Creation of a City in Marina del Rey Not Justified, Study Says

There appears to be “no justification” for the formation of a city in Marina del Rey, according to a county report that estimated that the city would lose almost $2 million in its first year of operation.

The report, issued by the director of the Los Angeles County Local Agency Formation Commission, is a setback for cityhood proponents. It is expected to be a significant piece of evidence when the commission decides whether to approve the cityhood proposal.

However, tenant activists said Friday that they will challenge the findings and continue to push for incorporation in the marina, where they hope to enact a tough rent-control ordinance.

The commission must approve incorporation before the Board of Supervisors can decide whether to put the question on the ballot.

Deficit Seen

According to Ruth Benell, the commission’s executive director, Marina del Rey could expect revenue of $3,503,000 a year and expenses of $5,416,000, leaving a deficit of $1,913,000.

Policing the marina’s 804 acres of land and water at a cost of nearly $4 million would be the city’s biggest expense, according to Benell.

She said the city’s revenue base could be further eroded, because estimates of future population have used a formula that depends on voter registration instead of an actual census. The state uses population as the basis for distributing funds from such sources as vehicle registration.

Benell’s study used a population figure for the marina of 16,452--three times the number of registered voters--but Benell said the actual population in the 1990 census is expected to be closer to 10,000.

Benell has said that the marina incorporation effort is based too much on the rent-control issue.

“There appears to be no justification for incorporation of the area as a separate city,” her report concluded.

Rents Rose

Rent control became a significant issue when the Board of Supervisors refused to extend rent control beyond 1985. Rents on apartments decontrolled thus far have risen as much as 45%.

The negative report came little more than a week after introduction of a bill in the state Senate that would prevent cityhood. Sen. Bill Lockyer (D-Hayward) offered a bill that would prevent residents from taking preliminary steps to incorporate areas where less than 50% of the land is privately owned.

Hy Tucker, chairman of the Marina del Rey Incorporation Committee, said the group will begin efforts to head off the bill and to write its own feasibility report.

In rebutting Benell’s report, Tucker said:

- Several cities, including West Hollywood, successfully incorporated after initially receiving negative feasibility reports.

- The city of Marina del Rey could use its power of eminent domain to obtain part of the $12 million in revenue from businesses that now goes to the county. (Benell’s report said this would not be possible.)

- The county, not the city, would have to continue to pay the $1.6-million cost of maintaining the Harbor Patrol.

Tucker said the incorporation committee will have “no problem” getting the 1,371 signatures (25% of the marina’s registered voters) needed to force the county commission to consider incorporation.

The 804-acre marina is owned by the county, which receives a percentage of the revenue from the operation of apartments, boat slips, and other businesses.