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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 nt N e -aago 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. 02 Page 2 • 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, LA 2, li �j C X�4 wil 0 E 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 $72,200.00, which payment is to be made in accordance with the schedule as shown on the Amendment to Assignment of Lease, a copy of which is attached hereto as Exhibit "A" and incorporated herein. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that the Mayor and City Clerk are hereby authorized to execute the "Amendment to Assignment of Lease" by and between the City of Newport Beach and the Irvine Company as referred to above. ADOPTED the day of AUG 08 1983 ATTEST: City Clerk RG /pr RSP /BeaconBay 2 Mayor I F CITY OF NEWPORT BEACH OFFICE OF THE CITY CLERK (714) 640 -2251 DATE July 30 1 19 81 TO: FINANCE DIRECTOR FROM: City Clerk SUBJECT: Contract No. C -2270 Description of Contract Assigrmient of Lease (Beacon Bay - Easterly Portion).Balboa Yacht Basin Effective date of Contract July 14, 1981 Authorized by Resolution No. 10097 adopted on July 14, 1981 Contract with The Irvine Company Adress 550 Newport Center Drive Newport Beach, CA 92660 Amount of Contract '$ See Contract /s/ Wanda E. Andersen WANDA E. ANDERSEN City Clerk City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 5 -61 .y 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." 2 061781 0 0 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; 3 061781 (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. 4 061781 0 0 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 : 5 061781 0 0 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. 6 061781 0 0 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 7 061781 M M 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 do M 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. 11 061781 a M 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. 12 061781 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 13 061781 _ • w 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" f F--j i If ih EXHIBIT "B" ------ IJ M Z' 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