C-5993 - East Balboa, Blvd, 608 & Washington St, 209 (Palm Street Parking Lot) - Option to Ground Lease Agreement

OPTION TO GROUND LEASE AGREEMENT THIS OPTION �(O N LEASE AGREEMENT ("Option Agreement") is made this .2 ay of err,," 14 by and between the City of Newport Beach, a charter city and California municipal corporation ("City") and ExplorOcean, a California non-profit corporation ("EO"). RECITALS A. City is the owner of a public parking lot located generally between Palm Street and Washington Street from Bay Avenue to Balboa Boulevard on the Balboa Peninsula in the City of Newport Beach that is commonly referred to as the Palm Street Parking Lot ("Property"). B. The Property is currently improved with a sixty-eight (68) space surface public parking lot and an ATM kiosk, and is surrounded by thirteen (13) on -street parking spaces. C. EO is the owner of the real property located adjacent to the Property at 600 East Bay Avenue, Newport Beach, California ("EO's Property"). D. EO has submitted to the City development applications to construct and operate an expanded experiential ocean literacy center open to the general public on EO's Property ("EO Project"). Referenced development applications include a request for General Plan Amendment, Coastal Land Use Plan Amendment, Zone Change, Planned Community Development Plan, Site Development Review, and Coastal Development Permit ("Entitlement Applications"), with a EO Project description. E. EO and City have engaged in pre -entitlement lease discussions regarding the development and use of the Property for construction of a multi-level parking structure to be used by EO in connection with the Project. Such parking facility is described in detail in the submitted project description and will be evaluated in the Initial Study/Notice of Preparation and Environmental Impact Report ("EIR"). F. The parties desire to provide EO the right to lease the Property upon the terms and conditions set forth in the Ground Lease (defined below) in the event that certain conditions are satisfied, including, without limitation, compliance with the California Environmental Quality Act ("CEQA") following a full Environmental Impact Report (°EIR") certified by the City Council and all referenced project approvals by the City and other governmental agencies, including the California Coastal Commission. AGREEMENT In consideration of the promises herein and for other good consideration, the sufficiency of which is hereby acknowledged, the parties hereto agree as follows.