January 2000, Real Options, Ground Lease Contacts and Marina del Rey

Submitted by Urban Insight on Thu, 07/26/2012 - 14:04
Author

David Dale-Johnson

Year Published
2000
Abstract
Ho-hum. Long term ground lease you say. What could be as dull? Well, consider
the plight of the County of Los Angeles. The County owns most of the land
on which Marina Del Rey was developed in the late ‘50s and early 1960s. The
Board of Supervisors, at that time chose to enter into long-term ground leases with
developers of the various parcels. Several efforts had been undertaken since the late
1800s to create a commercial harbor in the Playa del Rey estuary. With San Pedro
ultimately winning the battle to be the home ofLos Angeles’ harbor, the Marina area
was to remain either a haven for duck hunters or be developed into a recreational
harbor. Formally opened in April 1965, the harbor area is home to over 5000 boat
slips and according to www.marinadelrey.com has the highest density restaurant seating
outside New York City. So what is the County’s plight if it owns this valuable land
generating income in perpetuity for the County?
Research Category

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