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Home My WebLink About28 - Marinapark Request for ProposalsHearing Date: Agenda Item No.: Staff Person: REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: Responses to Marinapark Request for Proposals March 14, 2000 Sharon Z. Wood (949) 644 -3222 SUGGESTED ACTION: Provide direction to staff regarding process to review proposals. The City Council authorized the distribution of a request for proposals (RFP) for Marinapark future use /development in November 1999. As directed by the Council, the RFP was distributed to all current Marinapark lessees, to Sutherland Talla Hospitality, who had already made a proposal to the City, and to other developers whom staff knew to have an interest in Newport Beach projects. Staff also placed an advertisement in the Orange County Business Journal, and notified the Orange County District Council of the Urban Land Institute, which generated interest from a few additional parties. RFPs were sent to 17 parties, and eight proposals were received on February 4, 2000. A summary of all the proposals is provided in the attached table. All but one of the proposals would retain the American Legion on site, in the existing or a new facility. The one exception includes a relocation payment for the Legion, and an option to relocate the Legion on site. Three of the proposals would retain some or all of the mobile home park. A hotel or inn is included in four of the proposals. One proposal is for a marine service center, and the American Legion and the Parks, Beaches and Recreation Commission each addressed only their own facilities, proposing that they be retained. Potential revenue to the City ranges from no change from the current situation to $3,600,000 per year, and the implementation schedule ranges from immediate to three and a half years. The wide variety of proposals received reflects the fact that the future use of the Marinapark site is a major and complex policy decision for the City. Both State law and the City Council Policy on Income Property require the City to maximize its returns on such property. The Policy also allows for using City property to promote other goals such as affordable housing and preservation of open space or marine related services. The General Plan designates the Marinapark site for Recreational and Environmental Open Space, and indicates that its ultimate use is to be for aquatic facilities, expanded beach and community facilities. The General Plan also indicates that the City will decide whether to convert the property to public use when the mobile home park lease expires. The question of future use is also complicated by the lack of a decision from the State Lands Commission on the tidelands boundary. Staff believes that the City Council's deliberation on this policy issue and its evaluation of the proposals received will be assisted with an economic evaluation of the proposals. Some CITY OF NEWPORT BEACH rEW�q COMMUNITY AND ECONOMIC = U 1 DEVELOPMENT PLANNING DEPARTMENT 3300 NEWPORT BOULEVARD NEWPORT BEACH, CA 92658 (714) 644 -3200; FAX (714) 644 -3250 Hearing Date: Agenda Item No.: Staff Person: REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: Responses to Marinapark Request for Proposals March 14, 2000 Sharon Z. Wood (949) 644 -3222 SUGGESTED ACTION: Provide direction to staff regarding process to review proposals. The City Council authorized the distribution of a request for proposals (RFP) for Marinapark future use /development in November 1999. As directed by the Council, the RFP was distributed to all current Marinapark lessees, to Sutherland Talla Hospitality, who had already made a proposal to the City, and to other developers whom staff knew to have an interest in Newport Beach projects. Staff also placed an advertisement in the Orange County Business Journal, and notified the Orange County District Council of the Urban Land Institute, which generated interest from a few additional parties. RFPs were sent to 17 parties, and eight proposals were received on February 4, 2000. A summary of all the proposals is provided in the attached table. All but one of the proposals would retain the American Legion on site, in the existing or a new facility. The one exception includes a relocation payment for the Legion, and an option to relocate the Legion on site. Three of the proposals would retain some or all of the mobile home park. A hotel or inn is included in four of the proposals. One proposal is for a marine service center, and the American Legion and the Parks, Beaches and Recreation Commission each addressed only their own facilities, proposing that they be retained. Potential revenue to the City ranges from no change from the current situation to $3,600,000 per year, and the implementation schedule ranges from immediate to three and a half years. The wide variety of proposals received reflects the fact that the future use of the Marinapark site is a major and complex policy decision for the City. Both State law and the City Council Policy on Income Property require the City to maximize its returns on such property. The Policy also allows for using City property to promote other goals such as affordable housing and preservation of open space or marine related services. The General Plan designates the Marinapark site for Recreational and Environmental Open Space, and indicates that its ultimate use is to be for aquatic facilities, expanded beach and community facilities. The General Plan also indicates that the City will decide whether to convert the property to public use when the mobile home park lease expires. The question of future use is also complicated by the lack of a decision from the State Lands Commission on the tidelands boundary. Staff believes that the City Council's deliberation on this policy issue and its evaluation of the proposals received will be assisted with an economic evaluation of the proposals. Some proposals project significant revenue to the City from lease payments and tax generation, but the likelihood of these projections being realized is unknown. Staff is suggesting that the City retain an economic analyst to review the proposals to determine the market potential for the proposed use and the completeness and accuracy of the pro formas and revenue projections. At the same time, staff would analyze the proposals with regard to the development approvals required and time estimates to obtain them, and the potential for traffic generation, in general terms. State law also requires a relocation impact report before a public agency makes a decision on a project that involves the closure of a mobile home park. This report must address the availability of adequate replacement housing in mobile home parks and relocation costs. This State law does not require the payment of relocation costs, but provides for the City to mitigate impacts on the tenants, or to require the developer to provide mitigation. If the City contracts for the economic analysis and relocation impact report, staff estimates that the work could be completed within sixty days, and evaluation of the proposals could be on the City Council agenda for May 23. If the Council prefers not to contract for analysis of all the proposals, an alternative would be for the full Council or a committee to select a smaller number of proposals to be analyzed. Finally, the Council could choose to take action that would resolve the tidelands boundary before doing detailed analysis of the proposals. SHARON Z. 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