HomeMy WebLinkAboutOcean View Estates Leases 2000 Main Street,
Huntington Beach, CA
92648
City of Huntington Beach
File #: 22-730 MEETING DATE: 9/20/2022
Ocean View Estates Leases
City of Huntington Beach P e 1 of 1 Printed on 9/14/2022
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\N�i3RP0R4TFO Ocean View
Estates
Study Session
September 20, 2022
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Ocean View Estates Mobilehome Park
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7051 Ellis Avenue
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Background
• 1984 Interim Use - Mobilehome Relocation Park to be developed in three phases
at the Ocean View Mushroom Farm site.
• 1986 Relocation Agreement for Huntington Shores Mobilehome Park and Life-
Estate Rental Agreements with no resale allowed. (20 spaces)
• 1988 Relocation Agreement for Driftwood Beach Club provided a 25 year lease.
Lease termination in March. 2019 based upon the date the last tenant relocated.
(24 space expansion)
• 2006 Life-Estate Rental Agreements allowed the option to convert to Market Rate
Lease Agreements and sell with the stipulation of OVE closure March, 2019.
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• 2017 OVE closure extended from 2019 to September, 2024. New Rental 4�4 k9
Agreements executed, with the exception of one Life-Estate Rental
Agreement. N
Current Rental Agreement Term Expires
September 30, 2024
Approximate Gross Annual Revenue FY 2022-23 $685,000
Less Expenditures and 5% Vacancy Rate $571,000
Estimated funds needed for Relocation Costs
(pending Relocation Impact Report) $3.4 million
Estimated funds needed to remediate land
from interim mobilehome park use and
prepare the land for park use $1 .2 million
Estimated cost to create a passive park $4.6 million p �,
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Course of Action for Cessation of Use
• Replacement and Relocation Plan (RIR)
• Impact Report - analysis of RIR. housing availability, and
mitigation measures
• Resident Meetings
• Publication of Impact Report for 60-day review period
• Public Hearing
• Finding for Cessation of Use - six month notice to vacate
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• Relocation Assistance
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Option - Cost Estimate Report
Acquisition and Relocation Consultant
• Interview potentially impacted households
• Analyze local market data for area replacement
housing opportunities
• Provide an assessment of relocation and replacement
cost to facilitate cessation of use as a mobile home
park
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• Report Delivery - 60 Days ($15,000)
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Options to Extend Closure Date
The Council may consider extending OVE beyond
September. 2024 and reserving a portion of gross annual
revenue for closure and relocation costs.
% to General Park Closure Estimated
Reserve Fund Reserve Fund Closure Cost
10 Years 100% $0 $6,966,046 $6,474,737
15 Years 67% $3,833.893 $7,783,963 $77830,133
20 Years 67% $5,701,574 $11,575,921 $9,470,289
25 Years 50!o
° $12,081,655 $12,081,655 $11,455,228 ""• e
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Questions ?
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