Newport Beach will reconsider Marinapark rents

June Casagrande

NEWPORT BEACH -- Marinapark residents who cried foul at steep rent

hikes have won the chance to have the increases reconsidered.

After a hot-tempered debate that pitted Greenlight Councilman John

Heffernan against Mayor Tod Ridgeway on Tuesday, council members voted

unanimously to postpone a lease extension and rent hike for the 56

Marinapark mobile home park residents until an appraiser can weigh in on

the value of their homes.

“We do not agree that these are fair market rents,” said Stewart

Berkshire, a full-time Marinapark resident. “This high rent and this

short lease brings about a hardship for some people here.”

The residents’ 15-year lease, which expired in 2000, was extended two

years. The extension expires this week. Council members have been

determining the best way to serve their current tenants while also

clearing the path for a luxury resort proposed to be built there by

Sutherland Talla Hospitality.

Some officials have argued that residents should get a short-term

renewal and that rents there should be raised to market rate. Under the

1985 lease, rate increases have been tied to the Consumer Price Index,

which resulted in current rents there being lower than market rate.

But the increases proposed by the City Council would roughly double

most tenants’ rents. For example, bay-adjacent lots that were $1,362 a

month would be raised to $2,300; lots that were $924 would go up to

$1,950; and $864-per-month lots would be $1,800.

The residents say these rates are too high because they are based on

long-term occupancy. When adjusted for the devaluing effect of a lease

shortened to one or two years, tenants say they should be much lower.

“I’m not convinced that these rents are set at what they should be,”

City Councilman Gary Adams said. “I would be supportive of a neutral

third-party assessment.”

In the end, fellow council members agreed, but not before an angry

debate broke out between council members.

“The city has already chosen to put a hotel there,” Heffernan said.

Consequently, he said, the residents’ rents should stay at their current

rate.

“I think it is irresponsible for a council member to say we have made

a choice on that use,” Ridgeway fired back.

Councilman Steve Bromberg stepped in as diplomat, pointing out that

while yes, the city has named Sutherland Talla as the company that should

develop the property, no members of the current council were involved in

that decision. Nor has the current council made any decisions on whether

the Sutherland Talla project should be built, Bromberg pointed out.

* June Casagrande covers Newport Beach. She may be reached at (949)

574-4232 or by e-mail at o7 [email protected] .