County Leases at Marina Del Rey
The Times, for whatever reason, did its readers a disservice in a series of articles (April 12-14), columns and editorials when it resorted to blatant misinformation and misleading innuendo in discussing county operation of Marina del Rey.
The writers base much of the allegation that the county is not negotiating for a full and fair return on the real value of the Marina property on the findings of a retired real estate adviser retained by The Times, Fred Case. Case believes the true value of the Marina is $1.4 billion. That is significantly higher than the most expensive real estate in Southern California--including Rodeo Drive and the Westside Wilshire Corridor--a highly unlikely probability.
To even begin to approach such a value would require that every inch of Marina del Rey be fully developed at “best land use” levels. That would eliminate Burton Chace Park, the fire station, library, sheriff’s station, public boat launching ramps, public boat storage, and beach access. All of that and the waterways represent 69% of Marina del Rey.
Further, one writer flatly said the still existing first Marina leases “have been renewed periodically,” implying that sweetheart deals were being cooked. They have never been renewed. Those 60-year leases, written largely in the early 1960s when they were a major gamble for any lessee, are still in effect.
From this foundation of misinformation, the writers, by implication, accused the board of conducting lease extension negotiations in secret. What the county did was hire three experts, negotiating attorneys Richard Riordon and Richard Volpert, and the economic consulting firm of Kotin, Regan and Mouchly to achieve greater county revenues in return for extending the existing leases. Those extension will allow the leaseholder to get the funding needed for agreed upon redevelopment of the quarter-century-old facilities.
Once the proposed agreement with the first lessee, Dolphin Marina, was completed it was fully and publicly discussed by both the Small Craft Harbor and the Board of Supervisors. Copies of the lease extension amendment were appropriately distributed to the public and the press.
As a result, among the major advantages won by the county from Dolphin Marina was a 26% increase in revenues over the life of the lease, a projected additional $41 million, a large share of profits for the county from any sale or refinancing of the leasehold--all representing new gains for the county. This also sets the ground rules for negotiations with other leaseholders.
DEANE DANA
KENNETH HAHN
Supervisors, Los Angeles County
