MINUTE ITEM

3/78 Atkins

15. SELECTION OF ~ ~EVELOPER FOR PROPERTY IN SEAL BEACH -!·JP 4!~32 I

During considerat~.on of C~lend~r Item 1'5 attached, Mr • .James F. Trout, explained the background of this item to the Commission and set forth the basis on which the proposals were evaluated.

Ms. Ann Russell, r~presenting Peter Sanderson~ a prospective deveioper, appeared. Ms. Russell requested that Mr. Sanderson h~ given anotner opportunity to make a new ·presentation since it was their opinion his file had not been correctly reviewed because the proposal had been di.qualified due tc1 its latenep·.s. Mr. Trout stated if the Comm1ssion elected to grant Ms. Russell's ~equ~st, it was his suggestion ~hat the Commission allow the other people who had responded past the deadline to also submi~ their propqsals. However, he stated that in spite of its lateness, the staff had reviewed Mr. Sanderson's proposal, had c9ncluded that the proposal was the least ecoP~mic, and therefore is recommending that the bid be awarded to Bruce Conn.

Ms. Betty Jo Smith then moved that the staff's recommendation be 2dopted.

Upon motion duly made and ca·i;ried, the recommendation in Cal~ndar Item 15 was apr:oved as presented by a vote of 2-0.

Attachment: Calendar Item 13 {7 pages)

CALENDAR ITEM

15.

SELECTION OF A DEVELOPER FOR PROPERTY IN SEAL BEACli

3/78 WP 4432 Atkins

BACKGROUND: The Commission, at its meeting on November 30

7 1977 ~uthorized the staff to seek proposais---'"' ror-developm~nt of the Commission's,pr.op~rty located at the hortheast cbrner of P~cific Coast Highway and First Street in Seal Beach; Orange County.

The Commission's Staff undertook an advertising campaign to seek developers, and ma'hy inquiries . . . were receivec.

CURRENT SITUATION·:

Staff has received 7 propos,ls for development of cqe subject patc~l. are outtined as follows~

the The· . j

1. Seal Beach Park, Bruce Conn et al. Project Facility:

A. Six tennis c~Jrts. B. Eight racquetball/handball courts. C. Six squash courts. D. Tennis college. E. Five teaching lanes with ball

machines. F. Two volleyball courts. G. Two badminton courts. H. Yeightlifting and exercise apparatus.

This project will include a main buildiug with locker room facilities, refreshmenc and rest area, common meetlng acea, gymnasium and offices. Parking will be pr.ovided with substantial landscaping. The facility will be open to the public 0n a pay as you play basis. Total capital investment to complete the project will be approximately S804,2SO. Projected gross annual income $738,000. The club's athletic director would be an individual experienced in the operation of this type of facility. fhe developers have heen assured that f.Lnancing is RVailable for the project by a mortgage company,

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404

CALENDAR ITEM NO. 15 !.. l CONTD 1.

2. Offtce B4ilding, George Murchison rt al.

3.

Pr~ject Facility:

34,000 square feet of rental spa~e. The d~veloper h~s a committment for r,ntal of 25,0dO square feet at this time, and the remaining area should easily find tenants. The prospective tenants include a lif~ tnsurance company, an v·.c9l;J.nti~g firm, i•egal offices, ~pr' ... fLtrm i:n t.~e computer industry. ThP tS~imated ~os~ to complete this dev•.::~...1pme.nt will be $2~400 9 0'00. Projected annual gros·$. income $408, 000. The partners i~ the project w~uld invest $600 1 000 of th~ir own money .and finance the }.~emainder. The projec·t would be tastefully landscaped.

Ronald Rennett et al. Project Facility:

Phase I (Racquetball-Health Club Center):

A. Twelve handbal 1-ra.cquetbal 1 courts. B. Men and women's gym facility. t. Sauna, jacu~zi, steam and quiet

rooms .. D. A low:1.ge, vie\d.ng area and 2 glass

wall~d tournament courts,

The club would be run on a membership basis, hy an experienced manager.

Project Facility Phase Ii (Skateboard Park).

The d,velope~ has proposed to include a skateboard park w:tth facility discussed in Phase I.

Total dev~lopment cost is projected to be $712>000. Estimated annual gross income from th• operation of both Phase I and II would be $684,000. The 4 prima:ry investur.s would each contribute Sl00,000 with a loan of approximately $350,000 from an institutional lende.t'.

4. Mr. James R. Watson:

This orop~~~l i~ tor a skateboard park including a·machine arcuue, restaur:!int and retail shops. The projected income from the park is in ~xcess of $1,000,000 a year. MrT Watson ts a very experienced develdper in the Seal Beach Area.

5. Frank G. Mar.shall: Mr. ~arshall plans a 2 phase development of a racquetball sports complex which would be open to the public. Phase r wbuld tncl:ude a. :l0-9ourt building with dr.esstng faclliti.es for men and women. There would qe a jacuzzi ~nd sauna bath. Phase II: would be added within 2 years and would inqlude 10 additional courts with facilictes for men and women, wi,th a lounge,, ~.ndoor pool, jacuzzi and sauna bath. The Phase LI development would be operated as a private membership club.

6. Peter Sanderson: Mr. Sanderson plans a first-class tennis complex. Hts projected minimum ann\.1al gtoss income would be $252,000. Mr. Sanderson is an experienced ~ennis professional, n:nd has financial backing for his project.

T~e recomme~atlon of the Commission's Staff ls the selection ·of Seal Reach P1rk, Rruce Conn et al. as the developer f.or the parcel. This proji:;ct would appeal. to a wi.de spectrum of the population with the varlet7 of sport• offered. FaciliLles of this type have been very successful, and the fact that it is open to the public in appealing, in that the property is subject co the public trust. The deyelopment should eas)ly provide the income to meet the State's minimum lease payment of $38,000 a year. Staff will analyze and may recowmend a percentage of gross tnco•• lease to ttte Commission, dependent upon which lease basis ap?ears to be in the best interest

of the State. At such tlrre as a lease ~ackage has been co~pleted with the d~veloper the Commission sPlects, the staff will then request Commissi~n approval of the lease.

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CALENDAR ITEM NO. 15. (~,!?l

EXHIBIT: A. Land Description.

IT IS RECOM~ENTYF:D THAT ·nm COMMISSTON SE'~F.CT BRUCE CONN ET AL. (SEAL BEACH PARK) / AS rHE DEVE.~OPl:R FOR THE PARCEL pESCRilmD IN ~XHIBIT A, ATTACrlED tt~RETO, SUBJECT TO APPROPRIATE LEASE AND ENVIRONMENTA\J noc;uMENWAr~oN, .AS WELL AS REVH;w BY THE STATE ATTORNEY GENERAL'S OFFICE. fHE FINAL LEASE PACKAGE SHALL BE APPROVED BY THE COMMISSION AT A FUTUR.E l"'IATE.

Attachment: Exhibit "A"

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'.!'hrec parcels (Pru•cei 1:, Parcel 2, and Pru.•cel 3) of State ownel,i lan~, situated in ·the County of Orange. CRlf!o:rttia, dear.l'ibetl in :SOok 92?2 p~g~ 2l.9r Ofiici'lll Record!.) of Orange County, f;tS.id p!l.rcels more particularly describ~d as .follows:

I3asi~ ;.,t il~.:h~inga for P.:u-ciols 1, 2 & 3. (!rh.£1 hemr.ing ·~-t N 37° 52' J.1 .. 9" W, for the Une between stations ;o, and, 51 of the ttancho I.os flamitos 1 , a .p()rti1:m of ~1bicb line ia e.1so th.fl i::enterlinr ?f .P~~:i.fic Conl$it Hig)?.way, based on Califotnia Gx•id System, Zon6 7t Status of 1962 Supplemented 1.965, be.tint~ the BasiG of Bea.rings i.,~ .p~r· C.t.B. DRG E21+3 .. 93 file~ in the Cit;r imITT.neera Qti'ice ofi the City or long B~Mh~ California, certified by fram:oi,1' D .. Uzes,. L.S.)

~1~t portion ~~ the area labeled San Gabriel River ·~nd thoae portions of Lots l and 2 pf the San Gabriel Extenaion or Na.ples, in the City <?~ Sea'i Beach, Count~ of Orange, State of California u.s

1

pl'!r map recorded ia Book 7, pag~ 31 of Miscellaneous Maps 'in the Office o}7 th'! County Recorder or said county, described as tll whole ae1 fol,:tows:

BEGINNING ~t a point on vhe boundary line of the Rancho !J:>a Alami·t~s betw~en stations 50 and 51, said ppint being N 37'" 52' l+.911 W, 100.-09 feet from said atatiqri 50; thence N 37° 52' 11.911 W~ 115.26 feet; thence S 4?0 51"- 1911 W, 97 .,40 feet; thence N 70° 5t~' 2611 W, 164. 98 feet; then cc N 50° 24' ll" W, to its intersection ~i th the boun~ary line between Ios Angeles County and Orange County as del;neated on a map f':i.led in Bollk 90, pages 23-30 incl•.taive of recora of Surveys of ~aicl county; thence alor1g aaid boundary line S 56° 59' 3711 W, to itl!l intez·section with the cw·ved east line of' the· Pacific Coast Highway~ 100 feet ~ide, sait\ curve being concave to the west with a l'adiua or 2050 feet, an described in deed to ·the State of California reco1•ded' December 2, 19291 in Book 332, page 237 of Official Records; thence sou th~rly along said cu:t·ve to the southel'ly terminus thereof; thence S l 4 25• 35" E1 i5.96 feet alor1g the ~eat line of &iid Pacitic Coast Highwny to a point that b~ara

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l\ ?:36 C?6• 0411 ~. )8 .. ?6 feet l'r.om .. t~e i.O~~hei'ly terminr.HJ of ·th~t certain line shown on e.aid ~ ... L.B. DRG E24;s .. o; ill.ii 0 N 46° 21,.• oou w, 988.6ot11; f;.h,4nee s ?3° 26~ 0411 11~, .271.u tee"~ r 'th~nc<t S 85° ·56 °· '•~tt E, to i te . i1ita~13e."l~~on 'l!i th ~ Jd.n.n Parl!lllttl wHh and 100.QO teet rv:n~t}t'b!e«>~erly from. t~e Hr.m bet~e~n ·station1:1 .49 and 56 or said Rancho; ti1em:., N. !•4Q 37' 3511 E~ along ti·.aid P~rallel line t.o the .point of b~girurl~ng ..

EXCll"TIJm TEEREFROM the northwesterly 100.00 reet.

P~cel 2·

'.lbat por,1don of t~l!ll are·~ labeled S~ G~\,)~~el n1~qr RUtd ,~f' ~\)t l Of the ~Ian Gabriel. Extension or N~ples, in· tll~ CHy or Seat Beach County of Orn.nge, St~.t·~ ot' ·Cs:U:to:rni.fil'~ ·t>V? ·per map re<;i:>~de.d in Book 7 0 page 31 of M~ac~llaneous Maps, i~ the 9.t'ficc of ~he _fl!'_• .. -.t. ..... __ ..,.,:... .... ..::, __ A.f• --~..:..I .-.-'!:"'"~.&....... ...llo.-.-j...-.:k-.2· -- - ... J..-10 -...:.. #-~·'\'-··-• "'"'""''".JI ""·"'"'1" .. u_~ ... 'f'L oa • .LUI \JU•U•l<J·t l'J'QU• .. ~ .a.uuq, Ci"~ ~' "l~·~./I. ~D a.v.s.A,UW<V

:f}IDT.N~!NG ~~· ' p~,int . p~ the boundru.-y. ~~¢ p~ tJle ·~1~c-hp. los AlamitoH between stations .?<'> a1l.d 51~ said pQit1t being N 3'?" 52' 11 .. 9~' W, 2.15 .. 35 feet from said stati,on· 5o; thence S 47, .5:tt 1,9u W, 97.40 f~et; th~nce N ?o0 5t+• 26" W, i64.98 fe~t; ·thence ·N 50° 24• 11" \i to its intcrtBection Hith the bou1~dar'i line between J.os Angsles County and Ora.p.ge Ci;iunty as delineated on a map filed in Book 90, pages 23'~30 ir.cluaive (l.f Recox-d or S!Jrveys of es.id county thence along said boundary. line N 56° 59' 3?1' E to its intersection with said ~cho 1~?7.\H thence S 37 11 52' 11.911 E, to the point of beginnin,s ..

EXCEPTING 1'H'ERE.'FROM the north~1eate:t·ly 100.0Q feet.

Parcel 3

That port;on of the Qrea labe].ed San Gabri.el l1ive~· rui.d 01' lot 2 of the San Gabri~l Ext~rn:don of ?le.ples, ih the C;\.ty of Seal ~a¢h, Cqunty of Orange • .:.'tate o! Californ~n, as per 1111lp recorded in Book ~ t page 31 of Miacellnneo\.(a Maps, in the otr:i.ce of the county· r>· ·~order of said cour1t;y ~ described es a. tthole 'aa fol.lows:

BfX!!.NNING at said etatiou 50; thence S 5'• 0 37' 35u 'W, 61:;~!~5 feet along the line between stations lt9 and 50 or sai4 rancho to th'' Pac:i'.t'ic Coast H:i.ghway ~ 100 feet wide, 11s described 1.n Deed to t.he State of California, recordecl December 2, 1929 in bo~k 332, page 237 of 9ff'icial Records; thence along eitid high~ay N 1° 25' .3511 W, 425.05 feet to o. point on a line that bearo S '/3-o 26' 0411 r~, 38 • ?6 feat from the GOU~hedy ter.minus of tho.t CElrtain line :shown on said C. L.B. PRG E2'+).03 aeJ -'M 116~ 24' 0011 W, 988 .. 6ot1t; thence. S 73° 26' ot1 11 1'J, 271.ll feet;

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tneri.ce :S 85' !)e• ·46° ~. 197 .. 84. feet·; ~hence 'N 55~' :t.?' 21" E9 q9.89 feet to said first mentioned rancho liner th·~\nc~ ..:.. ...... ~ !-"! .,. ...... -. .. ,, ,;.,, ~el' '1'..i. .. i:.. t,.,.. +t...i. w.,,..\nt: nf' 'baoi1nrintt o ~t ;Jt: ..3..hct7 .,, ""'' """r""' it:i."''\t"- -- .., ... _ r---... ~ - ... --g-,.-i ..... ,.,.--:-

EXCEf!TI1m TH.ERF;FOOM tlu;t po1-Uon lying aouthe"'Osterly,. q,f ~ line parallel with .ontl 100.00 re·et noi.ithweaterly of the r4uu:::ho line between said atntionB 49 an! 50~