,942 $2,400
2 Bedroom - 1 Bath 26 1942 608 1,505 $475,000 $1,875,000 $905,000 $352 $2,156 $1,123
2 Bedroom - 2 Bath 9 1947 741 1,739 $625,500 $4,400,000 $950.000 $435 $5,938 $1,298
Total /Average 35 1943 608 1,739 $475,000 $4,400,000 $950,000 $352 $5,938 $1,168
3 Bedroom - 2 Bath 27 1954 1,120 2,991 $319,500 $3,300,000 $1,120,000 $235 $1,596 $691
3 Bedroom - 2.5 Bath 5 1973 1,440 2,684 $404,000 $2,593,000 $445,000 $236 $1,048 $507
Total /Average 32 1957 1,120 2,991 $319,500 $3,300,000 $1,085,000 $235 $1,596 $662
4 Bedroom - 2 Bath 6 1954 1,438 2,229 $950,000 $3,200,000 $1,447,500 $460 $2,086 $998
Note: Data search includes the one -mile radius surrounding the intersection of Lido Marina Village and Newport Beach Boulevard. Unit types were excluded if there were <5 transactions. Only
full transactions 4100,000 were included.
Source: DataQuick (1112010 - 11/2011)
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; IV 3; trb Page 3 of 10
FIN GCtl:h`d=12Y Cn r_Xl44V
SUMMARY OF RECENT ATTACHED HOME SALES WITHIN ONE MILE OF LIDO VILLAGE (January 2010 -September 2011)
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Unit Size (Sf) Sales Price Price Per Square Foot
Average Year
Count Built Low Hiqh Low Hiqh Median Low Hiqh Average
1 Bedroom - 1 Bath 10 1974 465 1,095 $186,000 $365,000 $258,500 $261 $459 $339
2 Bedroom - 2 Bath 26 1977 682 1,673 $269,500 $615,000 $447,500 $252 $652 $374
2 Bedroom -2.5 Bath 19 1977 1,122 2,115 $339,000 $3,500,000 $500,000 $255 $2,298 $681
Total /Average 45 1977 682 2,115 $269,500 $3,500,000 $460,000 $252 $2,298 $503
3 Bedroom - 2.5 Bath 7 1975 1,531 1,790 $419,000 $810,000 $540,000 $274 $488 $354
3 Bedroom - 3 Bath 8 1975 1,543 1,778 $420,000 $645,000 $557,500 $272 $363 $311
Total /Average 15 1975 1,531 1,790 $419,000 $810,000 $555,000 $272 $488 $331
4 Bedroom - 2.5 Bath 5 1976 1,903 2,315 $530,000 $720,000 $570,000 $229 $372 $303
Note: Data search includes the one -mile radius surrounding the intersection of Lido Marina Village and Newport Beach Boulevard. Unit types were excluded if there were <5 transactions.
Only full transactions 2$100,000 were included.
Source: DataQuick (11/2010 - 11/2011)
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; IV 4; trb Page 4 of 10
ATTACHMENT 4- TABLE 5
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
city
Newport Beach
Newport Beach
Newport Beach
Newport Beach
Newport Beach
Newport Beach
Source: DO News -2011
2008
2010
Single- Family Homes
Condominiums
Change
Change
Home
Median
Change
Zip
Units Median Price
from 2007
Price /SF
Units Price from 2007
92660
197 $1,350
- 15.60%
$608
53 $675
- 27.00%
92661
27 $1,968
- 25.60%
$1,747
5 $950
3.30%
92663
99 $2,000
13.30%
$1,173
77 $565
- 12.50%
2010
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; IV 5; trb Page 5 of 10
Single - Family Homes
Condominiums
Change
Home
Median
Change
Zip
Units Median Price
from 2009
Price /SF
Units Price
from 2009
92660
335 $1,192
11.4%
$509
89 $548
-0.4%
92661
48 $1,968
22.2%
$1,233
5 $650
-44.1%
92663
136 $1,341
14.1%
$858
108 $464
-6.4%
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; IV 5; trb Page 5 of 10
ATTACHMENT 4- TABLE 6
HISTORIC NEWPORT BEACH MARKET RENTS
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Source: RealFacts
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; IV 6; trb Page 6 of 10
Average Asking
Average
Year
Rent
Occupancy
2003
$1,604
93.9%
2004
$1,669
94.5%
2005
$1,791
95.2%
2006
$1,921
94.9%
2007
$2,022
94.8%
2008
$1,966
94.7%
2009
$1,858
93.3%
2010
$1,901
94.6%
2011 (YTD)
$1,952
95.8%
Source: RealFacts
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; IV 6; trb Page 6 of 10
ATTACHMENT 4- TABLE 7
CURRENT NEWPORT BEACH MARKET RENTS
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Source: RealFacts
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; IV 7; trb Page 7 of 10
Units in
Average
Average Rent
Unit Type
Sample
Square Feet
Average Rent
PSF
Studio
773
514
$1,235
2.40
Junio One Bedroom
30
683
$1,785
2.61
One Bedroom - One Bath
2,518
758
$1,646
2.17
One Bedroom - 1.5 Bath
75
1,201
$1,825
1.52
One Bedroom Townhome
24
1,152
$2,400
2.08
Two Bedroom - 1.5 Bath
16
1,100
$2,683
2.44
Two Bedroom - Two Bath
2,818
1,110
$2,303
2.07
Two Bedroom Townhome
292
1,165
$2,251
1.93
Three Bedroom - Two Bath
127
1,484
$3,579
2.41
Three Bedroom - Three Bath
5
1,989
$8,466
4.26
Three Bedroom - Townhome
250
1,372
$2,921
2.13
Overall
6,928
934
$1,987
2.13
Source: RealFacts
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; IV 7; trb Page 7 of 10
ATTACHMENT 4- TABLES
SUMMARY OF LOCAL APARTMENT RENTS
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
No.
Name
Address
Bedrooms
Apartment Sf
Rental Rate
Rent oer Sf
1
The Terrace Apts @ Balboa Bay
1221 W. Coast Hwy
0/1
750
$1,850
$2.47
2
The Terrace Apts @ Balboa Bay
1221 W. Coast Hwy
0/1
870
$2,750
$3.16
3
Newport Bluffs
100 Vilaggio
0/1
549
$1,680
$3.06
Average
723
$2,093
$2.90
4
The Terrace Apts @ Balboa Bay
1221 W. Coast Hwy
1/1
1,137
$3,300
$2.90
5
The Terrace Apts @ Balboa Bay
1221 W. Coast Hwy
1/1
1,357
$3,600
$2.65
6
Mariner Square
1244 Irvine Avenue
1/1
850
$1,747
$2.06
7
Baypointe
2500 Baypointe Drive
1/1
777
$1,915
$2.46
8
Newport North
2Milano
1/1
687
$1,685
$2.45
9
Newport North
2Milano
1/1
681
$1,695
$2.49
10
Newport North
2 Milano
111 + Loft
818
$1,775
$2.17
11
Newport Bluffs
100 Vilaggio
1/1
626
$1,685
$2.69
12
Newport Bluffs
100 Vilaggio
1/1
626
$1,970
$3.15
13
Newport Bluffs
100 Vilaggio
111 + Den
936
$2,120
$2.26
14
The Bays
1 Baywood Drive
1/1
775
$1,710
$2.21
15
The Bays
1 Baywood Drive
1/1
790
$1,710
$2.16
16
The Colony @ Fashion Island
5100 Colony Plaza
1/1
1,008
$2,905
$2.88
17
Newport Ridge
1 White Cap Lane
1/1
751
$2,030
$2.70
18
Newport Ridge
1 White Cap Lane
1/1
799
$1,915
$2.40
19
Promontory Point
200 Promontory Drive West
1/1
760
$2,490
$3.28
20
Promontory Point
200 Promontory Drive West
111 + Loft
870
$2,660
$3.06
21
Promontory Point
200 Promontory Drive West
111 + Loft
1,050
$2,995
$2.85
22
Promontory Point
200 Promontory Drive West
1/1 + Loft
1,050
$3,170
$3.02
23
Promontory Point
200 Promontory Drive West
1/1
750
$2,395
$3.19
24
Promontory Point
200 Promontory Drive West
1/2
850
$2,445
$2.88
Average
855
$2,282
$2.66
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; IV 8; trb Page 8 of 10
L \6 @Cy:L 414:Y CS L•\ :1I =98
SUMMARY OF LOCAL APARTMENT RENTS
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
No.
Name
Address
Bedrooms
Apartment Sf
Rental Rate
Rent oer Sf
25
The Terrace Apts @ Balboa Bay
1221 W. Coast Hwy
212
1,359
$4,000
$2.94
26
The Terrace Apts @ Balboa Bay
1221 W. Coast Hwy
2/2
1,579
$4,700
$2.98
27
Mariner Square
1244 Irvine Avenue
2/1.5
1,280
$2,280
$1.78
28
Baypointe
2500 Baypointe Drive
2/2
1,065
$2,260
$2.12
29
Baypointe
2500 Baypointe Drive
212
1,074
$2,250
$2.09
30
Baypointe
2500 Baypointe Drive
212
1,074
$2,330
$2.17
31
Baypointe
2500 Baypointe Drive
212
1,168
$2,420
$2.07
32
Newport North
2 Milano
212
1,091
$2,040
$1.87
33
Newport North
2 Milano
2/2
926
$1,865
$2.01
34
Newport North
2 Milano
2/2.5
1,071
$2,060
$1.92
35
Newport Bluffs
100 Vilaggio
2/2
945
$2,140
$2.26
36
Newport Bluffs
100 Vilaggio
2/2
945
$2,710
$2.87
37
Newport Bluffs
100 Vilaggio
212
1,103
$2,810
$2.55
38
The Bays
1 Baywood Drive
212
1,075
$2,040
$1.90
39
The Bays
1 Baywood Drive
2/2
1,095
$1,955
$1.79
40
The Bays
1 Baywood Drive
212
1,095
$2,030
$1.85
41
The Bays
1 Baywood Drive
2/1.5
1,355
$2,520
$1.86
42
The Colony @ Fashion Island
5100 Colony Plaza
212
1,273
$3,150
$2.47
43
The Colony @ Fashion Island
5100 Colony Plaza
212
1,273
$3,600
$2.83
44
The Colony @ Fashion Island
5100 Colony Plaza
2/2
1,365
$3,450
$2.53
45
The Colony @ Fashion Island
5100 Colony Plaza
212
1,365
$3,850
$2.82
46
The Colony @ Fashion Island
5100 Colony Plaza
2/2 + Den
1,546
$3,740
$2.42
47
The Colony @ Fashion Island
5100 Colony Plaza
2/2 + Den
1,546
$4,540
$2.94
48
Bordeaux
1 Ambrose
2/2.5
1,303
$2,735
$2.10
49
Bordeaux
1 Ambrose
2/2.5
1,327
$2,800
$2.11
50
Newport Ridge
1 White Cap Lane
212
1,000
$2,240
$2.24
51
Newport Ridge
1 White Cap Lane
2/2
1,039
$2,330
$2.24
52
Newport Ridge
1 White Cap Lane
2/2
1,039
$2,220
$2.14
53
Newport Ridge
1 White Cap Lane
212
1,058
$2,255
$2.13
54
Newport Ridge
1 White Cap Lane
2/2
1,058
$2,130
$2.01
55
Promontory Point
200 Promontory Drive West
212
1,100
$2,495
$2.27
56
Promontory Point
200 Promontory Drive West
212
1,100
$2,770
$2.52
57
Promontory Point
200 Promontory Drive West
2/2
1,065
$2,245
$2.11
58
Promontory Point
200 Promontory Drive West
2/2
1,080
$2,425
$2.25
59
Promontory Point
200 Promontory Drive West
212
1,120
$2,940
$2.63
60
Promontory Point
200 Promontory Drive West
2/2
1,120
$2,680
$2.39
61
Promontory Point
200 Promontory Drive West
212
1,060
$2,525
$2.38
62
Promontory Point
200 Promontory Drive West
212
1,060
$2,845
$2.68
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; IV-8; trb Page 9 of 10
L \6 @Cy:L 414:Y CS L•\ :10 =98
SUMMARY OF LOCAL APARTMENT RENTS
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
No. Name Address Bedrooms Apartment Sf Rental Rate Rent oer Sf
63
Promontory Point
200 Promontory Drive West
212
1,130
$3,605
$3.19
64
Promontory Point
200 Promontory Drive West
212
1,130
$3,455
$3.06
65
Promontory Point
200 Promontory Drive West
212
1,150
$3,145
$2.73
66
Promontory Point
200 Promontory Drive West
2/1.5
1,110
$2,845
$2.56
67
Promontory Point
200 Promontory Drive West
2/2 + Loft
1,490
$3,760
$2.52
Average
1,168
$2,772
$2.36
68
The Terrace Apts @ Balboa Bay
1221 W. Coast Hwy
3/2
1,616
$5,300
$3.28
69
The Terrace Apts @ Balboa Bay
1221 W. Coast Hwy
312
1,836
$6,300
$3.43
70
The Terrace Apts @ Balboa Bay
1221 W. Coast Hwy
3/2.5
2,606
$7,300
$2.80
71
The Terrace Apts @ Balboa Bay
1221 W. Coast Hwy
3/2.5
3,160
$9,300
$2.94
72
The Terrace Apts @ Balboa Bay
1221 W. Coast Hwy
3/3
1,989
$8,000
$4.02
73
The Terrace Apts @ Balboa Bay
1221 W. Coast Hwy
313
2,511
$10,300
$4.10
74
Newport North
2 Milano
3/2.5
1,203
$2,505
$2.08
75
Newport Bluffs
100 Vilaggio
312
1,336
$2,990
$2.24
76
Newport Bluffs
100 Vilaggio
3/2.5
1,317
$3,175
$2.41
77
Newport Bluffs
100 Vilaggio
3/2.5
1,317
$3,490
$2.65
78
The Bays
1 Baywood Drive
312
1,285
$2,615
$2.04
79
The Bays
1 Baywood Drive
3/2
1,305
$2,520
$1.93
80
Bordeaux
1 Ambrose
3/2.5
1,507
$3,180
$2.11
81
Bordeaux
1 Ambrose
3/2.5
1,634
$3,075
$1.88
Average
1,759
$5,004
$2.71
Note: Apartments without known square footages were not included
Source: Apartments.com, 1112011
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; IV 8; trb Page 10 of 10
ATTACHMENT 5
HOTEL MARKET ANALYSIS
12020026; NB:KHH
16092.001/001
ATTACHMENTS - TABLET
2005 -2011 OCCUPANCY RATES'
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Coastal Orange
County Orange County
2005
65.6%
71.7%
2006
69.6%
72.7%
2007
70.8%
72.9%
2008
68.3%
71.0%
2009
58.0%
64.3%
2010 (E)
64.2%
68.5%
2011 (F)
67.4%
70.2%
Average
66.1%
70.2%
E - Estimate
F - Forecast
(1) Source: PKF "The 2011 Southern California Lodging Forecast"
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; V_1; trb Page 1 of 4
ATTACHMENT S- TABLE 2
2005 -2011 AVERAGE DAILY RATE'
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Coastal Orange
County Orange County
2005
$219.44
$104.69
2006
$238.88
$118.16
2007
$258.85
$128.17
2008
$252.15
$128.16
2009
$220.50
$115.51
2010 (e)
$220.23
$113.35
2011 (f)
$230.14
$118.82
Average
$234.31
$118.12
E - Estimate
F - Forecast
(1) Source: PKF "The 2011 Southern California Lodging Forecast"
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; V_2; trb Page 2 of 4
ATTACHMENT S- TABLE 3
2005 -2011 ANNUAL REVPAR (occupancy x room rate)
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Coastal Orange
County Orange County
2005
$143.94
$75.06
2006
$166.37
$85.92
2007
$183.19
$93.37
2008
$172.13
$90.94
2009
$127.80
$74.30
2010 (e)
$141.37
$77.68
2011 (f)
$155.11
$83.41
Average
$155.70
$82.95
E - Estimate
F - Forecast
(1) Source: PKF "The 2011 Southern California Lodging Forecast"
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; V_3; trb Page 3 of 4
ATTACHMENT S- TABLE 4
HOTEL MARKET PERFORMANCE'
LIDO VILLAGE, BALBOA VILLAGE, MARINER'S MILE MARKET STUDY
NEWPORT BEACH, CALIFORNIA
Oranae Count
2005
71.7%
$104.69
Occupied
Occupied
$75.06
2006
72.7%
Average
Room Nights
Room Nights
$85.90
RevPar
2007
Occupancy
Daily Rate
Per Year
Change
RevPar
Chance
Coastal Orange
County
$128.16
13,580,431
-1.8%
$90.99
-2.6%
2009
2005
65.6%
$219.44
1,125,991
$74.27
$143.95
2010 (e)
2006
69.6%
$238.88
1,195,556
6.2%
$166.26
15.5%
2007
70.8%
$258.85
1,214,602
1.6%
$183.27
10.2%
2008
68.3%
$252.15
1,180,274
-2.8%
$172.22
-6.0%
2009
58.0%
$220.50
1,083,815
-8.2%
$127.89
-25.7%
2010(a)
64.2%
$220.23
1,214,808
12.1%
$141.39
10.6%
2011 (f)
67.4%
$230.14
1,275,548
5.0%
$155.11
9.7%
2005 -11
2.7%
4.9%
13.3%
2.1%
7.8%
Oranae Count
2005
71.7%
$104.69
12,326,014
$75.06
2006
72.7%
$118.16
13,245,130
7.5%
$85.90
14.4%
2007
72.9%
$128.17
13,825,532
4.4%
$93.44
8.8%
2008
71.0%
$128.16
13,580,431
-1.8%
$90.99
-2.6%
2009
64.3%
$115.51
12,520,143
-7.8%
$74.27
-18.4%
2010 (e)
68.5%
$113.35
13,501,934
7.8%
$77.64
4.5%
2011 (f)
70.2%
$118.82
13,848,941
2.6%
$83.41
7.4%
2005 -11
-2.1%
13.5%
12.4%
2.0%
11.1%
E - Estimate
F - Forecast
(1) Source: PKF "The 2011 Southern California Lodging Forecast"
Prepared by: Keyser Marston Associates, Inc.
File name: 3_29_12_NB Mkt Study; V_4; trb Page 4 of 4
AINISPRS IN
REAL ESTATE
REDEVELOPMENT
AFFORDABLE HOUSING
ECONOMIC DEVELOPMENT
SAN FRAHOM I
A. JERRY KEYSL I%
TIMOTHYC. MIN
KATE EARLE FLINT.
DEBBIE M. KERN
ROBERT I. WETMORF
REED T. KAWAHARA
LOS ANGE (I
KATHLEEN H. HEAI I
JAMES A. RAJA
PAUL C. ANDERSON
GREGORY D. SOO -HOO
KEVIN E. ENGSTROM
JULIE L ROMEY
DENISE BICKERSTAFF
SAN Dnr.O
GERALD M. TUMBLE
PAUL C. MARRA
3010,.
KEYSER MARSTON ASSOCIATES.
ADVISORS IN PUBLIC /PRIVATE REAL ESTATE DEVELOPMENT
MEMORANDUM
To: Kimberly Brandt, Director Community Development Department
City of Newport Beach
From: Kathleen Head
Kevin Engstrom
Date: April 10, 2012
Subject: Balboa Village: Implementation Strategies
In an accompanying analysis, Keyser Marston Associates, Inc. (KMA) evaluated the
market opportunities available in the Balboa Village Study Area. The following analysis
provides KMA recommendations for strategies the City of Newport Beach (City) can
potentially implement to enhance the economic development opportunities in Balboa
Village. The KMA recommendations are based, in part, on the market opportunities
analysis results and interviews with stakeholders in the Balboa Village Study Area.
BACKGROUND STATEMENT
Market Analysis Summary
The KMA market study identified the following opportunities and constraints for the
Balboa Village Study Area:
Retail
Retail demand is typically driven by residents, with ancillary support provided by visitors.
The market area for Balboa Village is characterized by high- income households, but the
population base is too small to support a significant amount of retail development. For
this reason, the viability of retail development is largely dependent on visitors that are
drawn to the ocean and the bay.
SOO SOUTH GRANDAVENUE, SUITE 14801 LOS ANGELES. CALIFORNIA90071 ► PHONE: 2136228095 > FAK:2136225204
1202003_5; NB:KHH:KEE
W W W.KEYSERMARSTON.COM 16092.001/001
To: Kimberly Brandt, City of Newport Beach April 10, 2012
Subject: Balboa Village: Implementation Strategies Page 2
The attraction of visitors to Balboa Village is constrained by access issues. This
problem is exacerbated by the fact that there are a number of competing commercial
concentrations with more conveniently located along the route to Balboa Village. These
issues to do not deter visitors during the peak season, but they do limit opportunities
during non -peak times.
The retail sales volumes being achieved in Balboa Village suggest that there is currently
a surplus of retail space. This can lead to property owners being forced to accept less
desirable tenants, at lower rents, in order to keep the space occupied. This will
ultimately compromise the viability of the retail development.
The development of the ExplorOcean project and the opening of the Balboa Performing
Arts Theater could provide a catalyst for specific types of retail development. The most
likely uses are small -scale sit -down restaurants and retailers that can benefit from visitor
demand and the development of the catalytic projects.
Office
The market analysis concluded that Balboa Village does not have the locational
characteristics required to support a significant amount of office development. The
demand for office space in Balboa Village is very limited, and that demand is likely to be
drawn primarily from small professional firms.
Residential
Balboa Village exhibits appealing characteristics for both rental and ownership
residential development. Given that Balboa Village has a number of parcels that have
Mixed -Use Vertical zoning designations, it is likely that residential development will be
concentrated in a mixed -use environment. Recognizing the limited retail demand in
Balboa Village, it is anticipated that the premium value associated with the residential
use will be needed to backstop the ground -floor commercial space.
Hotel
The market analysis concluded that demand may exist for a 35 to 45 room hotel.
However, it may be difficult to attract this type of hotel due to operating inefficiencies,
marketing and financing issues. Given these factors, it is unlikely that a private property
owner would undertake this type of development. However, this type of project may be
well suited for development on the City -owned parking lot at Palm Street and Balboa
Boulevard.
1202003_5; NB:KHH:KEE
16092.001/001
To: Kimberly Brandt, City of Newport Beach April 10, 2012
Subject: Balboa Village: Implementation Strategies Page 3
Development Constraints
Low population densities and accessibility concerns limit commercial viability in Balboa
Village. In addition, Balboa Village stakeholders identified perceived development
constraints such as density and height limits; stringent parking requirements; and the
intense role the public plays in the approval process for proposed development projects.
EXECUTIVE SUMMARY
The KMA implementations strategy analysis is organized as follows:
1. Implementation Activities:
a. A discussion of the potential zoning modifications and regulatory relief
that the City could offer to assist in attracting desired development is
provided.
b. An array of economic development activities that could be undertaken by
the City are described.
C. A sample of potential marketing and activities programs are discussed.
2. Financial resources available to assist in economic development and capital
improvement programs in Balboa Village are identified.
3. Conceptual pro forma analyses for potential development of the 37,717 square
foot City -owned parking site at Palm Street and Balboa Boulevard are presented.
Based on our analysis of Balboa Village, KMA recommends the following
implementation strategy actions. These recommendations call for focused use of
available City resources to achieve the desired enhancement of the Balboa Village
Study Area:
1. The City should consider selectively modifying development standards, and
providing regulatory relief, in order to enhance development opportunities in
Balboa Village.
2. The City should evaluate the opportunity for creating economic development
programs in Balboa Village. Potential programs include:
a. The City should consider supporting and facilitating the development of
ExplorOcean and the Balboa Theater.
1202003_5; NB:KHH:KEE
16092.001/001
To: Kimberly Brandt, City of Newport Beach April 10, 2012
Subject: Balboa Village: Implementation Strategies Page 4
b. A fagade improvement program could be developed. The program could
be set up to provide seed money to qualified property owners throughout
the area, or it could involve the City funding all of the improvements in a
designated target area.
C. A tenant improvement loan program could be created to attract desirable
new tenants to Balboa Village.
d. Business attraction programs could be devised that provide assistance to
defray start-up expenses for selected businesses.
e. A public improvement plan could be developed to provide enhancements
to Balboa Village.
3. The City should establish a marketing /activity program to attract visitors during
off -peak periods.
4. Parking:
a. The City should consider creating a Parking Management Plan that
addresses parking congestion issues. As part of the Plan, the City may
wish to form a Parking Benefit District to generate revenues that would be
programmed by the City Council.
b. The City should evaluate the potential for renting parking spaces in the
City -owned beach lot to recreational vehicles during off -peak periods.
The allocation of the revenues generated by this activity would be based
on City Council policy decisions.
5. It may be advantageous to make the City -owned site available for development.
KMA performed conceptual pro forma analyses for this site that generated the
following order -of- magnitude results:
a. The development of a 237 space stand -alone public parking structure
generates an annual shortfall of approximately $532,000 per year.
b. A public parking structure with a hotel on the upper levels could
potentially generate net revenue to the City. However, to attract a hotel
during the near term, it will likely be necessary to provide a discounted
ground -lease payment structure and /or a reduction in the City's parking
requirements.
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C. A private development with ground -floor commercial space and upper -
floor residential units is projected to support ground -lease payments that
could potentially be used to fund programs identified in this Balboa Village
implementation strategy.
IMPLEMENTATION ACTIVITIES
Regulatory Relief
Zoning
The City has the ability to establish zoning guidelines that incentivize private sector
development and redevelopment. Important factors under the City's control include
parking requirements, height limits, density, and land use flexibility. The current zoning
standards for Balboa Village maintain the general character of the area. However, given
the premium costs that must be incurred to purchase improved properties, the relatively
low allowable densities, height limitations and parking standards inhibit the potential for
existing uses to be redeveloped. It may be advisable to selectively increase the
allowable densities, and to eliminate parking requirements for new or intensified
commercial uses, to attract uses that meet the City's goals and objectives.
Permit and Entitlement Process
The permit and entitlement process in Newport Beach is perceived to be difficult. In
addition to the lengthy time projects require to move through the City's process,
developers in Balboa Village also need to obtain California Coastal Commission
approvals. The combination of these two factors can extend a project's development
timeline for months and even years.
An extended development timeframe can have a significant impact on development
feasibility, as the carrying costs for property acquisitions can be significant, the pre -
development costs are increased and shifts in the financial and real estate markets can
render projects infeasible. As such, it may be advantageous for the City to streamline
the entitlement process for projects that meet defined goals and objectives.
Economic Development Programs
Cultural Uses
It is anticipated that both the Balboa Performing Arts Theater and ExplorOcean projects
will provide catalytic benefits to the surrounding area. These projects are expected to
draw visitors from outside the area, and to help offset the significant seasonality for the
commercial sector. In particular, restaurants, miscellaneous retailers and lodging
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establishments could benefit from the increased visitation created by these
developments. Therefore, it would be advantageous for the City to support and facilitate
the development of these uses.
Fagade Improvement Programs
Fagade improvement programs can be implemented to assist in creating aesthetically
pleasing, tenant preferred, commercial space. A well designed program can increase
business exposure, enhance visual attractiveness, stimulate private investment and
create harmonious commercial districts. Fagade improvement assistance programs run
the gamut from the provision of seed money to property owners, to programs that fund
100% of the approved fagade improvement costs.
To entice property owners to participate in the program, fagade improvement assistance
is often provided in the form of a grant. However, to ensure that the desired tenancies
remain in place over a specified timeframe, this assistance is sometimes treated as a
forgivable loan. For example, the loan could be forgiven in 20% increments over a five
year period. In that case, if a tenant remains for the entire five years, then the loan is
forgiven in full.
Typically, the eligible work is limited to upgrading the facades that are visible from the
street. The eligible improvements can include painting, masonry cleaning, exterior
fighting, signage, accessibility improvements and so forth.
Seed Money Program
In a seed money program, the City would establish a loan or grant fund that provides
qualified property owners with a grant or loan equal to a portion of the fagade
improvement costs. For example the City could contribute up to 50% of the eligible
fagade improvement costs up to a defined limit. One way to measure the grants is to tie
the assistance to the number of linear feet encompassed by the fagade. For example,
seed money assistance could be set within the following range:
Fagade under 25 feet $15,000
Fagade between 25 and 50 feet $25,000
Fagade between 50 and 75 feet $37,500
Fagade above 75 feet $50,000
In a seed money program it is advisable for the City staff to identify target buildings, and
to notify the property owners that the program is available. To further encourage
participation, it may be useful to offer technical assistance to these owners in the
preparation of the loan /grant applications.
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Full Cost Program
A more aggressive program would involve the City controlling the entire process. In this
program, the City would bear the entire cost burden for the fagade improvements. In
return, building owners would grant the City a fagade easement, typically in the range of
10 years. In addition, after the improvements are completed, the property owners would
be responsible for ongoing upkeep of the improvements.
To achieve the maximum impact, this type of program would require the participation of
all the owners within the designated target area. With the City controlling the process,
the design elements would be consistent, economies of scale could be achieved for the
construction costs, and the improvements could be completed expeditiously. For
reference purposes, the costs incurred by other programs have fallen in the range of
$1,000 to $1,800 per linear foot. Based on the characteristics of Balboa Village
commercial properties, the total cost is estimated to range from approximately $100,000
to $175,000 per building
Tenant Improvement Loans
Tenant improvement loan programs are designed to bring new desirable tenants to an
area. The tenants that are selected to receive assistance should meet defined City
objectives such as significant sales tax generation; ability to attract shoppers, diners,
and visitors; and /or creation of "spin off' benefits to other businesses in the area. These
programs are typically utilized to catalyze an area that is underperforming by making it
financially attractive for desired tenants to rent space in the area.
In a tenant improvement loan program, the City assistance would be provided to
qualified businesses to improve building interiors; assistance related to business
operations should not be provided. Tenant improvement loans are particularly useful for
restaurants, which have higher tenant improvement costs than other commercial uses
due to the required kitchen equipment, d6cor and furnishings. However, they can also
be used to attract desired retail shop space.
Programs that KMA has assisted in structuring require the building owner, the tenant
and the City to contribute funds for the tenant improvement costs. The City contribution
is typically capped at no more than 50% of the tenant improvement costs, and the
assistance costs have fallen in the range of $30 to $70 per square foot of building area.
The cost range is directly tied to type of tenancy and the magnitude of the improvements
being constructed.
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Tenant improvement programs often structure the assistance as a forgivable loan. A
common structure is to allow for annual forgiveness of principal and interest payments
as long as the tenant remains in place. Under this structure, the City can also require
the tenant to provide participation payments to the City in any year that the tenant's
gross sales exceed a defined threshold.
Business Attraction Programs
The City could create a program that provides credits to business license fees, utility
users taxes and certain building permit fees on a project -by- project basis. This program
could apply to businesses in specific sectors of the economy. The program should
provide assistance over a limited period of time, with the goal of reducing the risks
during the initial start-up period for the selected businesses.
Public Improvement Program
The City could create a public improvement program that provides enhancements to the
Balboa Village area. This program could identify and fund needed improvements such
as new or refurbished street furniture, benches, planters, trash receptacles, etc. As part
of this program, the City could develop a maintenance plan for the Boardwalk and other
public spaces.
Marketing /Activity Programs
The City could establish a marketing /activity program for Balboa Village that would
attract patrons during the off -peak season. The activities should be oriented toward the
interests of both residents and employees in the area. Local businesses and the
community could collaborate in identifying and sponsoring those events that contribute
to Balboa Village's identity and vitality. For instance, activities such as farmers' markets
and events such as Lobsterfest can stimulate activity during non -peak times and
L-1*1:141 a F9
The City should work with the existing Business Improvement District (BID) in the area to
explore activities that are well suited to Balboa Village. These activities would then
serve as marketing programs for the area.
Parking
Parking Management Plan
In concurrence with the Nelson \Nygaard parking study findings, KMA believes the City
should consider the creation of a Parking Management Plan in Balboa Village. A
Parking Management Plan could address parking congestion and demand issues by
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setting parking rates at amounts designed to keep an appropriate percentage of the
spaces vacant and available. New parking meter technologies have improved customer
convenience by providing several different payment options, while at the same time
maximizing revenues by allowing for more effective and precise time windows, and
reduced operating costs.
The Parking Management Plan could potentially include the creation of a Parking Benefit
District that would generate revenues that could be used to pay for existing Tidelands
parking obligation shortfalls. Once those obligations have been fulfilled, the City Council
could make a policy decision regarding the deployment of these funds. One option
would be to use the revenues to fund economic development and capital improvement
programs.
Recreational Vehicle Parking Program
The Nelson \Nygaard parking study concluded that excess parking spaces are available
during off -peak periods. It may be advantageous to create a program that allows
recreational vehicle owners to rent spaces in the City -owned beach parking lot during
the off -peak seasons. This use would create revenues that could be programmed by the
City Council. It would also add to the close -in population that will create demand for
goods and services during the off -peak seasons.
FINANCIAL RESOURCES
KMA identified 13 different funding sources and financing mechanisms that are
potentially available to the City (See Attachment 1). KMA then evaluated each funding
source and financing mechanism to identify the tools that offer the best chance of
success in Balboa Village. The potential tools are described in the following table:
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Page 10
Source
Description
Community Development Block Grant
These funds are awarded to the City by
Funds (CDBG)
the federal government. The funds can
be used to achieve defined national
objectives, including the construction of
public improvements such as
streetscape improvements.
Disposition of City Assets
The City can sell or lease City owned
property to attract desired uses.
General Fund
Includes sales taxes, transient
occupancy taxes (TOT), property taxes,
motor vehicle license fees, etc. These
funds can be used to fund economic
development and capital programs.
Parking Benefit District Revenues and
Parking revenues can be used to fill gap
Recreational Vehicle Parking Revenues
in funding existing parking obligations.
In the future, the City Council could
make the policy decision to direct
revenues back into Balboa Village to
fund implementation activities.
Community Facilities Districts (CFD)
A special tax is assessed on properties
and Special Assessment Districts
to fund public facilities and services.
Development Impact Fees
The City can impose impact fees directly
tied to improvements and /or services
necessitated by development.
Developer Advances
Developers can be asked to pay for
public improvements in return for
repayment from the public revenues
generated by their project over time.
California Infrastructure and Economic
The Bank offers a low interest bonds for
Development Bank ([BANK)
projects such as streets, parks, and
transit. The loans range from $250,000
to $10 million.
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DEVELOPMENT PROGRAMS
The 37,717 square foot City -owned site located at Palm Street and Balboa Boulevard
offers a major opportunity to catalyze the surrounding area. To test the potential for
development on this "Study Site ", KMA prepared pro forma analyses to provide order -of-
magnitude estimates of the operating costs and /or land values that can be supported by
three development alternatives.
It is important to note that the pro forma analyses are conceptual in nature, and should
only be used to gain an understanding of the relative viability of the three alternatives
being tested. It will be necessary to re- evaluate the results of the analysis if and when a
formal development proposal is submitted for the Study Site.
Development Standards
To identify potential development programs, KMA reviewed the City's "Development
Standards for Vertical and Horizontal Mixed -Use Zoning Districts" and worked with the
City to estimate the potential scale of development. Assuming the projects are vertical
mixed use, key sizing factors for the prototypes include:
1. Residential lot area required: The minimum lot size is set at 1,631 per square
foot per unit. This allows for a maximum of 19 residential units on the 31,717
square foot Study Site.
2. Floor Area Ratio (FAR): The FAR is allowed to be .35 to .50 for non - residential
uses, and 1.0 for residential uses. This indicates that the commercial space
could range from 11,100 square feet to 15,850 square feet, and the residential
use would be capped at 31,717 square feet of building area.
3. Height: The height limit is set at 31 feet with a sloped roof. This allows for three
levels of development.
Prototype Projects
Alternative 1— Public Parking Structure
Alternative 1 is a 237 space, three -level parking structure. Current parking demand
during the peak summer months is extremely high, but it is very modest during the non -
peak seasons. However, the potential development of two catalytic projects,
ExplorOcean and The Balboa Performing Arts Theater, could generate demand for
additional parking in the area during the non -peak seasons. Further, a public parking
structure could allow for parking requirements to be relaxed for new or intensified
development.
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Alternative 2 — Public Parking Structure with Hotel
Alternative 2 is comprised of a four -story structure with 154 parking spaces on the first
two floors, and 44 hotel units on the top two floors. The garage would include 44
dedicated spaces for the hotel and 110 spaces available to the public. The public
parking spaces would address the same issues identified in Alternative 1, while the hotel
would meet the General Plan's goal of introducing a small -scale lodging development
into the area.
Alternative 3 — Mixed -Use Commercial and Residential
Alternative 3 is a project that includes apartments and ground -floor commercial space.
The commercial component consists of 11,100 square feet, and the residential includes
19 rental units. This mix maximizes the number of residential units and minimizes the
amount of commercial space in the project. To maximize the residential square footage,
a mix of 1,400 and 1,600 square foot units are assumed, as presented in the following
table:
Building Area
Residential Development
Nine Units at 1,400 square feet
12,600
Ten units at 1,600 square feet
16,000
Circulation & Public Amenities (10 %)
2,860
Total Residential Development
31,460
Commercial Development
11,100
Parking'
41,200
Total Building Area
83,760
Summary of Development Alternatives
The identified development alternatives were selected for the following reasons:
1. The public parking structure alternative was selected, because it has the
potential to catalyze private development in the vicinity. Ground -floor commercial
space was not included, because the limited income it would generate would not
significantly defray the costs associated with this alternative.
Assumes 2.5 spaces per residential unit and 5.0 spaces per 1,000 square feet of commercial
space.
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2. Hotel development was evaluated, because it is considered a desirable use, and
given investment constraints, it is unlikely to occur without the provision of public
financial incentives.
3. The vertical mixed -use project with a small amount of ground -floor commercial
space and upper -level residential units was tested to demonstrate the land value
supported by a project that is deemed feasible from both market and financial
feasibility standpoints.
Financial Analysis: Alternative 1 — Public Parking Structure
The pro forma analysis for Alternative 1 is shown in Attachment 2. The parking structure
is assumed to include 237 spaces at an average of 400 square feet per space. This
equates to a 94,800 square foot structure.
Estimated Construction Costs (Attachment 2 — Table 1)
The KMA construction cost analysis is based on the following assumptions:
1. Direct Construction Costs:
a. The on -site improvement costs are estimated at $7.00 per square foot of
land area.
b. The direct building costs are estimated at $20,000 per space, for a total of
$5.9 million.
C. A 10% direct cost contingency allowance is provided.
2. Indirect Costs:
a. The indirect cost estimates used in the analysis are based on industry
standards.
b. KMA assumed that no public permits and fees cost would be applied to
the public parking structure. The City staff will need to verify the accuracy
of this assumption.
3. The construction period financing costs are based on an 18 month construction
period, and the assumption that the City will use bond funds to finance the
structure at a 5% interest rate.
As shown in Attachment 2 — Table 1, the total construction costs are estimated at $8.6
million. This equates to $36,000 per space.
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Stabilized Net Operating Income (Attachment 2 - Table 2)
The following income analysis projects the on -site revenue generated by the parking
structure. It should be noted that the projection does not address the transfer of parking
revenues from other spaces in Balboa Village. Given the fact that the Nelson \Nygaard
parking study concluded that outside the peak months there is limited to no demand
demonstrated for new parking spaces in Balboa Village, when this transfer is
considered, it is possible that the net new revenues could be minimal.
The net operating income estimates are based on the following assumptions:
Peak Day Revenues:
a. The Nelson \Nygaard parking analysis concluded that there are 30 peak
days per year, and that the spaces in the existing lot are utilized by 1.84
cars per day.
b. The parking revenue is estimated at $5.52 per space per day. This
translates to $39,000 per year for the 237 space garage.
2. Off -Peak Day Revenues:
a. The utilization of the existing parking lot is relatively limited during the
non -peak days. However, the proposed ExplorOcean project and Balboa
Performing Arts Theater may generate additional parking demand in
Balboa Village.
b. Based on the potential and existing parking patterns, KMA estimated that
on average, each space in the garage would be used for at least one hour
per day by 1.84 cars .2
C. The parking rate is set at $1.50 per hour, which results in total annual
revenues of approximately $219,000.
3. The annual parking expenses are estimated at $500 per space.
The stabilized net operating income is estimated at $139,000.
2 This is an aggressive estimate based on the survey research conducted by Walker Parking and
reviewed by Nelson \Nygaard.
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Net Annual Revenue /(Cost) to the City (Attachment 2 - Table 3)
As shown in Attachment 2 — Table 3, KMA's analysis assumes the City would utilize
bond financing to pay for the project. To that end, we have provided an order -of-
magnitude debt service estimate for the project based on the following assumptions:
1. Total construction costs of $8.59 million;
2. Bond issuance and contingency costs equal to 10% of total project costs; and
3. A 5% interest rate and a 25 -year amortization term.
Based on these assumptions, the annual debt service for the project is $671,000.
Comparatively, the net operating income is estimated at $139,000. Therefore, KMA
estimates a funding shortfall of approximately $532,000 per year for Alternative 1.
Financial Analysis: Alternative 2 — Public Parking Structure with Hotel
The pro forma analysis for Alternative 2 is shown in Attachment 3. Attachment 3A
estimates the return on investment for a 44 -room hotel served by 44 parking spaces
located in a parking garage below the hotel. Attachment 3B estimates the costs for 110
spaces public parking spaces that would be included in the garage. The pro forma
analysis projects the City revenues that could be generated from the parking and the
hotel ground lease.
Hotel (Attachment 3A)
The development scope assumes vertical mixed -use zoning for the project, which would
allow for a commercial /hotel FAR of 1.0. Based on this standard, the hotel would include
31,717 square feet of building area. Typically, boutique hotels range from 600 to 800
square feet per key, and for this analysis we applied the midpoint of 700 square feet.
This results in a total room count of 44 units. It is further assumed that the hotel would
occupy the top two floors of the structure to take advantage of the views.
Estimated Construction Costs (Attachment 3A - Table 1)
The KMA construction cost analysis is based on the following assumptions:
Direct Construction Costs:
a. The on -site improvement costs are estimated at $7.00 per square foot of
land area.
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b. The hotel developer would be responsible for paying the cost to construct
44 parking spaces in the on -site garage. The direct construction costs
are estimated at $20,000 per space, or $880,000.
C. The direct building costs for the hotel are estimated at $150 per square
foot of building area, or $4.8 million.
d. KMA provided a $25,000 per room allowance for furniture, fixtures and
equipment (FF &E) costs. This reflects a high quality level.
e. A 10% direct cost contingency allowance is provided.
2. Indirect Costs:
a. The indirect cost estimates used in this analysis are based industry
standards.
b. The public permits and fees costs are estimated at $10 per square foot of
building area. The City staff should verify the accuracy of this estimate.
3. The financing costs are based on the following assumptions:
a. The construction period is set at 18 months, and the interest rate is set at
7 %.
b. The loan to value ratio is set at 65 %, and the loan origination fees are set
at two points.
As shown in Attachment 3A — Table 1, the total construction costs are estimated at $10
million. This equates to approximately $228,000 per room.
Stabilized Net Operating Income (Attachment 3A — Table 2)
Attachment 3A- Table 2 summarizes the stabilized net operating income for the hotel.
Based on our review of the market, and typical operating parameters for small -scale
boutique hotels, KMA estimated the project's net operating income as follows:
1. Hotel Operating Income:
a. The average daily rate (ADR) for the hotel is estimated at $230, and the
average occupancy level is set at 67 %. This is consistent with the
average for Coastal Orange County properties in 2011.
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b. The revenue from "other' operating departments could include food and
beverage, vending machines, telephone and rentals.
C. The parking revenues assume an 80% utilization rate for the parking
spaces and a $15 overnight fee.
2. Operating Expenses
a. The undistributed expenses are estimated at 23% of gross revenues.
These expenses include: administration, marketing /franchise costs,
maintenance, utilities and management fees.
b. The fixed expenses are estimated at 5% of gross revenues, and include
insurance and reserves.
C. Property taxes are estimated at 1.1 % of project costs.
3. The analysis assumes the developer would enter into a ground or air rights lease
with the City. Assuming this is case, KMA estimated the annual ground lease
payments at 8% of room revenues, which is generally consistent with the current
ground leases for the other Southern California coastal communities.
As shown in Attachment 3A — Table 2, the stabilized net operating income is estimated
at $925,500.
Estimated Developer Return (Attachment 3A — Table 3)
The stabilized return on investment is estimated by dividing the net operating income by
the total construction cost for the project. As can be seen in Attachment 3A — Table 3,
the stabilized developer return for the 44 -room hotel is estimated at 9.22 %. This level of
return is lower than the typical investor requirements of 10% to 11 % for this type of
product.
The market conditions for hotels have improved over the past two years; however,
occupancy and ADR levels have still not reached 2007 peak levels. KMA conducted a
sensitivity test for the project and found that an 8% increase in project RevPAR would
provide a 10% return on costs for the project, and a 12% increase in RevPAR would
provide an 11 % return on costs.
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Parking (Attachment 3B)
The pro forma analysis for the 110 public parking spaces is presented in Attachment 3B.
At an average of 400 square feet per space, the public parking space area totals 44,000
square feet.
Estimated Construction Costs (Attachment 3B - Table 1)
The KMA construction cost analysis is based on the following assumptions:
1. Direct Construction Costs:
a. The on -site improvement costs are estimated at $7.00 per square foot of
land area.
b. The direct building costs are estimated at $20,000 per space, for a total of
$2.2 million.
C. A 10% direct cost contingency allowance is provided.
2. Indirect Costs:
a. The indirect costs are based on industry standards.
b. KMA assumed that no public permits and fees costs would be assessed
against the parking structure. The City will need to verify the accuracy of
this assumption.
3. The construction period interest costs are based on an 18 month construction
period and the assumption that the City will use bond financing at a 5% interest
rate to finance the parking structure costs.
As shown in Attachment 3B — Table 1, the total construction costs are estimated at $3.4
million. This equates to $31,000 per space.
Stabilized Net Operating Income (Attachment 3B - Table 2)
1. For the Alternative 2 analysis, KMA applied the same underlying revenue
assumptions as were used for Alternative 1. The resulting projected parking
revenues are:
a. The peak day revenues are estimated at $18,000 per year.
b. The off -peak day revenues are estimated at $102,000.
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2. The annual parking expenses are estimated at $500 per space.
Based on the preceding assumptions, the stabilized net operating income for the public
parking is estimated at $65,000. In addition to the parking revenue, the hotel is
estimated to generate $228,000 per year in ground rent payments. The total project
income for Alternative 2 is estimated at $293,000.
Net Annual Revenue /(Cost) to the City (Attachment 3B - Table 3)
As shown in Attachment 3B — Table 3, KMA's analysis assumes the City utilizes bond
financing to pay for the project. To that end, we have provided an order -of- magnitude
estimate of the annual debt service costs for the parking structure based on the following
assumptions:
1. Total construction costs of $3.4 million;
2. Bond issuance and contingency costs equal to 10% of total project costs; and
3. A 5% interest rate and a 25 -year amortization term.
Based on these assumptions the annual debt service for the public parking is $267,000.
Comparatively, the total project income is estimated at $293,000. Therefore, KMA
estimates net annual revenue to the City of $26,000 for Alternative 2.
Financial Analysis: Alternative 3 — Mixed Use Commercial and Residential
The pro forma analysis for Alternative 3 is shown in Attachment 4. This Alternative
includes 19 apartment units and 11,100 square feet of commercial space. It should be
noted that this Alternative would remove a significant number of parking spaces from
Balboa Village; however, the Nelson \Nygaard study indicates an adequate supply of
parking spaces during the majority of the year.
Estimated Construction Costs (Attachment 4 - Table 1)
The KMA construction cost analysis is based on the following assumptions:
1. Direct Construction Costs:
a. The on -site improvement costs are estimated at $7.00 per square foot of
land area.
b. A total of 104 parking spaces must be provided to serve the project. At a
direct cost of $20,000 per space, the costs are estimated to total $1.11
million.
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C. The building shell costs are estimated at the high end of the range for
mixed -use projects reviewed by KMA in the region. These costs are
estimated as follows:
i. The residential costs are estimated at $120 per square foot of
building area; and
ii. The commercial costs are estimated at $110 per square foot of
building area.
d. A 10% direct cost contingency allowance is provided.
2. Indirect Costs:
a. The indirect cost estimates used in the analysis are based on industry
standards.
b. KMA applied a placeholder estimate for the public permits and fees costs
that will need to be verified by the City. The estimated costs are:
i. $20,000 per unit for the residential units; and
ii. $10 per square foot of building area for the commercial use.
3. The financing costs are based on the following assumptions:
a. The construction period is set at 18 months and the interest rate is set at
7 %.
b. A 70% loan to value ratio is applied, and the loan origination fees are set
at two points.
As shown in Attachment 4 — Table 1, the total construction costs are estimated at $10.95
million. This equates to $260 per square foot of building area.
Stabilized Net Operating Income (Attachment 4 - Table 2)
KMA estimated the achievable residential rents based on the following methodology:
1. The average rent found in a KMA survey of Newport Beach apartment projects is
$1,990 per unit, or $2.10 per square foot per month.
1202003_5; NB:KHH:KEE
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To: Kimberly Brandt, City of Newport Beach April 10, 2012
Subject: Balboa Village: Implementation Strategies Page 21
2. The pro forma used in this analysis is based on a review of high -end projects in
Newport Beach. KMA found that these units are generating rents that are
approximately 12% higher than the citywide average.
3. KMA applied a 10% premium over this average to reflect the premium associated
with new construction.
4. The resulting residential rent estimates are:
a. 1,400 Sf Units - $3,640 ($2.60 per square foot)
b. 1,600 Sf Units - $4,080 ($2.55 per square foot)
The income projected to be generated by the project annually can be summarized as
follows:
1. The gross residential rent income is estimated at $882,700 per year. When a
$15 allowance is provided for miscellaneous income and a 5% vacancy and
collection allowance is included, the residential effective gross income is
estimated at $841,800.
2. The commercial rents are estimated at $3.00 per square foot per month, given
the Study Site's high visibility in Balboa Village. After a 5% vacancy and
collection allowance is applied, the commercial effective gross income is
estimated at $379,600.
3. The operating expense estimates for residential and commercial uses are based
on KMA's experience with similar projects in the region. The total operating
expenses are estimated at $283,600.
The resulting stabilized net operating income is estimated at $937,800.
Residual Land Value (Attachment 4 - Table 3)
The land value that can be supported by the project is equal to the difference between
the estimated construction costs and the amount of private investment that can be
obtained. For this Alternative, the residual land value is estimated as follows:
Supportable Private Investment
The amount of private investment that can be supported is based on the project's net
operating income and the threshold returns being required by investors in the
marketplace. KMA estimates the supportable investment for the project based on the
following assumptions:
1202003_5; NB:KHH:KEE
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To: Kimberly Brandt, City of Newport Beach April 10, 2012
Subject: Balboa Village: Implementation Strategies Page 22
The net operating income for the project is estimated at $937,800.
2. The threshold return on total investment is estimated at 6.9 %. This return is
based on the weighted average of the following:
a. The threshold return for the residential component is set at 6 %; and
b. The threshold return for the commercial component is set at 9 %.
The supportable private investment for the project is estimated at $13.53 million.
Estimated Residual Land Value
The residual land value for Alternative 3 is estimated as follows:
Supportable Private Investment $13,528,000
(Less) Estimated Construction Costs 10,950,000
Residual Land Value $2,578,000
Per Square Foot of Land Area $81.00
Based on the preceding analysis, KMA estimates the residual land value for Alternative
3 at $2.58 million, or $81 per square foot of land area. If a ground lease of the Study
Site is pursued, then the payments to the City could range from $206,000 to $258,000
per year.
RECOMMENDATIONS
KMA recommends that the City adopt an implementation strategy that maximizes the
use of City assets, actively solicits new revenues, and creates opportunities for new
revenue generators to locate in Balboa Village. To that end, KMA recommends that the
City consider taking the following implementation actions in Balboa Village:
Selectively modify development standards and provide regulatory relief to
enhance development opportunities in Balboa Village.
2. Support and facilitate the development of ExplorOcean and the Balboa Theater
as they may catalyze complementary private development.
3. Create economic development programs targeted to property owners and
desired tenant types.
1202003_5; NB:KHH:KEE
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To: Kimberly Brandt, City of Newport Beach April 10, 2012
Subject: Balboa Village: Implementation Strategies Page 23
4. Create a Parking Management Plan to address parking issues identified in
Balboa Village. Consider including a Parking Benefit District and a Recreational
Vehicle parking program to generate revenues to be distributed at the City
Council's discretion.
5. Consider making the City -owned Study Site available for development. The pro
forma analyses generated the following order -of- magnitude results:
a. The development of a stand -alone public parking structure generates an
annual shortfall estimated at approximately $532,000 per year.
b. A public parking structure with a hotel on the upper levels could generate
revenue to the City. However, to attract a hotel it may likely be necessary
to provide a discounted ground -lease payment structure and /or a
reduction in the City's parking requirements.
C. The private mixed -use development alternative is projected to support a
ground -lease payment in the range of $206,000 to $258,000 per year.
These revenues could potentially be used to fund programs identified in
the Balboa Village implementation strategy.
6. Create a Parking Management Plan address current parking constraints. A
Parking Benefit District could be included as part of the Plan to generate funding
for existing parking obligations. Once these obligations are met, the City Council
would have the discretion to use funds in a variety of ways including the provision
of funding for economic development and capital improvement programs.
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16092.001/001
ATTACHMENT 1
1ell I=IINI /_1to III zIa]Iz Les Jdxy: FIR 69iyiK
1202003_5; NB:KHH:KEE
16092.001/001
ATTACHMENT 1- TABLE T
POTENTIAL FUNDINDG MECHANISMS
IMPLEMENTATION STRATEGIES
BALBOA VILLAGE IMPLEMENTATION STRATEGIES
71247281:7111111-34_141 C N F.,
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF_4_10_12; Aft 1
Community Development Block Grants
General Fund Revenue
A. Description
•
Entitlement program grant provided by the
•
Fees collected in the City's General Fund,
United States Department of Housing and
generated by property taxes, sales tax,
Urban Development (HUD). Funds must
transient occupancy tax, motor vehicle
be used to meet defined National
license fees, and other sources of
Objectives.
revenue.
B. Eligible Uses
•
Property acquisition
•
City services such as police, fire, life
safety, libraries, and parks and
•
Construction of public improvements
recreational facilities.
•
Clearance, rehabilitation, and
•
Capital improvements.
reconstruction of buildings
•
Provision of public services
•
Economic Development assistance
•
Affordable housing activities
C. Funding Parameters
•
The City receives an annual grant from
•
The City can elect to dedicate portions of
HUD based on funding allocation
specific revenues, e.g., TOT, sales tax,
parameters.
etc. to targeted capital improvements that
the City determines that sufficient benefit
exists for the assistance.
D, Funding Responsibilty
•
Directly from City
•
Directly from City
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF_4_10_12; Aft 1
ATTACHMENT 1- TABLE T
POTENTIAL FUNDINDG MECHANISI
IMPLEMENTATION STRATEGIES
BALBOA VILLAGE IMPLEMENTATI(
NEWPORT BEACH. CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF_4_10_12; Aft 1
Disposition of City Assets
Infrastructure Facilities District
A. Description
•
City can dispose of owned property in the
•
Property tax increment district.
Study Areas.
•
Voluntary program to fund capital costs of
•
Money generated by sale of properties
elgible public facilities (no school revenue)
can become funding source for other
•
Typically, general fund is only participant
•
Requires 213 voter approval
•
Not yet available for urban areas.
B. Eligible Uses
•
City services such as police, fire, life
•
Streets
safety, libraries, and parks and
recreational facilities.
•
Streetscape & sidewalks
•
Capital Improvements
•
Libraries
•
Recreational facilities
•
Sewage treatment, flood control, water
•
Must serve broader community
C. Funding Parameters
•
The City can elect to dedicate portions of
•
A portion of the growth in annual property
revenue to targeted capital improvements
tax revenues is deposited into the IFD
and /or economic development programs.
(typically 5% to 20% of increment)
•
Annual deposits can be monetized
•
30 -Year program
•
No new tax or liability on property owners
D, Funding Responsibilty
•
Funded out of the sale of the asset.
•
Funding derived from City's share of
incremental share of property tax over
established baseline.
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF_4_10_12; Aft 1
ATTACHMENT 1- TABLE T
POTENTIAL FUNDINDG MECHANISI
IMPLEMENTATION STRATEGIES
BALBOA VILLAGE IMPLEMENTATI(
NEWPORT BEACH. CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF_4_10_12; Aft 1
Loan & Grant Programs
I-Bank - Infrastructure State Revolving Fund
Program
A. Description
•
City can administer revolving loan funds,
•
Low cost financing to public agencies for a
low interest loan programs or loan
wide variety of infrastructure projects.
guarantee programs.
•
Local or regional lenders can be
apprroached to ascertain their interest in
contributing funds for lending.
B. Eligible Uses
•
Tenant improvement loans
•
City streets.
•
Fanade improvement loans
•
Educational facilities.
•
Small business start -up loans
•
Environmental mitigation measures.
•
Parks and recreational facilities.
•
Public transit.
C. Funding Parameters
•
Funds wold be available to applicants on a
•
The Infrastructure State Revolving Fund
demonstrated needs basis.
Program offered by the I -Bank offers loans
ranging between $250,000 to $10,000,000
with eligible repayment sources including
General Fund revenues, tax increment
revenues, and property assessments.
D, Funding Responsibilty
•
Funding provided by City based on scale
•
Repaid by City with local tax revnues.
of program.
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF_4_10_12; Aft 1
ATTACHMENT 1- TABLE T
POTENTIAL FUNDINDG MECHANISI
IMPLEMENTATION STRATEGIES
BALBOA VILLAGE IMPLEMENTATI(
NEWPORT BEACH. CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF_4_10_12; Aft 1
Community Facilities Districts (CFDs)
Special Assessment Districts
A. Description
• A special tax placed against property
• Similar to a CFO but shifts the funding of
located within an established district to
infrastructure from all taxpayers to only
fund public facilities and services.
those who benefit specifically from the
improvement.
• Municipal bonds supported by revenues
• Sets a fixed lien on every parcel within the
from the special tax are sold by the CFD
assessment district.
to provide upfront funding to build
improvements or fund services.
9 Municipal bonds supported by special
assessments provide upfront funding.
B. Eligible Uses
• Funding of capital facilities including:
• Construction of capital facilities such as
- parks
roads, water, sewer, and flood control.
- schools
- fire stations
- water and sewer systems
- government facilities
• Purchase, construction, and improvement
or rehabilitation of real property.
C. Funding Parameters
• Requires 2/3 vote of qualified electors in
• Typically property owners petition a City to
district. If fewer than 12 residents, vote is
form a district to finance large -scale
conducted on current landowners.
infrastructure improvements.
• Assessment based on allocation formula,
• Assessments on property owners are
not necessarily in proportion to the benefit
determined in proportion to the benefit
received.
received.
• Requires value -to -lien ratio of 3:1.
D, Funding Responsibilty
• Funding provided by landowners
• Funded by landowners benefiting from
infrastructure improvement.
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF_4_10_12; Aft 1
ATTACHMENT 1- TABLE T
POTENTIAL FUNDINDG MECHANISI
IMPLEMENTATION STRATEGIES
BALBOA VILLAGE IMPLEMENTATI(
NEWPORT BEACH. CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF_4_10_12; Aft 1
Development Impact Fees
Property Owner /
Developer Exactions
A. Description
• Fees paid by developers to pay all or a
• Payments made by developers or property
portion of the costs of any public facility
owners in addition to, or in lieu of,
that benefits their development.
development impact fees.
• Funds contributed are used to install
selected public improvements.
• Alternatively, developers are required to
construct and deliver specific
B. Eligible Uses
• Capital facilities or ongoing services.
• Dedication of right -of -way streets and
Examples of impact fees include:
utilities
- school impact fee
- mitigation fee (police, fire, park, etc.)
• Provision of open space
- water meter installation
- sanitation capacity charge
• Parks or landscape improvements
- water system facility /backup facility
charge
• Schools and community facilities
C. Funding Parameters
• Fees are paid in the form of a
• Typically paid or committed as part of the
predetermined money payment as a
development approval process.
condition to the issuance of building
permits, an occupancy permit, or
subdivision map approval.
D, Funding Responsibilty
• Paid by developers
• Typically paid or committed by
developers as part of the development
approval process.
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF_4_10_12; Aft 1
ATTACHMENT 1- TABLE T
POTENTIAL FUNDINDG MECHANISI
IMPLEMENTATION STRATEGIES
BALBOA VILLAGE IMPLEMENTATI(
NEWPORT BEACH. CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF_4_10_12; Aft 1
Developer Advances /Reimbursement
User Fees
Agreements
A. Description
•
Advance of funds from developers for use
•
Fee imposed by a city, utility, or other
toward backbone infrastructure.
franchise for services and facilities they
provide.
is
Alternatively, developers construct and
deliver specific improvements.
•
City and developer enter into
Reimbursement Agreement.
B. Eligible Uses
•
Backbone infrastructure.
•
Water meter hook -ups.
•
Gas, electric, cable, & telephone hook -ups.
•
Park and recreation facilities.
C. Funding Parameters
•
Typically repaid from redevelopment tax
•
Use of user fee revenues are limited to
increment, CFO bond proceeds, and /or
paying for the service for which the fees
development impact fees collected from
are collected.
future developers.
•
The fee amount may not exceed the cost
of providing the service but may include
overhead, capital improvements, and debt
service.
D, Funding Responsibility
•
Paid by developers.
•
Paid by developers and property owners.
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF_4_10_12; Aft 1
ATTACHMENT 1- TABLE T
POTENTIAL FUNDINDG MECHANISI
IMPLEMENTATION STRATEGIES
BALBOA VILLAGE IMPLEMENTATI(
NEWPORT BEACH. CALIFORNIA
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF_4_10_12; Aft 1
Landscape Districts /Parking Districts
A. Description
• Assessment on properties located within a
specific district that benefit from
landscaping and /or parking.
B. Eligible Uses
• Landscaping districts allow for the funding
of lights, recreational equipment,
landscaping, and irrigation.
• Parking districts allow for the acquisition,
improvement, and operation of shared
parking facilities.
C. Funding Parameters
• Funds are typically collected concurrently
with the annual business license tax or
property tax bill, with varying formulas for
retail vs. non - retail businesses, and
residential vs. non - residential property.
D, Funding Responsibilty
• Paid by developers and property owners
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF_4_10_12; Aft 1
ATTACHMENT 2
DEVELOPMENT #1
PUBLIC PARKING STRUCTURE
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ATTACHMENT 2- TABLE 1
ESTIMATED CONSTRUCTION COSTS
237 PUBLIC PARKING SPACES
BALBOA VILLAGE IMPLEMENTATION STRATEGIES
NEWPORT BEACH, CALIFORNIA
I. Direct Costs'
Off -Site Costs
On -Site Costs
Public Parking
Contractor /DC Contingency
Total Direct Costs
II. Indirect Costs
Arch, Engineering & Consulting
Public Permits & Fees 2
Taxes, Ins, Legal & Accounting
Developer Fee
Soft Cost Contingency Allowance
Total Indirect Costs
III. Interest During Construction 3
31,717 Sf $7.00 /Sf of Land
237 Spaces $25,000 /Space
10.0% Other Direct Costs
8.0% Direct Costs
0 Sf of GBA
2.0% Direct Costs
10.0% Direct Costs
5.0% Ind +Fin Costs
$8,593,000 Cost
$0
222,000
5,925,000
615,000
$6,762,000
$541,000
$0 /Sf 0
135,000
676,000
92,000
$1,444,000
5.00% Interest
$387,000
W. JTotal Construction Cost 237 Spaces $36,000 /Space $8,593,000
' Based on KMA's experience with similar projects.
2 The estimate should be verified by the City staff.
3 Assumes City cost of funds, an 18 month construction period and a 60% average outstanding balance.
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF 4 10 12; Att 2 Page 1 of 3
ATTACHMENT 2- TABLE 2
STABILIZED NET OPERATING INCOME
237 PUBLIC PARKING SPACES
BALBOA VILLAGE IMPLEMENTATION STRATEGIES
NEWPORT BEACH, CALIFORNIA
I. Parking Revenue'
Peak Days - 30 Days 237 Spaces $5.52 /Space /Day $39,000
Off -Peak Days - 335 Days 237 Spaces $2.76 /Space /Day 219,000
$258,000
II. Operating Expenses 237 Spaces $500 /Space ($119,000)
III. INet Operating Income $139,000
High season rates and days based on Walker Parking & Nelson Nygaard research. KMA estimated low season rates.
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF 4 10 12; Aft 2 Page 2 of 3
ATTACHMENT 2 -TABLE 3
NET ANNUAL REVENUE /(COST) TO THE CITY
237 PUBLIC PARKING SPACES
BALBOA VILLAGE IMPLEMENTATION STRATEGIES
NEWPORT BEACH, CALIFORNIA
I. Net Operating Income
II. Parking Structure Costs
Construction Cost
Issuance Costs & Contingency
Total Parking Structure Costs
III. Annual Debt Service Payment
See ATTACHMENT 2 - TABLE 2
See ATTACHMENT 2 - TABLE 1
10.0% of Construction Costs
5.0% Interest
$139,000
$8,593,000
859.000
$9,452,000
25 Year Term ($671,000)
IV. ITotal Net Annual Revenuel(Cost) ($532,000)
Prepared by: Keyser Marston Associates, Inc.
File name: NB-Balboa PF_4_10_12; Art 2
Page 3 of 3
ATTACHMENT 3
DEVELOPMENT #2
PUBLIC PARKING STRUCTURE AND HOTEL
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16092.001/001
ATTACHMENT 3A - TABLE 1
ESTIMATED CONSTRUCTION COSTS
44 ROOM HOTEL
BALBOA VILLAGE IMPLEMENTATION STRATEGIES
NEWPORT BEACH, CALIFORNIA
I. Direct Costs '
Off -Site Costs
$0
On -Site Costs
31,717 Sf
$7.00
/Sf of Land
222,000
Hotel Parking
44 Spaces
$20,000
/Space
880,000
Hotel Shell Costs
31,717 Sf of GBA
$150
/Sf
4,758,000
Hotel FF &E
44 Rooms
$25,000
/Room
1,100,000
Contractor /DC Contingency
10.0% Other Direct Costs
586,000
Total Direct Costs
$7,546,000
II. Indirect Costs
Arch, Engineering & Consulting
8.0% Direct Costs
$604,000
Public Permits & Fees 2
31,717 Sf of GBA
$10
/Sf
317,000
Taxes, Ins, Legal & Accounting
2.0% Direct Costs
151,000
Pre- Opening/Working Capital
44 Rooms
$3,000
/Room
132,000
Developer Fee
5.0% Direct Costs
377,000
Soft Cost Contingency Allowance
5.0% Ind +Fin Costs
125,000
Total Indirect Costs
$1,706,000
III. Financing Costs
Interest During Construction 3 $10,045,000 Cost 7.00% Interest $633,000
Loan Origination Fees 4 $7,520,000 Cost 2.00 Points 150,000
Total Financing Costs $783,000
IV. JTotal Construction Cost 44 Rooms $228,100 /Room $10,035,000
' Based on KMA's experience with similar projects.
2 The estimate should be verified by the City staff.
3 Assumes an 18 month construction period and a 60% average outstanding balance.
° Based on a 65% loan to value ratio. The value is calculated based on a 8.00% capitalization rate.
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF 4 10 12; Att 3A HtI Page 1 of 6
ATTACHMENT 3A - TABLE 2
STABILIZED NET OPERATING INCOME
44 ROOM HOTEL
BALBOA VILLAGE IMPLEMENTATION STRATEGIES
NEWPORT BEACH, CALIFORNIA
I. Hotel Operating Income
Room Revenues' 44 Rooms $230 ADR $2,474,800
Other Departments 10% Room Revenue 247,500
Parking 2 44 Spaces $15 /Night 129,000
Gross Hotel Revenue
II. Operating Expenses
Distributed Expenses
Rooms
Other
Parking
Total Distributed Expenses
Undistributed Expenses s
Fixed Expenses°
Property Taxes
Total Operating Expenses
III. Ground Lease Payment s
23% Room Revenue $569,000
80% Other Revenues 198,000
44 Spaces $500 /Space 22,000
23% Gross Hotel Revenue 655,800
5% Gross Hotel Revenue 143,000
1.1 % Development Costs 110,000
8.0% Room Revenue
$2,851,300
($1,697,800)
($228,000)
IV. INet Operating Income $925,500
' Based on PKF Coastal Orange County market performance. Assumes 67% occupancy rate.
2 Assumes 80% utilization rate.
5 Includes administrative costs, marketing /franchise fees, maintenance, utilities and management fees.
° Includes reserves and insurance
5 Based on ground lease rates for other coastal communities in Southern California.
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF 4 10 12; Art 3A Htl Page 2 of 6
ATTACHMENT 3A - TABLE 3
ESTIMATED DEVELOPER RETURN
44 ROOM HOTEL
BALBOA VILLAGE IMPLEMENTATION STRATEGIES
NEWPORT BEACH, CALIFORNIA
I. Net Operating Income
II. Total Construction Cost
See ATTACHMENT 3A - TABLE 2
See ATTACHMENT 3A - TABLE 1
$925,500
$10,035,000
III. jEstimated Devloper Return 9.22%
Prepared by: Keyser Marston Associates, Inc.
File name: NB-Balboa PF_4_10_12; Aft 3A_Htl
Page 3 of 6
ATTACHMENT 3B- TABLE 1
ESTIMATED CONSTRUCTION COSTS
110 PUBLIC PARKING SPACES
BALBOA VILLAGE IMPLEMENTATION STRATEGIES
NEWPORT BEACH, CALIFORNIA
I. Direct Costs '
Off -Site Costs
On -Site Costs
Public Parking
Contractor /DC Contingency
Total Direct Costs
II. Indirect Costs
Arch, Engineering & Consulting
Public Permits & Fees 2
Taxes, Ins, Legal & Accounting
Developer Fee
Soft Cost Contingency Allowance
Total Indirect Costs
III. Interest During Construction 3
31,717 Sf $7.00 /Sf of Land
110 Spaces $20,000 /Space
10.0% Other Direct Costs
8.0% Direct Costs
0 Sf of GBA
2.0% Direct Costs
10.0% Direct Costs
5.0% Ind +Fin Costs
$0
222,000
2,200,000
242,000
$2,664,000
$213,000
$0 /Sf 0
53,000
266,000
44,000
$576,000
$4,113,000 Cost 5.00% Interest
$185,000
IV. JTotal Construction Cost 110 Spaces $31,000 /Space $3,425,000
Based on KMA's experience with similar projects.
s The estimate should be verified by the City staff.
3 Assumes City cost of funds, an 18 month construction period and a 60% average outstanding balance.
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF_4_10_12; Att 3B_Pkg Page 4 of 6
ATTACHMENT 3B - TABLE 2
NET ANNUAL REVENUE /(COST) TO THE CITY
110 PUBLIC PARKING SPACES
BALBOA VILLAGE IMPLEMENTATION STRATEGIES
NEWPORT BEACH, CALIFORNIA
I. Parking Revenue'
Peak Days - 30 Days 110 Spaces $5.52 /Space /Day $18,000
Off -Peak Days -335 Days 110 Spaces $2.76 /Space /Day 102,000
$120,000
II. Operating Expenses 110 Spaces $500 /Space ($55,000)
III. Parking Net Operating Income $65,000
IV. Net Annual Revenue /(Cost)
Parking Net Operating Income $65,000
Hotel Ground Lease Revenue 228,000
Total Net Annual Revenue /(Cost) $293,000
High season rates and days based on Walker Parking & Nelson Nygaard research. KMA estimated low season rates.
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF_4_10_12; Att 3B_Pkg Page 5 of 6
ATTACHMENT 3B - TABLE 3
ANNUAL OPERATING INCOME
110 PUBLIC PARKING SPACES
BALBOA VILLAGE IMPLEMENTATION STRATEGIES
NEWPORT BEACH, CALIFORNIA
I. Total Net Annual Revenuel(Cost)
II. Parking Structure Costs
Construction Cost
Issuance Costs & Contingency
Total Parking Structure Costs
Annual Debt Service Payment
See ATTACHMENT 3B - TABLE 2
See ATTACHMENT 3B - TABLE 1
10.0% of Construction Costs
5.0% Interest
$293,000
$3,425,000
343,000
$3,768,000
25 Year Term ($267,000)
III. ITotal Net Annual Revenuel(Cost) $26,000
Prepared by: Keyser Marston Associates, Inc.
File name: NB-Balboa PF_4_10_12; Att 3B_Pkg
Page 6 of 6
ATTACHMENT 4
DEVELOPMENT #3
MIXED -USE RESIDENTIAL AND COMMERCIAL
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ATTACHMENT 4- TABLE 1
ESTIMATED CONSTRUCTION COSTS
19 APARTMENT UNITS, 11,100 SF COMMERCIAL SPACE & 0 PUBLIC PARKING SPACES
BALBOA VILLAGE IMPLEMENTATION STRATEGIES
NEWPORT BEACH, CALIFORNIA
Direct Costs
Off -Site Costs
0
On -Site Costs
31,717
Sf
$7.00
/Sf of Land
222,000
Commercial Parking
56
Spaces
$20,000
/Space
1,110,000
Residential Parking
48
Spaces
$20,000
/Space
950,000
Building & Tenant Improvement Costs
11,100 SfofGBA
$10
/Sf
111,000
Residential
31,460
Sf of GBA
$120
/Sf
3,775,000
Commercial
11,100
SfofGBA
$110
/Sf
1,221,000
Contractor /DC Contingency
10.0%
Other Direct Costs
728,000
Total Direct Costs
Residential
19 Units
$500
/Unit
$8,006,000
II. Indirect Costs
Arch, Engineering & Consulting
8.0% Direct Costs
$640,000
Public Permits & Fees 2
Residential
19 Units
$20,000
/Unit
380,000
Commercial
11,100 SfofGBA
$10
/Sf
111,000
Taxes, Ins, Legal & Accounting
2.0% Direct Costs
160,000
Residential Insurance
19 Units
$2,500
/Unit
48,000
Marketing / Leasing
Residential
19 Units
$500
/Unit
10,000
Commercial
11,100 SfofGLA
$10
/Sf
111,000
Developer Fee
5.0% Direct Costs
400,000
Soft Cost Contingency Allowance
5.0% Ind +Fin Costs
147,000
Total Indirect Costs
$2,007,000
III. Financing Costs
Interest During Construction 3
$10,950,000 Cost
7.00%
Interest
690,000
Loan Origination Fees 4
$12,355,000 Cost
2.00
Points
247,000
Total Financing Costs
$937,000
IV. JTotal Construction Cost
42,560 Sf of GBA
$257
/Sf
$10,950,000
Based on KMA's experience with similar projects.
The estimate should be verified by the City staff.
Assumes an 18 month construction period and a 100% average outstanding balance.
Based on a 70% loan to value ratio. The value is calculated based on a 4.50% capitalization rate for apartments and 7.5% for
commercial.
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF 4 10 12; Att 4 Page 1 of 3
ATTACHMENT 4- TABLE 2
STABILIZED NET OPERATING INCOME
19 APARTMENT UNITS, 11,100 SF COMMERCIAL SPACE & 0 PUBLIC PARKING SPACES
BALBOA VILLAGE IMPLEMENTATION STRATEGIES
NEWPORT BEACH, CALIFORNIA
I. Residential Rental Income'
Flat: 2 -Bdrm @ 1,400 Sf
Flat: 3 -Bdrm @ 1,600 Sf
Laundry /Miscellaneous Income
Gross Income
(Less) Vacancy & Collection Allow.
Residential Effective Gross Income
II. Commercial Rental Income
Rental Income
(Less) Vacancy & Collection Allow.
Commercial Effective Gross Income
III. Operating Expenses
Residential
General Operating Expenses
Property Management
Property Taxes 3
Reserves Deposits
Commercial
Management
Reserve for Capital Repairs
Total Operating Expenses
9 Units @ $3,640 /Month 393,100
10 Units @ $4,080 /Month 489,600
19 Units @ $15 /Month 3,400
$886,100
5.0% Gross Income (44,300)
$841,800
11,100 /Sf of GLA $3.00 /Sf $399,600
5.0% Gross Income (20,000)
$379,600
19 Units @ $4,000 /Unit
5% Residential Effective Gross Income
19 Units @ $7,421 /Unit
19 Units @ $200 /Unit
5% Commercial Effective Gross Income
11,100 /Sf of GLA $0.15 /Sf
$76,000
42,100
141,000
3,800
19,000
1,700
($283,600)
IV. INet Operating Income $937,800
' Based on KMA market research. Rents range from $2.55 to $2.60 /Sf of GLA.
2 Based on a 4.5% capitalization rate and a 1.1 % property tax rate.
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF 4 10 12; Att 4 Page 2 of 3
ATTACHMENT 4- TABLE 3
RESIDUAL LAND VALUE
19 APARTMENT UNITS, 11,100 SF COMMERCIAL SPACE & 0 PUBLIC PARKING SPACES
BALBOA VILLAGE IMPLEMENTATION STRATEGIES
NEWPORT BEACH, CALIFORNIA
I. Supportable Investment
Net Operating Income See ATTACHMENT 4 - TABLE 2 $937,800
Threshold Return on Cost 6.9%
Total Supportable Investment $13,528,000
II. Total Construction Cost See ATTACHMENT 4 - TABLE 1 $10,950,000
Residual Land Value
Total 42,560 Sf of GBA $60.60 /Sf $2,578,000
Annual Ground Lease Rate 8% of Land Value $206,200
Annual Ground Lease Rate 10% of Land Value $257,800
Prepared by: Keyser Marston Associates, Inc.
File name: NB Balboa PF 4 10 12; Att 4 Page 3 of 3
BALBOA VILLAGE
MASTER PLAN
Exhibit 3
Nelson Nygaard Assc
Parking Managemen
September 2012
i/
City of Newport Beach
BALBOA VILLAGE
PARKING MANAGEMENT PLAN
FINAL REPORT
0 -0 1 i
11 i
. it
May 2012
NELSON
IN Y l H{1-< V
BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
Table of Contents
Page
1 Executive Summary ............................................................................. ............................1 -1
Overview.....................................................................................................................
............................1 -1
ExistingConditions ......................................................................................................
............................1 -1
Currentand Future Parking Demand .....................................................................
............................1 -3
The California Coastal Commission and Parking Management ........................
............................1 -5
Summary of Parking Management Plan Recommendations ............................
.............................. 1-5
2 Existing Conditions ..............................................................................
............................2 -1
Overview.....................................................................................................................
............................2 -1
Parking Inventory and Regulations... ..... ............................................................................................
2-1
ParkingUtilization and Turnover .............................................................................
............................2 -4
3 Current and Future Parking Demand ...................................................
............................3 -1
Inventory, Occupancy, and Level of Supply .........................................................
............................3 -1
PeakDemand ..............................................................................................................
............................3 -4
FutureDemand ............................................................................................................
............................3 -6
4 California Coastal Commission and Parking Management ................. ............................4 -1
Overview..................................................................................................................... ............................4 -1
Coastal Act and Parking Management ................................................................. ............................4 -1
Summary of Selected RPP Applications to Coastal Commission ....................... ............................4 -3
Summaryof Key RPP Issues ...................................................................................... ............................4 -5
5 Parking Management Plan .................................................................. ............................5 -1
Principlesfor Effective Parking Management ...................................................... ............................5 -1
CWer phom muMSy of Rickr user oresrckyrlce
NelsonlNygaard Consulting Associates Inc. 11
BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
Table of Figures
Page
Figure 1 -1 Study Area Parking Facilities, by Type ............................................. ............................... 1 -2
Figure 1 -2 Summer Utilization Rates, by Day and Facility Type ..................... ............................... 1-2
Figure 1 -3 Parking Demand in Commercial Core — Mixed Land Use to Built Supply ................ 1 -4
Figure 2 -1
Study Area Parking Facilities, by Type .............................................
............................... 2 -2
Figure 2 -2
Balboa Village Parking Revenue ..........................................................
............................2 -3
Figure 2 -3
Summer Utilization Rates by Day /Facility Type ................................
............................2 -5
Figure 2 -4
Utilization Rates, Overall Study Area ...............................................
............................... 2 -5
Figure 2 -5
Utilization Rates by Facility Type, Thursday ....................................
............................... 2 -6
Figure 2 -6
Utilization Rates by Facility Type, Saturday ....................................
............................... 2 -6
Figure 2 -7
On- street Utilization by Day ...............................................................
............................... 2 -7
Figure 2 -8
Off - street Utilization by Day ..............................................................
............................... 2 -7
Figure 2 -9
Peak Hour Utilization, Thursday 1 PM ...............................................
............................... 2 -9
Figure 2 -10
Peak Hour Utilization, Saturday 1 PM ................................................
...........................2 -10
Figure 3 -1 Occupancy, Inventory, and Level of Supply — Thursday ............... ............................... 3 -2
Figure 3 -2 Occupancy, Inventory, and Level of Supply — Saturday ............... ............................... 3 -3
Figure 3 -3 Parking Demand in Commercial Core — Mixed Land Use to Built Supply ................ 3 -4
Figure 3 -4 Built Parking Supply and Actual Peak Demand, Selected Cities . ............................... 3 -5
Figure 5 -1 Projected Range of Revenue for Permit Program ........................................................ 5-16
Figure 5 -2 Summary of New Development Impact Fees, Selected CA Cities . ...........................5 -24
Figure5 -3 Park -Once District .................................................................................... ...........................5 -25
NelsonlNygaard Consulting Associates Inc. I ii
BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
1 EXECUTIVE SUMMARY
Cd9�14WflV 1
Balboa Village in the City of Newport Beach is one of the region's most popular areas. It provides
access to coastal areas and recreational opportunities, while also offering direct ferry connections
to Balboa Island and Catalina Island. In addition, Balboa Village is home to a unique blend of
residential neighborhoods and local commercial districts. Given its strong local community and
regional status, one of the most challenging issues facing Balboa Village is how to effectively
manage its parking supply and mitigate the impacts of parking demand, especially during peak
periods (i.e. summer weekends).
This Parking Management Plan is the first step in the City's efforts to address parking challenges
in Balboa Village. The Plan documents existing parking inventory, supply, and demand through
parking counts of on- and off- street supply. These counts are utilized in order to examine actual
parking data, not commonly accepted perceptions about parking, and conclusively establish key
parking trends occurring throughout Balboa Village. Based on the key findings from the parking
data, this Plan proposes a coordinated set of recommendations designed to improve parking
within Balboa Village, while accounting for the unique regulatory framework that Balboa Village
operates in as a coastal jurisdiction. These recommendations were also developed based on input
from City staff, the Balboa Village Citizen Advisory Panel (CAP), the Newport Beach City Council,
and other local stakeholders.
It is crucial to note that the recommendations in this parking management plan are established
on the premise that parking and transportation are not ends in themselves, but means to achieve
broader community goals. These recommendations seek to leverage Balboa Village's existing
assets, respond to its current challenges, and further the overall vision for the area.
EXISTING CONDITIONS
An inventory of parking facilities was undertaken by Walker Parking Consultants in 20o8 as a
part of the Balboa Village Parking Policy Plan. The general boundaries of this study were
Coronado Street to the west, the Newport Bay to the north, B Street to east, and the beach parking
lots to the south. Figure t -t shows the breakdown of the parking facilities within this study area.
NelsonlNygaard Consulting Associates Inc. 1 -1
BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
Figure 1 -1 Study Area Parking Facilities, by Type
Based on the data collected in this study a number of key parking trends can be observed
regarding use of these parking facilities. These findings are summarized below:
Key Finding #1: Balboa Village has a large supply of parking, the majority of which
is located in off - street facilities.
A total of 1,636 parking spaces exist in Balboa Village, 1,356 of which (83 %) are located in various
public and private off - street facilities. Of these off- street spaces, 1,158 are in paid lots open to the
public. Only 280 on- street facilities exist in Balboa Village, 212 (76 %) of which are unregulated
and free of charge.
Key Finding #2: Balboa Village's parking supply is underutilized for all but the
busiest summer weekends.
It should be emphasized that the parking counts reflect summer demand and that the Balboa
Village area only experiences "peak" parking demand on roughly 30-35 days per year. Balboa
Village has more than enough supply to meet current levels of demand during the vast majority of
the year. During summer weekday counts (a figure that should be comparable and possibly higher
than non - summer weekday and weekend counts), combined utilization rates never exceeded 67%,
meaning that at any given time, 540 spaces or more are available in Balboa Village.
Figure 1 -2 Summer Utilization Rates, by Day and Facility Type
0.
Thursday
On- Street
78%
89%
95%
Off- Street
47%
62%
51 %
All
52%
67%
58%
Saturday
On- Street
90%
96%
97%
Off- Street
86%
97%
82%
All
86%
96%
84%
NelsonlNygaard Consulting Associates Inc. 1 -2
BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
Key Finding #3: While the parking supply is underutilized, various "hot- spots" of
demand exist, even during non -peak months.
Various "pockets" of high demand exist in Balboa Village, even during non -peak times and
months. Prime metered on- street spaces, unregulated and free on- street spaces, and off- street
facilities closest to the beach and Balboa Island Ferry Terminal experienced the highest utilization
rates. While these areas were highly utilized, large amounts of available parking existed within a
short walk. These parking demand patterns are likely due to the following reasons:
• Most on- street spaces are free, while all publicly accessible off - street spaces are paid. As a
result, motorists are incentivized to seek out and "circle" for available on- street spaces
before deciding to enter a paid off- street lot.
• Many of Balboa Village's largest attractions are concentrated along the beachfront and
ferry terminal area.
• Wayfinding signage does not exist to point visitors to off- street facilities with significant
availability. Consequently, many motorists are unaware of the proximity and availability
of additional parking facilities.
Key Finding #4: Balboa Village exhibits a drastic seasonal peaking of parking
demand with capacity highly constrained on summer weekends.
Parking demand is highest in Balboa Village during summer weekends. During these times, on-
street and off- street utilization peak at rates higher than target rates, meaning many motorists are
stuck searching or "cruising" for parking.
Key Finding #5: Current pricing schemes discourage the use of off - street facilities,
encourage excessive "cruising" for available on- street spaces, and cause parking
spillover into surrounding residential streets. During peak summer months, these
trends are exacerbated.
Currently, the only free, unregulated, publicly available parking in Balboa Village is located on-
street, mostly along the area's residential roadways. The remaining parking supply, whether on-
or off- street, is either paid parking or limited to customer or tenants only. As such, recreational
visitors to the area typically seek out free on- street spaces before entering a paid lot. This causes
excessive "cruising" for available spaces and creates parking spillover into Balboa Village's
residential areas.
Key Finding #6: Parking turnover is relatively low, as most vehicles stay parked in
off street spaces for long periods of time.
Turnover data suggests that approximately 52% of spaces in the count area were occupied by
vehicles parked for five hours or more. The lack of on- street turnover represents an inefficient use
of curb space, especially for visitors or customers wishing to access local businesses.
CURRENT AND FUTURE PARKING DEMAND
Utilizing the data gathered during the parking inventory as well as an inventory of existing land
use and projected land uses, existing parking demand ratios were calculated, and these parking
ratios were then used to estimate future parking demand. Parking demand ratio calculations
reveal two different, but equally useful correlations, as shown in Figure 1 -3:
• Built Stalls to Built Land Use Ratio. This represents the total number of existing parking
stalls correlated to total existing land use square footage (occupied or vacant) within the
study area. At this time, about 1.84 parking stalls per i,000 GSF of built land use
NelsonlNygaard Consulting Associates Inc. 1 -3
BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
have been developed /provided within the commercial core (combining the on -and off -
street parking supplies).
Combined Peak Demand to Occupied Land Use Ratio. This represents peak hour
occupancy within the commercial core combining the on- and off - street supply. Current
peak hour demand stands at a ratio of approximately 1.78 occupied parldng stalls
per 1,000 GSF of built land use.
Figure 1 -3 Parking Demand in Commercial Core - Mixed Land Use to Built Supply
To date, parking has been built at an average rate of 1.84 stalls per 1,000 GSF of development in
Balboa Village's commercial core. This rate appears to have provided close to the right amount of
parking, with commercial land uses in the study area generating parking demand ratios of 1.78
vehicles per 1,000 GSF. It is important to note that corresponds to the peak period of the summer
months, and parking demand during the rest of the year is far below 1.78. For example, the
Thursday peak demand for the commercial core (a more accurate representation of typical
demand throughout the majority of the year) was at .96 vehicles per 1,000 GSF.
Future Demand
Based on information provided by the City of Newport Beach, the only large - scale, commercial
development that is proposed for Balboa Village is the expansion and redevelopment of the
ExplorOcean Newport Harbor Nautical Museum located at 600 East Bay Avenue. The existing
museum would be expanded to three levels consisting of 38,685 SF. Based on the net square
footage and existing demand in Balboa Village for commercial uses, it is estimated that the new
museum would generate parking demand of roughly 27 net new parking spaces at peak demand
Given the high level of demand during summer peak periods, it is likely that parking will be in
high demand for parking facilities in proximity to the new museum. However, Nelson \Nygaard
believes that this level of net new parking can be accommodated within the existing parking
supply through more effective parking management strategies, and that the available
development scenarios do not necessitate new parking supply. In addition, any new development
would be subject to the requirements of the proposed "Parking & Multimodal" impact fee, which
would fund additional traffic and parking mitigations.
Nelson \Nygaard Consulting Associates Inc. 1 -4
Total
Built Ratio
Actual Ratio
GSF
GSF
Supply
of Parking
Total
of Parking
(Built)
(Occupied)
Inventoried
(per
Occupied
Demand
in Study
S00
GSF)
(per 1,000
Area
GSF)
Thursday, 10 AM
156
0.59
Thursday, 1 PM
220
0.83
Thursday, 7 PM
255
0,96
286,926
265,342
528
1.84
Saturday, 7 PM
309
1.16
Saturday, 10 AM
326
1.23
Saturday, 1 PM
472
1.78
To date, parking has been built at an average rate of 1.84 stalls per 1,000 GSF of development in
Balboa Village's commercial core. This rate appears to have provided close to the right amount of
parking, with commercial land uses in the study area generating parking demand ratios of 1.78
vehicles per 1,000 GSF. It is important to note that corresponds to the peak period of the summer
months, and parking demand during the rest of the year is far below 1.78. For example, the
Thursday peak demand for the commercial core (a more accurate representation of typical
demand throughout the majority of the year) was at .96 vehicles per 1,000 GSF.
Future Demand
Based on information provided by the City of Newport Beach, the only large - scale, commercial
development that is proposed for Balboa Village is the expansion and redevelopment of the
ExplorOcean Newport Harbor Nautical Museum located at 600 East Bay Avenue. The existing
museum would be expanded to three levels consisting of 38,685 SF. Based on the net square
footage and existing demand in Balboa Village for commercial uses, it is estimated that the new
museum would generate parking demand of roughly 27 net new parking spaces at peak demand
Given the high level of demand during summer peak periods, it is likely that parking will be in
high demand for parking facilities in proximity to the new museum. However, Nelson \Nygaard
believes that this level of net new parking can be accommodated within the existing parking
supply through more effective parking management strategies, and that the available
development scenarios do not necessitate new parking supply. In addition, any new development
would be subject to the requirements of the proposed "Parking & Multimodal" impact fee, which
would fund additional traffic and parking mitigations.
Nelson \Nygaard Consulting Associates Inc. 1 -4
BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
THE CALIFORNIA COASTAL COMMISSION AND
PARKING MANAGEMENT
Because Balboa Village is located within the Coastal Zone, the California Coastal Commission
(Commission) has regulatory authority and will play an integral role in shaping the final
recommendations of this parking management plan. The Coastal Commission takes a particularly
keen interest in all residential permits within the Coastal Zone, as they have the potential to limit
coastal and beach access for the general public. In brief, there are a number of key issues and
concerns that the Commission repeatedly emphasized while evaluating previous RPP permit
applications over the years. These include:
• Preservation of "24- hour" public access is the Commission's primary concern.
• The Commission strives to achieve regulatory "balance," but errs on the side of public
access.
• Local jurisdictions can use policy to regulate parking, but cannot give exclusive access to
residents.
• In order to prevent exclusive residential access, local jurisdictions must "replace" all
public on- street parking that is "lost" to an RPP.
• The Commission typically views RPPs as "pilot" efforts to be reevaluated in the future.
• Nuisance issues fall under the purview of local law enforcement and are not to be
regulated by residential permits.
SUMMARY OF PARKING MANAGEMENT PLAN
RECOMMENDATIONS
Historically, a city wishing to "solve its parking problem" has almost always meant an increase in
supply. Unfortunately, simply increasing parking supply often encourages more auto use, as
people are incentivized to drive to places that offer plenty of "free parking." Furthermore, simply
increasing supply does not address the core problem of concentrated demand, in which popular
on- street spaces are consistently oversubscribed while nearby off- street spaces remain
underutilized. Above all else, this plan proposes a parking management approach that utilizes
policies and programs that will enable more efficient utilization of existing supply to meet a
variety of parking needs.
The recommendations in this Plan are designed to work together to meet the City's parking
management goals. While these recommendations could theoretically be implemented piece by
piece, they are most effective if implemented together. It is important that to the greatest extent
possible the recommendations be implemented as a cohesive "package" of reforms.
As Balboa Village continues to grow and evolve its parking needs will change as well. This Plan
recommends techniques to both address current challenges and also allow the City to be nimble
in reacting to future parking challenges. Finally, it is important to emphasize that these
recommendations are specific to Balboa Village and would not necessarily apply to other
neighborhoods within the City of Newport Beach.
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BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
This recommendation proposes the elimination of all existing time limits for metered spaces.
Instead, it is recommended that the City explore upgrading its existing "smart" parking meters for
all curb spaces along the primary commercial corridors in Balboa Village. On- and off- street
parking should use variable pricing as a means to meet target occupancy levels and generate an
appropriate level of turnover.
Outlined below are the specific project locations and program parameters recommended for
demand -based pricing of Balboa Village's on- and off- street spaces.
• On- street meter location: Existing on- street spaces on East Balboa Boulevard and East
Bay Avenue between Adams Street and A Street, as well as Palm Avenue.
• The City recently installed roughly 1,600 new single and multi -space "smart" meters
citywide, including on streets in Balboa Village. These new meters accept credit card
payments. Moving forward, the City should also explore implementation of wireless
meters, which would allow motorists to pay -by- phone, while improving revenue
collection, enforcement, and parking data management for the City. Wireless meters can
also allow the City to provide a free, publicly accessible wireless network in Balboa
Village.
• Pricing may need to be adjusted periodically (i.e. quarterly) to meet target occupancy
rates (85% for on- street spaces and go% for off- street spaces).
• Initial Hours & Pricing Structure:
Peak period (Summer): 8AM- 6 PM, 7days
• $2.00 per hour (0 -2 hours)
• $2.50 per hour (2+ hours)
Off -peak period (non- Summer): 8AM- 6 PM, 7days
• $1.00 per hour (0 -2 hours)
• $1.50 per hour (2+ hours)
Off-street
Peak period (Summer)
• $1.50 per hour (no max)
Off -peak period (non- Summer)
• $.50 per hour (no max)
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BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
Parking benefits districts (PBDs) are defined geographic areas in which any revenue generated
from on- street and off- street parking facilities within the district is returned to the district to
finance neighborhood improvements.
In practice, a successful PBD in Balboa Village would be implemented via adoption of city
ordinance creating a Balboa Village PBD, stipulating that all parking revenue generated within the
PBD be used to fund designated neighborhood improvements. In addition, establishment of an
appropriate governing body to develop a program of expenditures and ensure proper oversight of
PBD revenue is required. Any governing body should establish well- defined procedures for
soliciting and incorporating resident input. This body and its structure will be determined
pending additional study.
Potential PBD Expenditures can include a wide variety of transportation related expenditures
designed to not only improve parking management, but also improve overall mobility,
accessibility, and quality of life within the district.
A residential parking permit program (RPP) operates by exempting permitted vehicles from the
parking restrictions and time limits for non - metered, on- street parking spaces within a
geographic area. The primary goal of an RPP is to manage parking "spillover" into residential
neighborhoods. The following program parameters are recommended for a potential RPP specific
to the Balboa area.
• RPP District Boundaries: All residential streets between 7th Street and Adams Street
• Program Eligibility: All residences within the proposed zone are eligible to purchase
permits, including rental home owners. In addition, Bay Island residents would be
eligible to purchase permits.
• Hours of Operation: No Parking: 4 PM — 9 AM, 7 days, excluding holidays. Permit
holders exempt.
• Maximum Number of Permits: 4 per household; Guest permits will be studied further to
determine the most appropriate pricing and issuance structure
• Permit Type: Rearview mirror "hangtag" that is a solid color (to change annually) and
clearly indicate the year of permit issued.
• Permit Costs: Permits should be priced at an escalating rate to encourage residents to
make full use of their garages and purchase only the number of permits they actually
need. Initial prices for the RPP are proposed below, although the City may need to adjust
the pricing structure in future years to respond to demand for permits.
— 151 permit: $20 per year
— 2 "a permit: $2o per year
— 3rd permit: $6o per year
— 4'h permit: $too per year
• Compliance with California Coastal Commission: The Coastal Commission will need to
approve any RPP proposed by the City of Newport Beach for the 7`° to Adams District. It
is recommended that the City of Newport Beach permit application for the RPP
emphasize a number of key program elements to ensure its approval.
NelsonlNygaard Consulting Associates Inc. 1 -7
BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
An employee parking permit program offers employers or employees the option to purchase a
permit that provides priority parking in a designated area. Employee parking permit programs
provide a consistent parking option for employees, reducing the need for an employee to "hunt"
for a parking space, move their vehicle to avoid parking restrictions, or occupy "prime" on- street
spaces for customers.
The following program parameters are recommended for an employee permit program specific to
the Balboa area.
• Eligibility: All employers and employees within Balboa Village
• Designated employee parking zone: Approximately too spaces in the north western
portion of the Balboa Village Municipal Beach parking lot. During summer weekends,
reduce to 50 spaces to ensure availability for beach users.
• Hours of operation: 6 AM — to AM, everyday
• Number of permits issued: t permit per employee, requiring proof of employment, photo
ID, and vehicle registration information.
• Permit Cost: $50 per year, no proration
• Permit Revenue: Revenue would be used to cover cost of program administration
• Compliance with California Coastal Commission: While the Coastal Commission has
largely focused on the creation of residential permit programs, it is possible that they may
have similar issues with an employee permit program. The City should begin
conversations with the Coastal Commission to determine if any regulatory issues need to
be addressed.
This recommendation proposes potential options for how the City should address its minimum
parking requirements and potential fees to mitigate transportation impacts.
Minimum Parking Requirements
Title zo, Part 3 of the Newport Beach Municipal Code describes the site planning and
development standards for each land use type, including a chapter dedicated to off- street parking
and loading standards. Of particular importance are the off- street parking requirements and the
minimum number of parking spaces that each land use must provide.
Impact Fees
Local governments have been collecting impact fees for decades, with the power to exact impact
fees arising from the city's police power to protect public health, safety, and welfare. Fees fund a
variety of public facilities and services, including parks, schools, public art, and libraries. In recent
years, many communities throughout California are increasingly relying on transportation-
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BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
specific impact fees to ensure that the costs of transportation infrastructure and services
necessary to support new development are not borne disproportionately by existing residents,
businesses, and /or property- owners.
The City of Newport Beach has already adopted a Fair Share Traffic Contribution Ordinance (see
Chapter 15.38 of the Municipal Code), as a means to more fully mitigate traffic impacts from new
development in Newport Beach and is based upon the unfunded cost to implement the Master
Plan of Streets and Highways. The use of the funds generated is narrowly defined, as revenue can
only be used for the purposes of planning, designing, and constructing roadway projects.
Parking In -lieu Fees
A voluntary in -lieu parking fee program allows proposed projects or uses to pay a designated fee
rather than provide an on -site parking space. The City of Newport Beach has had a parking in -lieu
fee for commercial uses since 1972, but was suspended in 1989. Those uses previously in the in-
lieu parking program have continued to pay the fee on an annual basis. Revenue is approximately
$69,000 per year and it goes into the City's General Fund. Within Balboa Village there are nine
locations that participate in the existing in -lieu fee program, where a total of 93 spaces generate
$13,950 in annual revenue for the City.
Short -term Recommendation: Eliminate minimum parking requirements for all
non - residential uses. Do not implement an impact fee at this time. Eliminate
existing obligations to the current parking in -lieu fee program.
Long -term Recommendation: Depending on the level of development in Balboa
Village, evaluate implementation of a "Parking and Multimodal" impact fee.
Shared parking is one of the most effective tools in parking management. Because many different
land uses (a bank and a bar or restaurant, for example) have different periods of parking demand,
they can easily share a common parking facility, thereby limiting the need to provide additional
parking. Shared parking policies do not treat the parking supply as individual units specific to
particular businesses or uses, but rather emphasize the efficient use of the parking supply by
including as many spaces as possible in a common pool of shared, publicly available spaces.
Outlined below are specific policy recommendations designed to facilitate shared parking and the
creation of a "park once" district in Balboa Village:
• Maximize use of the existing parking supply by improving wayfinding and parking
information
• Work with existing property owners and businesses to ensure that private parking is
made available to the public when not needed for its primary commercial use
• Work with property owners and businesses to develop mutually - agreeable operating and
liability arrangements for public use of private parking facilities
• Require as a condition of approval that all newly constructed private parking in any non-
residential Balboa Village development or adaptive reuse project be made available to the
public
• Allow parking to be shared among different uses within a single mixed -use building by
right
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City of Newport Beach
• If new public parking supply is needed, first purchase or lease existing private parking
lots or structures from willing sellers, and add this parking to the shared public supply
before building expensive, new lots /garages
Wayfinding signage helps orient visitors, shoppers, and residents alike, pointing them to area
parking facilities, retail establishments, pedestrian and bicycle access routes, and other important
destinations. Wayfinding informs people of the best way to access an area, depending on their
mode of travel. Parking wayfinding signs can also display real -time availability data, pointing
motorists to facilities with available spaces.
Wayfinding is most effective when it is consistent; all signage should be produced in a similar
style, and organized by type (parking, bicycle /pedestrian, retail). Regardless of the particular
signage installation utilized, good design that is consistent with and supports the character of the
neighborhood is critical for all signage elements.
A wayfinding system in Balboa Village would be most effective if signs were located at the
traditional entrances to the area, near major garages and attractions, and along major arterials.
For example, signage pointing motorists to off- street parking lots with real -time availability data
should be installed along Balboa Boulevard towards the entrance to Balboa Village, as well as near
the Balboa Island Ferry for those motorists coming from Balboa Island. Additional signs should
be installed at each large off- street facility, including the beach lot, the Newport Landing lot, and
the public lots along Balboa Boulevard at Palm Street.
Bicycle and pedestrian wayfinding should be prioritized along and near the Newport Balboa Bike
Trail, as well as the commercial blocks of Balboa Boulevard and Main Street. In partnership with
local businesses, retail establishments could also be listed on wayfinding signs and materials,
encouraging visitors to frequent Balboa Village businesses.
Bicycle and pedestrian improvements include many different strategies that seek to encourage
travel via non- motorized modes. The City of Newport Beach Bicycle Safety Committee is currently
in the process of developing a plan and set of strategies to improve bicycle safety and conditions
in Balboa Village. This recommendation should be implemented in collaboration with, or as part
of, that planning process.
The Newport Balboa Bike Trail is the main bicycle and pedestrian access point to Balboa Village.
As such, most bicycle amenities should be concentrated along that route, and along connection
points between the trail and other important destinations. Improvements could also be made
along Palm Street to encourage non - motorized travel from the Balboa Island ferry to Balboa
Village and the Newport Balboa Bike Trail.
Improvements to the pedestrian realm should seek to encourage pedestrian traffic along the
Balboa Avenue and Main Street retail corridors, and connect off- street parking facilities to
important destinations. Spot improvements could include additional mid -block pedestrian
crossings along long blocks and bulb -outs at busy signalized Balboa Boulevard intersections.
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City of Newport Beach
In parking, you can only manage what you measure. Based on this maxim, this recommendation
seeks to formalize the "measurement' process by proposing that the City implement an ongoing
data collection and evaluation program for Balboa Village. More specifically, this Plan
recommends that the City collect parking occupancy and turnover data for both on- and off- street
parking facilities. This data is essential for evaluating whether the demand -based pricing policies
recommended within this Plan are achieving their goals.
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City of Newport Beach
2 EXISTING CONDITIONS
.•I9434I AIZ
Balboa Village is located within the City of Newport Beach along Balboa Boulevard on the eastern
portion of Balboa Peninsula. Balboa Boulevard is the main vehicle access route to Balboa Village,
though the Balboa Island Ferry also shuttles vehicles across Newport Bay from a terminal on the
northern end of Palm Street, providing a second access point to the area for private vehicles.
Bicyclists and pedestrians can access the area via the Newport Balboa Bike Trail Class I bikeway
that connects Balboa Village to the rest of Newport Beach, along the Balboa Peninsula coastline.
The area is comprised mostly of single - family residential uses, though a limited amount of
multifamily buildings exist near the Balboa Pier and along Cypress Street. Various retail,
entertainment, and commercial uses are located along Balboa Boulevard, Main Street, and East
Bay Avenue.
Balboa Village beaches and the coastline are a regional recreational destination. The area
experiences a large seasonal influx of visitors, peaking during warm summer months, particularly
on weekends. The Balboa Village Ferry Terminal, Catalina Flyer, Newport Harbor Nautical
Museum, Balboa Pavilion, and the Balboa Pier are other major trip generators in the area that
also exhibit seasonal peaks. As such, parking utilization rates and the number of retail and
restaurant customers are quite high during the summer months and substantially lower during
the rest of the year.
Effective management of Balboa Village's parking is integral to maintaining and enhancing
livability in the area. By examining existing parking conditions, this chapter facilitates a better
understanding of how people are utilizing Balboa Village's current parking facilities, highlights
parking challenges and inefficiencies, and provides a framework for developing a targeted parking
management plan.
PARKING INVENTORY AND REGULATIONS
An inventory of parking facilities was undertaken by Walker Parking Consultants in 20o8 as a
part of the Balboa Village Parking Policy Plan. The general boundaries of this study were
Coronado Street to the west, the Newport Bay to the north, B Street to the east, and the beach
parking lots to the south. This section provides a brief summary of the parking inventory (type
and number of spaces) and parking regulations (time limits and pricing) for each on- street block
and off - street facility surveyed as part of the Walker study.
I It is important to note that no original parking data collection was performed as part of this study. All parking inventory and
occupancy data was obtained from a parking study conducted by Walker Parking Consultants submitted to the City in 2009
(occupancy counts conducted in July 2008). Information from the Walker study serves as the primary data source for
NelsamNygaard's analysis and recommendations, and we have summarized it as a part of this chapter to ensure that stakeholders
fully understand the parking conditions and behaviors within the study area.
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City of Newport Beach
Methodology
Parking inventory and regulations were determined through field observations by Walker Parking
Consultants. Walker Parking did not count private off- street facilities with fewer than 5 spaces
and only off - street facilities that were accessible (i.e. not gated or closed for construction) were
counted.
Findings
Parking Type and Pricing
Figure 2 -1 provides a detailed breakdown of the type of parking in the study area for both on- and
off- street facilities. A total of 1,636 parking spaces were counted in the study area, including 28o
on- street spaces and 1,356 off - street spaces.
Figure 2 -1 Study Area Parking Facilities, by Type
On- street parking exists along most streets in Balboa Village, representing roughly 17% of all
parking in the area. The study area contains 280 total on- street spaces, the majority of which are
unregulated (76 %) except for weekly street sweeping. Approximately 19% of on- street spaces in
the study area are metered. These spaces are located along Balboa Boulevard, Bay Avenue, and
Palm Street and have time limits ranging from 30 minutes, one hour, and two hours. Meters in
Balboa Village are priced at $1.50 per hour.
Off - street parking exists in both public and private facilities throughout Balboa Village.
Approximately 1,356 off - street facilities account for 83% of parking spaces in the study area. The
largest off- street lot is the Balboa Pier lot (711 spaces) located off of Balboa Boulevard at the end
of Palm Street. Various public, "pay" lots are located at Balboa Boulevard and Palm Street, at East
Bay Avenue and Washington Street, and on either side of Peninsula Park at the end of both A and
B Streets.
Of the off- street spaces, approximately 85% are for pay, while the remaining 15% of spaces are
reserved for customers or tenants only. The pricing structures of Balboa Village's paid lots are as
follows:
Balboa Pier Main Lot
— Autos: $1.50 per hour, $15 max for 24 -hour period
— RVs (No Camping): $1.50 per hour, $15 max for 24 -hour period (Per Space
Occupied)
— Buses: $50 for 24 passengers or less; $1oo for 25 passengers or more
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City of Newport Beach
— Motorcycles; $o.75 per hour, $7.50 max for each 24 -hour period
— Peak Holidays (Memorial Day, July 4th, and Labor Day): $25 flat rate
• Newport Landing
— Catalina Flyer
• Monday -Thursday, $10 per day
• Friday - Saturday, $12 per day
• Sunday, $15 per day
— Whale Watching boats - $6 with validation
— Fishing boats - $8 with validation
• Public Lots
— East Balboa Boulevard & Palm Street - $1.50 per hour (meter)
— Peninsula Park Lots A& B - $1.50 per hour (meter)
— Oceanfront lot - $1.50 per hour (meter)
Parking Revenue
Figure 2 -2 provides a summary of the parking revenue generated in Balboa Village from both
parking meters and public lots over the past four years. Since FY 07 -o8, revenue from Balboa
Village parking facilities averaged about $1.27 million per year, of which approximately $320,000
comes from the on- street meters. Parking revenue in Balboa Village has increased 35% since
2007 -08.
It is important to note that close to go% of the parking revenue generated in Balboa Village is
allocated to the City's Tidelands fund, which is used to finance a variety of projects to improve
access and operations of the City's marine resources. In fact, all of the revenue from the public
off- street facilities is allocated to the Tidelands fund. The remaining meter revenue,
approximately $138,000, is allocated to the City's General Fund.
Figure 2 -2 Balboa Village Parking Revenue
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To
Total
Total
To General
r
Tidelands
Tid lands
Tid lands
$141,938
$863,507
$863,507
$1,123,088
$1,005,444
$117,643 89.5%
$149,548
$862,628
$862,628
$1,131,201
$1,012,176
$119,025 89.5%
FY 09 -10 $323,193
$200,039
$1,028,013
$1,028,013
$1,351,206
$1,228,052
$123,154 90.9%
FY 10 -11 $427,615
$235,200
$1,083,898
$1,083,898
$1,511,513
$1,319,098
$192,415 87.3%
Average $319,740
$181,681
1 $59,511
$959,511
$1,279,252
$1,141,193
$138,059 89.2%
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City of Newport Beach
Parking Permit Programs
The City of Newport Beach currently provides three parking permit programs: the Annual Parking
Permit Program, the Master Parking Permit Program, and an Overnight Parking Permit Program.
An Annual Parking Permit allows a vehicle to occupy any "blue post" metered space free of
charge. Blue parking meters exist in the Balboa Pier Main Lot, as well as the A Street and B Street
Peninsula Park Lots. Permits are issued on a calendar year basis, with prorated rates. Pricing for
the Annual Parking Permits are as follows:
• Purchased January 1— September 30: $150
• Purchased October 1— December 31: $37.50
Master Parking Permits allow vehicles to occupy any metered parking space within the City of
Newport Beach (both off- street and on- street spaces) free of charge. Permits are issued on a
calendar year basis, with prorated rates. Pricing for the Master Parking Permits are as follows:
• Purchased January 1— September 30: $450
• Purchased October 1— December 31: $112.50
The Overnight Parking Permit allows a motor vehicle of 20 feet or less in length to occupy a single
parking space in the Balboa Municipal Parking Lot, day and /or overnight, without
paying a parking fee. Overnight parking is defined as between 3 -6 AM and vehicles may remain
up to seven consecutive days. Permits are issued on a calendar year basis, with prorated rates.
Pricing for the Overnight Permit are as follows:
• Purchased January 1— September 30: $225
• Purchased October 1 - December 31: $56.25
PARKING UTILIZATION AND TURNOVER
This section provides an overview of the results from the original parking utilization and turnover
data collection effort conducted by Walker Parking Consultants. It includes a summary of the
count methodology, as well as the key findings.
Methodology
Walker Parking conducted utilization and turnover counts of on- and off- street spaces in the
study area. The utilization count days and times included:
• Thursday, July 24th, 2oo8 at 10 AM, 1 PM, and 7 PM
• Saturday, July 26th, 2oo8 at 10 AM, 1 PM, and 7 PM
Utilization data was collected at three times during the day to observe parking behavior and
demand throughout the day. Utilization rates were collected for all on- street spaces in the study
area and all public and private off - street facilities containing more than 5 spaces.
Walker Parking also collected turnover data for on- street spaces along East Balboa Boulevard and
East Bay Avenue between Cypress Street and Main Street. Staff members collected license plate
numbers every hour during a weekday, tracking vehicle length of stay.
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Findings
Utilization
Figure 2 -3 and Figure 2 -4 highlight
summer parking demand for the
study area as a whole. As expected,
utilization was higher at all times
and in all facility types on
Saturday, when Balboa Village
typically experiences a very large
influx of beachgoers and visitors.
On both Thursday and Saturday,
combined on- and off - street
utilization peaked at r PM (67%
and 96 %, respectively). On
Thursday, utilization was lowest at
io AM (52 %), while on Saturday,
utilization was lowest at 7 PM
(S4 %)•
Figure 2 -3 Summer Utilization Rates by Day /Facility Type
Thursday
On- Street
78%
89%
95%
Off- Street
47%
62%
51%
All
52%
67%
58%
Saturday
On- Street
90%
96%
97%
Off- Street
86%
97%
82%
All
86%
96%
84%
Figure 2 -4 Utilization Rates, Overall Study Area
100%
90%
80%
70%
bo%
d
°p 50%
m
A40%
p
30%
20%
10%
o%
—Thi sday,July24 — Saturday, July 26
1oAM IPM 7PM
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BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
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Figure 2-5 and Figure 2 -6 show utilization rates for Thursday and Saturday by facility type. On
Thursday, on- street facilities experienced significantly higher utilization rates than off - street
facilities during all three count periods. On- street utilization peaked at 95% at '7 PM, while off -
street utilization peaked at t PM (62 %). This indicates that on- street spaces remain popular into
the evening, likely serving individuals who are frequenting the area for dinner.
Saturday experienced much higher off- street utilization rates, and slightly higher on- street
utilization rates. On- street and off- street utilization both peaked at 97 %, though at different
times: the on- street peak occurred at 7 PM, while the off- street peak occurred at t PM. Unlike
Thursday's utilization patterns, parking demand on Saturday was spread more evenly throughout
the area's on- street and off - street facilities.
Figure 2 -5 Utilization Rates by Facility Type, Thursday
t00%
90%
80%
70%
6o%
50%
40%
ao%
20%
10%
o%
.... On- Street — — Off - Street —All
.............
0000._;�&* •``
IoAM IPM 7PM
Figure 2 -6 Utilization Rates by Facility Type, Saturday
l00%
9o%
8o%
y
70%
v
60%
C
C 50%
A
a
N
G 40%
ao%
20%
Io%
o%
•... On- Street — — Off - Street —All
LOAM 1PM 7PM
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BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
Target occupancy rates of 85% and go% are effective industry standards for on- and off - street
spaces, respectively. In other words, maintaining 15% and ro% vacancy rates for corresponding
on- and off - street stalls will help ensure an "effective parking supply." It is at these occupancy
levels that roughly one space per block is available, making searching or "cruising" for parking
unnecessary and allowing off - street lots to maintain adequate maneuverability. Utilization rates
below these targets indicate a diminished economic return on investments in parking facilities.
Figure 2 -7 and Figure 2 -8 show utilization rates in Balboa Village as compared to these target
rates (depicted in a solid grey line).
Figure 2 -7 On- street Utilization by Day
Thursday, July 24 — Saturday, July 26
l00%
90%
8o%
70%
6o%
G
.p 50%
m
N
QO%
30%
20%
to%
O%
10 AM IPM 7PM
Figure 2 -8 Off- street Utilization by Day
Thunday,July24 — Saturday, July 26
l00%
9o%
80%
70%
a3
Y
� 60%
a
50%
0
n
.a 40%
D
30%
20%
10%
0%
1oAM 1PM 7PM
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BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
On Thursday, while on- street utilization approached 95% at 7 PM, the combined on- and off -
street utilization rate never surpassed 6711. These results indicate that in general there is an
ample supply of parking in the study area during weekdays, and that challenges associated with
parking are likely due to inefficient management of existing supply. For example, off - street
facilities were consistently underutilized during all count times. While the area saw spikes of high
on- street utilization, total off- street utilization was only 62 %. As most on- street spaces are
unregulated, motorists will typically "cruise" for an on- street space before entering a pay lot.
During peak demand on Thursday (i PM, 67% combined occupancy), there were only 30 on- street
spaces available, yet 510 available off- street spaces.
On Saturday, on- street utilization rates were above the 85% target during all three count periods,
while off- street utilization exceeded the 9o% target only at 1 PM. During the overall peak demand
period (1 PM, 96% combined occupancy), only 12 on- street and 47 off- street spaces were available
throughout the study area.
Figure 2 -9 and Figure 2 -10 map utilization by on- street block face and off- street block total
during peak utilization on Thursday (1 PM) and Saturday (1 PM), respectively. During Thursday's
peak period, over half of the area's block faces exhibited utilization rates at or above 85% target
rates, the majority of which offer free, unregulated parking. Some blocks along Balboa Boulevard,
Bay Avenue, and Coronado Street were utilized at lower rates, though in general "front- door"
facilities closest to Balboa Village attraction exhibited high utilization rates.
Off- street utilization was significantly lower than on- street utilization, as only block ID #9 (the
block bordered by East Balboa Boulevard, A Street, B Street, plus the two Peninsula off- street
lots) exhibited utilization rates above the 9o% off - street standard. As noted above, significant
supply existed in the various public and private off- street facilities throughout the study area.
During Saturday's peak period, the majority of on- street block faces exhibited utilization rates
above the 85% target rate for on- street spaces. Two blocks along Bay Avenue (metered), one along
Adams Street (loading only), and one block along Balboa Boulevard exhibited utilization rates
below 85 %. Off - street utilization was also very high. At this peak hour, the Balboa Pier lot,
Peninsula Park lots, and Newport Landing garage were l00% utilized.
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BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
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Figure 2 -9 Peak Hour Utilization, Thursday 1 PM
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Figure 2 -10 Peak Hour Utilization, Saturday 1 PM
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Based on the Walker Parking utilization data for the study area, a number of observations can be
made. First, it is clear that for the vast majority of the year, existing parking supplies are more
than adequate to meet demand. While some "pockets" of high demand exist, particularly in prime
on- street facilities, on a whole both peak and off -peak weekday utilization rates are below target
utilization. This means that typically, a significant amount of parking is available in Balboa
Village, and associated perceptions of parking difficulty are due to the lack of a coordinated
parking management plan as opposed to the lack of sufficient supply.
However, the data also makes clear that during the area's periods of peak parking demand
(summer weekends) utilization rates in the majority of the area's on- and off - street facilities
exceed target utilization rates. As a result, spillover parking likely does occur into the surrounding
neighborhoods, as beachgoers either seek free parking, or must look to on- street spaces because
the beach lots are at or near capacity. A successful parking management plan will respond to both
this extreme seasonality of demand and address spillover issues tied to parking regulation and
pricing schemes.
Turnover
Walker Parking Consultants also conducted turnover data collection, noting vehicle license plates
during a weekday every hour. The analysis was conducted on various block faces along Bay
Avenue and Balboa Boulevard between Cypress and Main Streets.
Results from the Walker Parking license plate inventory indicate that a large percentage of
vehicles are parked in on- street spaces for long periods of time. During the count day,
approximately 52% of spaces in the count area were occupied by vehicles parked for five hours or
more. The overall turnover ratio was 1.84 vehicles per space over the 11 -hour study period.
It is possible that the majority of long -term, on- street parkers are employees parking in spaces
that are intended to serve more short-term visitors, such as shoppers. The Walker Parking study
correctly notes that this practice exacerbates congestion and helps to create a perception that a
visit to Balboa Village is not worth the hassle of parking. Greater turnover of on- street spaces
would help dispel this perception, and would free up prime "front- door" metered spaces for
customers and short-term visitors.
As a part of this study, Nelson \Nygaard also conducted extensive resident and business owner
stakeholder interviews to get a better sense of "on the ground" parking conditions. Many business
owners noted that they encourage their employees, sometimes with free or discounted passes, to
park in off- street facilities, mostly the Balboa Pier Lot and the Newport Landing structure.
However, other merchants cannot afford to provide such an incentive, meaning employees are left
to find parking on their own, likely seeking out free on- street spaces.
Synthesis of Parking Findings
As chronicled above, Nelson \Nygaard's analysis of previously collected parking utilization and
turnover data yielded various key findings related to parking conditions in Balboa Village. In sum,
during the off -peak, ample parking supply exists to meet current demand. Finding on -street
parking along a few "front door" block faces, however, can be difficult during all times of the year,
especially during summer months. Pockets of high demand and the perceived difficulty of parking
during these times are likely due to the lack of a coordinated parking management plan, not the
need for significant additional parking supply. However, during summer weekends, on- and off -
street parking supplies are significantly constrained. The specific findings of the parking analysis
are summarized below:
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BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
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Key Finding #i: Balboa Village has a large supply of parking, the majority of which
is located in off - street facilities.
A total of 1,636 parking spaces exist in Balboa Village, 1,356 of which (83 %) are located in various
public and private off - street facilities. Of these off- street spaces, 1,158 are in paid lots open to the
public. Only 280 on- street facilities exist in Balboa Village, 212 (76 %) of which are unregulated
and free of charge. The remaining on- street spaces are either metered (53 total spaces) or
reserved for loading purposes (15 total spaces).
Key Finding #2: Balboa Village's parking supply is underutilized for all but the
busiest summer weekends.
It should be emphasized that the parking counts reflect summer demand and that the Balboa
Village area only experiences "peak" parking demand on roughly 30-35 days per year. Balboa
Village has more than enough supply to meet current levels of demand during the vast majority of
the year. During summer weekday counts (a figure that should be comparable and possibly higher
than non - summer weekday and weekend counts), combined utilization rates never exceeded 67%,
meaning that at any given time, 540 spaces or more are available in Balboa Village.
Key Finding #3: While the parking supply is underutilized, various "hot- spots" of
demand exist, even during non -peak months.
Various "pockets" of high demand exist in Balboa Village, even during non -peak times and
months. Prime metered on- street spaces, unregulated and free on- street spaces, and off- street
facilities closest to the beach and Balboa Island Ferry Terminal experienced the highest utilization
rates. While these areas were highly utilized, large amounts of available parking existed within a
5 -10 minute walk. As noted above, this is likely due to the following reasons:
• Most on- street spaces are free, while all publicly accessible off- street spaces are paid. As a
result, motorists are incentivized to seek out and "circle" for available on- street spaces
before deciding to enter a paid off- street lot.
• Many of Balboa Village's largest attractions are concentrated along the beachfront and
ferry terminal area.
• Wayfinding signage does not exist to point visitors to off- street facilities with significant
availability. Consequently, many motorists are unaware of the proximity and availability
of additional parking facilities.
Key Finding #4: Balboa Village exhibits a drastic seasonal peaking of parking
demand with capacity highly constrained on summer weekends.
Parking demand is highest in Balboa Village during summer weekends. During these times, on-
street and off- street utilization peak at rates higher than target rates, meaning many motorists are
stuck searching or "cruising" for parking. The difficulty in finding parking during the summer
may also dissuade many from frequenting Balboa Village, thereby hindering economic activity.
During Saturday's peak period, only 4% of on- street spaces and 3% of off - street spaces were
available throughout the study area.
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Key Finding #5: Current pricing schemes discourage the use of off - street facilities,
encourage excessive "cruising" for available on- street spaces, and cause parking
spillover into surrounding residential streets. During peak summer months, these
trends are exacerbated.
As noted above, currently the only free, unregulated, publicly available parking in Balboa Village
is located on- street, mostly along the area's residential roadways. The remaining parking supply,
whether on- or off - street, is either paid parking or limited to customer or tenants only. As such,
recreational visitors to the area typically seek out free on- street spaces before entering a paid lot.
This causes excessive "cruising" for available spaces and creates parking spillover into Balboa
Village's residential areas.
Key Finding #6: Parking turnover is relatively low, as most vehicles stay parked in
off street spaces for long periods of time.
Turnover data suggests that approximately 52% of spaces in the count area were occupied by
vehicles parked for five hours or more. The overall turnover ratio was 1.84 vehicles per space over
the 11 -hour study period. The lack of on- street turnover represents an inefficient use of curb
space. Long term parking for employees or long term visitors should be moved to off- street
facilities, freeing up prime "front- door" spaces for shorter term visits made by shoppers and
visitors, and limiting the impacts of parking spillover.
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BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
3 CURRENT AND FUTURE
ITC d E, 114 u_ .,
This chapter provides an additional analysis of existing parking conditions in the study area based
upon data collected as part of the Walker study. More specifically, it analyzes existing parking
demand in relation to target occupancies and quantifies how much the study area is `over" or
"under" supplied. In addition, this chapter analyzes parking demand in relation to existing land
use and development patterns. This analysis will enable the City to demonstrate the effects of
development on parking and determine whether the study area currently has more or less parking
supply than existing demand requires.
INVENTORY, OCCUPANCY, AND LEVEL OF SUPPLY
As discussed in Chapter 2, the peak hour of parking demand was at 1 PM for both Thursday and
Saturday. For the study area as a whole, peak occupancies were 67% on Thursday and 96% on
Saturday. The figures below also show the parking data explicitly for the "commercial core,"
which is the area from Adam Street to A Street and does not include the beach or peninsula off -
street lots. Looking at the commercial core by itself, the peak on Thursday was at 7 PM and the
peak on Saturday was at 1 PM.
On Thursday, as shown in Figure 3 -1, the occupancies for the study area as a whole and the
commercial core are well below target levels of demand and result in an "oversupply" of parking.
For example, at peak occupancy on Thursday 1,087 parking spaces in the study area were
occupied. If one were to assume that this was meeting the target occupancy rate, then the study
area would only require 1,224 spaces. Current supply in the study area, however, is 1,636 spaces,
which translates into a 34% "oversupply" of parking based on current demand. However, the high
demand for on- street spaces on Thursday result in an "undersupply" of on- street parking,
especially for the commercial core. In other words, on- street spaces are in high demand, while off -
street facilities have ample availability.
On Saturday, parking is much more constrained. As shown in Figure 3 -2, parking is
undersupplied for the study area as a whole during the peak ( -8 %), but is actually oversupplied
for the commercial core (11%). This indicates that parking demand on weekends is heavily
concentrated at the beach.
In all, this analysis reinforces several key findings. First, there is ample available supply in the off -
peak, while parking is highly constrained in the peak. Second, on- street parking is highly sought
after, while off- street parking is only efficiently utilized at peak periods.
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Figure 3 -1 Occupancy, Inventory, and Level of Supply - Thursday
On-street
Occupancy
Necessary
Existing
Over /Under
% Over/ Under
Peak Period
Area
Supply
Supply
Supply
Supply
1 PM
Study Area
241
284
280
-4
_1%
7 PM
Commercial Core,
74
87
81
-6
-7%
no beach lots
•
.
Occupancy
Necessary
Existing
Over /Under
% Over /Under
Peak Period
Area
Supply
Supply
Supply
Supply
846
940
1,356
416
44%
1 PM
Study Area
7 PM
Commercial Core,
181
201
505
304
151%
no beach lots
Total
Occupancy
Necessary
Existing
Over /Under
% Over /Under
Peak Period
Area
Supply
Supply
Supply
Supply
1,087
1,224
1,636
412
34%
1 PM
Study Area
7 PM
Commercial Core,
255
288
586
298
103%
no beach lots
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BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
Figure 3 -2 Occupancy, Inventory, and Level of Supply — Saturday
On-street
Necessary
Existing
Over /Under
% Over IUnder
Occupancy
Supply
Supply
Supply
Supply
I •�
Peak Period Area
1 PM Study Area
268
315
280
-35
-11%
1 PM Commercial Core,
72
85
81
-4
4%
no beach lots
Off-street
Necessary
Existing
Over / Under
% Over l Under
Occupancy
Supply
Supply
Supply
Supply
Peak Period Area
1
0 1 '�
1 PM Study Area
1,309
1,454
1,356
-98
-7%
1 PM
Commercial Core,
400
444
505
61
14%
no beach lots
Necessary
Existing
Over / Under
% Over l Under
Occupancy
Supply
Supply
Supply
Supply
Peak Period
Area
1 PM
Study Area
1,577
1,770
1,636
-134
-8%
1 PM
Commercial Core,
472
529
586
57
11%
no beach lots
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City of Newport Beach
1► � TIP
The peak occupancy for the entire study area and for the commercial core occurred on Saturday at
1 PM. Parking demand ratio calculations reveal two different, but equally useful correlations:
• Built Stalls to Built Land Use Ratio. This represents the total number of existing parking
stalls correlated to total existing land use square footage (occupied or vacant) within the
study area. According to data provided by the City, there is approximately 286,926 gross
square feet (GSF) of land uses. At this time, about 1.84 parking stalls per i,000 GSF
of built land use have been developed /provided within the commercial core (combining
the on -and off- street parking supplies).
• Combined Peak Demand to Occupied Land Use Ratio. This represents peak hour
occupancy within the commercial core combining the on and off - street supply. As such,
actual parked vehicles were correlated with actual occupied building area (approximately
265,342 GSF). From this perspective, current peak hour demand stands at a ratio of
approximately 1.78 occupied parking stalls per 1,000 GSF of built land use.
Figure 3 -3 summarizes the analysis used to determine the built ratio of parking to built land use
(i.e., Column D), which is based on the correlation between total built land use of 286,926 GSF
(Column A - Built) and 528 stalls of "built" parking supply (i.e., Column Q. As such, the built
ratio of parking is 1.84 stalls per 1,000 GSF of commercial /retail building area..
Figure 3 -3 also demonstrates that the actual demand for parking is approximately 1.78 occupied
stalls per 1,000 GSF (Column F). This number is derived by correlating actual occupied building
area of 265,342 GSF (Column B) to the 472 vehicles actually parked in the peak hour (Column E).
Figure 3 -3 also breaks out this data by the other count periods.
Figure 3 -3 Parking Demand in Commercial Core - Mixed Land Use to Built Supply
To date, parking has been built at an average rate of 1.84 stalls per 1,000 GSF of development in
Balboa Village's commercial core. This rate appears to have provided close to the right amount of
parking, with commercial land uses in the study area generating parking demand ratios of 1.78
vehicles per 1,000 GSF. It is important to note that corresponds to the peak period of the summer
months, and parking demand during the rest of the year is far below 1.78. For example, the
Thursday peak demand for the commercial core (a more accurate representation of typical
demand throughout the majority of the year) was at .96 vehicles per 1,000 GSF.
NelsonlNygaard Consulting Associates Inc. 3 -4
GSF
GSF
Total Supply
Built Ratio of
Total
Actual Ratio of
FThursdavl
(Built)
(Occupied)
Inventoried in
Parking (per
Occupied
Parking Demand
Study Area
1,000 GSF)
Spaces
(per 1,000 GSF)
286,926
265,342
528
1.84
156
0.59
220
0.83
Thursday, 7 PM
255
0.96
Saturday, 7 PM
309
1.16
Saturday, 10 AM
326
1.23
Saturday, 1 PM
472
1.78
To date, parking has been built at an average rate of 1.84 stalls per 1,000 GSF of development in
Balboa Village's commercial core. This rate appears to have provided close to the right amount of
parking, with commercial land uses in the study area generating parking demand ratios of 1.78
vehicles per 1,000 GSF. It is important to note that corresponds to the peak period of the summer
months, and parking demand during the rest of the year is far below 1.78. For example, the
Thursday peak demand for the commercial core (a more accurate representation of typical
demand throughout the majority of the year) was at .96 vehicles per 1,000 GSF.
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Figure 3 -4 provides a summary of built supply to actual demand for other cities that the
consultant team has worked with. The Balboa Village commercial core is at the top of selected
cities in relation to actual amount of parking built to land use. At its peak, Balboa Village has a
similar demand ratio, resulting in a small gap between what the level of parking supplied and
what is actually needed.
Figure 3 -4 Built Parking Supply and Actual Peak Demand, Selected Cities
City
Hood River, OR
Minimum
Requirement rll
SF or Actual Built
Supply
1.54
Actual Demand
Ilr
1.23
Gap bit parking
actual parking demand
Ilr
0.31
Oxnard, CA
1.70
0.98
0.72
Newport Beach, CA (Balboa Village)z
1.84
1.78
0.06
Corvallis, OR
2.00
1.50
0.50
Monterey, CA
2.14
1.20
0.94
Sacramento, CA
2.19
1.18
1.01
Seattle, WA (SLU)
2.50
1.75
0.75
Kirkland, WA
2.50
1.98
0.52
Palo Alto, CA
2.50
1.90
0.60
Santa Monica, CA
2.80
1.80
1.00
Ventura, CA (Westside)
2.87
1.26
1.61
Chico, CA
3.00
1.70
1.30
Hillsboro, OR
3.00
1.64
1.36
Bend, OR
3.00
1.80
1.20
Salem, OR
3.15
2.04
1.11
Lancaster, CA
3.67
1.37
2.30
Redmond, WA
4.10
2.71
1.39
Mill Valley, CA
4.13
3.08
1.05
Beaverton, OR
4.15
1.85
2.30
Soledad, CA
4.21
1.21
3.00
1 Reflects peak parking demand during the summer months, which is achieved on approximately 30 -35 days per year.
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City of Newport Beach
FUTURE DEMAND
Based on information provided by the City of Newport Beach, the only large - scale, commercial
development that is proposed for Balboa Village is the expansion and redevelopment of the
ExplorOcean Newport Harbor Nautical Museum located at 600 East Bay Avenue. The existing
museum would be expanded to three levels consisting of 38,685 SF. Based on the net square
footage3 and existing demand in Balboa Village for commercial uses (see Figure 3 -4), it is
estimated that the new museum would generate parking demand of roughly 27 net new parking
spaces4 at peak demand.
Given the high level of demand during summer peak periods, it is likely that parking will be in
high demand for parking facilities in proximity to the new museum. However, Nelson \Nygaard
believes that this level of net new parking can be accommodated within the existing parking
supply through more effective parking management strategies (as described in Chapter 5), and
that the available development scenarios do not necessitate new parking supply. Because peak
parking demand only occurs on approximately 20 -3o days per year and additional parking
management techniques can be utilized, expensive capital outlays for new parking facilities are
not warranted in the immediate future.
In addition, any new development would be subject to the requirements of the proposed "Parking
& Multimodal" impact fee (Recommendation #5), which would fund additional projects and
programs to mitigate traffic and parking impacts from future projects.
3 Net SF = 38,685 SF - 23,400 SF (estimated existing site SF) = 15,285 SF
4 (15,285 SF 11,000 SF) x 1,78 parking demand per 1,000 SF = 27 parking spaces
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City of Newport Beach
4 CALIFORNIA COASTAL COMMISSION
AND PARKING MANAGEMENT
OVERVIEW
The California Coastal Commission (Commission) was established by voter initiative in 1972. The
mission of the Coastal Commission is to: "Protect, conserve, restore, and enhance environmental
and human -based resources of the California coast and ocean for environmentally sustainable
and prudent use by current and future generations. "5 The statutory authority of the Commission
comes from the California Coastal Act, which details the specific policies that govern numerous
issues related to management of California's coastal resources. In practice, the Coastal Act is
implemented by the Commission in partnership with all of the cities and counties (via local
coastal programs, LCPs) that are located within the Coastal Zone.
Because Balboa Village is located within the Coastal Zone, the Commission will play an integral
role in shaping the final recommendations of this parking management plan. More specifically,
one of the key recommendations of this plan is a residential parking permit program for the
Balboa Village area. As outlined below, the Coastal Commission takes a particularly keen interest
in all residential permits within the Coastal Zone, as they have the potential to limit coastal and
beach access for the general public. This chapter outlines the Commission's statutory authority to
regulate residential parking permits and highlights the key issues that the City of Newport Beach
should consider when designing its residential permit program.
COASTAL ACT AND PARKING MANAGEMENT
One of the most common issues related to parking management is "spillover" parking — when
non - residents use on- street parking in residential areas to park their vehicles. Local residents
often argue that this practice limits their ability to park near their homes. Spillover parking is a
common challenge in residential areas that are located in close proximity to a major trip
generator, such as a major employer or popular tourist attraction. As a response, many local
jurisdictions have utilized residential parking permits (RPPs), which restrict the time and /or
duration a non- resident can park in an on- street space.
Over the years, numerous coastal jurisdictions have submitted permit applications to the
Commission asking for approval of an RPP as a means to manage parking spillover issues in
residential areas near popular beach or coastal areas. Because each RPP has the potential to
reduce public access opportunities to coastal resources, the Commission evaluates each
application on an individual basis, ultimately seeking to meet its mission of providing,
maintaining, and ensuring public access to coastal resources while taking into account the needs
5 htlo:// www .coastal.ca.aov /whoweare.html
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of local residents. Some of the most relevant Coastal Act provisions that give the Commission
purview over coastal access and parking policies within the coastal zone are outlined below:6
• Section 3o600: Requires local governments to obtain permits to undertake
"development" in the coastal zone.
• Section 3o1o6: Development is defined as: "...change in the density or intensity of use
of land... change in the intensity of use of water, or of access thereto..." Therefore, by
converting on- street public parking spaces to private residential uses, a city wishing to
implement an RPP is undertaking "development," and must apply for the required
permit.
• Section 30210: "Maximum access ... and recreational opportunities ... shall be provided
for all the people..."
• Section 30211: "Development shall not interfere with the public's right of access to the
sea..."
• Section 30212.5: "Wherever appropriate and feasible, public facilities, including
parking areas or facilities, shall be distributed throughout an area so as to mitigate
against the impacts, social or otherwise, of overcrowding or overuse by the public of any
single area."
• Section 30213: "Lower cost visitor and recreational facilities shall be protected,
encouraged, and, where feasible, provided."
• Section 30214: "(a) The public access policies of this article shall be implemented in a
manner that takes into account the need to regulate the time, place, and manner of public
access depending on the facts and circumstances in each case including, but not limited
to, the following:
(3) The appropriateness of limiting public access to the right to pass and repass
depending on such factors as the fragility of the natural resources in the area and the
proximity of the access area to adjacent residential uses.
(4) The need to provide for the management of access areas so as to protect the privacy of
adjacent property owners and to protect the aesthetic values of the area by providing for
the collection of litter.
(b) It is the intent of the Legislature that the public access policies of this article be
carried out in a reasonable manner that considers the equities and that balances the
rights of the individual property owner with the public's constitutional right of access...
(c) In carrying out the public access policies of this article, the commission and any other
responsible public agency shall consider and encourage the utilization of innovative
access management techniques...
Section 30252: "The location and amount of new development should maintain and
enhance public access to the coast by (t) facilitating the provision or extension of transit
service, (2) providing commercial facilities within or adjoining residential development or
in other areas that will minimize the use of coastal access roads, (3) providing non-
automobile circulation within the development, (4) providing adequate parking facilities
or providing substitute means of serving the development with public transportation..."
6 California Coastal Act: htto:/ /www.coastal.ca.aov /coastact.odf
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SUMMARY OF SELECTED RPP APPLICATIONS
TO COASTAL COMMISSION
Outlined below are brief summaries of selected Commission rulings on previous RPP permit
applications. The primary source materials for this section are Commission Staff reports related
to RPP applications.
City of Santa Cruz (1979)
• Live Oak residential area
• Hours: Summer weekends, a AM — 5 PM
• Commission approved the program with the following mitigation measures:
— Availability of day use permits to general public
— Provision of remote lots
— Free shuttle system
City of Hermosa Beach (1982)
• Downtown commercial district and residential district 1,000 feet inland
• Original application included restricted parking near the beach and a free remote parking
system to replace restricted on- street parking
• Commission approved a revised program that included availability of day use permits for
the general public and a shuttle system to remote lots
• Commission later approved City request to eliminate the shuttle system based on
evidence that it was lightly used, the remote parking areas were within walking distance,
beach access would not be limited with loss of the shuttle, and the City could no longer
afford to operate the shuttle
City of Santa Cruz (1983)
• Beach Flats area
• Commission approved RPP based on findings that the original residential area did not
provide enough off - street parking for residents (based on conversion of rental cottages to
permanent residential units), that residents were competing with visitors for on- street
parking, and that adequate public parking was available in nearby public lots and non -
metered on- street spaces.
• 150 permits were issued to residents
City of Capitola (1987)
• 2 RPP areas: "Village" and "Neighborhood" areas
• Original application — Village RPP: Resident permits that were exempted from 2 -hour
restriction and meters; Neighborhood RPP: Resident only parking
• Commission: "Village RPP did not exclude public parking, but Neighborhood RPP did."
• Commission approved revised application, which included special conditions:
— Limited number of permits in Village RPP
— Limited areas of parking restrictions
— Required access signage program
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- Operation of public shuttle system
- Required ongoing monitoring program, with r -year time limit requiring
reauthorization
Current restriction is primarily n AM - 5 PM in residential areas
City of Santa Monica (1996)
• Adelaide Drive and 4th Street
• Commission rejected 24 -hour restriction on grounds that it was too restrictive and would
significantly impact access and coastal recreation.
• Commission approved a revised permit that restricted parking between 6 PM and 8 AM,
with special conditions:
- 2 -year program limit requiring reauthorization pending program evaluation
City of Santa Monica (2002)
Area bounded by Montana Avenue, 4th Street, Wilshire Boulevard, and Ocean Avenue
• Proposed RPP Parameters
- Hours: 6 PM - 8 AM
- Resident permit cost: $15
- No parking or stopping for those without permits
- Number of permits limited to number of vehicles registered at residence - more than
3 permits requires demonstration that there is not sufficient off- street parking
• City studies showed that: t) people parking were predominantly residents and visitors to
Third Street; 2) there was ample supply in off- street lots and numerous other parking
options exist; and 3) proposed restrictions are at a time when beach and recreational use
is low, demand is minimized and can be met by nearby parking options.
• Commission concurred that "Because of the location of the proposed zone, hours of the
parking restriction, and the availability of additional parking in the surrounding area, the
impact to public access for the beach and recreational use will not be significant..."
• The RPP was approved pending the following revisions to the permit application:
- The permit zone shall exclude all portions of Ocean Avenue because of its proximity
and visibility for beach users.
- The permit program expires after 5 years, at which time the City may apply for a
reauthorization. Reauthorization shall include a new parking study (conducted on at
least 3 non - consecutive summer weekends between Memorial Day and Labor Day)
documenting utilization rates. Study must also include survey of trip purpose, length
of stay, destination, and frequency of visit.
- Any changes to program will require an amendment to the Commission permit.
City of Los Angeles (2009)
• Venice Beach area
• Proposed RPP from 2 AM to 6 PM, No Parking
• Implemented subject to 2/3 resident approval
• The Commission denied the permit application on the following grounds:
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— The proposed permit parking program would give the residents with permits
preferential access to public parking spaces on public streets in comparison to non-
residents without establishing adequate safeguards for visitor parking.
— The City cannot guarantee that the proposed supply of metered on- street spaces will
be available to beachgoers because these spaces may become parking areas for
existing residents who do not purchase a permit once the RPP goes into effect.
— The City's proposal to allow for 4 -hour parking in off- street lots was deemed to be
inadequate because these lots are currently used by residents to store vehicles.
Furthermore, many residents objected to the 4 -hour restriction.
— The local residents' complaints about nuisance problems are a local law enforcement
issue and should not be resolved by parking policy.
City of Los Angeles (2010)
• Playa del Rey area
• Proposed RPP from 10 PM — 5 AM, No Parking
• Implemented subject to 2/3 resident approval
• The Commission denied the permit application on the following grounds:
— The proposed overnight restriction is exclusionary and would not allow non - residents
access to on- street spaces.
— The limited access points to the area meant that a loss of parking in the proposed
RPP zone would severely restrict access and force people to park much farther south.
— The proposed parking restrictions do not contain adequate safeguards for visitor
parking.
— The City's proposal to preserve 20 parking spaces for public parking by metering
them was deemed inadequate — these spaces are too far south to serve the public.
— City parking lots are only open from dawn to dusk. As a result, the only available
parking supply during those hours is on- street parking.
— The local residents' complaints about nuisance problems are a local law enforcement
issue and should not be resolved by parking policy.
SUMMARY OF KEY RPP ISSUES
Based on a review of previous staff reports, it was evident that a number of key issues and
concerns were consistently identified by the Commission. In other words, if a City could not
demonstrate that its RPP would address these issues and concerns, then it was likely the RPP
permit would be denied. The following list provides an overview of the key issues and concerns
that the Commission repeatedly emphasized while evaluating previous RPP permit applications.
Recommendation #3 in Chapter 5 provides additional detail for how the proposed Balboa Village
RPP would seek to address the Commission's concerns.
1. Preservation of public access is the Commission's primary concern. Commission
staff have repeatedly emphasized that one of the primary intents of the Coastal Act is to
ensure equal access to the coast and that no policy should provide preference to one user
group over the other. Sections 30210 and 30211 of the Coastal Act underscore this policy
objective. In practice, this means that RPPs should not provide "exclusive" rights to on- street
spaces to residents.
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2. Public access is a "24- hour" objective. In other words, the Commission does not take
into account what time of day or night the proposed parking restriction is for because the
public should always have equal access to the coast. For example, even if it is 3 AM, and it is
unlikely that many people will be seeking to access the beach or coast, public access should
still be preserved.
3. The Commission strives to achieve regulatory "balance," but errs on the side of
public access. Section 30214 articulates that Coastal Act policy should support the rights of
property owners, and in many Commission rulings, staff recognize the need to strike a
balance between public access and the ability of the public to park near their residence. For
example, "...if proposed parking prohibition measures can be balanced with coastal access
opportunities, where impacts to public access is minimized, the Commission may find such
proposals consistent with the public access policies of the Coastal Act. "7
In practice, however, it appears that Commission is very "conservative" in its rulings and will
most likely rule against an RPP if it believes that impacts to public access have not been
minimized to the greatest degree possible.
4. Local jurisdictions can use policy to regulate parking, but cannot give exclusive
access to residents. The Commission understands the value of RPPs, and has approved
numerous such programs. However, it has consistently denied applications that provide
"exclusive" access to residents.
5. In order to prevent exclusive residential access, local jurisdictions must
"replace" public on- street parking that is "lost' to an PPP. The Commission has
approved many RPPs over the years, but it has often stipulated that "replacement" parking
must be provided if certain on- street spaces are restricted via an RPP. In other words, local
jurisdictions must provide additional accessible parking options to the public. This
replacement parking has taken many forms, such as:
• Proximate and easily accessible on- or off- street parking facilities
• Remote parking facilities served by public shuttles
• Enhanced access to existing and nearby parking facilities through improved wayfinding
• The option to purchase "day use" permits for non - residents
6. The Commission typically views RPPs as "pilot" efforts to be reevaluated in the
future. In recent years, the Commission has set an expiration date on RPP permits and
requires an evaluation of the RPP's effectiveness to date. For example, an RPP in the City of
Santa Monica was approved for a period of 5 years, at which time the permit required the City
to conduct a parking utilization study and motorist survey to evaluate the RPP and parking
behavior in the zone.
7. Nuisance issues fall under the purview of local law enforcement and are not to
be regulated by residential permits. The Commission has repeatedly rejected any
arguments that RPPs should be used to regulate local nuisance issues, such as noise,
vandalism, or loitering. The Commission has emphatically stated that these issues should be
addressed through local law enforcement or other local policies.
California Coastal Commission, Application No, 5 -02 -380, 2002.
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City of Newport Beach
5 PARKING MANAGEMENT PLAN
The Walker parking study and analysis of parking demand provide a wealth of information about
parking conditions and behavior within Balboa Village. This data will serve as the guiding
framework for the City of Newport Beach as it moves forward with reshaping Balboa Village and
reforming its parking policies and management systems. The Parking Management Plan was also
developed with input from City staff, the Balboa Village Citizen Advisory Panel (CAP), the
Newport Beach City Council, and other local stakeholders.
The recommendations included below are designed to work together to meet the City's parking
management goals. While these recommendations could theoretically be implemented piece by
piece, they are most effective if implemented together. It is important that to the greatest extent
possible the recommendations be implemented as a cohesive "package" of reforms.
Finally, it is important to emphasize that the recommendations outlined below are specific to
Balboa Village and would not necessarily apply to other neighborhoods within the City of
Newport Beach.
PRINCIPLES FOR EFFECTIVE PARKING MANAGEMENT
Historically, a city wishing to "solve its parking problem" has almost always meant an increase in
supply. Unfortunately, simply increasing parking supply often encourages more auto use, as
people are incentivized to drive to places that offer plenty of "free parking." Furthermore, simply
increasing supply does not address the core problem of concentrated demand, in which popular
on- street spaces are consistently oversubscribed while nearby off- street spaces remain
underutilized. The goal of parking demand management is to "manage" curb spaces to ensure
availability while also optimizing utilization of existing off- street supply to meet a variety of
parking needs.
Managing parking has been shown to be one of the single most effective tools for alleviating
congestion and improving operation of the street network, even when densities are relatively low
and major investments in other modes have not been made. Parking management can also have a
significant impact on mode choice, which translates directly to reductions in auto congestion and
improved livability of commercial districts and adjacent neighborhoods. Finally, effective parking
management can result in positive economic impacts for local businesses, as employees,
residents, and visitors can all better utilize the parking supply to shop, dine, or recreate.
As Balboa Village continues to grow and evolve its parking needs will change as well. This plan
recommends techniques to both address current challenges and also allow the City to be nimble
in reacting to future parking challenges. Above all else, this plan proposes a parking management
approach that utilizes policies and programs that will enable more efficient utilization of existing
supply, while alleviating parking congestion in certain areas.
In recognition of these considerations, the following goals and objectives informed the
development of parking management recommendations for Balboa Village:
• The parking supply should be a public resource that is convenient and easily accessible
for all user groups.
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• The parking supply (public and private) should be managed as part of an integrated,
district -wide system.
• Parking facilities should be managed with a focus on making the most efficient use of all
public and private parking facilities before increasing supply.
• Parking regulations should not prevent visitors and residents from coming to (or staying
in) Balboa Village.
• Parking policies should support the ability of local employees to get to work, but also
discourage employees from parking in "prime" on- street spaces all day long.
• Commercial parking practices should not negatively impact nearby residences and proper
protection should be in place to help prevent "spillover" parking.
• Evaluate pricing as a tool to manage parking supply and demand, and use any potential
parking revenue to fund transportation programs that maintain adequate parking supply
and enhance mobility in the Downtown area.
• Embrace new parking technologies to maximize customer satisfaction, as well as foster
enhanced parking data management and analysis.
• Provide flexibility to local decision makers and City staff to adapt to seasonal and long-
term changes in parking demand and travel patterns, as well as make adjustments to
parking policies to improve system performance.
• Balance the need to revise parking to better serve local businesses and residents with an
understanding that Balboa Village falls within the Coastal Zone and that public access to
the beach and coast is a regional priority.
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Description
This recommendation proposes the elimination of all existing time limits for metered spaces.
Instead, it is recommended that the City explore upgrading its existing "smart" parking meters for
all curb spaces along the primary commercial corridors in Balboa Village. On- and off- street
parking should use variable pricing as a means to meet target occupancy levels and generate an
appropriate level of turnover.
As described in more detail below, motorists would be allowed to park in a parking space for as
long as they like, as long as they pay for it. Prices would be based on length of stay and also
adjusted to respond to seasonal fluctuations in demand so that when parking demand is higher or
lower, prices would increase or decrease accordingly.
Why implement it?
like many other jurisdictions, Balboa Village has sought to regulate its curb spaces through time
restrictions and parking fines. These traditional techniques are reasonably effective in generating
turnover and increasing municipal revenues, but in most cities, are rarely linked to any larger
transportation or quality of life goals. In fact, traditional parking policies have often resulted in
increased congestion as motorists "circle" for on- street spaces, reduced functionality of streets for
transit users, pedestrians, or bicyclists, and frustrated businesses that bemoan the lack of
available parking.
Time limits, in particular, can present several disadvantages, as is experienced in Balboa Village
today. First, enforcement of time limits is labor- intensive, requiring parking control officers to
"chalk" tires and return in two hours. Second, long -term parkers or employees, who quickly
become familiar with enforcement patterns, often become adept at the "parking shuffle," moving
their vehicles regularly or swapping spaces with a co- worker several times during the workday.
Even with strictly enforced time limits, if there is no price incentive to persuade long -term
parkers to seek out less convenient, bargain - priced spots, these motorists will probably still park
in prime spaces. Finally, for customers and visitors, strict enforcement can bring "ticket anxiety,"
the fear of getting a ticket if one lingers a minute too long (for example, in order to have dessert
after dinner).
By contrast, one of the best ways to balance parking supply and demand and generate turnover is
not through time limits, but with pricing structures that take into account actual demand for a
parking space. By treating parking like any other scarce commodity, and requiring motorists to
directly pay for use of a space, a jurisdiction can establish the "market value" for each parking
space and adjust those prices depending on the level of demand. Just as hotel room rates increase
or decrease based on availability, demand -based pricing for parking seeks to increase prices when
and where demand is highest and reduce prices when and where demand is lowest. New advances
in parking meter technology, such as wireless "smart" meters, make demand -based pricing a
feasible option and can dramatically increase motorist convenience through new payment
technologies.
In summary, the primary goal of demand -based pricing is to make it as easy and convenient as
possible to find and pay for a parking space. By setting specific availability targets and adjusting
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pricing, demand can be effectively managed so that when a motorist chooses to park, they can do
so without circling the block or searching aimlessly. Demand -based pricing can result in the
following benefits:
• Consistent availability and ease in finding a parking space, especially near local
businesses and ground floor retail uses
• Flexible time limits, thereby eliminating the need to move a vehicle to avoid time
restrictions
• Convenient payment methods that eliminate the need to "plug the meter" and make it
easier to pay for parking and avoid parking tickets (see sidebar on meters)
• Incentivizes long -term parkers and daily commuters to park in off- street lots
• Reduces search time for parking, resulting in less local congestion and vehicle emissions
• Reduces illegal parking and improves safety and street operations
• Provides a more equitable and efficient way to account for the real costs to a city for
providing parking
• Offers a potential revenue stream for the City that should be reinvested in local
transportation and mobility improvements (see Recommendation #z)
Potential Tradeoffs
While demand -based pricing and the removal of time limits have proven effective, there are some
potential tradeoffs that the City may wish to consider when evaluating this recommendation.
These include:
Resistance to change: Demand -based pricing will represent a change in how parking
is currently being managed and may generate local opposition. Business owners,
residents and regular visitors may resist such changes, often arguing that parking should
be "free" and new or expanded meters will "hurt local businesses." Such arguments ignore
the status quo, which has resulted in tangible parking, circulation, and quality of life
challenges for Balboa Village. Furthermore, numerous examples exist that demonstrate
that demand -based pricing can improve the local economy and that most people are
willing to pay for parking if it makes the experience more convenient.
Overcoming resistance to change maybe the City's biggest obstacle to reforming its
parking policies and programs. The City should be aware of potential local opposition and
take steps to proactively educate and inform local residents and businesses.
Implementation and management costs: The City will have to make an investment
to implement and manage a demand -based pricing program. In addition to the capital
infrastructure required, it is likely that the City will need to allocate additional staffing
resources, at least in the initial stages of implementation, to manage the program. While
these costs are real, other jurisdictions have shown that such financial outlays are well
worth the investment, resulting in dramatic improvements to the areas in which they
have been applied. Furthermore, revenue generated from a demand -based pricing
program can potentially be used to finance its start-up and ongoing costs, thereby
minimizing the costs to the City.
Success can take time: Demand -based pricing may take time to fully realize its
positive effects, as it is unlikely that the initial meter rates will be the exact prices need to
meet the target occupancy rates. It may take a few additional price adjustments (based on
additional occupancy analyses) to find the right prices for the different levels of demand
throughout the year. The City should be prepared for ongoing monitoring and
adjustments, and establish specific processes by which those adjustments are made to
ensure consistency and transparency.
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How Will It Work?
If prices are used to create vacancies and turnover in the prime parking spots, then what is the
right price? A well - established, industry standard target occupancy rate for on- and off- street
spaces is approximately 85% and go %, respectively. At this level of occupancy, at even the busiest
hour about one out of every seven spaces will be available, or approximately one empty space on
each block face. This provides enough vacancies so that visitors can easily find a spot near their
destination when they first arrive.
For each block and each parking lot in Balboa Village, the right price is the price that will achieve
these target rates. This means that pricing need not be uniform: the most desirable spaces may
need higher prices, while less convenient lots are less expensive. Pricing can also be based on
length of stay with a higher rate charged the longer one stays. In other words, the goal is not to
ticket someone for wanting to stay longer than two hours, but allow them to stay as long as they
are willing to pay for the space being used. Prices can also vary by season or day of the week.
It is important to understand that demand -based pricing does not need to change the parking
behaviors of every motorist. Motorists can be thought of as falling into two primary categories:
bargain hunters and convenience seekers. Convenience seekers (shoppers, diners, or tourists) are
more willing to pay for an available front door spot, and are typically less sensitive to parking
charges because they stay for relatively short periods of time. By contrast, many long -term
parkers, such as employees, find it worthwhile to walk a few blocks to save on eight hours worth
of parking charges. With proper pricing, the bargain hunters will choose currently underutilized
lots, leaving the prime spots free for those convenience seekers who are willing to spend a bit
more. The ultimate goal, therefore, is to shift the parking behaviors of not all, but just enough
motorists to reach target occupancy levels.
Draft Demand -based Parking Approach for Balboa Village
On- street Meter Location
Existing on- street meters should be upgraded to dynamically regulate all existing on- street spaces
along Balboa Village's primary commercial and retail corridors, including: East Balboa Boulevard
and East Bay Avenue between Adams Street and A Street, as well as Palm Avenue. No additional
on- street meters are recommended to be installed at this time, but in the future the City may wish
to expand the coverage of meters based on growth or changes in demand.
On- street Meter Type
The City recently installed roughly 1,600 new single and multi -space "smart" meters citywide,
including on streets in Balboa Village. These new meters accept credit card payments. The City
should continue to ensure that Balboa Village parking meters facilitate easy payment and improve
motorist convenience by allowing multiple forms of payment. All meters should also enable the
City to easily revise meters prices in response to changes in demand.
Moving forward, the City should also explore implementation of wireless meters, which would
allow motorists to pay -by- phone, while improving revenue collection, enforcement, and parking
data management for the City. Wireless meters can also allow the City to provide a free, publicly
accessible wireless network in Balboa Village.
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Overview of Meter Technologies
Various new meter technologies exist beyond the conventional coin meters used for the better part
of the 20Th century. These include smart meters, multi -space meters, in -car meters, and wireless
pay -by -phone technology.
Single -space Meters
Conventional Coin Meters
These meters have been used by municipalities since the
1930s. They only accept change, and do not exhibit
illumined displays.
Smart Meters
Smart meters are very similar to conventional coin meters;
however, they allow motorists to pay for parking via
credit or debit card. They also have illuminated displays
that allow viewing of parking rates, hours, time limits, and
other important information. The ease of payment with
smart meters tends to reduce parking and ticketing
anxiety.
Furthermore, when combined with embedded roadway
sensors, smart meters allow for demand based pricing
schemes, as they can send and receive data regarding
parking pricing and availability. Some are also pay -by-
phone enabled (see section below). A single smart meter
can cost around $200.
Coin Meter in Sausalito, CA
Source: Flickr user wueslenigel
Smart Meters in San Francisco, CA
Source. SFPark
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Multi -space Meters
Pay- and - display Meters
Pay- and - display meters can be placed on existing
light or utility poles and serve roughly 10 to 30
parking spaces each. People must park, walk to the
meter where they receive a receipt and return to
their vehicle to display the receipt on their
dashboard. Pay- and - display meters cost
approximately $10,000 to $12,000. These meters
have minimal maintenance costs; operating costs
vary depending on the type of power system used.
Some pay -by -space meters can use solar - power,
keeping operational costs very low and requiring
no utility work for installation (battery powered
meters are also available).
Pay- and -walk Meters
Multi -space pay- and -walk meters require on- street
parking stalls be numbered. They are more
convenient to parkers because they are not
required to return to their cars, but they have an
aesthetic disadvantage in that they require
numbers to be painted in every parking space.
Pay- and -walk meters cost between $7,000 and
$10,000.
In -car Meters
In -car meters are small mirror - hanging units that Pay- and - display Meter in Portland, OR
can be purchased from cities and that can store Source: Flickr user Ian Broyles
prepaid parking time. Users can turn the meters on
when they leave their vehicle and turn it off when they return. In -car meters are popular because
they work in real time and people can avoid over or underpaying. Some of these meters operate
using cellular technology, allowing people to pay -by -phone with a credit card. Time is then
credited to a central database and the in -car meter "calls" the central computer when the meter is
in operation.
Wireless / Pay 4y -phone
Pay -by Phone technology allows a driver to pay a parking fare via cell phone, mobile phone
application, or computer. Motorists can receive a reminder text when their time is almost up, and
can add time without returning to their vehicle or parking meter. Receipts are available via email.
Typically these programs require pre- registration. Pay -phone technology reduces maintenance
and operational costs associated with meters, fare collection, and ticketing.
These meters typically require wireless technology, which can increase setup and maintenance
costs, but also offer the potential benefit of creating a free, publicly available wireless network
for the area in which the meters are installed.
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Target Occupancy Rates
Target occupancy rates for on- street spaces should be 85% and go% for off- street spaces, which
would translate into approximately one space per block and several spaces per lot being available
at all times of the day.
Initial Hours & Pricing Structure
Current meter rates are $1.50 per hour.
Outlined below is the proposed hours and
pricing structure for Balboa Village:
On- street
• Peak period (Summer)
— 8 AM — 6 PM, 7 days
— $2.00 per hour (0 -2 hours)
— $2.50 per hour (2+ hours)
• Off -peak period (non- Summer)
— 8 AM — 6 PM, 7 days
— $1.00 per hour (0 -2 hours)
— $1.50 per hour (2+ hours)
O - street
• Peak period (Summer)
— $1.50 per hour (no max)
• Off -peak period (non- Summer)
— $.50 per hour (no max)
8 DeAryar v. City of San Diego, 75 CA2d pp 292, 296, 1946.
9 Ibid.
Legal Basis for
Setting Meter Rates
The California Vehicle Code (CVC Sec. 200258)
allows local jurisdictions to set parking meter
prices at fair market rates necessary to achieve
85% occupancy. California case law authorizes
local jurisdictions to enact parking meter
ordinances with fair market rates that
"may... justify a fee system intended and
calculated to hasten the departure of parked
vehicles in congested areas, as well as to defray
the cost of installation and supervision. "8
California case law has also recognized that
parking meter fees are for the purpose of
regulating and mitigating traffic and parking
congestion in public streets, and are not a tax for
revenue purposes.9
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Meter Pricing Adjustments
It is possible that the initial pricing
structure proposed above will not
achieve the target occupancy rate.
Therefore, meter prices should not
be static, but periodically adjusted
to respond to changes in demand.
Rates need not change constantly or
abruptly. When revising meter
hours or rates, it is safest to increase
or decrease rates slowly, with
occupancy checks before and after
each rate adjustment.
On- street Pricing in Other Cities
Sausalito:
$1 per hour; 3 hour time limit; 8:30 AM — 6 PM, 7 days
Laguna Beach:
$1 -2 per hour; 8 AM — 7 PM, 7 days
Long Beach:
$2 per hour, 9 AM — 9 PM, 7 days
Huntington Beach:
$1 -3 per hour, depending on location
Manhattan Beach:
More specifically, this Plan
recommends that City Staff be $1.25 per hour, 8 AM — 9 PM, 7 days
authorized to increase parking San Francisco:
prices up or down in $0.25 Depends on location and time of day (www.sfpark.org)
increments, with an upper price
limit of $3 per hour, on a quarterly
basis to achieve target occupancy levels. Prices could be adjusted no more than four times per
year. If and when Staff deems that it is necessary to increase the hourly price further (i.e. higher
that $3 per hour) on certain blocks or in certain parking facilities in order to manage higher
parking demand in those locations, Staff should return to City Council to request authorization to
do so, at which time a new price threshold (upper limit) on parking prices can be also be
established.
Parking Validation
The issue of incorporating a parking validation program for local businesses was also evaluated,
but is not recommended as part of this Parking Management Plan. The primary reason is that any
validation system would substantially undermine the ability of pricing to effectively manage
supply and demand. A validation system would allow customers to park for free in highly
desirable spaces, thereby eliminating crucial pricing signals to motorists. Without a pricing
structure that is applied to all motorists, it will be very difficult for Balboa Village to meet its
target occupancies and ensure that parking is convenient. It is also worth noting that with a
validation program, the City would be subsidizing parking for motorists and losing parking
revenue that would fund various transportation improvements (see Recommendation #2).
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Description
Parking benefits districts (PBDs) are defined geographic areas, typically in downtowns or along
commercial corridors, in which any revenue generated from on- street and off- street parking
facilities within the district is returned to the district to finance neighborhood improvements.
Why Implement It?
Paying for parking can be unpopular for a number of reasons. One of the primary reasons is that
when motorists feed the meter, their money seems to "disappear" and they feel they derive little
benefit from the transaction. This is largely because most cities have traditionally sent their
parking revenue into the general fund, and not necessarily to improving parking or enhancing the
transportation system. In recent years, some cities have sought to reverse this dynamic by
implementing PBDs.
The primary goal of a PBD is to effectively manage an area's parking supply and demand, so that
parking is, above all, convenient and easy for motorists. PBDs typically employ a number of
parking management techniques to manage parking supply and demand, including demand -
based pricing and removal of time limits. However, experience has shown that in order to secure
community and business support for new pricing of parking, the revenue needs to be reinvested
back into the community. Drivers will always likely prefer not to pay for parking, but a PBD can
create a new local constituency for pricing.
PBDs require local parking revenue to stay local, while financing neighborhood improvements.
PBDs allow local merchants and property owners to clearly see that the monies collected are being
spent for the benefit of their district, on projects that they have chosen. In turn, they become
willing to support, and often advocate on behalf of, demand -based pricing.
Tradeoffs to Consider
• Additional administrative and management costs for the City
• It should be noted that in the City of Newport Beach, parking revenue used to be invested
locally, but is now currently pooled into the City's General Fund. In Balboa Village, this
revenue was used to purchase the land for the public lot at East Balboa Boulevard and
Palm Street. Therefore, the City should carefully evaluate how revising this practice would
impact City spending on other priorities and in other neighborhoods.
• Revenue can fluctuate from year to year depending on seasonal demand or overall health
of local economy
How Will It Work?
In practice, a successful PBD in Balboa Village would be implemented in the following fashion
and incorporate a number of key elements.
r. Adoption of city ordinance creating a Balboa Village PBD, stipulating that all parking revenue
generated within the PBD be used to fund designated neighborhood improvements.
z. Establishment of an appropriate governing body to develop a program of expenditures and
ensure proper oversight of PBD revenue. Any governing body should establish well- defined
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procedures for soliciting and incorporating resident input. This body and its structure will be
determined pending additional study.
3. Implementation of parking meters and pricing structures that facilitate demand -based
pricing (see Recommendation #1).
4. Adoption of a defined list of PBD
revenue expenditures, which can
include the following:
• Purchase and installation costs of
meters (e.g., through revenue
bonds or a "build- operate- transfer"
financing agreement with a vendor)
• Shuttle services to remote park -
and -ride facilities during peak
periods
• Valet parking services during peak
periods
• Leasing of private spaces
• Construction of additional parking,
if deemed to be necessary
• "Mobility Ambassadors" to provide
assistance to visitors as well as
additional security
• Landscaping and streetscape
greening
• Street cleaning, power- washing of
sidewalks, and graffiti removal
• Transit, pedestrian, and bicycle
infrastructure and amenities
• Additional parking enforcement
• Marketing and promotion of PBD
and local businesses
• Management activities for the
oversight entity
Successful PBD Examples
Old Pasadena, CA: In the early 1990s, the city's
efforts to revive Old Pasadena were being
hindered by a lack of convenient and available
parking spots for customers. At that time, Old
Pasadena had no parking meters, and proposals
to install them were opposed by local merchants,
who feared charges would drive customers away.
In 1993, the Old Pasadena Parking Meter Zone
was created and meters were installed. Borrowing
against future meter revenues, the City was able
to fund substantial streetscape, parking,
maintenance, beautification, and safety projects.
These investments reversed the decline in the
district and an increase in sales tax revenue has
created a cycle of reinvestment, making Old
Pasadena a popular destination. Today, the
district is managed by the Old Pasadena
Management District (OPMD), a non - profit
management entity.
Redwood City, CA: Redwood City is perhaps the
foremost example of a city that has implemented
the concept of using demand -based pricing to
manage on- street demand and maintain
availability across the on- street inventory. It
created an ordinance that grants its parking
management director authority to adjust meter
rates based on documented utilization patterns
and an explicit availability target of 15 %. In
addition, Redwood City took the parking meter
revenue gained from this pricing strategy to build
5. Development of a coordinated public a new public parking facility and finance other
relations plan, which would use district improvements.
wayfinding, signage, and public
outreach to explain the role of demand -
based pricing and articulate how parking revenue is being utilized to benefit Balboa Village.
6. Ongoing evaluation and management of PBD policies and expenditures.
Proposed PBD Boundaries
All commercial streets with meters and public parking lots from Adams Street to A Street.
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Projected PBD Revenue
As shown in Figure 2 -2, parking revenue in Balboa Village in FY 2010 -11 was approximately $1.5
million. However, roughly 87% of this revenue went into the Tidelands trust fund, with the
remaining $192,415 going to the City's General Fund. Given the City's ongoing obligation to the
Tidelands fund, it is expected that the majority of revenue generated in Balboa Village will not be
available for use by the PBD. Nevertheless, it is reasonable to expect that annual parking revenue
for a Balboa Village PBD would be between $150,000 to $200,000.
"Your Meter Money Makes a Difference' - Old Pasadena, CA
Source: Flickr user mlinksva
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Description
A residential permit program (RPP) operates by exempting permitted vehicles from the parking
restrictions and time limits for non - metered, on- street parking spaces within a geographic area.
A conventional RPP is one that allows those without a permit to park for generally two to four
hours during a specified time frame, such as 8 AM to 6 PM, Monday to Friday. Permit holders are
exempt from these regulations and able to essentially store their vehicle on- street. Ownership of a
permit, however, does not guarantee the availability of a parking space.
The proposed parameters for a RPP in Balboa Village have been informed by feedback from key
stakeholders, particularly the Balboa Village CAP.
Why Implement It?
The primary goal of an RPP is to manage parking "spillover" into residential neighborhoods. RPPs
work best in neighborhoods that are impacted by high parking demand from other uses, such as:
• Large employers
• Universities, colleges, neighborhood schools, or hospitals
• Transit stations
• Popular commercial, retail, entertainment, tourist, or recreational destinations
By managing spillover, RPPs can ensure that residential neighborhoods are not overwhelmed by
commuters, employees, or visitors, thereby enabling local residents to park their vehicles on-
street. RPPs are especially important in neighborhoods where residents have limited off- street
parking.
Tradeoffs to Consider
• Potential additional administrative, management, and enforcement costs for the City if
the program is not priced appropriately
• Permits do not guarantee parking availability for residents, which may become a problem
if too many permits are made available and sold
• Negotiation process with the Coastal Commission over the program parameters and
guidelines may be time consuming and resource intensive
How Will It Work?
Outlined below are the recommended program parameters for a potential RPP specific to the
Balboa area.
RPP District Boundaries
Parking restrictions would apply to all residential streets between 7`b Street and Adams Street.
The metered spaces in the median on West Balboa Boulevard would remain metered and RPP
permits would not be valid at these spaces.
There is potential that the RPP could create additional spillover into areas just outside of the
boundaries of the proposed district. Boundaries may need to be adjusted in the future to respond
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to changes in demand. In general, however, it is believed that the proposed district will largely
capture the parking demand for the area and spillover will be limited.
Program Eligibility
All residences within the proposed zone
and Bay Island are eligible to purchase
permits. Rental home owners may
purchase permits for use by tenants.
To purchase a permit the following is
required:
• Completed application form and
payment
• Proof of residence is required (no
P.O. boxes), which can include one
of the following: Pre - printed check;
Driver's license; Current utility bill;
Vehicle registration; or Current
rental/lease agreement
• Permits can be purchased online,
by mail, or in- person at City Hall
Hours of Operation
No Parking: 4 PM — 9 AM, 7 days,
excluding holidays. Permit holders exempt.
In addition, RPP permits would not be
allowed for use in existing "green" short-
term parking spaces during the hours of
operation of abutting land uses.
Legal Standing for RPPs
The California Vehicle Code (CVC) authorizes local
jurisdictions to limit or prohibit parking on local
streets and roads. The CVC also allows the
creation of a preferential parking program for
residents and merchants to exempt them from such
regulations (CVC Section 22507).10 Section 22507
states:
(a) The ordinance or resolution may include a
designation of certain streets upon which
preferential parking privileges are given to
residents and merchants adjacent to the streets for
their use and the use of their guests, under which
the residents and merchants may be issued a
permit or permits that exempt them from the
prohibition or restriction of the ordinance or
resolution. With the exception of alleys, the
ordinance or resolution shall not apply until signs
or markings giving adequate notice thereof have
been placed. A local ordinance or resolution
adopted pursuant to this section may contain
provisions that are reasonable and necessary to
ensure the effectiveness of a preferential parking
program.
Section 22507.2 also states that "The local
Number of Permits authority may charge a nonrefundable fee to
defray the costs of issuing and administering the
A maximum of four permits per household. permits."
The issue of guest permits is still being
studied. Moving forward, any guest permit
option should limit the number of guest permits per household, price the permits accordingly,
limit the permit's time length (i.e. applies during the same overnight period as the standard RPP
permit) and clearly distinguish the guest permit to ensure that they are not utilized as standard
permits. Guest permits should also be eligible for purchase on -line.
Permit Type
Permits shall be a "hangtag" designed to be hung from a vehicle's rearview mirror. Permits will be
a solid color (to change annually) and clearly indicate the year of permit issued.
If included as part of the RPP, it is recommended that guest permits also be a hangtag with the
date of use and license plate of guest vehicle clearly indicated and visible.
10 For more information, see the CVC at htto: / /www.dmv.ca.gov /pubs /vctoo /vc /tocdl lc9.htm or Appendix B.
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Permit Costs
Per the California Vehicle Code, jurisdictions are allowed to price permits to cover their
administrative costs. Given the high demand for parking and limited supply of on- street spaces in
Balboa Village, it is recommended that permits be priced at an escalating rate to encourage
residents to make full use of their garages and purchase only the number of permits they actually
need. Initial prices for the RPP are proposed below, which are comparative to RPPs in similar
jurisdictions. The City may need to adjust (up or down) the pricing structure in future years to
respond to evolving demand for permits.
• Permits are valid from January 1st to December 31st
• 1' permit: $20 per year
• 2nd permit: $2o per year
• 3rd permit: $6o per year
• 4th permit: $10o per year
• Lost or replacement permit: $too without proration
• Guest permits: To be determined
Revenue projection
Figure 5 -1 below provides the projected revenue for the proposed residential permit program at a
given number of permits purchased. The revenue projections were determined using U.S. Census
data for the number of households within the proposed permit zone (890 households) and the
average number of vehicles per household in Newport Beach (1.9 vehicles per household)." The
projections also include an estimate of revenue from replacement permits12 and citation
revenue �3.
Given the average number of vehicles per household in Newport Beach it is reasonable to assume
that the average household will purchase between two and three permits, likely closer to two
permits. As a result, a rough estimate is that the permit program would generate slightly more
than $106,00o in revenue per year. This revenue would be utilized to pay for administrative,
management, and enforcement of the program.
11 The projections assume that 5% of the 890 households within the study area will not purchase any permits, resulting in 846
households purchasing at least one permit.
12 Assumes the fallowing: 2% of permits issued each year will be lost and repurchased at $100 each.
13 Assumes the fallowing: t) Approximately 664 non- metered, on- street spaces in proposed district: 2) .05% of parking spaces will
be issued a citation per day (about 3 citations per day in the district); 3) Regulations are enforced 350 days per year; and 4) All
citations are paid on time at $58 per citation.
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Figure 5 -1 Projected Range of Revenue for Permit Program
It is important to note that the revenue projections provided here are initial estimates. The City is
still evaluating its potential administrative costs for the RPP program. Once implemented, the
finances of the RPP could be substantially different. Once again, per what the law allows, and
reflective of RPP best practices, the City may wish to price permits to cover the full costs of
program administration.
Enforcement
RPP restrictions would be primarily enforced by the City of Newport Beach Police Department,
with parking control officers supporting enforcement activities.
Compliance with California Coastal Commission
As discussed in Chapter ¢, the Coastal Commission will need to approve any RPP proposed by the
City of Newport Beach for the 71h to Adams District. The Commission has reviewed a number of
RPP applications from other coastal jurisdictions in recent years and has consistently identified a
number of key issues which must be addressed by the RPP in order to secure final approval. With
those issues in mind, it is recommended that the City of Newport Beach permit application for the
RPP emphasize the following program elements.
• The permit program is just one piece of a larger "package" of parking
reforms designed to strike a regulatory balance that makes it easier for both
residents and visitors to park in the 7`b to Adams District. The Coastal
Commission is primarily concerned with ensuring public access to coastal resources and
preventing "exclusive" access by permit holders. To address this concern, the City should
emphasize that the proposed RPP will complement the other recommendations included
in this study, all of which are designed to improve overall parking management. These
include:
a. Demand -based pricing to improve availability of both on- and off- street parking
facilities.
In. The creation of a formal shared parking district, in which as many private off - street
spaces as possible would be made public, thereby creating additional supply.
c. A real -time wayfinding program directing visitors to immediately available public
parking.
d. Potential implementation of a valet parking program and /or shuttle services to
remote lots during peak periods as a means to increase parking supply and efficiency.
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City of Newport Beach
e. The establishment of a PBD and the use of parking revenue to fund transit, bicycle,
and pedestrian infrastructure.
• The hours of operation for the RPP are designed to conflict as little as
possible with beach visitors. The proposed 4 PM — 9 AM hours of operation are
designed to allow residents easy access to parking when they return home from work,
while giving visitors the opportunity to park on- street for the period of the day associated
with peak visitor demand. In addition, the proposed RPP would not be in effect on
holidays, typically the busiest periods of demand.
• There is a large amount of available public parking nearby. The Walker study
demonstrates that there are close to 1,200 off- street parking spaces from Coronado Street
to B Street, all of which are within a 5 -10 minute walk from the primary beach and
commercial area in Balboa Village. Furthermore, the occupancy data from the Walker
study shows that during the hours of operation of the proposed RPP these off- street
spaces are 51% occupied on Thursday (7 PM) and 82% occupied on Saturday (7 PM). As a
result, there should still be ample available off - street parking for visitors.
It is also important to note that the Walker parking study took place at one of the busiest
times of the year, and it is likely that parking occupancies in the various parking lots will
be far lower for the vast majority of the year.
• Residents within the proposed RPP district rely on on- street parking for
their vehicles. Many of the residences within the district do not have off- street parking
or represent non - conforming uses (i.e. single car garages or garages too small), which
forces residents to primarily use on- street parking for storage of their vehicles.
• The City will monitor the program and make program revisions as needed. As
described in Recommendation #9, the City should establish an ongoing monitoring and
evaluation program for parking in Balboa Village. This effort would be used to revise the
RPP to ensure that it effectively serves both residents and visitors.
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BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
Description
An employee parking permit program offers employers or employees the option to purchase a
permit that provides priority parking in a designated area. Designated parking areas for
employees can be located at on- street curb spaces or in off- street facilities, with employees
eligible to park in those spaces during a specific time period. Ownership of a permit, however,
does not guarantee the availability of a parking space.
Employee permit programs are often established adjacent to major job centers or near
commercial, retail, and entertainment districts.
Why Implement It?
Employee parking permit programs offer a number of key benefits to local businesses and
employees, while helping to ensure that an area's parking supply is efficiently managed. These
benefits include:
• Permits provide a consistent parking option for employees, reducing the need for an
employee to "hunt" for a parking space or move their vehicle to avoid parking restrictions.
• Experience with other cities has shown that most employees will choose to pay for a
permit that offers a reliable parking option over searching for free on- street parking and
having to move their vehicle throughout the day.
• A convenient parking option makes it easier for employers to attract and retain
employees.
• When employees park in popular on- or off - street spaces those spaces are no longer
available for customers and visitors. Employee permits encourage participants to park in
select areas while enhancing customer parking turnover at prime locations.
Tradeoffs to Consider
• Additional cost for employers that wish to provide them to their employees
• For those employers that cannot afford to subsidize parking for their employees, costs for
permits would fall to employees �4
• The proposed program would have more limited benefit to employees who only work at
night or on the weekends
• While the Coastal Commission has largely focused on the creation of residential permit
programs, it is possible that they may have similar issues with an employee permit
program. The City should begin conversations with the Coastal Commission to determine
if any regulatory issues need to be addressed.
14 However, based on the proposed costs and given that there are an estimated 250 workdays per year, the cost to park per day
would be approximately $.20 per day.
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How Will It Work?
Eligibility
A future employee parking permit program would be available to all employers and employees
within Balboa Village.
Designated Employee Parking Zone
During non -peak periods, approximately roo
spaces in the north western portion of the
Balboa Village Municipal Beach parking lot.
During summer weekends, the number of
spaces available to employees should be
reduced to 50 to ensure adequate parking for
beach visitors.
Hours of Operation
Employee permit parking only: 6 AM — to
AM, everyday. Employees with permits
arriving between these hours would be
entitled to park all day.
Examples from Other Cities
West Hollywood: $105 or $120 per quarter,
depending on zone
Santa Cruz: $60 per quarter
Mill Valley: $60 per year
Danville: $25 or $50 per year, depending on
zone
Eugene, OR: $20 -57 per month, depending on
location; 50% discount for rideshare and free
for carpools
The proposed permit hours are limited to mornings largely to ensure that there is adequate beach
parking during periods of peak demand. Given the demand patterns for beach parking, it is
anticipated that there will be readily available off- street parking for employees in the evening and
nighttime hours.
Number of Permits Issued
One permit per employee, requiring proof of employment, photo ID, and vehicle registration
information.
Permit Cost
• $50 per year, no proration
• Permits renewed annually
• Permits may be purchased online or in- person
Permit Revenue
Revenue from an employee permit program would be used to cover cost of program
administration.
Enforcement
The employee permit program would be primarily enforced by the City of Newport Beach Police
Department, with parking control officers supporting enforcement activities.
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City of Newport Beach
Description
Minimum Parking Requirements
Title 20, Part 3 of the Newport Beach Municipal Code describes the site planning and
development standards for each land use type, including a chapter dedicated to off - street parking
and loading standards. Of particular importance are the off- street parking requirements and the
minimum number of parking spaces that each land use must provide. For non - residential uses,
minimum parking requirements are predominantly based on building square footage (e.g. four
spaces per 1,000 gross square feet). Many of these existing parking requirements, however, do
not necessarily support the existing character of Balboa Village or future plans to enhance the
safety, accessibility, and walkability of this community. One potential solution is to eliminate
minimum parking requirements for all non - residential land uses in Balboa Village.
Impact Fees
Local governments have been collecting impact fees for decades, with the power to exact impact
fees arising from the city's police power to protect public health, safety, and welfare. Fees fund a
variety of public facilities and services, including parks, schools, public art, and libraries.
In recent years, many communities throughout California are increasingly relying on
transportation- specific impact fees to ensure that the costs of transportation infrastructure and
services necessary to support new development are not borne disproportionately by existing
residents, businesses, and /or property- owners.
Impact fees directly related to transportation are typically calculated on the projected number of
PM peak -hour vehicle trips that a new development would generate and implemented as a dollar
amount per square foot (non - residential) or per dwelling unit (residential).
Parking In -lieu Fees
A voluntary in -lieu parking fee program allows proposed projects or uses to pay a designated fee
rather than provide an on -site parking space. The City of Newport Beach has had a parking in-
lieu fee for commercial uses since 1972. The fee was initially set at $250 per space per year, but
was subsequently reduced to $150 per space per year. In response to concerns about the in -lieu
fee program and its ability to fund new parking facilities, the City Council imposed a moratorium
on the use of parking in -lieu fees and no new uses have been allowed to take advantage of the
program since 1989. Those uses previously in the in -lieu parking program have continued to pay
the fee on an annual basis. Revenue is approximately $69,000 per year and it goes into the City's
General Fund. Within Balboa Village there are nine locations that participate in the existing in-
lieu fee program, where a total of 93 spaces generate $13,950 in annual revenue for the City.
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City of Newport Beach
Why Implement It?
Minimum Parking Requirements
Cities have been using minimum parking requirements for decades as a means to account for a
given land use's parking demand to ensure that an adequate parking supply is available.
Minimum parking requirements, however, have emerged as one of the biggest obstacles to many
cities' efforts to encourage new residential and commercial development in downtown areas, and
ultimately undermine many cities' efforts to create attractive, vibrant, and walkable communities.
More specifically, minimum parking requirements have been shown to:
• Create an "oversupply" of parking in almost all communities in all but the highest periods
of parking demand
• Devalue the true "costs" of parking to drivers, thereby creating an incentive to drive,
which results in more local congestion and vehicle emissions
• Require tremendous amounts of land, thereby degrading the physical environment and
impacting a community's urban form, design, and aesthetics
• Limit the ability to do urban "infill" projects or adaptively reuse historic structures
• Make projects more expensive and reduce overall profitability
Therefore, the ultimate goal of eliminating minimum parking requirements is to remove barriers
to new development and renovation of existing buildings, while create a healthy market for
parking where parking spaces are bought, sold, rented and leased like any normal commodity.
Impact Fees
Development impact fees are a widely used, well- accepted practice in California. They offer an
efficient way to pay for new infrastructure, can help sustain job growth in local economies, and
contribute to economic prosperity. Above all, impact fees are one of the most efficient and
effective ways to create a link between new development and the impacts it will have on the
community.
Furthermore, transportation impact fees offer cities a revenue stream that can be used to fund a
variety of transportation improvements which can help to mitigate or "offset" transportation
impacts. By law, these fees cannot simply go to a city's general fund, but must be specifically
allocated to transportation projects. California cities have used revenue from impact fees to
finance:
• Roadway and intersection improvements
• New or enhanced transit services
• Additional parking or parking management programs
• New bicycle and pedestrian infrastructure
• Transportation demand management (TDM) programs
It is important to note that the City of Newport Beach has already adopted a Fair Share Traffic
Contribution Ordinance (see Chapter 15.38 of the Municipal Code). This ordinance was adopted
as a means to more fully mitigate traffic impacts from new development in Newport Beach and is
based upon the unfunded cost to implement the Master Plan of Streets and Highways. The
ordinance sets forth procedures for calculating the fair -share amounts for residential projects,
hotel /motels, and office /retail /commercial uses based on trip generation rates and size of the
development. The use of the funds generated is narrowly defined, as revenue can only be used for
the purposes of planning, designing, and constructing roadway projects.
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How Will It Work?
Short -term Recommendation:
Eliminate minimum parking
requirements for all non - residential
uses. Do not implement an
additional impact fee at this time.
Eliminate existing obligation to the
current parking in -lieu fee program.
Chapter 20.40.040 of the Newport Beach
Municipal Code provides minimum
parking requirements for dozens of
residential and non - residential land uses
types. For example, in Newport Beach,
retail uses require four spaces per 1,000
gross square feet (GSF), office uses require
five spaces per I,000 GSF, and food
services require 20 spaces per r,000 GSF.
As part of this short-term
recommendation, all non - residential land
uses would no longer be subject to any
minimum parking requirements within
Balboa Village, while residential uses would
still be required to meet the parking
standards set forth in Chapter 20.40.040.
Successful Examples
Numerous cities throughout the country have
partially (in particular neighborhoods and districts)
or entirely eliminated minimum parking
requirements. These include:
Boulder, CO: Within Boulder's downtown special
district — the Central Area General Improvement
District (CAGID) — the City has eliminated minimum
parking requirements for non - residential uses.
Developers are allowed to build as much or as
little parking as they choose, subject to design
standards in the zoning code, and to manage it as
they see fit. If they choose to build little or no
parking on -site, they con purchase permits for
public lots and garages for resale to their
employees.
Petaluma, CA: In 2003, Petaluma adopted the
Central Petaluma Specific Plan, which reduced
parking minimums, but also included a sunset
clause — the specific date on which the required
parking minimums would expire. According to
Code section 6.10.070, "Effective January 1,
2008, there shall be no minimum parking
requirements for any use."
Portland, OR: For Portland's primary mixed -use
Off - street parking could still be built, but it district (Mixed Commercial /Residential), there are
would be determined by a developer's own no parking minimums. There are also no parking
analysis of what is financially feasible for minimums for a number of other land use
their project and what they believe the categories, such as Central Residential districts.
"market" would support. Given market
demand, it is very possible that a developer
in Balboa Village will build a project with on -site parking. Any parking built would still be subject
to the parking design standards outlined in Chapter 20.40 and subject to City approval. However,
as described further in Recommendation #6, it is also recommended that any newly constructed
parking be made publicly available.
Furthermore, under this option no additional transportation impact fee for Balboa Village would
be implemented and, without minimum parking requirements, a parking in -lieu fee is
unnecessary. It is also recommended that the nine properties within Balboa Village that currently
pay into the existing in -lieu fee be freed from this obligation moving forward. Removal of the in-
lieu fee payments for these nine properties would result in a loss of $13,950 in annual revenue.
Tradeoffs to Consider
By eliminating minimum parking requirements, the City of Newport Beach can:
• Facilitate a "free market" for parking that is more realistically determined by actual
parking demand, as opposed to arbitrary parking standards
• Reduce development costs and provide additional flexibility to developers, especially on
smaller lots or with historic structures
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BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
• Help to ensure that existing parking supply is efficiently utilized before building
additional parking supply
• It is important to note that the creation of a Commercial Parking Benefit District
(Recommendation #2) would enable the City to potentially fund many of the same
projects and programs as an impact fee.
Potential drawbacks include:
• Eliminating requirements could result in potential spillover problems if other
recommendations are not implemented, depending on the amount and type of
development in Balboa Village in future years.
Long -term Recommendation: Depending on the level of development in Balboa
Village, evaluate implementation of a "Parking and Multimodal" impact fee.
In addition to eliminating minimum parking requirements as described in the first option, this
option would include the potential implementation of a "Parking and Multimodal" impact fee.
Such a fee would be applied to: r) all new non - residential development within Balboa Village; and
2) any change of use resulting in a more intensive land use, subject to the discretion of City staff.
Implementation of such a fee would depend largely on the amount of development that occurs in
future years in Balboa Village. Currently, the amount of projected development in Balboa Village
does not justify such a fee. If development increases, however, such a fee would be used to
adequately mitigate the impacts of such development on the transportation system.
The proposed fee would be a per square foot fee based on land use type. Funds generated by the
fee would be placed into a "Mobility Fund" and may be used to finance the planning, design,
construction, and implementation of needed transportation related facilities, improvements, and
programs. More specifically, unlike the existing traffic fee in Newport Beach, this fee would allow
for a wide range of potential expenditures, and would permit the City to fund demand
management programs, as well as improvements to parking, bicycle, pedestrian, and transit
facilities.
It is important to note that the California Mitigation Fee Act �5 requires cities to make certain
findings and conduct a "nexus" study in order to establish an impact fee. These findings must:
• Identify the purpose of the fee
• Identify the use to which the fee is to be put and the facilities (if any) to be financed
• Determine how there is a reasonable relationship (nexus) between the fee's use and the
type of development project on which the fee is imposed
• Determine how there is a reasonable relationship between the need for the public facility
and the type of development project on which the fee is imposed
The required nexus study is typically the venue by which the exact fee amount is determined. The
methodology for determining the impact fee can vary from city to city, but generally involves a
growth projection based on various land use scenarios, a synthesis of costs for potential capital
projects and transportation programs to be funded by the fee, a traffic analysis to determine peak -
hour vehicle trips and trip generation rates, and a final determination of fees by land use.
Until such a nexus study is conducted, it is difficult to determine the level of the new
transportation impact fee. However, Figure 5 -2 provides a summary of impact fees in California,
and can provide an initial guide for what a fee might look like in Balboa Village.
15 Government Code Section 66000 et seq.
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BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
Figure 5 -2 Summary of New Development Impact Fees, Selected CA Citiest6
Land Use
Retail (per sq. ft.)
Average
$10.35
Median
$8.80
$0.39
$46.68
Office (per sq. ft.)
$6.48
$4.54
$0.15
$22.19
Industrial (per sq. ft.)
$3.59
$2.76
$0.10
$12,61
Single - famlly (per unit)
$6,197
$4,612
$105
$26,014
Multi-family (per unit)
$4,059
$2,934
$63
$16,934
Tradeoffs to Consider
By instituting an impact fee, the City of Newport Beach can:
Provide a valuable revenue source to mitigate potential transportation impacts in Balboa
Village by financing not just roadway improvements, but also new or upgraded transit
services, parking management measures, bicycle /pedestrian infrastructure, and other
TDM programs.
Potential drawbacks include:
• This fee would fall under the purview of the California Mitigation Fee Act and would
require an additional nexus study, which can be time and resource intensive.
• The development community will likely resist an additional impact fee, as it would
increase development costs.
Given the size of the proposed district and the projected development scenarios, revenue
from such a fee would likely be limited.
• The City of Newport Beach currently has a traffic fee. The City would need to further
evaluate the relationship of that fee to a separate fee in Balboa Village, especially in
regards to any potential legal issues of two fees.
"The primary source of this information Is the 2009 National Impact Fee study done by Duncan Associates,
www. imoactfees comloublications %20pdfl2009 survev.odf
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BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
Description
Shared parking is one of the most effective tools in parking management. Because many different
land uses (a bank and a bar or restaurant, for example) have different periods of parking demand,
they can easily share a common parking facility, thereby limiting the need to provide additional
parking.
Shared parking policies do not treat the parking supply as individual units specific to particular
businesses or uses, but rather emphasize the efficient use of the parking supply by including as
many spaces as possible in a common pool of shared, publicly available spaces.
It is important to note that Chapter 20.40.110 of the City of Newport Beach Municipal Code
includes strict provisions for joint use or shared parking. Furthermore, shared parking, to a
certain extent, does exist in Balboa Village, as much of the existing parking supply is publicly
available. However, there are close to 200 off - street spaces that are specifically dedicated to
tenant or customer parking within the study area. This recommendation seeks to formalize a
flexible shared parking policy that, to the greatest extent feasible, ensures that existing parking
supply is made public. Furthermore, this recommendation is also specifically aimed at any future
development in Balboa Village and guaranteeing that future parking supply is publicly available.
Why Implement It?
The typical suburban pattern of isolated, single use buildings, each surrounded by parking lots,
requires two vehicular movements and a parking space to be dedicated for each visit to a shop,
office, or civic institution. Similarly, to accomplish three errands in this type of environment
requires six movements in three parking spaces for three tasks.
By contrast, shared parking policies facilitate "park once" districts, in which motorists can park
just once and complete multiple daily tasks on foot before returning to their vehicle.
Overall, the benefits of fully
implementing a "park once" strategy
include:
Reduces vehicle trips and
required parking spaces because
existing spaces (approximately
198 spaces or 15% of supply in
Balboa Village) can be efficiently
shared between uses with
differing peak hours, peak days,
and peak seasons of parking
demand
Creates a more welcoming
environment for customers and
visitors because they do not
have to worry about getting
towed for parking at one
business while visiting another
Figure 5 -3 Park -Once District
chat '"_ °P
ell
. waix _r
r
Party
DfIVe
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BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
• Allows for fewer, but more strategically placed lots and structures, resulting in better
urban design and greater redevelopment opportunities
By transforming motorists into
pedestrians, who walk instead of drive to
different destinations, shared parking can
immediately activate public life on the
streets and generate additional patrons of
street - friendly retail businesses.
Potential Tradeoffs
• Resistance from private property owners or
local businesses that have their "own"
parking
• Limited initial impact for increasing
parking availability, as much of the existing
supply is already public available
How Will It Work?
Outlined below are specific policy
recommendations designed to facilitate shared
parking and the creation of a "park once" district in
Balboa Village. Some of these provisions would
need to be reconciled with Chapter 20.40.110 of the
existing zoning code.
• Maximize use of the existing parking
supply by improving wayfinding and
parking information
• Work with existing property owners and
businesses to ensure that private parking is
made available to the public when not
needed for its primary commercial use
• Work with property owners and businesses
to develop mutually- agreeable operating
and liability arrangements
Successful Examples of
Shared Parking
Santa Monica: Santa Monica recently
updated the Land Use and Circulation
Element (LUCE) of its General Plan, which
articulates several specific goals related
to shared parking in its Downtown core.
These include:
Goal D1 1: Address parking needs
comprehensively, identifying shared
parking opportunities.
• Policy D1 1.4: Pursue opportunities for
shared use agreements with private
parking facilities.
These policies seek to reinforce and
support an existing shared parking district
in Downtown Santa Monica. Within the
Downtown District, there are more than ten
public parking garages that serve as the
parking supply for the vast majority of the
retail and commercial businesses along the
popular Third Street Promenade and
surrounding retail streets. As a result of its
shared parking pool, many new businesses
or infill projects have been able to limit
their parking obligations.
Downtown Ventura: Shared on -site
parking between land uses with different
periods of peak parking demand is
allowed for all uses. Shared on -site
parking is allowed to satisfy 100 percent
of the minimum parking requirement for
each use
• Require as a condition of approval that all
newly constructed private parking in any
non - residential Balboa Village development or adaptive reuse project be made available
to the public 17
• Allow parking to be shared among different uses within a single mixed -use building by
right
• If new public parking supply is needed, first purchase or lease existing private parking
lots or structures from willing sellers, and add this parking to the shared public supply
before building expensive, new lots /garages. Costs for purchase and leasing of spaces can
vary dramatically, but would likely be in the range of $50 -500 per month per space.
17 The City may wish to further evaluate certain non - residential uses (i.e. hotel) and potentially allow for limited exemptions to this
provision.
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BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
Description
Wayfinding signage helps orient visitors, shoppers, and residents alike, pointing them to area
parking facilities, retail establishments, pedestrian and bicycle access routes, and other important
destinations. A wayfinding program can be tailored to specific groups depending on contextual
factors and desired outcomes; however, these tools are most relevant and important for those
unfamiliar with an area. Wayfinding informs people of the best way to access an area, depending
on their mode of travel. Parking wayfinding signs can also display real -time availability data,
pointing motorists to facilities with available spaces.
Why Implement It?
Wayfinding strategies seek to efficiently coordinate movement within a neighborhood, pointing
users of all modes of travel to the best access routes for their destination. It represents an
important part of a comprehensive circulation and parking management strategy, improving the
customer - friendliness of a neighborhood or district.
Parking signs can direct motorists to underutilized off- street facilities, freeing up the most
convenient "front- door" curbside spaces, and maximizing the efficiency of a parking system.
Improved wayfinding in the form of new signs helps maximize the use of off- street parking
facilities, representing another way to help eliminate traffic caused by cars "cruising" for on- street
parking. Wayfinding helps dispel perceived (but not actual) shortages in parking.
Signs for pedestrians and bicyclists can direct those on foot or on bike to the safest bicycle and
pedestrian routes, as well as the location of bicycle parking spaces, showers, changing facilities,
and other bicycle and pedestrian amenities. Such signs improve conditions for alternative modes,
supporting various Transportation Demand Management (TDM) objectives, reducing vehicle
trips to a specific area, and reducing the need for vehicle parking.
Tradeoffs to Consider
• Implementation and operations costs, including design and installation. For example,
real -time parking availability systems and signage can cost $25,000 to $50,000 per unit,
Plus $500 in annual operating costs per unit.
• New wayfinding signs would need to replace those recently installed by the City that some
stakeholders have found inadequate.
How Will It Work?
Wayfinding is most effective when it is consistent; all signage should be produced in a similar
style, and organized by type (parking, bicycle /pedestrian, retail). Regardless of the particular
signage installation utilized, good design that is consistent with and supports the character of the
neighborhood is critical for all signage elements.
Real -time availability technology already exists in public and private parking lots and garages
nationwide. Such a system is easy and relatively inexpensive to install, and also allows for the
display of availability data on city or independent websites. Motorists should be encouraged to
check availability online before traveling to Balboa Village, but real -time availability displays will
direct vehicles to those off- street lots with the most availability. Pricing information can also
easily be displayed on parking wayfinding signage.
NelsonlNygaard Consulting Associates Inc. 5 -27
SF .
BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
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NelsonlNygaard Consulting Associates Inc. 5 -28
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NelsonlNygaard Consulting Associates Inc. 5 -28
BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
Priority Locations
A wayfinding system in Balboa Village would
be most effective if signs were located at the
traditional entrances to the area, near major
garages and attractions, and along major
arterials. For example, signage pointing
motorists to off - street parking lots with real -
time availability data should be installed
along Balboa Boulevard towards the entrance
to Balboa Village, as well as near the Balboa
Island Ferry for those motorists coming from
Balboa Island. Additional signs should be
installed at each large off- street facility,
including the beach lot, the Newport Landing
lot, and the public lots along Balboa
Boulevard at Palm Street.
Bicycle and pedestrian wayfinding should be
prioritized along and near the Newport
Balboa Bike Trail, as well as the commercial
blocks of Balboa Boulevard and Main Street.
In partnership with local businesses, retail
establishments could also be listed on
wayfinding signs and materials, encouraging
visitors to frequent Balboa Village businesses.
Successful Examples
SFpark, San Francisco: The SFpark Program is a
coordinated citywide parking management and
wayfinding program to direct motorists in San
Francisco to both on- street and off - street
facilities with available spaces. Various
wayfinding signs throughout the city's pilot areas
direct motorists to parking facilities, and contain
real -time availability information. The program
has a significant online presence as well,
enabling motorists to find garages and blocks
with available spaces before circling multiple
blocks in search of parking. The site and smart
phone application also reports the most recent
pricing information, as rates are adjusted based
upon demand.
Santa Monica: The City of Santa Monica
created an integrated wayfinding and real -time
data program for its downtown district.
Wayfinding signage was installed throughout
the downtown, directing visitors and residents to
various amenities, and motorists to various
parking garages. Each garage now has real -
time availability posted both online and on signs
throughout the downtown district. The program
included a beautification effort which gave each
off - street facility a distinct, attractive character,
adding to neighborhood vitality.
NelsonlNygaard Consulting Associates Inc. 5 -29
BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
Description
Bicycle and pedestrian improvements include many different strategies that seek to encourage
travel via non- motorized modes. Possible improvements include, but are not limited to, the
following:
• Improving or installing sidewalks, crosswalks, paths, and bike lanes
• "Spot improvements" to remove specific roadway hazards
• Street furniture (benches) and other streetseape enhancements (lighting, street trees,
etc.)
• Traffic calming measures such as bulbouts, raised intersections, or speed humps
• Bicycle parking facilities (corrals, lockers, covered, or rack) or programs (valet)
• Shower and changing facilities
• Bicycle sharing programs
• General programming including publicity campaigns, bike to school /bike to work
programs, and educational /safety efforts
The City of Newport Beach Bicycle Safety Committee is currently in the process of developing a
plan and set of strategies to improve bicycle safety and conditions in Balboa Village. This
recommendation should be implemented in collaboration with, or as part of, that planning
process.
Why Implement It?
Increasing the rate of biking and walking to and in Balboa Village will increase the area's
livability, decrease localized pollution, and alleviate pressure on existing on- and off- street
parking facilities, particularly during peak summer months. Numerous studies suggest that
bicycle and pedestrian friendly neighborhoods experience lower drive -alone rates, as well as
higher rates of walking and biking. Furthermore, many communities have significant latent
demand for non - motorized travel, meaning many people would walk or bike if the facilities
existed to enable them to do so safely and conveniently.
Tradeoffs to Consider
• hnplementation costs, including design and installation
• Depending on the improvement selected and its design, it is possible that some on- and
off- street parking may be lost
NelsonlNygaard Consulting Associates Inc. 15-30
BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
How Will It Work?
The Newport Balboa Bike Trail is the
main bicycle and pedestrian access
point to Balboa Village. As such,
most bicycle amenities should be
concentrated along that route, and
along connection points between the
trail and other important
destinations. Bicycle parking could
be installed near the trail, specifically
in the form of corrals in one or two
parking spaces within the large
public beach lot. Improvements
could also be made along Palm Street
to encourage non - motorized travel
from the Balboa Island ferry to
Balboa Village and the Newport
Balboa Bike Trail. A few on- street
parking spaces could also be
converted to bicycle parking corrals.
Improvements to the pedestrian
realm should seek to encourage
pedestrian traffic along the Balboa
Avenue and Main Street retail
corridors, and connect off - street
parking facilities to important
destinations. Spot improvements
could include additional mid -block
pedestrian crossings along long
blocks and bulb -outs at busy
signalized Balboa Boulevard
intersections.
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NelsonlNygaard Consulting Associates Inc. 5 -31
BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
Description
In parking, you can only manage what you measure. Based on this maxim, this recommendation
seeks to formalize the "measurement" process by proposing that the City implement an ongoing
data collection and evaluation program for Balboa Village. More specifically, this Plan
recommends that the City collect parking occupancy and turnover data for both on- and off- street
parking facilities. This data is essential for evaluating whether the demand -based pricing policies
recommended within this Plan are achieving their goals.
Why Implement It?
Demand -based pricing policies are based on the goal of meeting target occupancy levels to ensure
that there are always an adequate number of parking spaces available, that "cruising" for a
parking space is limited to greatest degree possible, and that parking demand is evenly
distributed. As part of Recommendation #t, this Plan recommends an initial pricing structure to
help the City achieve 85% and go% target occupancy levels for on- street and off- street spaces,
respectively.
As mentioned earlier, it is possible that these pricing levels will be higher or lower than needed
and will have to be adjusted accordingly. Without adequate occupancy data, however, it will very
difficult to determine whether the pricing and regulatory structures are having their desired
effect. By developing a formal data collection process, the City will be able to better understand its
parking supply and quickly make adjustments to its pricing and regulatory structure to respond to
changes in parking demand. Furthermore, ongoing data collection can improve transparency in
decision - making and public understanding of parking behavior.
Tradeoffs to Consider
• Requires additional City resources and staffing
How Will It Work?
Outlined below are the recommended parameters for an ongoing data collection and monitoring
program for Balboa Village.
Data to be Collected
The City should collect occupancy data for on- and off- street parking facilities. In addition,
parking turnover data should be collected for on- street spaces. Above all, consistency is the most
important part of any data collection effort as it allows for easy longitudinal comparisons. The
baseline data collected as part of this study should serve as a foundation for future data collection
efforts.
How to Collect Data
There are a number of potential methods by which the City could collect the necessary data,
including:
• Manual counts conducted by trained surveyors.
NelsonlNygaard Consulting Associates Inc. 5 -32
BALBOA VILLAGE PARKING MANAGEMENT PLAN I FINAL REPORT
City of Newport Beach
• Automatic data provided by parking meters. Automatic collection of such data would
depend on the type of meter ultimately installed for both on- and off-street facilities.
Frequency of Data Collection
At a minimum, data should be collected and analyzed on an annual basis. For example, if manual
counts are utilized, they should be done during the peak period of demand. It is recommended
that both an hourly Thursday and Saturday count be conducted during a non - holiday week
between Memorial Day and Labor Day.
If feasible, another count during the off -peak period should also be conducted to evaluate off -peak
pricing and regulatory structures. Once again, consistency is most important and subsequent
counts should take place at the same time each year.
Depending on the parking meters selected, however, it is also possible that occupancy data could
be collected and analyzed much more frequently.
NelsonlNygaard Consulting Associates Inc. 5 -33
BALBOA VILLAGE
MASTER PLAN
Exhibit 4
Implementation Matrix
September 2012
Balboa Village Master Plan - Implementation Matrix
(1) Does not include staff costs Page 1
Ease of
Recommended Strategy
Year 1
Year 2
Year 3 -5
Estimated Cost (1)
Implementation
Level of Effectiveness
Priority
Economic Development
1. Develop and implement Commercial Facade Improvement
Define program
$150,000 /year 3
Program.
parameters; obtain City
buildings; if limit to
Easy to develop and
Highly effective in creating
Develop program criteria and application; identify funding
Council approval & funding;
Continue implementation
Continue Implementation
painting /signage /cano
implement provided
immediate aesthetic
High
sources; obtain City Council approval; outreach to property
begin Model Block
pies costs would be
funding is identified
improvements to the area
owners; administer program
marketing
significantly lower
2. Develop and implement Targeted Tenant Attraction
Moderate based on
Program.
Define program
financial resources
Highly effective in
parameters; obtain City
required to create
Identify key tenants; develop incentive program tailored for
Council approval &funding;
Continue Implementation
TBD
incentives. Difficult to
encouraging new tenants
Low
those tenants; obtain City Council approval of program and
begin implementation
identify and outreach
to the area
funding; outreach to owners and brokers to secure tenants.
to potential tenants
3. Support new cultural facilities (ExplorOcean /Balboa
Theater).
Prioritize project review;
Easy to continue
Ongoing, regular communication with entities to identify
identify additional
Continue support
Continue support
TBD
communications and
Low effectiveness related
to specific action
High
needs and opportunities; offer assistance in completing
assistance as needed
offer support
planning development application(s).
4. Develop special events initiative.
In conjunction with Parks and Recreation Department, refine
Contract with promoter to
Implement
$15,000 for initial
Easy to explore special
Highly effective in bringing
develop program and
Continue implementation
new visitors and residents
High
project scope and select consultant /promoter to prepare
identify funding sources
recommendations
contract
events for the area
to the area
program and identify funding opportunities.
Difficult based on
S. Develop operating budget and implementation strategy for
RV parking during non -peak season.
Develop program; obtain
uncertainty related to
Highly effective in bringing
Council approval; identify
Install utility improvements
Manage leasing
$800,000 initial cost
acceptance by
new visitors and additional
High
Program to include public outreach and explore requirements
funding sources
community and Coastal
revenue to the area
from Coastal Commission.
Commission
6. Consider development of Palm Street parking lot for mixed -
used project.
Review E c plans
Market site for
Difficult due to
Highly effective in creating
prior to determeterm inatiati on to
None
a catalyst project for
Low
As appropriate, obtain City Council approval to proceed with
market site
development
entitlement process
revitalization
solicitation of a developer for the property.
Highly effective in bringing
7. Allocate additional funding to Balboa Village BID.
Medium based need
additional fundin to the
Approve with annual
g
Develop marketing strategies with input from BID and visit
renewal
to reallocate fundi din g
from other sources
area which could be used
High
Hi h
Newport Beach; and monitor implementation.
for marketing and street
S. Modify boundaries of Balboa Village BID to delete area from
Low effectiveness in
Adams to Coronado Streets.
Approve with annual
None
Easy to implement
creating revitalization of
Low
Requires ordinance to be approved by City Council.
renewal
the area
(1) Does not include staff costs Page 1
Balboa Village Master Plan - Implementation Matrix
(1) Does not include staff costs Page 2
Ease of
Recommended Strategy
Year 1
Year 2
Year 3 -5
Estimated Cost (1)
Implementation
Level of Effectiveness
Priority
Parking
1. Remove time limits for all metered spaces; implement
demand based pricing for all public parking.
Highly effective in
Determine appropriate pricing limits for Ordinance adoption
CPS to implement once
TBD if install wireless
Easy to implement once
encouraging longterm
ordinance and contract
City Council direction
High
by City Council required. Amendment of existing contract
amendment are completed
meters
provided
visitors to park in beach
with CPS (meter enforcement) required. Ongoing monitoring
parking lot
required to ensure rates are appropriate.
2. Establish a commercial parking benefits district to create
Establish legal means to
Moderate based on the
High - Additional funds
permanent, ongoing revenue source.
create; determine Council
Set aside revenues for
TBD
need to reallocate
could be used for
High
policy on revenue source
eligible activities.
funds
revitalization projects
3. Establish a residential parking permit program.
Develop program, conduct
Difficult based on
Program development will require public participation and
public outreach, prepare
potential concerns from
Highly effective in
adoption of an ordinance by City Council. Additional surveys
Coastal Commission
affected residents and
encouraging visitors to
may be required by Coastal Commission to justify need and
application, and conduct
Implement program
TBD
the need to obtain
utilize available public
High
verify the program would not impact Coastal access. A
additional surveys if
approval from the
parking lots, rather than
required by Coastal
impact residential streets
Coastal Development Permit will also be required.
Coastal Commission
Commission
4. Establish employee parking permit program.
Medium based on
Moderately effective -
Survey all businesses, develop program, program approval
Develop program
Implement pon City
None
uncertainty of Coastal
Permits will encourage
High
requires City Council approval of a Resolution.
a
Council uncil approval
Commission
employees to park in
S. Develop coordinated wayfinding sign program.
Incorporate with
$15- 20,000 initial
Medium based on need
Medium effectiveness -
Retain designer, prepare sign program, obtain City Council
streetscape plan
contract
to coordinate existing
Signage directing visitors to
Medium
approval of conceptual plan.
signs
parking areas already exists
6. Identify and implement targeted improvements to bicycle
Difficult because of the
and pedestrian facilities.
type of improvements
Low -The area already
Retain designer, prepare plans for identified improvements,
Identify in streetscape plan
Process entitlements
Implement as funds permit
TBD
which would encourage
provides opportunities for
Low
perform outreach to community, obtain City Council approval
additional walking and
biking and walking
of plans, obtain CDP.
biking has not been
Planning /Zoning
1. Eliminate parking requirements for new commercial
Medium based on
Highly effective to
development and intensification of use applications.
uncertainty of
encourage revitalization;
High
Incorporate within Local Coastal Plan.
acceptance by the
provides flexibility for new
(1) Does not include staff costs Page 2
Balboa Village Master Plan - Implementation Matrix
(1) Does not include staff costs Page 3
Ease of
Recommended Strategy
Year 1
Year 2
Year 3 -5
Estimated Cost (1)
Implementation
_
2. Eliminate in -lieu parking fee permanently, including current
Easy to implement on
Low - As a stand alone
payees.
Loss of $13,500 /year if
the basis that the
program elimination of the
Action taken by City Council
program is outdated
High
City Council adoption of ordinance is required. Should be
only Balboa Village
and does not generate
fee would have no affect
implemented with other parking management strategies.
significant funding
on managing parking
3. Evaluate changes to determine impact on new investment
Easy to implement.
in Balboa Village.
Significant benchmarks
Low - Monitoring alone will
Determine and measure applicable benchmarks prior to
Identify and measure
Measure and compare
Review program changes
None
will be obvious, new
not directly result in
Low
appropriate benchmarks
benchmarks
actions. Measure and compare benchmarks on a periodic
uses, redevelopment,
revitalization of the area
basis.
fagade improvements
4. Pursue adoption of Local Coastal Plan.
Prepare draft Implementation Plan (IP), public outreach,
$150,000 for
Difficult - Acquiring a
Highly effective in
Planning Commission review, City Council adoption of IP by
Draft LCP for public review
Adopted LCP by
consultant services to
certified LCP will be a
shortening the entitlement
High
Ordinance, Certification by Coastal Commission required, City
Council /Coastal
challenging and lengthy
Council considers and potentially adopts Coastal Commission
prepare LCP
process
process
suggested modifications (if any).
S. Continue focused code enforcement efforts.
Ongoing
Ongoing
Ongoing
Medium
High
High
Public Streetscape
1. Develop conceptual streetscape and public signage plan.
Staff to evaluate areas for improvement prior to directing
Hire architect to prepare
Implement plan as funds
$15- 20,000 initial
Medium based on need
Highly effective in creating
preparation of plans for signage or street scape
plan
are available
contract
to create plan
new aesthetic
improvements to the area
High
improvements. Consider consistency with existing
wayfinding program. Include Boardwalk in plan.
2. Assume maintenance of boardwalk area.
Highly effective in
Gain acceptance from property owners. Maintenance would
Begin regular cleaning
Ongoing
Ongoing
$15,000 /year
Easy to implement
immediate improvement of
High
include steamcleaning sidewalk installation of new furniture
the area
upon completion of streetscape plan.
Administrative Recommendation
1. Create a governance structure to ensure implementation
Determine governance
Easy once policy
Highly effective to ensure
plan recommendations are executed in a timely fashion
structure and establish
Ongoing review
Ongoing review
direction provided
progress
High
work plan.
(1) Does not include staff costs Page 3
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; that the foregoing resolution, being Resolution
No. 2012 -84 was duly and regularly introduced before and adopted by the City Council of said City at a
regular meeting of said Council, duly and regularly held on the 25th day of September, 2012, and that the
same was so passed and adopted by the following vote, to wit:
Ayes: Hill, Rosansky, Curry, Selich, Henn, Daigle
Noes: Mayor Gardner
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 261h day of September, 2012.
City Clerk
Newport Beach, California
(Seal)