State Lands Commission - Tidelands Management Draft Report

The State Lands Commission staff summary of the Draft Report and full report can be found by clicking the button below. In summary, the staff report claims (from p.3):

"Residential pier rates appear significantly below market rates, and the rental area calculations may not reflect the extent of private tidelands use.
The City can reasonably rely on its recent mooring rate appraisal to set rates for its mooring permits.
There are clear differences in rate revisions for moorings and residential piers. The trend for mooring permit rates has been to use regular appraisals to reflect market conditions; the trend for residential pier permits has been to reduce the overall rent amount through reductions of lease area and lowering of rates without conducting new or updated appraisals. These decisions appear to be political in nature and may violate both the granting statute and the California constitution.
The private sale of mooring permits allowed by the City’s transfer policy appears to violate the City’s grant statutes, fiduciary obligations to the State, and the Public Trust Doctrine.
The City should review the action it adopted on July 9, 2024, to ensure this action provides a fair solution that addresses the topics discussed in the report.
Overall, when reviewing the City’s actions over the last several decades, it is evident that the City has not adequately explained how its granted lands management decisions comply with the City’s obligations as the State’s trustee under the granting statute. "

Draft Summary & Report

Additional Information

2020: City officials contact appraiser

Records show City officials discussed outcomes regarding the yet-to-be released or bid on mooring appraisal with the individual who would become the chosen appraiser more than 8 months prior to the bid being "posted" in 2021.

2023: Transferable "in perpetuity"

Both the Harbormaster and City Attorney stated at a City Council meeting on May 23, 2023 that mooring permits would remain transferable "in perpetuity." This changed a little over a year later with the alternate recommendation (see below).

July 5, 2024 "Alternative RecommendationS"

The last minute "alternative recommendations" would eventually convert all low-cost permits to high cost, short-term, non-transferable licenses. These alternative recommendations were introduced over the July 4th weekend with very little time for the public to digest and respond before it was voted on at the July 9, 2024 City Council meeting. Additional concerns include the fact that licenses would not allow for extended voyages beyond 25 days and would not allow future liveaboards. And the "grandfathered" rates were not guaranteed.

July 9, 2024 PHL Letter

Objections to City’s Proposed Actions Regarding Mooring Rates were detailed by reputable law firm PHL and submitted to the City.

Newport Mooring Association

Newport Mooring Association Continues to advocate for fair treatment

The Newport Mooring Association has continued to engage first with local, and then state officials, regarding the need for fair rates and terms for mooring permit holders. The mooring permit system currently provides coastal access for a cross section of our society, including lifeguards, retired law enforcement, mechanics, licensed captains, marine maintenance workers, teachers, and retirees. We firmly believe that the mooring permit system can and should be preserved so it can continue to offer affordable coastal access for current and future mariners in Newport Harbor.