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The Newport Beach City Council on Monday...

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The Newport Beach City Council on Monday will consider starting discussions on granting a new 50-year lease for the Balboa Bay Club, an exclusive bay-front enclave at 1221 W. Coast Highway. The city’s decision to go ahead with discussions about the new lease would allow the private club to proceed with plans to renovate its grounds on city-owned land along Newport Bay.

The club entered into its first 50-year lease with the city in 1948, when the grounds were little more than a stretch of cluttered sand and mud flats. The area has been improved dramatically since then, including the construction of a 145-unit apartment complex.

Club officials say they need a long-term lease to obtain loans in order to go ahead with plans for a $60-million renovation.

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In May of 1986, the council approved a new lease to increase the rent and add 12 years to the original 50-year lease. The club now generates about $1.5 million a year for the city.

If an agreement to begin talks is approved, the city and club representatives will consider terms of a new lease, study possible uses for the property and have the site appraised.

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