Bay Club’s Bid to Extend Its Lease
Because of the finances involved to Newport Beach, the Balboa Bay Club lease extension deserves more public debate and a vote of the people of Newport Beach. The people of Newport Beach could lose lots of money if the 50-year lease extension is granted by the Newport Beach City Council.
The existing lease for the Balboa Bay Club property is due to expire in the year 2011, at which time the improvements and buildings on this property are due to revert to the city of Newport Beach, including the 145-unit apartment building, hotel accommodations and clubhouse facilities. The income from these improvements would then go totally to the city of Newport Beach, less any management costs involved.
On the other hand, if the new 50-year lease is granted, the improvements and buildings on the land won’t revert to the city until the year 2039, if even then, if a future City Council extends the lease again. The city would forever receive only a small portion, rather than getting the lion’s share of the income produced by the property.
Of course, this is why the Balboa Bay Club is so desperate to avoid a vote of the people. It wants the income from the property.
Finance is just one of the issues. The other issues, such as the tidelands public trust and the ultimate disposition (even removal) of the “Great Wall of China†apartment building on the property, lend even greater credence to a public vote on the Balboa Bay Club lease. After all, if the Iron Curtain and the Berlin Wall can come down in Europe today, the Great Wall of China can come down in Newport Beach some day, the sooner the better.
JAN D. VANDERSLOOT
Newport Beach
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