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p aEW Pp,47, <br />CITY OF <br />NEWPORT REACH <br />C9CIFORNP City Council Staff Report <br />Agenda Item No. 14 <br />November 13, 2012 <br />TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL <br />FROM: City Manager's Office <br />Dave Kiff, City Manager <br />949 - 644 -3001, dkiff @newportbeachca.gov <br />PREPARED BY: Dave Kiff – City Manager <br />APPROVED:` —a -G <br />TITLE: Commercial Tidelands Uses <br />ABSTRACT: <br />The City of Newport Beach ( "City ") acts as the trustee of the State of California ( "State ") <br />in the administration of public tidelands property within Newport Harbor. In this <br />capacity, the City is effectively a landlord and is empowered by the 1978 Beacon Bay <br />Bill, as amended ( "Beacon Bay Bill "), to rent tidelands property to third parties for a <br />period of 50 years or less. <br />At the October 23, 2012 City Council meeting, the City Council adopted a fair market <br />rent methodology for Large Commercial Marinas that was based upon 18.5% of Gross <br />Slip Revenues. After the City Council's October 23, 2012 meeting and following a <br />series of meetings with some affected stakeholders, the Council Ad Hoc Committee on <br />Harbor Charges ( "Committee ") has modified its recommendations and now <br />recommends: <br />e That rent for Large Commercial Marinas be set at 16 % of Gross Slip Revenues, <br />but set forth in a Marina Index that translates the 16% of GSR to an amount per <br />square foot. <br />® That rental increases be phased in over six steps, with no change in the current <br />rate of $0.36/SF in 2013, building to the fully indexed rate in 2018. <br />® That rent for other commercial harbor uses be established, with a phase -in <br />period, as described in Attachment D to this staff report. <br />