NEWPORT BEACH CITY COUNCIL WRAP-UP

ISSUE: A Hoag Hospital request for $125 million in Newport Beach

bonds.ACTION: Approved, 6-0.

SUMMARY: Hoag Hospital requested the city issue $125 million in bonds as

part of a capital program to pay for improvements to the hospital. The

bonds would be issued at no liability to the city, hospital officials

promised.

The city issued similar bonds to the hospital in 1984, 1992 and 1996. In

each instance, Hoag Hospital paid an issuance fee to the city.

After looking into the matter at the 4 p.m. study session, the council

immediately moved it to public hearing. The bonds were approved, with

Mayor Dennis O’Neil abstaining.

The money will be used to finance the construction of additions and

improvements to the hospital’s health facilities.

ISSUE: Request proposals for the Marinapark site.

ACTION: Approved, 7-0.

SUMMARY: The 10.71-acre site in Balboa is home to American Legion Post

291, Neva B. Thomas Girl Scout House and the Marinapark mobile home park.

Each has a lease with the city set to expire in the next two years.

This news has attracted attention from parties interested in making the

coveted property more open to the public or in turning it into a

money-making site.

In addition to the current tenants who are expected to submit their own

proposals, a developer has proposed a five-star resort for the property

that is estimated to produce $2.8 million in annual tax revenue for the

city. If built, the resort would displace the mobile homes and move the

American Legion building.

Most recently, the Parks, Beaches and Recreation Commission has announced

plans to submit its own proposal to keep the property for public use.

While they have yet to define exactly what their plan would include,

commissioners said they would consider more tennis courts, park and

perhaps some soccer fields.

ISSUE: Authorize the city manager to issue a request for proposals for

management of the Balboa Yacht Basin.

ACTION: Approved, 7-0.

SUMMARY: The Balboa Yacht Basin is the only city owned and managed yacht

basin. The city obtained the Irvine Co.’s lease on the seven-acre site in

1981 and has managed the basin since then.

The city spends $130,000 annually to maintain the basin. It is estimated

in the 1999-2000 budget that the site will provide $1.3 million in

revenue for the city.

While several residents stated before the council that they would prefer

to remain under the city’s management, council members decided to begin

the process of requesting proposals for private managers.