HomeMy WebLinkAboutC-2270 - Beacon Bay, Easterly Portion Balboa Yacht BasinAMENDMENT TO ASSIGNMENT OF LEASE
THIS AMENDMENT TO LEASE entered into this,` ;may
of J1JJ 1983, by and between THE CITY OF NEWPORT
BEACH, a Municipal Corporation and Charter City, and THE IRVINE
COMPANY, a corporation, is made with reference to the following
facts:
WHEREAS, the parties hereto have previously entered
into an Agreement entitled "Assignment of Lease" regarding
certain property commonly known as the Balboa Yacht Basin; and
WHEREAS, pursuant to the Assignment, the Irvine Company
reserved the right to receive income from seven apartments and
garages located on the property subject to the Sublease; and
WHEREAS, the City is desirous of making improvements to
the Balboa Yacht Basin and must demolish four of the seven
apartments to accomplish the reconstruction; and
WHEREAS, the parties have agreed that the Irvine
Company will relinquish its rights with respect to the four
apartments in consideration of the payment of the sum of
$72,200.00.
NOW, THEREFORE, the parties hereto agree as follows:
1. The Assignment of Lease dated June 22, 1981, is
hereby amended such that paragraph 2(a) reads as follows:
"2. RESERVATIONS. TIC reserves to itself, its
successors and assigns, the following:
a) A sublease of the seven (7) apartments and
seven (7) appurtenant garages without the obligation to pay rent
to City. TIC, however, shall pay for all necessary utilities,
including water, gas and electricity for said apartments and
garages. TIC agrees to release to City, on or before September
30, 1983, all of its right, title or interest in and .to four (4)
apartments and four (4) appurtenant garages, required to be
demolished in conjunction with a City project for reconstruction
o f the marina, the release to be in consideration of the payment
by City to TIC of the sum of $72,200.00 to be paid as follows:
October 1, 1983 $16,044.00
October 1, 1984 $16,044.00
October 1, 1985 $16,044.00
October 1, 1986 $16,044.00
October 1, 1987 $ 8,024.00
2. Except as amended pursuant to the terms and
conditions of this Agreement, the Assignment of Sublease shall
continue in full force and effect under the same terms and
conditions previously agreed upon."
Executed by the parties hereto the day and year first
above written.
Pit�y C 1 e r k
APP OVED AS TO FORM
City Attorney
RSP/BeaconBay2
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CITY OF NEWPORT BEACH Agenda Item No.:F -2(a)
Marine Department BY THE CITY COUNCIL
CITY OF NEWPORT BEACH
August 8, 1983 AUG 081983
TO: MAYOR AND CITY COUNCIL
FROM: Marine Director
SUBJECT: AMENDMENT TO BALBOA YACHT BASIN LEASE ASSIGNMENT /IRVINE COMPANY_.
Recommendation:
If desired, adopt Resolution No, authorizing the Mayor and City Clerk
to execute an Amendment to the Assignment of Lease.
Background:
On June 22, 1981 the City Council adopted Resolution Number 10071 approving
the assignment of lease (Beacon Bay East Portion -- Balboa Yacht Basin) from
the Irvine Company to the City of Newport Beach. The assignment provided
that the Irvine Company was to assign all of its right, title,and interest
in the Balboa Yacht Basin lease to the City of Newport Beach, reserving a
sub -lease interest in seven (7) apartments and seven (7) appurtenant garages;
the Galley Cafe, the Yacht Sales and Brokerage business, and three storage
garages.
On February 14, 1983, the City Council approved an Engineering Services
Agreement for reconstruction of the Balboa Yacht Basin. Between last March
and this month, City staff has worked closely with the consulting engineer
to prepare preliminary plans. After reviewing various planned lay -outs,
staff is now prepared to recommend that four apartments bordering the basin
on the south side be demolished. The apartments are four one - bedroom
apartments upstairs above storage garages. In general these apartments
are in poor condition and are incompatible with the marina and the adjoining
shipyard. By eliminating the apartments, construction costs to replace the
bulkhead will be reduced by several thousand dollars. Most importantly, the
Basin Marine Shipyard will be able to expand their lease site by an approximate
12,000 square feet. The expanded shipyard site should double the boat yard
repair capability. The additional space will readily allow the shipyard to
modernize their operation by eliminating the marine railway haul -out system
and implementing a vertical lift system. Boat repair facilities are en-
couraged by the City's Local Coastal Plan and the expanded site is compatible
with the City's marina.
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Page 2
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Since May the staff has kept the
of the proposal to demolish the
facility. The Tidelands Affairs
Discussion:
•
Tidelands Affairs Committee abreast
apartments and expand the boat repair
Committee concurs with this recommendation.
The Irvine Company and City staff have now reached agreement on the City
taking over the lease on the four apartments. These apartments were
reserved back to the Irvine Company until December 31, 1987. The Irvine
Company has agreed to turn over the four vacant apartments to the City
for a total sum of $72,200, payable annually according to the following
schedule:
$16,044
due
Oct.
1,
1983
$16,044
due
July
1,
1984
$16,044
due
July
1,
1985
$16,044
due
July
1,
1986
$ 8,024
due
July
1,
1987
The Irvine Company anticipated revenue at $95,000 for the remaining term
of their lease. This sum has been reduced by anticipated expenses of
$22,800, which leaves the total net value of $72,000.
The City Council approved in the 1983 -84 Fiscal Budget, an amount of
$20,545 (Tide and Submerged Land Capital Improvement section) to cover
the first year's payment to the Irvine Company. The additional $4,500
was to cover an anticipated relocation expense. No relocation expense
need be borne by the City because the Irvine Company, in anticipating an
agreement for the City to take back the apartments, has left two of the
apartments vacant for the last two or three months. The other two apart-
ments have interim tenants and these tenants have been notified by the
Irvine Company and have agreed to vacate the premises on or before
September 30, 1983.
The City staff has recently contacted George Hamilton Jones, M.I.A., and
requested a revised appraisal report for Basin Marine Shipyard. It is
anticipated that a revised lease with Basin Marine Shipyard, who want to
lease the space occupied by the subject four apartments, will recapture
the major portions of funds which the City will be paying the Irvine
Company for the next four and a half years.
David Harshbarger
Marine Director
1ngreIl,
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83-82
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN AMENDMENT TO
ASSIGNMENT OF LEASE BETWEEN THE CITY OF
NEWPORT BEACH AND THE IRVINE COMPANY REGARDING
BALBOA YACHT BASIN
WHEREAS, the City of Newport Beach, by Resolution No.
10071, entered into an agreement in the form of an Assignment of
Lease, pursuant to which the Irvine Company assigned to the City
of Newport Beach all of its right, title and interest in and to a
sublease that pertained to certain real property, commonly known
as the Balboa Yacht Basin; and
WHEREAS, the Irvine Company, pursuant to said assign-
ment, reserved the right to receive income from seven apartments
and seven garages located on the property subject to the
sublease; and
WHEREAS, the City is desirous of demolishing four of
the seven apartments and appurtenant garages in order to facili-
tate reconstruction of the Balboa Yacht Basin Marina and permit
expansion of the Basin Marine Shipyard to accmmodate the increas-
ing demands for shipyard services; and
WHEREAS, with respect to the four apartments and
garages that would be demolished under the reconstruction plans,
two of the apartments are currently vacant, the other two apart-
ments are occupied only part time and, thus, no permanent housing
is, or will be, affected by the proposed demolition of the apart-
ments and garages; and
0
WHEREAS, the Irvine Company has agreed to relinquish
its rights, with respect to the four apartments and garages that
would be demolished, in consideration of the payment by the City
to the Irvine Company, of the sum of $72,200.00, which payment is
to be made in accordance with the schedule as shown on the
Amendment to Assignment of Lease, a copy of which is attached
hereto as Exhibit "A" and incorporated herein.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Newport Beach that the Mayor and City Clerk are
hereby authorized to execute the "Amendment to Assignment of
Lease" by and between the City of Newport Beach and the Irvine
Company as referred to above.
ADOPTED the day of AUG 08 1983
ATTEST:
City Clerk
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RSP /BeaconBay
2
Mayor
I F
CITY OF NEWPORT BEACH
OFFICE OF THE CITY CLERK
(714) 640 -2251
DATE July 30 1 19 81
TO: FINANCE DIRECTOR
FROM: City Clerk
SUBJECT: Contract No. C -2270
Description of Contract Assigrmient of Lease
(Beacon Bay - Easterly Portion).Balboa Yacht Basin
Effective date of Contract July 14, 1981
Authorized by Resolution No. 10097 adopted on July 14, 1981
Contract with The Irvine Company
Adress 550 Newport Center Drive
Newport Beach, CA 92660
Amount of Contract '$ See Contract
/s/ Wanda E. Andersen
WANDA E. ANDERSEN
City Clerk
City Hall • 3300 Newport Boulevard, Newport Beach, California 92663
5 -61
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ASSIGNMENT OF LEASE
(BEACON BAY - EASTERLY PORTION)
BALBOA YACHT BASIN
THIS AGREEMENT is for the ASSIGNMENT by THE IRVINE
COMPANY, a Michigan Corporation, with its offices and principal
place of business located at 550 Newport Center Drive, Newport
Beach, California 92660, hereinafter referred to as "TIC ", of its
right, title, interest, obligations, duties and responsibilities
in, under and arising out of a certain Lease relating to a
certain parcel of land referred to as the easterly portion of
Beacon Bay, described in Exhibit "A ", attached hereto and made a
part hereof by this reference, to the CITY OF NEWPORT BEACH, a
chartered Municipal Corporation, with its offices located at 3300
Newport Boulevard, Newport Beach, California 92663 hereinafter
referred to as "CITY ", which assignment shall be binding as of
the date of execution of this agreement, and acceptance of the
same by CITY is subject to the terms, covenants, reservations and
conditions hereinafter set forth, and said assignment shall
become effective July 1, 1981.
RECITALS
A. CITY holds title to and is the owner of certain
harbor frontage and tidelands, together with certain uplands
abutting thereon, known as the "Easterly Portion" of Beacon Bay,
hereinafter sometimes referred to as "Balboa Yacht Basin ", and
more particularly described in Exhibit "A" attached hereto and
made a part hereof by this reference.
B. CITY leased to J. A. Beek, Carroll B. Beek, Barton
Beek and Joseph Allan Beek, Jr., the Balboa Yacht Basin by a
Lease dated January 9, 1950, hereinafter "Master Lease ", which
Master Lease expires on December 31, 1987.
C. The Balboa Yacht Basin was leased by J. A. Beek,
Carroll B. Beek, Barton Beek and Joseph Allan Beek, Jr. to Hugh
W. Haley and Margaret E. Meisinger by a Lease dated February 28,
1950, and recorded March 13, 1950 in Book 1984, at Page 296 as
Instrument No. 12032 in the Office of the County Recorder for the
County of Orange, which Lease is hereinafter referred to as
"Master Sublease."
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D. The Master Sublease of Balboa Yacht Basin was
assigned by Hugh W. Haley and Margaret E. Meisinger and Mildred
J. Haley, wife of Hugh W. Haley, to The Irvine Company by an
Assignment recorded in the official records of Orange County, on
August 9, 1971, in Book 9752, Page 913.
E. The City Council of the City of Newport Beach
approved said Assignment by Resolution No. 7475 adopted June 28,
1971.
F. On July 11, 1977, the City Council of the City of
Newport Beach, by Resolution No. 9151 approved, an Assignment
from The Irvine Company, a West Virginia Corporation, to The
Irvine Company, a Michigan Corporation, of the Master Sublease.
G. TIC sublet certain portions of the Balboa Yacht
Basin, which Subleases are as follows:
(1) A Lease to Edward H. Flach and Myrtle E. Flach
to operate a restaurant, known as "Galley Cafe ", by
a lease dated September 30, 1971, as amended;
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(2) A Lease to Basin Marine, Inc., a California
Corporation, to operate a shipyard and yacht repair
facility and a marine and general hardware store,
by a lease dated September 20, 1973, as amended;
(3) A Lease to Finley G. Scott for the conduct of
the business sales, brokerage and insurance sales,
by a Lease dated August 16, 1971, as amended.
H. Also in the Balboa Yacht Basin are located 7 apart-
ment units, 56 storage garages and a marina. All uses in Balboa
Yacht Basin are generally identified on Exhibit "B" attached
hereto for identification purposes only.
I. TIC desires to assign to CITY all its right, title
and interest in said Master Sublease, subject to the terms of
said Master Sublease, Master Lease, the subleases above identifi-
ed, and further reserving to TIC a sublease interest in the
premises subleased to Edward H. Flach and Myrtle E. Flach to
operate the Galley Cafe, and subleased to Finley G. Scott to
conduct the business of yacht sales, brokerage and insurance
sales, and the apartment units and appurtenant garage spaces, as
hereinafter set forth.
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J. The City of Newport Beach desires to become the
assignee of said Master Sublease, subject to the terms and condi-
tions hereinafter set forth.
NOW, THEREFORE, in consideration of the foregoing recit-
als and the mutual covenants set forth below, CITY and TIC hereby
agree as follows:
1. ASSIGNMENT. All of the right, title and interest of
TIC in and to the real property and improvements located thereon
described in Exhibit "A ", arising out of the Master Sublease,
including but not limited to the Balboa Yacht Basin Marina,
docks, bulkheads, piers, boat slips, side tie facilities and
floats, apartments, store buildings, garages, offices and
appurtenent facilities, together with those items of personal
property described in Exhibit "B ", being all of the property
subleased to Hugh W. Haley and Margaret E. Meisinger by Lease
dated February 28, 1950 and recorded March 13, 1950 in Book 1984
at Page 296 as Instrument 12021 in the Office of the Orange
County Recorder, and assigned and conveyed by said sublessees to
TIC as herein above recited, is hereby assigned, sold, demised
and conveyed to CITY, subject to the following express reservat-
ions and conditions :
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2. RESERVATIONS. TIC reserves to itself, its
successors and assigns, the following:
a) A sublease of the seven (7) apartments and
seven (7) appurtenant garages without the obligation to pay rent
to City. TIC, however, shall pay for all necessary utilities,
including water, gas and electricity for said apartments and
garages.
b) A sublease of those certain premises subleased
to Edward H. Flach and Myrtle E. Flach to operate the Galley
Cafe, including two (2) assigned storage garages, as hereinbefore
set forth, together with the revenues therefrom.
c) A sublease of those certain premises subleased
to Finley G. Scott to conduct the business of yacht sales,
brokerage and insurance sales, as hereinbefore set forth,
together with the revenues therefrom.
d) A non - exclusive license and right -of -way for
ingress and egress for pedestrian and vehicular traffic, a
license of necessity and convenience for all utilities, cable
television and other similar conduits.
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e) A sublease of three (3) storage garages from
July 1, 1981 through June 30, 1983,
City rent. TIC, however, shall pay
including water, gas and electricit
TIC desire to continue occupancy of
storage garages after July 1, 1983,
market rental value of said storage
without the obligation to pay
for all necessary utilities,
I for said garages. Should
all or any of said three (3)
TIC shall pay CITY the fair
garages.
3. CONDITIONS. This Assignment shall be subject to the
reservations set forth in paragraph 2 above, and to the right,
title and interest of the lessees of TIC, in accordance with the
terms of the lease agreements hereinbefore set forth, and the
obligation of the CITY to maintain the parking lot area serving
the Balboa Yacht Basin.
4. WARRANTIES. TIC makes no warranties, representat-
ions or covenants to CITY as to the condition of the property
which is the subject of the Master Sublease hereby assigned.
CITY has inspected said property, as it deems necessary, to fully
apprise itself of the condition of all improvements, including
without limitation the bulkhead improvements. Based upon its
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investigation, CITY hereby accepts said property in an "as is"
condition. TIC will turn over to CITY all survey documents and
aerial surveys available to TIC at a cost of $6,000.00, payable
by CITY to TIC. However, TIC makes no representations,
warranties or assertions as to the validity or accuracy of said
survey documents or aerial surveys and it is agreed that TIC
shall have no liability of any kind for the contents thereof,
including any representations therein contained.
5. RIGHT OF FIRST REFUSAL. In the event that CITY
should desire to lease or sublease the yacht basin /marina
facility to any third party for the operation of a yacht
basin /marina facility prior to December 31, 1987, TIC shall have
a right of first refusal to lease and operate said yacht
basin /marina facility upon the identical terms and conditions
upon which CITY proposes to lease said facilities to a third
party. In the event CITY determines to lease said facilities
after January 1, 1988, this right of first refusal shall cease
and be of no further force or effect.
CITY shall notify TIC, in writing, of its intent to
enter into such lease agreement and provide a certified copy
8 061781
a
thereof to TIC, who shall have sixty (60) days commencing from
the date it shall receive such written notice in which to inform
CITY of its election to lease the premises upon the terms and
conditions contained in the proposed lease to the third party and
to inform CITY of what, if any, property it desires to have
reassigned to it; all said properties and items so elected by
TIC shall be reassigned to it without any payment of additional
consideration therefor.
6. CONSIDERATION. As additional consideration for
this Assignment, it is recognized that TIC has maintained
sublessor's control over certain revenue - producing subleases as
well as other uses in Balboa Yacht Basin. Under present condit-
ions, the revenue generated by said uses reserved to TIC equals
approximately 108 of the total gross revenues produced by all
revenue producing uses of the Balboa Yacht Basin property.
Pursuant to the Master Sublease CITY, as assignee of TIC, is
obligated to pay the Lessors thereunder payments as set forth in
said Master Sublease. It is the desire of TIC and CITY that TIC
shall pay approximately its proportionate share of the total
rental obligation to the Lessors of the Master Sublease.
Therefore, in further consideration of this Assignment,and as
9 061781
rental for the premises subleased by TIC, TIC hereby agrees to
pay to CITY $2,000.00 annually, said payment by TIC to CITY to be
made on or before June 30th of each year during the term of this
Assignment, which sum represents approximately 10% of the gross
revenues of the revenue - producing operations in Balboa Yacht
Basin. The rental obligation to the Lessors of the Master
Sublease will be adjusted on January 1, 1985, pursuant to the
terms of the Master Sublease, to reflect an increase in the Cost
of Living Index of the U.S. Bureau of Labor Statistics, or the
agreed upon successor index. Therefore, on January 1, 1985 and
continuing to the end of the term of the Master Lease and Master
Sublease, TIC's payment hereunder shall be adjusted to reflect
said adjustment as required by the terms of the Master Sublease.
7. INDEMNIFICTION. TIC hereby covenants and agrees to
hold CITY free and harmless from any claim, demand or damage by
any person, firm or corporation which may assert a financial
claim against the premises from a cause arising prior to the
effective date of this agreement including, without limitation,
any outstanding encumbrances or obligations incurred by TIC
regarding the leased premises. TIC further covenants and agrees
to hold CITY free and harmless from any and all claims for
10 061781
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damages for injury to persons or property, including death, which
occurred on or before the effective day of this agreement, aris-
ing out of the condition of the premises, docks, piers, bulkheads
and other improvements.
TIC further covenants and agrees to hold CITY free
and harmless from any claim, demand or damage by any person, firm
or corporation for injury to person or property, including death,
arising out of the use, operation or maintenance by TIC or any
Sublessee, assignee, employee, contractor or agent of TIC in
regards to the premises and uses in the Balboa Yacht Basin
property retained hereby by TIC, as set forth in paragraph 2
above.
8. INDEMNIFCATION. CITY covenants and agrees to hold
TIC free and harmless from any and all claims or demands of any
kind and nature whatsoever by reason of this Assignment and the
use of the premises by CITY, which may occur on or after the
effective date of this agreement, including without limitation
any and all liability relating to the condition of the premises,
docks, piers, bulkheads and other improvements.
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9. ATTORNEY'S FEES. In the event of the commencement
or institution of any action, claim or proceeding arising out of
the enforcement or interpretation of this Assignment, the
prevailing party, as shall be specifically determined by the
trier of fact in the event of litigation, or as resolved by the
parties as part of a negotiated settlement, shall be entitled to
its reasonable attorney's fees, discovery expenses, fees of
expert witnesses, costs and other expenses of litigation.
10. EFFECTIVE DATE OF AGREEMENT & ASSIGNMENT. It is
understood that this Assignment shall be valid and binding upon
the parties hereto upon the execution hereof, and acceptance in
writing by resolution of the City Council of the City of Newport
Beach and approval by Resolution of the Board of Directors of The
Irvine Company. In the event this assignment is not accepted by
CITY on or before June 30, 1981, this agreement shall be
terminated and deemed null and void, neither party hereto shall
have any further obligation or liability to the other for the
performance of any of the obligations herein contained.
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This Assignment is further conditioned upon and
shall not become valid or effective unless and until the Lessors
of the Master Sublease shall have consented, in writing, to such
Assignment.
IN WITNESS WHEREOF the parties hereto have caused this
Agreement to be made and executed on the day of �, 1981.
l
ASSIGNOR
THE PANY
i
By
Vice President
D,4srie1--,M. Lai
btant Secretary
d M. Koch
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This assignment is hereby accepted by the City of
Newport Beach, which agrees to assume all covenants, conditions
and obligations of TIC arising out of said Master Sublease,
subject to the terms and conditions set forth above.
ATTEST:
n
City Clerk
ASSIGNEE:
THE CITY OF NEWPORT BEACH
L
By;
Yo i
14
061781
LECAT, DES( i.: PTJ ON
parcel of land situatad in the Northwest quarter \:ilw) of Section. Thirt i -:Ivc
(35), Township Six (6) South, Range Ten (10) Wcsc, S.2.3. S X., Crange County,
California, more particularly described as follows, to -lit:
BOZinninP DOlnt In the U.S. Bulkhead llni_ D! C` +:cCil SC:Anon i.0. 2v
and Station No. 101 as shol✓n upon a Pan i:Rtl Cled "Parl.`or' roes, �. i:'.JDort
Say Harbor, California ", approved May 2 1936 by Clio Se -,cratary of n'ar,
and or, file in the offica of rile U.S. Disl.ict Engin.cr ac Los An1,�le,,
California, slid point of beginning beii,g Fast 754.25 fact Of said bulr-
head Stac_on No. 200, running thence North 424.71 feet to a point in tha
Northerly line of that certain parcel of lane' conveyed to Cicy of
Newport ueach by the irvine Coapcnv, as described in dcctd Septe::-
ber 25, 1929, in Book 306, Page 375, of official records ::E Grange Cou::,y,
California; thence South 35° 43' Easc 772.15 fav:t to the NJrthea;Lerly
corner o. the last ma- acioned parcel of land; tne,.ce South aion,
lire of the last mentioned parcel of land 367.01 feet to a aci,t in laic
U.S. 3ulkhead lino betl.een Station No. 200 and Station No. 101,
along said bulkhead line 770 feet to the point o,`, be;in::ing, cvncain'_
approximately seven (7) acres.
cXIIIBIT "A"
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EXHIBIT "B"
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M
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CITY OF NEWPORT BEACH
OFFICE OF THE CITY CLERK
(714) 640 -2251
June 25, 1981
Mr. Barton Beek
O'Melveny & Myers
611 W. 6th Street
Los Angeles, California 90017
RE: Balboa Yacht Basin
Dear Mr. Beek:
Enclosed, for your files are 2(two) fully executed
Consent and Agreement documents between the Beek, et al,
and the Citv of Newport Beach. The Consent and Agree-
ment was authorized by Resolution No. 10072 adopted
by the Council of the City of Newport Beach on June 22,1981.
5
WANDA E. ANDERSEN
City Clerk
WEA:da
Encl.
Cit}- Hall • 3300 Newport Boulevard, Newport Beach, California 92663
40 dD.
CITY OF NEWPORT BEACH
OFFICE OF THE CITY ATTORNEY
(714) 640 -2201
June 1, 1981
Mr. David Pies
The Irvine Company
1071 Camelback St. `
Newport Beach, Ca. 92660
Re: Balboa Yacht Basin Assignment
Dear Mr. Pies:
I am transmitting herewith two originals and one copy of the
Assignment of Lease (Beacon Bay - Easterly Portion) Balboa Yacht
Basin.
I am also sending a certified copy of Resolution No. 10050 of the
City Council which approved the Assignment.
Please have the two original documents executed and return them
to this office. When we receive the executed copies, together
with a certified copy of the Resolution of The Irvine Company
Board of Directors, the City will consent to the Assignment and
return to you one fully executed original.
We have discussed the Assignment on several occasions with the
Beek family and their final. decision on consent has yet to be
made. We will advise you as soon as we hear as to the actions
taken by the Beeks in consenting to the Assignment.
Thank you for your cooperation in working out this Assignment
document.
HRC /pr
CC. Mayor
City Manager
Finance Director
City Clerk -- --'
Marine Director.
(']I% hall • MO) NcwI)oit Boulcv;trd. AcwI)ori B(, wh. ('ali(0rnia 92663
40
46
CITY OF NEWPORT BEACH
OFFICE OF THE CITY CLERK
(714) 640 -2251
TO: FINANCE DIRECTOR
FROM: City Clerk
SUBJECT: Contract No. 2270
Description of Contract(Consent and Agreement)—:
Assignment of the Balboa Yacht Basin Lease
Effective date of Contract June 22, 1981
Authorized by Resolution No.10072 , adopted on June 22, 1981
Contract with Meek. et all represented by Barton Beek
Adress O'Melvenv & Mvers
611 W. 6th Str.
Los Angeles, CA 90017
Amount of Contract (see contract)
Wanda E. Andersen
City Clerk
WEA:bf
City Hall • 3300 Newport Boulevard, Newport Beach, California 92663
{
N.
To:
From:
Subject:
BACKGROUND
92offi!
JUN ?? 1991
By the CITY COUNCIL
CITY OF NEWPORT B6ACM
CITY OF NEWPORT BEACH
OFFICE OF THE CITY ATTORNEY
Agenda Item No. f:21__.X/
June 22, 1981
Honorable Mayor & Members of the City Council
City Attorney
Assignment of Lease - Balboa Yacht Basin
On May 26, 1981, the City Council adopted Resolution No. 10050
approving the Assignment of Lease (Beacon Bay East Portion -
Balboa Yacht Basin) from The Irvine Company to the City of
Newport Beach. The Assignment provided that The Irvine Company
was to assign all of its right, title and interest in the Balboa
Yacht Basin Lease to the City of Newport Beach, reserving a
sublease interest in seven (7) apartments and seven (7)
appurtenant garages: The Galley Cafe, the Yacht Sales & Brokerage
business and three (3) storage garages - the garage leases
running between July 1, 1981 and June 30, 1983.
The underlying Lease Agreement between the Beeks and their first
sublessee, Haley & Meisinger, required the Beeks' consent to any
further assignment. The Haley & Meisinger Lease was assigned to
The Irvine Company, and now The Irvine Company is proposing to
assign the Lease to the City of Newport Beach.
' June 22, 1981
i Page Two Agenda Item No.,
Subject: Assignment of Lease - Balboa Yacht Basin
The Beeks, upon review of the Assignment of Lease, have requested
several, minor, alterations in the proposed Assignment document
to clarify the fact that The Irvine Company is assigning all of
their right, title and interest in the Balboa Yacht Basin Lease
and retaining only a sublessee's right. This was the intent of
the parties all along.
The Beeks, to obtain their consent, have insisted that minor
changes be made in the proposed Assignment of Lease document,
which changes are represented in the attached Assignment of Lease
document, on pages 4, 5, 6, 7 and 10. The additions are
underlined and the deletions are striken through. The proposed
alterations do not change the substance of the Agreement at all,
they only act as a clarification of the intent of the parties.
RECOMMENDATION
It is recommended that the City Council adopt a Resolution
approving an Assignment of Lease. This new assignment would
reflect the minor changes outlined above, which clarify the fact
that The Irvine Company is acting as a sublessee of the City and
that the Lease had not been "split" between The Irvine Company
and the City. Since this proposed action effectuates what was
the intent of the parties all along, and clarifies the intent
sufficiently to satisfy the Beek interests, the adoption of a
Resolution approving this new Assignment of Lease will not change
the earlier City action substantially, and all of the economic
considerations are changed not at all.
Once the new Assignment of Lease is approved, the
consent to the Assignment from The Irvine Company
Newport Beach and the transaction can still close
July 1, 1981.
HRC /pr
Beeks will
to the City
prior to
of
M M
RESOLUTION NO. 10071
JUN 22 1981
BY the CITY COUNCILA RESOLUTION OF THE CITY COUNCIL OF THE CITY
CITY. OF NEWPORT BEACE'b:' NEWPORT BEACH APPROVING AN ASSIGNMENT OF
LEASE (BEACON BAY - EASTERLY PORTION) BALBOA
YACHT BASIN FROM THE IRVINE COMPANY TO THE
CITY OF NEWPORT BEACH AND RESCINDING
RESOLUTION NO. 10050
WHEREAS, the City holds title to and is the owner of certain
harbor frontage and tidelands, together with certain uplands
abutting thereon, known as the "easterly portion" of Beacon Bay,
hereinafter referred to as "Balboa Yacht Basin "; and
WHEREAS, the City leased to J. A. Beek, Carroll B.
Beek, Barton Beek and Joseph Allan Beek, Jr., the Balboa Yacht
Basin by a Lease dated January 9, 1950, hereinafter "Master
Lease ", which Master Lease expires on December 31, 1987; and
WHEREAS, Balboa Yacht Basin was leased by J. A. Beek,
Carroll B. Beek, Barton Beek and Joseph Allan Beek, Jr. to Hugh
W. Haley and Margaret E. Meisinger by a Lease dated February 28,
1950, and recorded March 13, 1950 in Book 1984, at Page 296 as
Instrument No. 12032 in the Office of the County Recorder for the
County of Orange, which Lease is hereinafter referred to as
"Master Sublease. "; and
WHEREAS, The Master Sublease of Balboa Yacht Basin was
assigned by Hugh W. Haley and Margaret E. Meisinger and Mildred
J. Haley, wife of Hugh W. Haley, to The Irvine Company by an
Assignment recorded in the official records of Orange County, on
August 9, 1971, in Book 9752, Page 913; and
WHEREAS, The City Council of the City of Newport Beach
approved said Assignment by Resolution No. 7475 adopted June 28,
1971; and
I
N
w
WHEREAS, On July 11, 1977, the City Council of the City
of Newport Beach, by Resolution No. 9151 approved, an Assignment
from The Irvine Company, a West Virginia Corporation, to The
Irvine Company, a Michigan Corporation, of the Master Sublease;
and
WHEREAS, The Irvine Company sublet certain portions of
the Balboa Yacht Basin, which Subleases are as follows:
1. A Lease to Edward H. Flach and Myrtle E. Flach to
operate a restaurant, known as "Galley Cafe ", by a lease
dated September 30, 1971, as amended;
2. A Lease to Basin Marine, Inc., a California
Corporation, to operate a shipyard and yacht repair
facility and a marine and general hardware store, by a
lease dated September 20, 1973, as amended;
3. A Lease to Finley G. Scott for the conduct of the
business sales, brokerage and insurance sales, by a
Lease dated August 16, 1971, as amended; and
WHEREAS, also in the Balboa Yacht Basin are located 7
apartment units, 56 storage garages and a marina; and
WHEREAS, The Irvine Company desires to assign to CITY
all its right, title and interest in said Master Sublease,
subject to the terms of said Master Sublease, Master Lease, the
subleases above identified, and further reserving to The Irvine
Company the sublease interest in the sublease to Edward H. Flach
and Myrtle E. Flach to operate the Galley Cafe, the sublease to
Finley G. Scott to conduct the business of yacht sales, brokerage
and insurance sales, and further to reserve the use, occupancy
and maintenance of the apartment units and appurtenant garage
spaces, as hereinafter set forth; and
2
r
40
WHEREAS, The City of Newport Beach desires to become
the assignee of said Master Sublease, subject to the terms and
conditions hereinbefore set forth.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Newport Beach that the Assignment of Lease (Beacon
Bay - Easterly Portion) Balboa Yacht Basin be and it is hereby
approved, which document is attached hereto and incorporated
herein by this reference.
BE IT FURTHER RESOLVED that the Mayor and the City
Clerk are hereby authorized and directed to execute the
Assignment of Lease and take whatever additional steps are
necessary to cause a completion of the Assignment of Lease and
transfer of the leasehold estate to the City of Newport Beach.
BE IT FURTHER RESOLVED that Resolution No. 10050 be and
hereby is rescinded.
ATTEST:
City Clerk
ADOPTED this 22ridday of June—, 1981.
3
Mayor
HRC /pr
6/22/81
a 0b N
JUN ?? 19 1
By the Cary C"Agy ;"
CITY OF L46WPMT pEgCM CITY OF NEWPORT BEACH
OFFICE OF THE CITY ATTORNEY
June 22, 1981
Agenda Item No.
To: Honorable Mayor & Members of the City Council
From: City Attorney
Subject: Consent to Assignment of Lease
(Beacon Bay - Easterly Portion) Balboa Yacht Basin
BACKGROUND
The City Council has approved the Assignment of Lease
(Beacon Bay - Easterly Portion) Balboa Yacht Basin from The
Irvine Company to the City of Newport Beach. The underlying
lease document requires that Carroll Beek, Barton Beek, Seymour
Beek and Joseph Allan Beek, Jr., consent to any assignment by The
Irvine Company to other assignees, including the City of Newport
Beach.
The Beeks have presented a Consent and Agreement document, a copy
of which is attached hereto for council information.
The Consent to Assignment document requires that the City agree
to hold the Beeks harmless, that the City assumes the obligation
to pay all rent under the original Lease document, that this
Assignment does not constitute the consent of the Beeks to future
assignments, and, finally, that the Beeks are permitted to keep
their vessel in the Balboa Yacht Basin, with no charge. This
latter request, regarding maintenance of the vessel in Balboa
Yacht Basin, represents the consent by the City of a long -term
understanding that the Beeks were allowed to keep their vessel in
Balboa Yacht Basin, without charge, going back to the 1950's.
June 22, 1981 40 Agesatem No.
Page Two
Subject: Consent to Assignment of Lease
(Beacon Bay - Easterly Portion) Balboa Yacht Basin
It is recommended that the City Council adopt a Resolution
approving the Consent to Assignment of Lease. The adoption of
this Resolution will consummate the last act in the transfer from
The Irvine Company to the City of Newport Beach of the Balboa
Yacht Basin Lease. i ,
ARC /pr
Attachment
' 0 M
RESOLUTION NOr 10072
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH APPROVING A CONSENT AND
AGREEMENT BETWEEN BEEK ET AL., AND THE CITY OF
NEWPORT REGARDING THE ASSIGNMENT OF THE BALBOA
YACHT BASIN LEASE
WHEREAS, Barton Beek, Allan Beek and Seymour Beek, as
Executors of the Will of
Beek, Joseph Allan Beek,
individual capacities, s
B. Beek, Barton Beek and
"Beek ", have presented a
assignment of the Balboa
Carroll B. Beek, deceased, and Barton
Jr., and Seymour Beek, in their
iccessors to Lessees, J. A. Beek, Carroll
Joseph Allan Beek, Jr., hereinafter
Consent and Agreement, consenting to the
Yacht Basin Lease from The Irvine
Company, a Michigan Corporation, to The City of Newport Beach;
and
WHEREAS, the City Council has reviewed the terms and
conditions of said Consent and Agreement and found them to be
fair, just and equitable, and agree to the terms and conditions
contained therein,
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Newport Beach that the Consent and Agreement between
Beek et al., and the City of Newport Beach regarding the
Assignment of the Balboa Yacht Basin Lease be and it is hereby
approved. The Mayor and City Clerk are hereby authorized and
directed to execute said Consent and Agreement on behalf of the
City of Newport Beach.
0
�J
ADOPTED this 22nd day of June , 1981.
Mayor
ATTEST:
City Clerk
HRC /pr
6/22/81
R
ORIGINP4
CONSENT AND AGREEMENT
BARTON BEER, ALLAN BEEK and SEYMOUR BEEK, as
Executors of the Will of CARROLL B. BEEK, deceased, and
BARTON BEEK, JOSEPH ALLAN BEEK, JR., and SEYMOUR BEEK, in
their individual capacities, successors to lessees J. A.
BEEK, CARROLL B. BEEK, BARTON BEEK and JOSEPH ALLAN BEEK,
JR. in that certain Master Lease dated January 9, 1950,
between said individuals, therein jointly called Lessee,
and the CITY OF NEWPORT BEACH, a Municipal Corporation of
the State of California of the Sixth Class, therein called
Lessor, having sublet a certain portion of the property
covered by the said Master Lease to HUGH W. HALEY and
MARGARET E. MEISINGER by a lease dated February 28, 1950,
recorded as Instrument Number 12032 on March 13, 1950, in
Book 1984, page 296, in the office of the County Recorder
for the County of Orange, and having consented to an assign-
ment of the interest of HUGH W. HALEY and MARGARET E.
MEISINGER under said lease of February 28, 1950, to THE
IRVINE COMPANY, a West Virginia Corporation, and having
consented to an assignment of said interest from THE IRVINE
COMPANY, a West Virginia corporation, to THE IRVINE COMPANY,
a Michigan corporation,
DO HEREBY CONSENT to an assignment of the entire interest of
THE IRVINE COMPANY, a Michigan corporation, under said lease
• Consent a*reement - June 22, 1981
of February 28, 1950, to the CITY OF NEWPORT BEACH, a
chartered Municipal Corporation, to be effective July 1,
1981.
CITY OF NEWPORT BEACH agrees that upon and after
said assignment it will perform and satisfy each and every
one of the obligations and duties of the Lessee under said
Lease dated February 28, 1950, whether now due or hereafter
accruing, as fully to all intents and purposes as though it
was the original Lessee thereunder, and agrees to take and
hold said Lessee's interest subject to each and every one of
the terms, provisions and conditions of the Master Lease
dated January 9, 1950, referred to above, including (without
limiting the generality of the foregoing) the waiver of the
covenant of quiet enjoyment and the disclaimer of any
warranty of title contained in the third full paragraph on
page 5 of said Master Lease, said waiver and disclaimer being
incorporated by reference into and forming a part of said Lease
dated February 28, 1950.
CITY OF NEWPORT BEACH.acknowledges that the BEEKS
do not, by execution of this instrument or otherwise, make
any warranties or representations as to the leased premises,
either as to title, easements or encumbrances, correctness
of any legal description, or any other matter, and further
-2-
Consent anVreement - June 22, 1981
acknowledges that it is aware of the reservation of certain
rights described in a letter dated July 28, 1971 from Hugh
Haley and Margaret Meisinger to Carroll B. Beek.
CITY OF NEWPORT BEACH covenants and agrees to
hold the BEEKS (as Lessors under said lease dated February
28, 1950) free and harmless from any and all claims or
demands of any kind and nature whatsoever by reason of the
occupancy or use of the premises by CITY OF NEWPORT BEACH,
which may occur on or after the effective date of said
assignment, including without limitation any and all lia-
bility relating to the condition of the premises, docks,
piers, bulkheads and other improvements.
The within and foregoing consent applies only
to the assignment described herein and not to any other or
further assignment of the Lessee's interest under said lease
dated February 28, 1950.
WITNESS due execution by the parties as of June 22,
1981.
Executors of the
Will of Carroll B. Beek:
-3-
1
FA
ATTEST:
City Clerk
Consent anwreement - June 22, 1981
-4
&WC
Allan Beek, as Executor
Seymour/ Beek, as Executor
Bart n Beek
4 N 4.
J1 Allan Beek, Jr.%
Seymour Beek
CITY OF NEWPORT BEACH
w
oo
rfaG�i�'
May 26, 1981
TO:
FROM:
SUBJECT:
His_ tory
C aa7a
CITY OF NEWPORT BEACH
Marine Department
0
MAYOR AND CITY COUNCIL
Tidelands Affairs Committee
BALBOA YACHT BASIN
Agenda Item No. 3--2,
The Tidelands Affairs Committee was established by the City Council
as an ad hoc committee on May 10, 1976 for the purpose of reviewing
and advising on all matters relating to and affecting tidelands
located in the City of Newport Beach for the City Council and City
staff. In the early part of 1980 the City Council assigned the Tide-
lands Affairs Committee matters dealing with the Balboa Yacht Basin.
The Balboa Yacht Basin is the easterly seven acres of the Beacon
Bay lease.
The Balboa Yacht Basin was annexed to the City in 1917. The bayward
portion of the Balboa Yacht Basin is tidelands and was granted to the
City by the 1919 State Tidelands Grant. The Irvine Company, on
April 13, 1928, deeded the fee property of the Balboa Yacht Basin
to the City. Please see Exhibit "A" showing the tideland and
upland portions.
-2 08
Currently the Balboa Yacht Basin is under a Master Lease to J. A. Beek,
et. al. (January 9, 1950 to December 31, 1987). J. A. Beek, et. al.
subleased the Balboa Yacht Basin to Hugh Haley and Margaret Meisinger
(February 28, 1950 to December 31, 1987). On July 15, 1971 the Irvine
Company purchased the sublease for the Balboa Yacht Basin from
Hugh Haley and Margaret Meisinger.
During the latter part of 1979 and the early part of 1980, the Irvine
Company and certain sub - lessees of the Irvine Company doing business
at the Balboa Yacht Basin contacted the City and requested information
regarding lease renegotiations for the Balboa Yacht Basin parcel.
The City Manager and Marine Director presented to the Tidelands Affairs
Committee a report dated September 30, 1980, entitled. "Balboa Yacht
Basin Lease Option Study"
The purpose of this report was to familiarize the City Council, Tide-
lands Affairs Committee with:
(1) A background and analysis of the current lease.
(2) Lease renewal and other options.
(3) Capital improvement costs.
(4) City operated facilites.
(5) Proposed course of action.
The Tidelands Affairs Committee, comprised of Mayor Pro Tem Evelyn R. Hart
and Councilman Philip R. Maurer, reviewed the report and requested staff
to meet with the Irvine Company and analyze an Irvine Company proposal
to renegotiate the lease, versus the option of the City managing the
Balboa Yacht Basin parcel.
_3_
The staff formally met with the Irvine Company representatives on
October 29, 1980 and again on January 8, 1981 to discuss these options.
With direct operation of the Marina the City is.eligible for a low
interest rate loan from the State Boating and Waterways fund to
reconstruct portions of the Marina and has City exemption from possessory
interest tax obligations, so the Committee believes that the City
could receive the greatest return from the Yacht Basin by managing
the Marina and leasing ancillary businesses within the Basin complex.
The Irvine Company representatives throughout the last six months of
negotiations have primarily consisted of Dan Lampkin, Bob Shelton,
David Dmohowski, and Karen King.
On January 19, 1981 the City received an audit of the Beacon Bay and
Balboa Yacht Basin covering the years ending December 31, 1971
through December 31, 1979. The audit cover letter from Mr. Thompson
of Main, Hurdman and Cranstoun strongly recommends that the City
eliminate leasehold operations of tidelands properties and operate
these properties directly.
On February 9, 1981 the City Council, on unanimous recommendation of
the Tidelands Affairs Committee, accepted the Balboa Yacht Basin
Lease Option Study and approved in concept the following course of
action:
1. The preparation of a Draft Termination Agreement assigning the
Irvine Company's leasehold interest in the Balboa Yacht Basin to
the City of Newport Beach, effective July 1, 1981.
-7-
In summary, the report shows that it is financially and economically
feasible for the City of Newport Beach to operate the Balboa Yacht
Basin and to amortize a loan in the amount of 2.5 million dollars.
Projected revenues, consistent with the assignment agreement, break
down as follows:
Slip and side tie @ $7.50 /foot /month
44 storage garages @ $60 /month
$531,000
31,680
Basin Marine Shipyard and Hardware store at $2000 /month 24,000
TOTAL
$586,680
The projected gross revenue amount of $586,680 is for an.anticipated
date after January of 1983 when the Marina has been rebuilt. Deducted
from the gross amount is a maximum loan repayment of $265,000 plus
an approximate operating and maintenance cost of $75,000 for a total
of $340,000. The City's net revenue between 1983 and 1987, after
expenses, would average approximately $246,680 per year. Commencing
in January of 1988, when the seven apartments, the Galley Cafe, and
the Yacht Brokerage revert to the City, the net revenues to the City
will increase by approximately $50,000 per year. In addition, net
revenue will increase by $20,000 or more in January of 1988 when the
master lease with J. A. Beek, et.al. expires.
Net revenues to the City between July 1, 1981 and the reconstruction
of the Marina, anticipated in 1983, are larger because the City will
not have the State Loan repayment schedule. Current revenues an-
ticipated July 1 of this year break down as follows:
M M
RESOLUTION NO. 1 r) 0 "'0 "4
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH APPROVING THE ASSIGNMENT OF
LEASE (BEACON BAY EASTERLY PORTION) BALBOA
YACHT BASIN FROM THE IRVINE COMPANY TO THE
CITY OF NEWPORT BEACH
WHEREAS, the City holds title to and is the owner of certain
harbor frontage and tidelands, together with certain uplands
abutting thereon, known as the "easterly portion" of Beacon Bay,
hereinafter referred to as "Balboa Yacht Basin "; and
WHEREAS, the City leased to J. A. Beek, Carroll B.
Beek, Barton Beek and Joseph Allan Beek, Jr., the Balboa Yacht
Basin by a Lease dated January 9, 1950, hereinafter "Master
Lease ", which Master Lease expires on December 31, 1987; and
WHEREAS, The Balboa Yacht Basin was leased by J. A.
Beek, Carroll B. Beek, Barton Beek and Joseph Allan Beek, Jr. to
Hugh W. Haley and Margaret E. Meisinger by a Lease dated February
28, 1950, and recorded March 13, 1950 in Book 1984, at Page 296
as Instrument No. 12032 in the Office of the County Recorder for
the County of Orange, which Lease is hereinafter referred to as
"Master Sublease."
WHEREAS, The Master Sublease of Balboa Yacht Basin was
assigned by Hugh W. Haley and Margaret E. Meisinger and Mildred
J. Haley, wife of Hugh W. Haley, to The Irvine Company by an
Assignment recorded in the official records of Orange County, on
August 9, 1971, in Book 9752, Page 913.
WHEREAS, The City Council of the City of Newport Beach
approved said Assignment by Resolution No. 7475 adopted June 28,
1971.
WHEREAS, On July 11, 1977, the City Council of the City
M N
of Newport Beach, by Resolution No. 9151 approved, an Assignment
from The Irvine Company, a West Virginia Corporation, to The
Irvine Company, a Michigan Corporation, of the Master Sublease.
WHEREAS, The Irvine Company sublet certain portions of
the Balboa Yacht Basin, which Subleases are as follows:
1. A Lease to Edward H. Flach and Myrtle E. Flach to
operate a restaurant, known as "Galley Cafe ", by a lease
dated September 30, 1971, as amended;
2. A Lease to Basin Marine, Inc., a California
Corporation, to operate a shipyard and yacht repair
facility and a marine and general hardware store, by a
lease dated September 20, 1973, as amended;
3. A Lease to Finley G. Scott for the conduct of the
business sales, brokerage and insurance sales, by a
Lease dated August 16, 1971, as amended.
WHEREAS, also in the Balboa Yacht Basin are located 7
apartment units, 56 storage garages and a marina.
WHEREAS, The Irvine Company desires to assign to CITY
all its right, title and interest in said Master Sublease,
subject to the terms of said Master Sublease, Master Lease, the
subleases above identified, and further reserving to The Irvine
Company the sublease interest in the sublease to Edward H. Flach
and Myrtle E. Flach to operate the Galley Cafe, the sublease to
Finley G. Scott to conduct the business of yacht sales, brokerage
and insurance sales, and further to reserve the use, occupancy
and maintenance of the apartment units and appurtenant garage
spaces, as hereinafter set forth.
WHEREAS, The City of Newport Beach desires to become
the assignee of said Master Sublease, subject to the terms and
conditions hereinafter set forth.
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Newport Beach that the Assignment of Lease (Beacon
Bay - Easterly Portion) Balboa Yacht Basin be and it is hereby
approved.
BE IT FURTHER RESOLVED that the Mayor and the City
Clerk are hereby authorized and directed to execute the
Assignment of Lease and take whatever additional steps are
necessary to cause a completion of the Assignment of Lease and
i
transfer of the leasehold estate to the City of Newport Beach.
ADOPTED this day of 2 6 ,981.
ATTEST:
City Clerk
3
Mayor
HRC /pr
5/26/81
so M
RESOLUTION NO. 1 0 0 5.1' '0
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH AUTHORIZING THE FILING OF A
LOAN APPLICATION TO THE DEPARTMENT OF BOATING
AND WATERWAYS IN THE AMOUNT OF $2.5 MILLION
DOLLARS FOR THE REDEVELOPMENT OF THE BALBOA
YACHT BASIN AND AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE THE LOAN AGREEMENT
WHEREAS, the State Department of Boating and Waterways
provides loans to cities, counties and districts for the develop-
ment of small craft harbor facilities; and
WHEREAS, the City of Newport Beach is desirous of
developing the proposed boating facilities to meet the needs of
the boating public in the surrounding area; and
WHEREAS, the City of Newport Beach has conducted a
feasibility study which showed the proposed project to be
engineeringly and financially feasible and economically
justified; and
WHEREAS, the City of Newport Beach understands that the
marina berthing facilities may be operated by the City of Newport
Beach or privately if the concessionaire develops the berths and
this option was analyzed and considered in the decision - making
process; and
WHEREAS, the City of Newport Beach has surveyed the
berthing rates of other marinas in the area and agrees to charge
competitive berthing rates at the proposed marina and agrees that
the berthing rates shall be adjusted annually on the basis of the
Consumer Price Index or other more accurate or relevant indices.
00
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Newport Beach that the City of Newport Beach agrees
to accept the loan and hereby authorizes the Mayor and City Clerk
to sign the loan agreement for the aforesaid purpose.
MAY 26 '
ADOPTED this day of , 1981.
ATTEST:
City Clerk
-2-
r
HRC /pr
5/26/81
EXHIBIT . B
DATE: May 19, 1981 so NOTICE OF EXEMPTION
TO: x Secretary for Resources
1400 Tenth Street
Sacramento, CA 95814
LX Clerk of the Board of Super-
visors - County of Orange
P. 0. Box 687
Santa Ana, CA 92702
FROM:
Planning Department
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92663
Contact Person:
PROJECT TITLE: Balboa Yacht Basin Reconstruction
PROJECT LOCATION - SPECIFIC:
PROJECT LOCATION - CITY: Newport Beach PROJECT LOCATION - COUNTY: Orange
DESCRIPTION OF NATURE, PURPOSE, AND BENEFICIARIES OF PROJECT:
The proposed project involves the reconstruction of the existing
Balboa Yacht Basin Marina. The slips will be reconfigured, but the
capacity of the marina will not change significantly:
Lineal Ft. Boats
Existing 5720 53-
Reconstructed 5911 160
NAME OF PUBLIC AGENCY APPROVING PROJECT: City of Newport Beach
NAME OF PERSON OR AGENCY CARRYING -OUT PROJECT:
EXEMPT STATUS:
❑ Ministerial (Sec. 15073) ❑ Emergency Project (Sec. 15071)
❑ Categorial Exemption. State type and section number: 15102 Class 2 -
Replacement or Reconstruction
The project will not result in a physical change in the environment Sec. 15020)
❑ The project is not subject to discretionary governmental approval (Sec. 15060)
REASONS WHY PROJECT IS EXEMPT: The proposed project consists of the reconstructio
of an existing facility located on the same site with the
purpose and approximately the same capacity.
I
DATE RECEIVED FOR FILING:
• ( /-4au_
May 19, 1981
Environmental Coordinator