Lease Extension Plan for Marina Dropped : Contract: Controversial proposal for Huntington Harbour park faced rejection by four O.C. supervisors.

A controversial proposal to extend a company’s control of a marina at Huntington Harbour appeared dead Monday after the firm’s president told the Orange County Board of Supervisors that he was dropping his request.

“I’m disappointed, because I wanted to vote against it,” Supervisor Roger R. Stanton said. “If it doesn’t look good, it probably ain’t good. I just see no redeeming value in this at all.”

Members of the Board of Supervisors were to have voted today on the proposal, which called for a 30-year renewal of the company’s lease to operate Sunset Marina Park, without competitive bidding.

The withdrawal announcement Monday from Goldrich & Kest Inc. President Jona Goldrich followed news on Saturday that four of five county supervisors were prepared to reject the lease extension.

“It’s dead as a doornail,” said one official.

In addition to Stanton, Supervisors Gaddi H. Vasquez, Don R. Roth and Thomas F. Riley had voiced opposition.

The supervisors have cited the absence of competitive bidding and the controversy after reports by The Times about efforts on Goldrich & Kest’s behalf by Supervisor Harriett M. Wieder’s son, Lee E. Wieder. From early 1989 to mid-1990, Goldrich & Kest retained the services of Lee Wieder, who negotiated with county officials for renewal of the lease.

The Times also reported that county inspectors have repeatedly cited Goldrich & Kest for substandard maintenance of Sunset Marina, finding leaking oil barrels, cracked docks and other disrepair.

Supervisor Wieder, whose district encompasses the marina, has said through an aide that she was satisfied that the proposed lease renewal “adequately addresses the issue of maintenance by G&K.;” The supervisor also has said that she has sought only the best terms for the county and fair treatment of Goldrich & Kest. Wieder declined on Monday to say how she would have voted.

“Where I’ve been coming from since the beginning is from the question: What’s best for the county? . . . Whatever the board decides, I will certainly accept,” Wieder said. Noting the receipt of Goldrich’s letter, Wieder said: “It appears that the initiative has been taken out of our hands.”

The decision to formally withdraw the proposal capped two years of negotiations and, at the end, controversy over how the marina and its lucrative rental income should be managed. Sunset Marina is one of five publicly owned harbors on the Orange County coast.

The proposal was withdrawn from the board agenda on Monday afternoon at a meeting of supervisors’ aides and officials from the county Environmental Management Agency. John W. Sibley, the agency’s chief deputy director, said the item officially will be withdrawn this morning, when he files a letter with the clerk of the Board of Supervisors.

Goldrich could not be reached for comment Monday. In his letter, addressed to board Chairman Vasquez, Goldrich appeared to threaten the county with a lawsuit if his firm is not bought out of its existing lease, scheduled to expire in 1999.

“Goldrich & Kest wishes to withdraw their request for an extension on the Sunset Marina lease,” Goldrich wrote. “. . . We further ask the board to direct the appropriate agency to enter into negotiation to purchase our lease interest.

“If an agreement can be worked out, this will eliminate any need of a major lawsuit being filed due to the county’s failure to implement (expansion of amenities at Sunset Marina) that would have provided additional public services and revenue.”

County officials familiar with the Sunset Marina lease negotiations, including Supervisor Wieder, have told The Times that Goldrich previously has threatened to sue the county while seeking terms to his liking. Goldrich said in an interview on Friday that he felt the county had a “moral obligation” to extend his company’s lease.

Goldrich over the years has expressed displeasure that the county has not granted final authorization for expansion of boat-rental slips and other amenities that would generate more income for his company and the county. That aspect of the marina’s operation has also pitted recreation vehicle enthusiasts, who want overnight camping facilities, against Wieder, who has sided with Huntington Harbour residents opposed to that.

Although Goldrich and Kest’s existing marina contract is scheduled to expire in 1999, the pact could still give the firm the “first right of refusal” to re-lease, even if the county decided to seek competitive bids.

However, Goldrich & Kest’s operating deficiencies--the Board of Supervisors in 1985 found the firm in “default” of its lease-required obligation to maintain the marina in a “first-class” manner--could hinder its chances to prevail.

The county’s existing lease with Goldrich & Kest states that the firm’s eligibility to secure a right of first refusal hinges on whether the county believes that the firm “fully and in good faith performed all the terms, covenants and conditions of this lease,” from 1969 to 1999.

For his part, Goldrich has acknowledged the previous deficiencies and pledged that his firm would do better. Goldrich and other proponents of the proposed 30-year lease renewal now being withdrawn from consideration have pointed out that it would increase the county’s share of marina income.

The county now receives 20% of the gross income and under the new agreement would, as of 1999, get 80% of the net, adjusted income. Critics have said that the proposed terms were too generous to the leaseholder, that the county could get a far better deal by seeking competitive bids, and that Goldrich & Kest should be disqualified because of the maintenance problems.

Times staff writer Jim Newton contributed to this report.