A 58

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CALENDAR ITEM

C10

RESCiSSION OF MINUTE ITEM 8.

06/26/86 PRC 3376 PRC 4737 Townsend

STATE LANDS COMMISSION ACTIO~ OF NOVEMBER 21. 1985

LESSEE: The Huntingt~n Partnership clo Maguire Thomas Partnership ~ttn: Michael Croft 1299 Ocean Auenue. Suite 1000 Santa Monica. California 90401

AREA. TYPE LAND AND LOCATION: The two leases comprise three parcels of land totalling S.59 acres of tide and submerged land. located in the Huntington Harbor Main Channel. City of Huntington Beach. Orange County.

LAND USE: Commercial Marina.

BACKGROUND:

By it~ action of November 21. 1985. Minute Item 8. the State Lands Commission ~?proued the assignment of two General. Leases - Commercial Use. from the H!Jntington Pai·tnership to 16~00 PCH Associates; consented to the encumbrancing of the leases; and approved and authorized the execution of an Estoppel Certificate. The two subject leases presently couer a larse portion of the commercial marina known as "Peter's Landing". The Hunti~~ton Partnership was in the process of se1·11n9 the marina and i·ts upland holdings to 16400 PCH Associates. a California partnership. when ~ircumstances result~d in cancellation of the sale. The assignment was to be effP.ctiue December 3. 1985. Staff now recommends the C.:>mriiission rescind .its prior authGrizati~n of Nouember· 21. 1985. Minute Item 8. attached hereto as Exhibit "A".

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MlhUTE ;:.-,.~!':

CALENDAR ITEM NO. ·c 1 l\ (CONT'D.)

AB 884: N/A.

OTHER PERTINENT INFORMATION: 1. Ptirsuant to the Commission's delegation of

EXHIEIT:.

author.i:ty and the State CEQA Guidelines (14 C~l. Ad~. Code 15661). ~he staff has deter;.ihined that this actiuity is exempt from ¢he req~irements of the CEQA becau~e th2 ac:t:iui ty is not a "project" as defined by CEQA' -~nd the State CEQA Guidelines.

Auttioriby: P.R.C. 21065 and l~ ~al. Adm. Code i.5378.

A. Minute Item a. Commission action of Nouember 21. 19S5.

IT IS RECOMMENDED THAT THE COMMISSION:

1. FIND TH.AT THE ACTIVITY IS EXEMPT FROM THE REQUIREMENTS OF THE CEQA PURSUANT TO 14 CAL. ADM. CODE 15061 ·BECAUSE THE ACTIVITY IS NOT A PROJECT AS DEFINED BY P.R.C. 21065 ANO· ~ 14 CAL. ADM. CODE 15378. ~

2. RESCIND ITS ACTION OF NOVEMBER 21. 1985. MINUTE ~TEM 8. WHICH APPROVED THE ASSIGNMENT OF TWO GENERAL LEUSES -COMMERCIAL U~E. PRC 3376 AND PRC 4737. TO !6400 PCH ASSOCIATES:. CONSENTED TO THE ENCUMBRANCING Of THE LEASES: AND APPROVED AND AUTHORIZED THE EXECUTION Of AN ESTOPPtL c'ER fIFICATE.

3. FIND THAT ALL TERMS AND CONDI~~ONS Of LEASE NOS. PRC. 3376 AND PRC 4737. EXISTING PRIOR TO THE ·i:bMMISSION'S ACTIO., OF

.NOVEMBER 21. 1985, MINUTE ITEM 8. SH1ALL REMAIN UNCHANGED AND IN FULL FORCE AND EFFECT.

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EXHIBIT "A"

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CALENDAR ITE~

cos 11/21/85 PRC 3376 PRC 4737 Townsend

ASSIGN~ENT OF TWC GENE~AL lE~SES - COMMERCIAL USE; CONSENT TO ENCUMBRANCING Of LEASES; ANO APPROVAL AND

AUTHORIZATION TO EXECUTE A~ ESTOPPEL CERTtfICATE

ASSIGNOR:

ASSIGNEE:

PRC 3376:

The Huntington Partnership Attn: Michael Croft ·Clo M~guire Thomas Partnership 1299 Ocean Auenue. Suite 1000~ Sant~ Monica. California 90401

16400 PC!!- .Associates Attn: Brigitta Troy c/o Pacific Financiol Group 9107 Wilshire Bouleuard. Suite 200 Beuerly Hill~. Ca~ifornia 90210

AREA. TYPE LAND AND LOCATION: A l.2S-acre partel of tide and submerged land located in the Huntington Harbour Main Channel. City of Huntington Beach; Orang@ County.

LANO U?E: Commercial Marina.

TERMS OF LEASE: Initial period:

Surety bond:

42 years beginning June 15. 1980.

$5.000.

Public liability insurance: Combined ~in~1e limi:t coverage of $1, 000. 000.

(CALENDAR PAGE NUMBERS 35-35.12 ADDED ll/ 19/85 j

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49 MINUTE PA~E 1506

PRC 4737:

co 8 • CALENDAR ITEM.Nd~ (CONT'D)

Consideration:

Royalty:

Six percent of gross income, S0.01/gallon of fu~~ sold ~o 100,000 gallons a17..J,' $0.015/gallon ouer 100,000 gallons; minimum annual rental of ss;ooo; 25th year rent reuiew.

A royalty of S0.15 per cu~ic yard for any material remoued fro• the lease area and not sold coRW1er~ially. The · royalty is $0.25 per cubic yard for materia1·remoued fro• the lease area and sold coanercially. No royalty shall te c~arged for material rel!K>ued from the lease area lllhich is placed on publicly-owned land in an approved disposal site.

AREA, TYPE LAND ANO LOCATION: Two parcels of tide and submerged land, totalling 2.341 acres. located in the Huntington Harbour Main Channel~ City of Huntington Beach; Orange County.

LAND USE: Commercial Marina.

TERMS OF LEASE: Initial per..~od:

Surety bond:

16 years beginning August 17. 1973 ~ith three renewal options of 11 years each. The first two opti~ns were exercised. · ·

$20.000.

Publ,ic liability insurance: S600. 000 for bC?dily injury and $50,000 for prope .. ty dainage.

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CALEMDAR PAQE

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CALENDAR ITEM NO. CQ8 (CONT'D)

Consideration: Parcel 1 ~ $20~~53.60 per annu•. ~ent i~view -16th year a~d each 11th year renewal option.

Parcel 2 - $24,570 per ~nnum. five-year rent reuiew.

PREREQUISITE CONDITIONS. FEES ANO EXPENSES: Processing c:osts for botn leases haue been received.

STAtUTORY AND OTHER REFERENCES: A. P.R.·C.: ·oiu. 6. Parts.~ ar.d 2·; Diu. 13.

B. Cal. stdm. Code: Title 2, ,oiu. 3 ;, Title 14. Diu. 6.

AB 884: NIA.

OTHER PERTINENT INFORMATION: l. PRC 4737 1.11as originally issued to Gulf Oil

Corporation in 1973. as ?artial consideration for a Boundary Line Agreement. The l~ase ..as later assigned to R. F .. Maguire. et .~1-. for ma~ina puri::oses. and in 1977 was assigned to the Huntinston Partnership.

PRC 3376 was originally issued to Oecon Corporation in 1965. Following subsequent assignments and ame~dments of the lease. sale of the upland property. and pending litigation between Decon. the State. and the new upland 0111ner. .in 1979 the. lease ..r.1as assigned to the Huntington Par~neriHip. an adjacent Stat~-lessee under PR6 ~737. for expansion of f ts marina operation.

2. The subject leases presently couer a large portion of the affluent £ommercial marina known as "Peter's Landing~" The Huntington Partnership is in the process of selling t~.e marina and its •Jpland holdings to· 16400 PCH Associates. a California partnership. and has requc~ted the Commission grant its consent to •ssign the leases.

CALENDAR ll'~E

MINUTE PAGE

EXHIBITS:

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cca CALENDAR ITEM NO.

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(CONT'D)

3. The proposed assignee has requested consent. to encumber the leases in conjunction with obtaining a loan from Union Bank. A C~FY of the encumbrancing ~greement is on fi~e in the offices of the State Lands Commission.

4. As a part of this transaction. the proposed assignee has also requested that an Estoppel Certificate be executed on behalf of the Comatissioq which confirms the current status of :~he leases. A copy of the Estoppel Certificate is attach~d h~reto as Exhibit "A".

S. This activity inu~l~es lands which haue NOT been identified as possessing sig~ificant environmental values pursuant to P.R.C. 6370. et seq. Howeuer. the Commission has declared that all tide and Submerged lands ar,_e M5ignificant 11 by nature of· their public OCA1nership (as opposed to Menvironmental significantM). Since such declaration of sig"ificance is not b~sed upon the requirement~ ind cri~eria of · P.R.C. 6370. et seq .• use classifications for such lands ~ave not be~n designated. Therefore. the finding of the projec~'s consistency with the use classificati~n as requir~d by 2 Cal. Adm. Code 2954 is -not applicable.

6. Pursuant to the Commission's delegation of authority and the State CEQA Guidelines (14 Cal. Adm. Code 15061). the staff has determined that this activity is exe~pt from the requirements of the CEQA because the actiuity !s not a "project• as defined by CEQA and the State CEQA Guidelina.~. ·

Authority: 14 Cal. Adm. Code 1S06l(b)(~).

A. Estoppel Certificate. 8. Location Map.

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52 CAI !NDAR PAGE

MINUTE PAGE 1509

9J cos

CALENQAR,!TEM NO. CCONT'O)

IT IS RECCMMENDED THAT THE COMMISSION:

1. FIND THAT THE ACTIVITY IS EXEMPT FROM THE REQUIREMENTS OF THE CEQA PURSUANT TO 14 CAL. ADM. CODE 15061 BECAUSE THE ACTIVITY IS NOT A PROJECT AS DEFINED BY P.R.C. 21065 ANO 14 CAL. ADM. CODE 15378.

2. FIND THAT THE SIGNIFICANT ENVIRONMENTAL VALUES ORIGINALLY IDENTIFIED PURSUANT TO P.R.C. 6370. ET SEQ .• ARE NOT WITHIN THE PROJECT SITE ANO WILL NOT BE AFFECTED BY THE PROPOSED PROJECT.

3. APPROVE AND AUTHORIZE THE EXECUTION OF ~HE ESTOPPEL CERTIFICATE ATTACHED AS EXHIBIT "A".

4. AUTHORIZE THE ASSIGNMENT OF LEASE PRC 3376 AND PRC 4737 TO 16400 PCH ASSOCIATES. EFFECTIVE DECEMBER 3. 198S. AND CONSENT TO ENCUMBRANCING OF THE LEASES BY UNION BANK. FOR COMMER~IAL MARINA PURPOSES.

S. FIND THAT ALL OTHER TERMS AND CONDITIONS OF LEASES PRC 3376 ANO PRC 4737 SHALL REMAIN UNCHANGED ANO IN FULL FORCE AND EFFECT.

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CM ENC»R PAGE

•lft'!TE PAGE

EXHIBIT "If

STATE OF CALIFl)ANIA

• $TA TE LAN OS COMMISSION llCICUTIVE OFFtea • *7·1~11Scr.c -·

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KENNETH CORY. Cantf'Oll«' 1.£0 T. McCARTHY. L1.u~ G_,_, JESSE A. HUFF. D11wctM ol F1ttance

Da~e:

16400 PCB Associates c/o Pacific Financial Group 9107 ~ilshire Boulevard, Suite 200 Beveriy Bills, CA 90210

Re: Peter's Landing Huntington Beach, California

Gentlemen:

..... -.n.~··-~ CLAIMS. DEDIUCIC

•• rile Ref.; PRC 4737:1

PRC 3376.1

The State of California, acting by and through the State

Lands Commission (hereinafter referred to as •Lessor•), is the

holder of all right, title and interes~ of .the lessor under

- the ground leases (the •Ground Leases•)- described in Paragraph

1 of Exhibit A attached hereto and incorporated by reference

herei5'. The Lessor understands that (il, 16400 PCS Associates,

a California partnership (h~re.inafter

referred to as •purchaser•) , may be acquiring all of the inC:erest of the Huntington Partnership, a Cal.ifornia l.i•i t~d

partnership (hereinafter referred to as •uuntington•), as the

~~_ssee uncier the Ground Leases and (ii) that Purchaser may

re~y upon this certificate in connection vith such acqu~sition

(the •Acquisition•).

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With such understanding; t~e Lessor hereby confirms for

the benefit of the Purchaser and tcs ieipective successors and

assigns, that, as of the date hereof:

1.

2.

3.

To the best of Lessor's knowledge, the Ground Leases

are presently in full force and effect and, except as may be set forth in Paragraph 1 of Exhibit A

he~eto, have not been amended or assigned, and there

are nc. other agreements between Huntington and the

Lessor rel.ating to the real property covered by the

·Ground Leases.

i~nual Rent under the Ground L~ases, which does not

!nc~11de any percentage rent,. fuel rent or dredging

roya.1ti~s r· .h~s been paid through the da.te be:eof. The amount of accrued ·t>-uc· ·i:in~a~ _rent as of the date

hereof is set forth in Paragraph i ot-· -S.:h~;; ;l

hereto, and, vi th the exception of such ;accrued rent, if any, there are no amounts or charges

cur~ently accrued, outstanding or payabl.e under the

Ground Leases, except as may be otherwise stated in

Paragraph 3 of Exhibit A hereto.

The amount and date of the .ast recent payment

received under each Ground Lease is set forth in

Paragraph 4 of Exhibit A hereto.

4. To the best of Lessor• s knowledge, there are no clef, 1!-:=cs under the Ground Leases, nor does any state of 'facts exist which, with tfi~ passage of t.iae or

the gi~ing of notice, or both, would ripen into any

such defaults.

c.uENDAR PAGE

P.i.AZWWWWWWS. U .IC- U £ ...... Ji W:!JE'!J'!l#Z»? ... •• ..... J .... PP.lfmr'.10 I ... a A.MS a

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.5~ The Acquisition does not violate or constitute a default under the Ground Leases: provided h~.;ever,

that the parties to the Acquisition ob~ain the Lessor's prior wri~ten consent thereto.

6 •. To the best of Lessor's knowledge, the infora.tion set forth in Exhibit A hereto is true and correct.

7. The Lessor and the person executing this certificate on behalf of the Lessor have the power ~nd .authority

to render this certif lcate.

Very truly yours,

State of C:ali'fornia State Lands Comaission

cc: Dave Durrett Les GriJlles Lance Kil.ey Alan Scott Debbie Townsend

Michael w. Croft, Director Financial Planning Maguire/Thomas Brothers 1299 Ocean Avenue~. Suite 1000 Santa Monic;i, CA -90401

OP • a . E A • c a - • ~ ! .. we::=~ ' a • A ,, ~-. es SCP aw;:.U S\!.AFP?.¥ .. 4 0 . 3 S'fcp :;.

CALENDAR ftAGE

MIHUTE. ftAGE

56 1513

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1. DESCllIPTIO~ O!' GROmm !.SAS£S,

A. l'~c 4737.l

U> Tha~ cert~in gi~9und lease by and between the State of Cal.ifornia, as lessor, and the Gulf Oil

Corportion, as less~~, recorded Augast 17, 1973 ir. 3ook,

10955, at Page 538 of the Offi'~ial Records of Orange

C.ounty, Cal.ifornia. .

(ii) That certain Assign~~~t of Wharfage Lease

reco:::ded Novemb~r 12, 1973, in Boot 10984, at Page :r57 and on November 21, 1973 in Book 10998, at Page 804, both

in 'the. Offici~l Records of Orange eo.:snty, California and

pursu~nt to which l.essee 1s interest under said lease was assr~ned to Robert F. Maguire III, aich.~rd P. Jtoe and • Rober~ !'. Maguire, Jr.

(iii) That certain ·Deed recorded October· 15, 1974 i:i

Book 11264, at ~age 1781 of the Official Records of Orange County, Cal.ifornia, pursuant to which the interest of lessee under said lease was cenveyed to The H~~tington

Partnership.

(iv) That certain Amendment and Assignme~t of Lease

PRC 4737 .l rf!corded October 13, 1978 +n Book 12881, at

Page 56 of' the Official R~corcj_s of orange County,

California, which document added •, it.arcel 5 to .thtt leased

preaises a~~ assigned a s~curity interest to United California Bank.

CALENC~~ PAGE

MINUTEP~GE 1514

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(v) That certain ~ease Quitclaim Deed recorded

June 23, 1980 in Book 1364~2, at Page 1213 of the Official

Records of Orange County, C~fffo~nia. .,,

(vi) That certain Amendment; and Renewal. of Lease

PRC 4737. l dated .September 29, 1981, by and among the

State of California, as lessor, The Bun~in;ton

Partnership, as lessee, and California !'ederal Savings

and Loan, as Secured Party-Lender •

B. PRC 3376.1

(i) That certain ground lease by and between the

State of California, as lessor~ and The auntington

Partnership, as lessee, .with Crocker aational 3ank

designated as Secured Party-Lender, recorded October 21, e • 1981 in Book 142G2, of P.!'ge l8l5 of the Officlal. !leeords

of orange County, California.

(ii) That certai11 letter agreement by and between

the State of Califprnia and Crocker National. aank, dated

January 15, 1982 by the State of California and dat~d

February l, 1982 by Crocker National Bank.

AMOUNT OF ACCRUED BUT UNPAID ·.~NT

A. Percentage rent- for the current year, if Any, has not yet been paid and aust be paid on or before

Apr.~l 15, 1986.

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a. Fual rent for t:he current year; if any; has not yet been paid and must be paid on or before Apcil 13,

1986.

c. Dredging royal.ties for th• 90st recent calendar quarter, if any, have not yet been paid and au$t

be paid on or before January 25, 1986.

3. O'rEER A..'iOONTS OR CSAR~....S

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In colJ.ecting percentage rent, fuel rent and dredging -royalties, LESSOR has relied on the reports supp1ied by Lessee. Other amounts or charges may be due if Lessee faile4 to accur~tely sate its sales or dredging

activtty in such reports.

MOST RECEUT PAYMENT ~C:ZIVED tJNDElt EACH GROmn> r.::ASE

A. PRC 4737.1

(i) Date of Pay:iaent: July 19, 1985.

(ii) Amount of Paym~nt: $45,~23.60.

a. PRC 3376.l

(i) Date of Payment:

(ii) Amount of Payment:

s ..... :W S 4 i S) S • • ~ 3 I Z (_ m .. •ii . -~

November 19,

$7,627.97.

1985.

CALENDAR PAtiE

MINUTE PAGE

EXHIB_IT "B"

33 76; PRC PRC

+ 4737