HomeMy WebLinkAbout2008-10-15_Approved Minutes10- 0-15-08.htm
CITY OF NEWPORT BEACH
ECONOMIC DEVELOPMENT
COMMITTEE
MINUTES 10-15-08
Minutes of the Economic Development Committee held at the City Council Chambers, City of
Newport Beach, on Wednesday, October 15, 2008.
Members Present:
X
Steve Rosansky, Chairman
X
Jennifer Gonzalez
E
Keith Curry, Council Member
X
John Hyatt
X
Mike Henn, Council Member
E
Lloyd Ikerd
X
Robert Hawkins, Planning Commissioner
E
Brion Jeannette
X
Mike McNamara, Vice Chairman
X
Debra Legan
X
Fred Ameri
X
Richard Luehrs
X
Craig Batley
X
Scott Palmer
X
Seymour Beek
X
John Robinson
X
Steven Coyne
X
Gregg Schwenk
X
Gary DiSano
X
Gary Sherwin
E
Jim Donnell
X
Gay Wassail -Kelly
X
Kenneth Drellishak
Vacant
X
Sheri Drewry
Staff Representatives:
x Sharon Wood, Assistant City Manager
x Leigh DeSantis, Economic Development
Administrator
x Katie Bowden, Economic Development
Coordinator
Guests Present:
Roy Freeman, Resident
Roll Call and Introductions:
Chairman Rosansky called the meeting to order at 8:08 am and requested introductions of the
assembled members, staff and guests.
Page 1
file:///F:/Apps/WEBDATA/Internet/EconomicDevelopmentCommitteeAgendas/mn 10-15-08.htm
UPDATES AND ANNOUNCEMENTS
Mr. Rosansky announced the ribbon cutting, Sunday, October 19, 200, from 4-6 pm for the
expansion of the Newport Theater Arts Center at 2501 Cliff Drive.
Mr. Luehrs reminded everyone that this evening will be the Chamber of Commerce hosted
Fire and Lifeguard Beach Party thanking them for another year of service. The event will be
at the Newport Dunes. Tickets are $35.
Mr. Henn reported that this evening was also the preview screening of the Roy Disney film
Morning Light at the Lido Theater. Proceeds will benefit the NB Nautical Museum.
DISCUSSION ITEMS
1. Minutes of September 17, 2008. The August meeting was canceled.
Motion: Gary DiSano
Second: Mike McNamara
Vote: Unanimous
2. Recommendation to appoint Jim Donnell to replace Danielle Sim representing Fashion
Island and Newport Center and to appoint Jeffrey Cole to fill the vacant At -Large
position left by shifting Mr. Donnell.
The Executive Committee of EDC, when informed of Ms. Sim's resignation, felt it made the
most sense to ask Jim Donnell, who had previously represented Fashion Island, to move
into that position. The previous month there had been two qualified applications for one
opening. Having believed both candidates to be qualified they chose to recommend Mr.
Jeffery Cole to the EDC At -Large position rather than reopen the search. The chair asked for
someone to move the question.
Motion: Gary DiSano
Second: Mike Henn
Vote: Unanimous
3. 2 Minute Reports Geographic Areas
Balboa Island — John Robinson
At the start of the year there were six leases/vacant units transitioning. As of today only two
spaces remain open. Particularly lamented was the closing of Sandpiper after 27 years,
which decided to close when the new property owner opted to double its rent. This summer
the Island saw a noticeable influx of European tourists. Sales have been mixed. Ferry traffic
has held steady. Restaurant held steady until late September and early October reflecting
the financial market decline. The retail sale of t -shirts was down 25% which they are
attributing to the demise of The Real OC TV show. Books were down 20%. High end
summer rentals increased 30% while low end rentals declined 25%.
Can — Craig Batley
Summer was about the same as last year but fall is declining more than usual and they are
Page 2
file:///F:/Apps/WEBDATA/Internet/EconomicDevelopmentCommitteeAgendas/mn 10-15-08.htm
worried about winter. Seventy-five to eighty percent of annual income comes from the
summer but if the recession impacts winter strongly some may not survive. Vacation renters
want discounts. The next month or two will show if bookings for next year will hold or
decline. Dry-cleaning seen as an indicator of the economy is down 15-30%. Most
businesses are down around 15%.
4. Discussion on what City should or could do.
The proposed Newport Beach Nautical Museum and Balboa Theater are seen as important
catalysts for more economic activity on the Peninsula. Some thought that the City should
invest further in those projects. Other felt it was time for the private sector to step forward. It
was reported that Janet Ray was going to take over fund raising for the Balboa Theater and
that was perceived as likely to be a success.
The NBCVB reported it would be participating with Pelican Hill in a London launch of the
resort and that the NBCVB would also be opening its own London office to recruit more
tourists. After the UK, they are considering Germany and Asia. The LA CVB has opened a
China office.
Mr. Palmer, representing CDM, said that a number of businesses had expressed a desire to
have more latitude for using banner advertising in this down economy. It was noted that the
code had been changed relatively recently to reduce banner use form 90 days per year to 60
days per year. In addition, it was felt that business could benefit from receiving a mailing
reminding them of the process for applying for and using banners since there did not seem to
be an up -tic in applications at this time. It was moved, seconded, and passed unanimously
to recommend to the City Council that from now until the end of December 2009 that banners
be allowed for up to 120 days per year.
The Chamber of Commerce has been encouraging its members to send it notification of
special sales or discount opportunities which the Chamber will either run on their web site or
provide a link to the member's site. Given the large number of people that visit the
Chamber's website, this is a good advertising option for members.
The members expressed concern about the perceived deterioration of Daily Pilot's coverage
of local issues and the changes that the LA Times has made in editorial and production.
There was some interest in joining with Costa Mesa to talk with the LA Times about the
Committee's concerns regarding loss of coverage. It was noted that the Balboa Beacon
seemed to be gaining advertising.
There were brief discussions on A -frame signs and parking. A -frames are not permitted in
public right-of-way. And parking is being dealt with under the parking management studies.
Southern California Gas Company mentioned that it had services, grants, and rebates to
assist businesses with energy savings as did the electric company. The utility deals can be
accessed either on the utility web sites or the Chamber web site. It was suggested that the
Utility Companies be invited to speak to the EDC on their programs.
Page 3
file:///F:/Apps/WEBDATA/Internet/EconomicDevelopmentCommitteeAgendas/mn 10-15-08.htm
Lastly, a summary of approved projects in process that will generate new sales tax, property
tax, and/or transient occupancy tax was handed out and reviewed. These projects will help
maintain City revenues in the short term and grow them in the long term.
As a member of the Budget Committee, councilman Henn was asked about the City budget.
He reported that the budget is being monitored carefully. Projections are that property tax
receipts will still grow but at a significantly slower pace. Sales tax will be down but the new
projects just discussed would off -set some of the declines. The biggest worry is what the
State might choose to do to balance its budget at the expense of local governments.
5. EQAC Representative's Report
No EIR's
ITEMS FOR A FUTURE AGENDA
1. The Utility Companies
2. The Balboa Theater project (after the City Council has been briefed)
3. The Daily Pilot/LA Times (include Costa Mesa?)
4. Add two new standing agenda items to EDC
A. Ideas for City to assist businesses
B. Two area reports each meeting starting in January.
PUBLIC COMMENTS
There were none.
ADJOURNMENT
Chairman Rosansky called for the meeting to be adjourned at 9:16 am.
Page 4