Voters next week will decide whether Newport Beach should extend the lease on property at Pacific Coast Highway and Newport Boulevard to encourage private redevelopment of the site.
Measure R on the Nov. 7 ballot would authorize the city to extend the lease of the property, which now expires in 2008, for 10 years. An extension would provide incentive for a real estate firm to improve the property, according to Barry Permenter, who manages real estate for the county.
“People can expect a full redevelopment of a property that’s been an eyesore for a number of years, and it won’t cost them anything in terms of tax dollars,” Permenter said.
The land and a five-story building on it are owned by Newport Beach and the county. Haseko-LSW, a Los Angeles-based firm, now leases the building.
Within a few years, the renovation could increase the minimum rent charged from $200,000 to about $350,000, he said. Plus, when the lease expires, all improvements to the land revert to the city and county, he added.
Even if Measure R passes, the lease extension is not automatic, Permenter said. The county will renegotiate the lease with input from Newport Beach.