The appraisal Newport Beach used to set higher rates for offshore mooring fields in the harbor is fair, the State Lands Commission said, but there needs to be more equity in pricing for piers used by homes around the bay.
The state commission is tasked with overseeing local management of areas of submerged land known as tidelands, which includes the Newport Harbor, and recently decided the city’s review of fees for using the moorings “did not violate generally accepted appraisal principles” and can be used to set new rates for the approximately 800 offshore moorings.
Boaters in the harbor, some of whom face increases as much as 400% under the city’s plan, raised concerns with the state commission over the independent appraisal the Harbor Commission used when it decided in early 2024 to set higher price ranges.
City officials say the increased fees are needed to cover harbor maintenance costs.
The city’s proposed fee increases weren’t set to affect the built-in piers at homes, an issue that mooring holders raised from the beginning.
And the state commission agreed, with a staff report saying that the fees for piers appear significantly below market rates and “should be evaluated to ensure that the tideland fund is being appropriately compensated.”
The commission’s staff laid out a series of recommendations, which city officials said they are now taking a look at. Another recommendation is related to implementing programs to help with mooring affordability.
Lt. Gov. Eleni Kounalakis, chair of the commission, said a person shouldn’t have to be of “great means” to spend time on a boat in California.
“There’s plenty of coastline to access, and it bothers me that rates are driven by supply constraints,” she said. “Anyone living on a boat who doesn’t have the financial means to pay, prioritize those folks so that no one will lose their livelihood.”
She said it is now up to the city to “take our report and come up with a plan. We will participate in it until they finalize it.”
And the commissioners said the city could be held in violation if it doesn’t make some changes.
“The city takes the State Lands Commission’s report seriously, and we will comply fully with the recommendations,” said John Pope, the city’s spokesman, adding there is no specific timeline, though the commission suggested getting it handled within the next six months and ideally even earlier.
Pope confirmed that since the former city plan was never implemented, the city will move forward under the State Lands recommendation.
When it was setting the increased rates, City Council members agreed that those with existing permits would be grandfathered for their lifetimes.
Existing mooring permit holders would be able to privately transfer that permit once by Aug. 21, 2028, under the approved plan. No further transfers would be allowed after that date, and in the future, when a permit holder is done with their mooring, the holding reverts to the city.
The city’s long-term goal is that moorings be owned, managed and maintained through a city-licensed program, with higher rates set. Mooring permits have long been a commodity privately traded and sold for often large amounts of money.
“Mooring holders have been advocating for reasonable rates for self-installed and self-maintained moorings in Newport, and it’s a shame the city couldn’t have kept the issue focused on maintaining reasonable rates,” said Anne Stenton, president of the Newport Beach Mooring Association.
Mooring holders are now unclear what the rates are going to be, she added. “We look forward to seeing how the city will address these concerns and ensure equitable treatment for all.”
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