9/20/2022
HU 000000000 NINGTON
INCORPORATED Ocean View
Estates
Study Session
September 20, 2022
Ocean View Estates Mobilehome Park
7051 Ellis Avenue
Northeast Corner Goldenwest & Ellis
44 Homes
OUPPLEMENTAL
COMMUNICATION
Meeting Date: 9.202007
Agenda Itom No.: #| 22-730
9/20/2022
Background
• 1984 Interim Use - Mobilehome Relocation Park to be developed in three phases at the Ocean View Mushroom Farm site.
• 1986 Relocation Agreement for Huntington Shores Mobilehome Park and Life- Estate Rental Agreements with no resale allowed. (20 spaces) • 1988 Relocation Agreement for Driftwood Beach Club provided a 25 year lease.
Lease termination in March, 2019 based upon the date the last tenant relocated. (24 space expansion)
• 2006 Life-Estate Rental Agreements allowed the option to convert to Market Rate Lease Agreements and sell with the stipulation of OVE closure March, 2019. • 2017 OVE closure extended from 2019 to September, 2024. New Rental Agreements executed, with the exception of one Life-Estate Rental Agreement.
Current Rental Agreement Term Expires
September 30, 2024
Approximate Gross Annual Revenue FY 2022-23 $685,000
Less Expenditures and 5% Vacancy Rate $571,000
Estimated funds needed for Relocation Costs
(pending Relocation Impact Report) $3.4 million
Estimated funds needed to remediate land
from interim mobilehome park use and
prepare the land for park use $1.2 million
Estimated cost to create a passive park $4.6 million
2 9/20/2022
Course of Action for Cessation of Use
• Replacement and Relocation Plan (RIR)
• Impact Report - analysis of RIR, housing availability, and mitigation measures
• Resident Meetings
• Publication of Impact Report for 60-day review period • Public Hearing
• Finding for Cessation of Use - six month notice to vacate • Relocation Assistance
Option - Cost Estimate Report
Acquisition and Relocation Consultant:
• Interview potentially impacted households
• Analyze local market data for area replacement
housing opportunities
• Provide an assessment of relocation and replacement
cost to facilitate cessation of use as a mobile home
park
• Report Delivery - 60 Days ($15,000)
3 9/20/2022
Options to Extend Closure Date
The Council may consider extending OVE beyond
September, 2024 and reserving a portion of gross annual revenue for closure and relocation costs.
% to General Park Closure Estimated
Reserve Fund Reserve Fund Closure Cost
10 Years 100% $0 $6,966,046 $6,474,737
15 Years 67% $3,833,893 $7,783,963 $7,830,133
20 Years 67% $5,701,574 $11,575,921 $9,470,289
25 Years 50% $12,081,655 $12,081,655 $11,455,228
Questions?