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WHEREAS, all previous resolutions and actions regarding the fair market rent for <br />commercial Tidelands uses that are in conflict with the Rent established by the City <br />Council in this resolution are hereby repealed. <br />NOW, THEREFORE, the City Council of the City of Newport Beach resolves as <br />follows: <br />Section 1: The Recitals provided above are true and correct and are <br />incorporated into the substantive portion of this resolution. <br />Section 2: The City Council finds pursuant to NBMC Section 17.60.060(D), <br />that the Rent provisions contained in the attached Commercial Tidelands Rent <br />Calculations, which is incorporated by reference, provide for the charging of fair market <br />value Rent and that the rental rate (and adjustments) in the attachment constitute fair <br />market value Rent for commercial Tidelands uses, which findings are made by the City <br />Council in its exclusive discretion but are based on the information in the appraisals of <br />its City- selected appraisers and, in addition, on other testimony and documents in the <br />record for this matter. The City Council further finds and determines the Rent for <br />commercial Tidelands uses located upon City managed Tidelands, operating under an <br />annual permit or a lease, shall be set in accordance with the attached Commercial <br />Tidelands Rent Calculations. <br />Section 3: The Rent charged under this resolution for Shipyards and <br />complimentary guest slips, not associated with a restaurant, is for less than fair market <br />value. The City Council specifically finds that the charging of less than fair market value <br />Rent for these uses promotes public recreation facilities and marine services to the <br />general public and furthers the policies and objectives of the Tidelands Grant. Charging <br />less than fair market value Rent for these uses allows for continued operation and <br />improved accessibility to the public. Thus, the charging of less than fair market value <br />Rent for these uses of the Tidelands is a matter of state -wide concern that benefits the <br />citizens of the State of California. Pursuant to City Council Policy F-7(E)(6), the City <br />Council further finds that the charging of less than fair market value Rent promotes the <br />goals of the City to further marine related services and activities. <br />Section 4: The City Council finds the setting of Rent for commercial Tidelands <br />uses is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to <br />Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable <br />indirect physical change in the environment) and 15060(c)(3) (the activity is not a <br />project as defined in Section 15378) of the CEQA Guidelines, California Code of <br />Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical <br />change to the environment, directly or indirectly. Alternatively, the City Council finds the <br />setting of Rent for commercial Tidelands uses is entitled to a Class 1 Categorical <br />Exemption pursuant to CEQA Regulation Section 15301 because the Rent <br />contemplates the continued use of existing facilities, with no expansion of the proposed <br />-2- <br />