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HomeMy WebLinkAbout2006-08-16 Agenda� W Po T CITY OF NEWPORT BEACH U ECONOMIC DEVELOPMENT COMMITTEE AGENDA MEETING DATE: TIME: PLACE: Chambers Roll Call and Introductions CONSENT CALENDAR Wednesday, August 16, 2006 8:00-9:00 A.M. Please arrive 5 min. prior City of Newport Beach Council (All matters listed under CONSENT CALENDAR are considered to be routine and will all be approved by one motion in the form listed below. The EDC members have received detailed staff reports on each of the items recommending an action. There will be no separate discussion of these items prior to the time the Committee votes on the motion unless members of the Committee, staff, or the public request specific items to be discussed and/or removed from the Consent Calendar for separate action.) 1. Approval of Minutes of July 19, 2006 (Attachment) 2. Progress Report (Attachment) ITEMS REMOVED FROM THE CONSENT CALENDAR DISCUSSION ITEMS 1. "Greenlight II" Report (continued) (Attachment) 2. TOT Incentive Program, Crystal Cove Historic District (Attachment) 3. EQAC Representative's Report ITEMS FOR A FUTURE AGENDA PUBLIC COMMENTS ADJOURNMENT NEXT EXECUTIVE COMMITTEE MEETING: Wednesday, September 6, 2006 8:00 A.M. — NEWPORT BEACH CHAMBER OF COMMERCE NEXT REGULAR MEETING: Wednesday, September 20, 2006 8:00-9:00 A.M. — CITY COUNCIL CHAMBERS Benchmark data reports BID ADMINISTRATION ID Administration and IDs/Consultant Completed BID renewal Revisions to BID By-laws. Ongoing. Monitoring of sub -recipients Coordination Trimble conversions to City fiscal year. Ongoing support for BID complete. ongoing. Housing AdministrationTrimble/B. Nichols Monitoring existing affordable activities. Ongoing. Staff continues to coordinate Balboa Village BID Trimble Construction complete on Phase Next BID meeting 8/15. Ongoing. with County agencies and II. Pump station ongoing. BID respond to public inquiries renewed 6/27. July meeting held Vegarding affordable housing. 7/11. Corona del Mar BID Berger July meeting cancelled. Next BID meeting 8/24 Ongoing. Marine Avenue BID Berger July meeting held 7/20. Next BID meeting 9/21. Ongoing. No August meeting for MA BID Restaurant Association BID Trimble Approved contract with CMC Planning continues for Ongoing. Restaurant Week in January for Restaurant Week marketing. Restaurant Week 2007. Next 2007. BID meeting 8/9. COMMUNITY DEVELOPMENT ADMINISTRATION CDBG AdministrationTrimble/Consultant Stein/Trimble OU's and Grant agreements Work on FY2006 CAPER Ongoing. Monitoring of sub -recipients Phase III being processed. begins. complete. ongoing. Housing AdministrationTrimble/B. Nichols Monitoring existing affordable Searching for new affordable Ongoing. Staff continues to coordinate Consultant housing units resulted in return housing sites. with County agencies and of a number of units to respond to public inquiries affordable status. Vegarding affordable housing. Balboa Peninsula Balboa Village Streetscape — Stein/Trimble Balboa Inn expansion started Removal of utility poles as August 2006 Next element now to be Phase 2 Phase III 09/2004. OCSD pump station property owners complete hook complete. median improvements. construction underway. Phase ups on private property. Pedestrian street lights now after that. III & methane capture projects e discussed. early complete. CORONA del MAR Corona del Mar Vision Plan Berger Phase 2 median improvement Laser crosswalk to be implemented. All planned phases Next element now to be Phase 2 Improvements Plan project discussions with PW complete. median improvements. Dept. Pedestrian street lights now after that. MARINE AVENUE Marine Avenue Public Berger None None at present time. All planned phases Park Avenue Bridge seismic Improvements Plan complete. retrofit / replacement project on old. Sidewalk replacement to e discussed. MARINER'S MILE file:///FI/Apps/WEBDATA/Internet/EconomicDevelopmentCommitteeAgendas/2006/Agendas_to_PDFs/statusrep08-06.htm (1 oft) [12/22/2008 3:18:33 PM] Benchmark data reports s Mile BOA erger Meeting held 8/09. Discussion of MM -sponsored City Centennial banners and meeting to be held 9/13 activity. MBOA interested in continuation of MVPIP improvements and planning; extension of palm trees toward both bridges; relinquishment of CH through MM; and waterfront EDC ACTIVITIES Attraction and Retention EDC staff Newport Lexus project ongoing. Lexus service/storage Ongoing. Continuing discussions w/auto Sterling BMW plans being facility to be opened by dealers shepherded. Land Rover project August 31. underway. Lamborghini dealership in discussion. Strategic Planning Subcommittee / ED Strategic Plan subcommittee ED Strategic Plan draft under Ongoing, as part of Wood/Berger meeting held 8/08. discussion by Subcommittee. GPU process. Image Enhancement & Subcommittee / Wayfinding & Directional CC review at meeting 08/22. Installation budget request submitted Marketing Berger Signage Program. Additional as part of FY `06-'07 CIP. mock-ups in Mariner's Mile and CdM to study minor items in lace. Hotels Subcommittee Marriott hotel project not in Wood/Trimble compliance with TCO... file:///FI/Apps/WEBDATA/Internet/EconomicDevelopmentCommitteeAgendas/2006/Agendas_to_PDFs/statusrep08-06.htm (2 of 2) [12/22/2008 3:18:33 PM] POTENTIAL COSTS INITIATIVE REQUIRING VOTER APPROVAL OF MAJOR DEVELOPMENT OVER AS -IS CONDITIONS City Costs — without Elections Item One -Time Annual Ongoing Low Annual Ongoing High Specific Plan Preparation $16,000 Programming for neighborhood tracking $7,500 $12,150* $21,600* Maintenance of neighborhood tracking data $5,000** $25,233* $44,609* Research and consultation with potential applicants $214,500*** $7,020** $14,040** Summer traffic counts TOTAL $15,000 $15,000 Legal Defense — per case $50,000 $75,000 TOTAL $7,500 $97,253 $148,649 * Assumes 1-2 hours professional time per week @$135 + .5-1 hour clerical per day @$55 + 10- 15 min. engineer per case (685 in FY 2005) @ $95. ** Assumes 1 inquiry per week, requiring 1-2 hours of professional time @ $135. Property Owner Costs — per Project Item Low High Specific Plan Preparation $16,000 $47,000 Specific Plan Review $12,150* $21,600* Summer Traffic Analysis $5,000** $7,500** Election $4,000*** $214,500*** TOTAL $37,150*** $290,600*** * Assumes 90-120 professional hours, not including environmental review. ** Assumes 25% more than typical traffic study. *** Election costs are for consolidated and special elections. These costs could be shared by the City. CITY MANAGER'S OFFICE MEMORANDUM TO: Economic Development Committee FROM: City Manager's Office Dave Kiff, Assistant City Manager 949/644-3002 or dkiff@city.newport-beach.ca.us SUBJECT: TOT Incentive Program — Crystal Cove Historic District DATE: August 16, 2006 ISSUE: Should the City directly assist with efforts to restore some of the cottages in the Crystal Cove Historic District by returning some of the Transient Occupancy Tax ("TOT") collected at the cottages? DISCUSSION: The City collects a 9% Transient Occupancy Tax (TOT) on stays of thirty (30) days or less in the community. The City also levies a Visitor's Service Fee (VSF) of 1% for similar stays, and passes the VSF revenue through to the Newport Beach Conference and Visitors Bureau (NB CVB) to assist the NB CVB in promoting tourism and additional hotel stays in the area (see Title 3, Newport Beach Municipal Code). The City gave the NB CVB an additional amount of revenue in recent years that increased the CVB's share of the full 10% visitor -related occupancy taxes to about 17-18% of the 10%. The City's adopted budget estimates that the City will receive about $8.7 million in hotel - related TOT in FY 2006-07, with another $1.1 million coming from residential vacation rentals. The Crystal Cove Historic District lies in the south-eastern part of the community within Crystal Cove State Park. It consists of 46 cottages that have all been turned over to the California State Parks system for restoration and management as nightly and/or weekly rentals. As such, the rentals are subject to the City's TOT and VSF. State Parks has contracted with the Crystal Cove Alliance (www.crystalcovealliance.org), a local non- profit, to manage the cottages as on-site resort managers. Only about 22 of the cottages have been restored to a level that allows them to be used for resort activities (including guest check-in, meeting rooms, gift shop, restaurant, and more), and about 18 of them have been placed in the rental pool. The remainder await grant funding and other resources before they can be fully renovated. Once renovated, these cottages will be available for rent through www.ReserveAmerica.com. Since the 18 cottages have been placed on ReserveAmerica.com, rentals have consistently stayed at 100% occupancy, even during weekdays. At average nightly rents of $165 per night and given their proximity to the beach, the accommodations are very popular. Here is an approximation of TOT expected to be generated at the Cottages: Crystal Cove • Average TOT Rate Occupancy Days of Year Number of Total TOT Room Rate Percentage Cottages annually $ 165.00 9% 95% 365 18 $ 92,686 The Crystal Cove Alliance is actively involved in fundraising to restore the remaining cottages, despite the large price tag ($15 — 20 million). As a relatively small organization, they do not have a guaranteed source of funding for fundraising purposes. Assistance with or seed money for renovations could assist the Alliance in advancing its restoration efforts more quickly. As a result, more cottages could come "on line" and more cottages would generate TOT. This memorandum proposes an economic development incentive for the Cottages that would direct up to half of the TOT generated from the Cottages back to the Alliance for restoration purposes, as follows. Staff is asking the Economic Development Committee to consider this proposal and make recommendations to the City Council. PARTIES: City of Newport Beach and Crystal Cove Alliance (CCA); TOT RETURN: Half of the 9% TOT generated by rentals of the cottages up to $60,000 per year (inflated by CPI each year); TERM: Five years, extendable at City's option; USE OF FUNDS: Renovation of remaining cottages REPORTING: CCA must provide an annual report to the City Council at the close of each 12 -month period as to progress made in fundraising and restoration.