HomeMy WebLinkAboutC-8513-21 - Beacon Bay, 22 - Lease 2000LEASE
THIS LEASE is made and entered into as of the , 2000, by and between the CITY OF
NEWPORT BEACH, a Charter City and municipal corporation ("Lessor"), and Ryan Steelbere, as Trustee of
the C&CS 1999 International Trust dated August 6. 1999. ("Lessee"), regarding the real property commonly
referred to as Beacon Bay Lot 22
RECITALS
A. The City of Newport Beach, by virtue of a 1978 legislative grant found in Chapter 74 of the
Statutes of 1978 (the "Beacon Bay Bill"), holds the right, title and interest to certain tidelands and uplands
commonly known as Beacon Bay and generally described in Exhibit A attached hereto and incorporated
by reference.
B. The Beacon Bay Bill frees the "Westerly portion" of the filled tidelands from the public trust and
specifically authorizes the lease of the property for residential purposes subject to certain express
statutory conditions.
C. Beacon Bay, including the "Westerly Portion" thereof, has been divided into individual lots, with
each lot leased by the City for residential purposes until December 31, 2005.
D. On November 3, 1987, a majority of electors of the City approved a measure which authorized the
City Council to enter into new leases of residential lots in Beacon Bay for a period not to exceed fifty (50)
years.
E. On November 3, 1992, a majority of electors of the City approved Measure M which authorized
the City Council to lease tidelands and waterfront property consistent with the provisions of state law.
F. The City Council, pursuant to the authority conferred by the electors, entered into negotiations
with current lessees and the parties have agreed on the terms and conditions of a new lease with a fifty
(50) year term, provision for adjustments in lease payments to reflect changes in the value of Beacon Bay
leaseholds, and a recalculation of lease payments in the event of a transfer of the Lease by the Current
Lessee or any Subsequent Lessee (as defined herein).
G. Lessee acknowledges that the terms and conditions of this Lease may result in Lessee paying
substantially more or less than another Lessee for similar property depending upon the date this Lease is
executed, the date of any subsequent transfer, and the consideration paid for transfers of similarly situated
property.
H. Lessee acknowledges that accurate and complete reporting to the City of all consideration paid for
the transfer of this Lease is vitally important to the City in that failure to fully report all consideration could
materially reduce the amount of rent received by the City from other Beacon Bay Lessees.
I. Lessor and Lessee acknowledge that the City has agreed to a fifty (50) year term and limited
lease payment increases in consideration of provisions which require payment of rent approximating fair
market rental value, without regard to any advantage maintained by Current Lessees, upon transfer by
Current Lessees and payment of deferred rent in the event the Lease is not signed on or before the
Effective Date (as defined herein).
J. The California State Lands Commission has reviewed the form of this Lease and determined that
it is in conformance with the provisions of relevant statutes, rules and regulations, including, without
limitation, the Beacon Bay Bill.
K. Lessor has determined that this Lease is consistent with provisions of the Beacon Bay Bill, the
Charter, General Plan and Zoning Ordinance of the City of Newport Beach, and of all other applicable
state and local laws.
NB1-187371.V205/24/N
cannot be made, or if no such index is published, then another index most nearly
comparable thereto recognized as authoritative shall be substituted by agreement.
(4) "Current Lessee" shall mean the person or persons who, as of April 1, 1994 (the
"Cut-off Date"), was or were the Lessee under the Pre-existing Lease.
(5) "Deferred Rent" shall mean the total rent that a Current Lessee would have paid
had this Lease been executed on the Effective Date, through and including the date on
which this Lease was first executed, less the rent actually paid pursuant to the Pre-
existing Lease, together with interest at the rate of eight percent (8%) per annum
calculated on the balance due at the end of each Lease Year or portion thereof.
(6) "Effective Date" shall mean July 1, 1994.
(7) "Execution Date" shall mean the date when this Lease is executed by Lessee.
(8) 'Initial Rent' shall mean the effective net rent for the Leased Land as determined
by the appraisal of George Hamilton Jones, with due consideration to the leasehold
advantage created by the Pre-existing Lease, all as shown on Exhibit C attached hereto
and incorporated herein by reference.
(9) 'Person" shall mean any natural person or natural person(s) and does not
include any corporation, association, or business entity in any form except a financial
institution or other bona fide lender acting in the capacity of a lender or an inter vivos or
living trust.
(10) 'Pre-existing Lease" shall mean the Lease for the Leased Land which was
effective on January 1, 1988, and would, absent this Lease, expire on July 1, 2006.
(11) 'Transferred" shall mean any sale, assignment, sublease or other transaction,
other than an exempt transfer as defined in Paragraph 3.13(3), pursuant to which the right
to possession of the premises and the right to sign a new lease identical to this Lease is
transferred to another person.
B. Rental Payments.
Lessee shall pay annual rent in the sum of Forty-six thousand five hundred and 00/100
($46.500.00 ), payable at the rate of Three Thousand eight hundred and seventy-five and
($3.875.00 ) per month. Lessee shall also pay, if applicable, deferred rent in the sum
of
( ) upon execution of this Lease.
Ren sha - shall not (circle one) be adjusted every seven (7) years after the date of transfer in
accordance with the provisions of Paragraph 3.6(4). Annual rent, deferred rent, and periodic
adjustments are based upon the following:
IN WITNESS WHEREOF, the parties have caused this Lease to be executed as of the date first above
written.
LESSOR:
CITY OF NEWPORT BEACH,
*-x�'z zl
APPROVE,R AS TO FORM:
CITY A Y
19
EXHIBIT B
Beacon Bay Lot 22 described as follows:
Lot 22 and that portion of Lot H fronting Lot 22 and extending Northward
32 feet, and that portion of Lot 1 fronting Lot 22 and extending Southward
28 feet to the U. S. bulkhead line, as shown on the map filed in Book 9,
Pages 42 and 43 of Record of Surveys, in the Office of the County
Recorder, County of Orange, State of California.
SUMMARY OF SALIENT FACTS AND CONCLUSIONS - continued
SUMMARY OF VALUE INDICATIONS:
Existing
(lstyear)
Unencumbered
Fair Market
Contract
Effective
Lot No.
Fee Lot Value
Rental Value
Rent
Net Rent
Water Front Lots
A
$1,330,000
$48,520
$23,125.08
$31,940.00
B
$1,200,000
$43,320
$12,506.85
$22,270.00
C
$1,031,000
$37,560
$16,625.04
$22,480.00
1
$947,000
$34,200
$8,020.80
$15,030.00
2
$1,131,000
$41,640
$8,825.40
$17,950.00
3
$1,263,000
$46,920
$24,250.08
$31,560.00
4
$1,318,000
$49,120
$10,458.96
$21,260.00
5
$1,341,000
$50,120
$20,012;,04
$28,840.00
6
$1,386,000
$51,680
$25,000.00
$34,260.00
7
$1,210,000
$44,800
$24,999.96
$31,870.00
8
$1,177,000
$43,480
$43,750.00
$43,480.00
9
$1,298,000
$47,840
$42,500.04
$44,350.00
10
$1,342,000
$49,600
$24,999.96
$33,540.00
11
$1,122,000
$41,280
$9,020.52
$17,020.00
12
$1,100,000
$40,400
$14,250.00
$22,190.00
13
$1,100,000
$40,400
$23,625.00
$29,450.00
14
$1,243,000
$45,640
$10,312.56
$19,690.00
15
$1,265,000
$46,520
$10,836.47
$20,240.00
16
$1,067,000
$39,080
$8,508.48
$16,480.00
17
$1,067,000
$39,080
$16,250.04
$21,750.00
18
$1,067,000
$39,080
$8,508.48
$16,480.00
19
$1,243,000
$45,640
$10,020.02
$19,500.00
20
$1,147,000
$42,320
$8,727.84
$17,910.00
21
$1,058,000
$38,760
$20,224.50
$26,660.00
22
$1,036,000
$37,880
$41,250.00
$37,880.00
ES 1
$1,037,000
$37,880
$28,749.96
$31,920.00
ES 2
$1,037,000
$37,880
$24,625.00
$29,220.00
Subtotals:
$31,563,000
$1,160,640
$519,983.08
$705,220.00
Exhibit C - Page 1
M
r
SUNIMARY OF SALIENT FACTS AND CONCLUSIONS - continued
Exhihit C . Pana 9
Existing
(1st year)
Unencumbered
Fair Market
Contract
Effective
Lot No.
Fee Lot Value
Rental Value
Rent
Net Rent
Interior Lots
23
$478,000
$14,487
$2,782.32
$6,297.00
24
$501,000
$15,237
$6,125.04
$8,897.00
25
$509,000
$15,537
$3,399.12
$6,977.00
26
$511,000
$15,612
$3,417.72
$6,942.00
27
$519,000
$15,912
$3,436.44
$7,102.00
28
$542,000
$16,775
$4,137.72
$7,785.00
29
$518,000
$15,650
$15,375.00
$15,470.00
30
$510,000
$15,462
$3,551.16
$7,102.00
31
$517,000
$15,725
$8,750.00
$10,515.00
32
$520,000
$15,837
$3,588.,48
$7,217.00
33
$528,000
$16,137
$3,607.08
$7,307.00
34
$589,000
$18,200
$4,454.64
$8,490.00
35
$559,000
$17,000
$3,776.28
$7,780.00
36
$548,000
$16,662
$3,795.00
$7,672.00
37
$517,000
$15,725
$14,625.00
$15,005.00
38
$520,000
$15,837
$3,780.36
$7,967.00
v
_ 39
$528,000
$16,137
$9,125.04
$11,557.00
40
$588,000
$18,162
$11,133.60
$13,572.00
41
$513,000
$15,500
$3,719.64
$7,300.00
42
$548,000
$16,662
$3,795.00
$7,672.00
43
$556,000
$16,962
$11,250.00
$13,232.00
44
$558,000
$17,037
$3,832.20
$7,787.00
45
$565,000
$17,300
$4,056.84
$7,990.00
46
$588,000
$18,162
$4,454.64
$8,492.00
47
$539,000
$16,475
$3,459.36
$7,365.00
48
$551,000
$16,775
$6,249.96
$9,305.00
49
$520,000
$15,837
$3,551.16
$7,197.00
50
$523,000
$15,950
$3,569.76
$7,240.00
51
$520,000
$15,837
$3,780.36
$7,857.00
52
$528,000
$16,137
$12,750.00
$13,927.00
53
$588,000
$18,162
$4,479.00
$8,492.00
54
$530,000
$15,987
$3,344.88
$7,227.00
55
$559,000
$17,075
$10,625.04
$12,865.00
56
$567,000
$17,375
$3,603.96
$7,915.00
57
$546,000
$16,737
$3,551.16
$7,427.00
58
$528,000
$16,137
$6,750.00
$10,007.00
59
$525,000
$16,025
$10,125.00
$12,175.00
60
$533,000
$16,325
$3,533.88
$7,315.00
Exhihit C . Pana 9
SUMMARY OF SALIENT FACTS AND CONCLUSIONS - continued
Exhihit C . Pada 9
Existing
(Istyear)
Unencumbered
Fair Market
Contract
Effective
Lot No.
Fee Lot Value
Rental Value
Rent
Net Rent
Interior Lots
23
$478,000
$14,487
$2,782.32
$6,297.00
24
$501,000
$15,237
$6,125.04
$8,897.00
25
$509,000
$15,537
$3,399.12
$6,977.00
26
$511,000
$15,612
$3,417.72
$6,942.00
27
$519,000
$.15,912
$3,436.44
$7,102.00
28
$542,000
$16,775
$4,137.72
$7,785.00
29
$518,000
$15,650
$15,375.00
$15,470.00
30
$510,000
$15,462
$3,551.16
$7,102.00
31
$517,000
$15,725
$8,750.00
$10,515.00
32
$520,000
$15,837
$3,588.,48
$7,217.00
33
$528,000
$16,137
$3,607.08
$7,307.00
34
$589,000
$18,200
$4,454.64
$8,490.00
35
$559,000
$17,000
$3,776.28
$7,780.00
36
$548,000
$16,662
$3,795.00
$7,672.00
37
$517,000
$15,725
$14,625.00
$15,005.00
38
$520,000
$15,837
$3,780.36
$7,967.00
v
39
$528,000
$16,137
$9,125.04
$11,557.00
40
$588,000
$18,162
$11,133.60
$13,572.00
41
$513,000
$15,500
$3,719.64
$7,300.00
42
$548,000
$16,662
$3,795.00
$7,672.00
43
$556,000
$16,962
$11,250.00
$13,232.00
44
$558,000
$17,037
$3,832.20
$7,787.00
45
$565,000
$17,300
$4,056.84
$7,990.00
46
$588,000
$18,162
$4,454.64
$8,492.00
47
$539,000
$16,475
$3,459.36
$7,365.00
48
$551,000
$16,775
$6,249.96
$9,305.00
49
$520,000
$15,837
$3,551.16
$7,197.00
50
$523,000
$15,950
$3,569.76
$7,240.00
51
$520,000
$15,837
$3,780.36
$7,857.00
52
$528,000
$16,137
$12,750.00
$13,927.00
53
$588,000
$18,162
$4,479.00
$8,492.00
54
$530,000
$15,987
$3,344.88
$7,227.00
55
$559,000
$17,075
$10,625.04
$12,865.00
56
$567,000
$17,375
$3,603.96
$7,915.00
57
$546,000
$16,737
$3,551.16
$7,427.00
58
$528,000
$16,137
$6,750.00
$10,007.00
59
$525,000
$16,025
$10,125.00
$12,175.00
60
$533,000
$16,325
$3,533.88
$7,315.00
Exhihit C . Pada 9
Distribution of Rents and Tax Advantage between Tidelands and Uplands*
(lstyear)
Proportionate
Proportionate
Annual Amort.
Tidelands
Effective
% % Rent
Rent
of PV of Tax
Tax
Lot No. Net Rent
Tidelands Uplands Tidelands
Uplands
Advantage
Advantage
Waterfront Lots
A
$31,940.00
100%
0%
$31,940
$0
$0
$0
B
$22,270.00
100%
0%
$22,270
$0
$930
$930
C
$22,480.00
100%
0%
$22,480
$0
$1,410
$1,410
1
$15,030.00
100%
0%
$15,030
$0
$2,080
$2,080
2
$17,950.00
100%
0%
$17,950
$0
$2,260
$2,260
3
$31,560.00
100%
0%
$31,560
$0
$560
$560
4
$21,260.00
100%
0%
$21,260
$0
$2,610
$2,610
5
$28,840.00
100%
0%
$28,840
$0
$1,620
$1,620
6
$34,260.00
100%
0%
$34,260
$0
$0
$0
7
$31,870.00
95%
5%
$30,276
$1,594
$0
$0
8
$43,480.00
50%
50%
$21,740
$21,740
$0
$0
9
$44,350.00
5%
95%
$2,217
$42,132
$0
$0
10
$33,540.00
0%
100%
$0
$33,540
$0
$0
11
$17,020.00
0%
100%
$0
$17,020
$3,200
$0
12
$22,190.00
0%
100%
$0
$22,190
$1,130
$0
13
$29,450.00
0%
100%
$0
$29,450
$0
$0
14
v
$19,690.00
0%
100%
$0
$19,690
$2,880
$0
15
$20,240.00
20%
80%
$4,048
$16,192
$2,980
$596
16
$16,480.00
95%
5%
$15,656
$824
$2,640
$2,508
17
$21,750.00
100%
0%
$21,750
$0
$2,420
$2,420
18
$16,480.00
100%
0%
$16,480
$0
$2,640
$2,640
19
$19,500.00
100%
0%
$19,500
$0
$2,880
$2,880
20
$17,910.00
100%
0%
$17,910
$0
$2,470
$2,470
21
$26,660.00
100%
0%
$26,660
$0
$0
$0
22
$37,880.00
100%
0%
$37,880
$0
$0
$0
ES 1
$31,920.00
100%
0%
$31,920
$0
$0
$0
ES 2
$29,220.00
100%
0%
$29,220
$0
$0
$0
Waterfront
Subtotal:
$705,220.00
$500,848
$204,372
$34,710
$24,984
Beacon Bay 6/6/94 - Page 1
Vvhih:f 11
r r
Distribution of Rents and Tax Advantage between Tidelands and Uplands*
Beacon Bay 616/94 - Page 2
Exhibit 0
(Istyear)
Proportionate Proportionate Annual Amort.
Tidelands
Effective
%
%
Rent
Rent
of PV of Tax
Tax
Lot No.
Net Rent
Tidelands
Uplands
Tidelands
Uplands
Advantage
Advantage
Interior Lots
23
$6,297.00
0%
100%
$0
$6,297
$550
$0
24
$8,897.00
0%
100%
$0
$8,897
$390
$0
25
$6,977.00
5%
95%
$349
$6,628
$630
$31
26
$6,942.00
99%
1%
$6,873
$69
$710
$703
27
$7,102.00
100%
0%
$7,102
$0
$660
$660
28
$7,785.00
100%
0%
$7,785
$0
$740
$740
29
$15,470.00
0%
100%
$0
$15,470
$0
$0
30
$7,102.00
0%
100%
$0
$7,102
$580
$0
31
$10,515.00
30%
70%
$3,154
$7,361
$660
$198
32
$7,217.00
100%
0%
$7,217
$0
$620
$620
33
$7,307.00
100%
0%
$7,307
$0
$650
$650
34
$8,490.00
100%
0%
$8,490
$0
$730
$730
35
$7,780.00
0%
100%
$0
$7,780
$580
$0
36
$7,672.00
0%
100%
$0
$7,672
$590
$0
37
$15,005.00
5%
95%
$750
$14,255
$0
$0
38
$7,967.00
99%
1%
$7,887
$80
$0
$0
39
v
$11>557.00
100%
0%
$11,557
$0
$0
0
40
$13,572.00
100%
0%
$13,572
$0
$0
$0
41
$7,300.00
0%
100%
$0
$7,300
$510
$0
42
$7,672.00
0%
100%
$0
$7,672
$590
$0
43
$13,232.00
0%
100%
$0
$13,232
$0
$0
44
$7,787.00
00/0
100%
$0
$7,787
$630
$0
45
$7,990.00
15%
85%
$1,198
$6,792
$660
$99
46
$8,492.00
0%
100%
$0
$8,492
$720
$0
47
$7,365.00
0%
100%
$0
$7,365
$610
$0
48
$9,305.00
0%
100%
$0
$9,305
$600
$0
49
$7,197.00
0%
100%
$0
$7,197
$620
$0
50
$7,240.00
0%
100%
$0
$7,240
$630
$0
51
$7,857.00
0%
100%
$0
$7,857
$110
$0
52
$13,927.00
0%
100%
$0
$13,927
$0
$0
53
$8,492.00
0%
100%
$0
$8,492
$730
$0
54
$7,227.00
0%
100%
$0
$7,227
$500
$0
55
$12,865.00
0%
100%
$0
$12,865
$0
$0
56
$7,915.00
0%
100%
$0
0,915
$470
$0
57
$7,427.00
0%
100%
$0
$7,427
$700
$0
58
$10,007.00
0%
100%
$0
$10,007
$0
$0
59
$12,175.00
0%
100%
$0
$12,175
$0
$0
60
$7,315.00
0%
100%
$0
$7,315
$660
$0
Beacon Bay 616/94 - Page 2
Exhibit 0
/
Distribution of Rents and Tax Advantage between Tidelands and Uplands*
kdd Waterfront $705,220.00
JrandTotal: $1,103,027.00
Yo of Total: 100%
Vr
(1st year)
Proportionate
Effective
Lot No.
Net Rent
Interior Lots - continued
61
$8,482.00
ES 3
$10,325.00
ES 4
$6,322.00
ES 5
$11,415.00
ES 6
$6,310.00
ES 7
$6,057.00
ES 8
$6,455.00
nterior Lots
$720
iubtotal:
$397,807.00
kdd Waterfront $705,220.00
JrandTotal: $1,103,027.00
Yo of Total: 100%
Vr
'Effective Net Rents consider tax advantage. Discount rate for present value of annual
advantage is 6%. Rate for amortization of advantage is 7%. Rent and advantage
igures are from 10/8/93 appraisal. Lots 3, 7, and 21 have been adjusted for new contract rent real estate taxes.
Beacon Bay 6/6/94 - Page 3
F,rhih:f n
Proportionate
Proportionate
Annual Amort.
Tidelands
%
%
Rent
Rent
of PV of Tax
Tax
Tidelands
Uplands
Tidelands
Uplands
Advantage
Advantage
0%
100%
$0
$8,482
$720
$0
100%
0%
$10,325
$0
$320
$320
100%
0%
$6,322
$0
$500
$500
85%
15%
$9,703
$1,712
$0
$0
0%
100%
$0
$6,310
$500
$0
0%
100%
$0
$6,057
$650
$0
0%
100%
$0
$6,455
$410
$0
$109,592
$288,215
$19,930
$5,251
$500,848
$204,372
$34,710
$24,984
$610,440
$492,587
$54,640
$30,235
55%
45%
100%
55%
'Effective Net Rents consider tax advantage. Discount rate for present value of annual
advantage is 6%. Rate for amortization of advantage is 7%. Rent and advantage
igures are from 10/8/93 appraisal. Lots 3, 7, and 21 have been adjusted for new contract rent real estate taxes.
Beacon Bay 6/6/94 - Page 3
F,rhih:f n