Study Cites Gains if Mobile Homes Ousted

Lease proceeds from a city-owned parcel on Balboa Peninsula could double if the land held a hotel and restaurant complex rather than the mobile home park that is there now, according to a study presented Friday to the council’s finance committee.

The city earns about $525,000 annually by leasing the 10.7-acre parcel to Marina Park residents, the report said.

The lots lease for $730 to $1,034 a month, a figure city staff members said is well below market rent.

The land, north of Balboa Boulevard between 15th and 19th streets, also houses an American Legion Hall and a Girl Scout center.

The hall rents for $300 a month and the Scouts pay a nominal $1 per year.

In the report, consultants concluded the city could earn as much as $1.38 million if it allowed a developer to build a hotel, restaurant and homes on the bay-front land, with stunning views of Newport Harbor.

They also said a hotel would increase the land’s value from $8.8 million to $15.9 million.

Residents at Marina Park, whose lease expires in 2000, have been worried about the future of their homes since February when the city announced a sweeping plan to revitalize the Balboa Peninsula.