Storing boats on offshore moorings in Newport Harbor might be getting more expensive after state leaders reviewed Newport Beach’s management of public tidelands and found no issue with increasing rates for moorings.
After mooring permit holders in Newport Beach asked California State Lands Commissioners to take a look at proposed rate increases to store boats in Newport Harbor, commissioners found the appraisal used to justify the rate spikes could be relied upon.
[Read: Newport Harbor Mooring Battle Heads to State Lands Commission]
It comes after Newport Beach mooring permit holders have spent the past couple years protesting rental rate spikes for their boat storage spaces in the harbor — after the city proposed increases that would cause some people’s monthly payments to quadruple.
[Read: Newport Beach Harbor Commission Recommends Spiking Boat Mooring Rents]
Offshore moorings are like parking spots for boats — they’re used to store boats.
They differ from residential piers on waterfront properties because these docks are connected to land. Offshore moorings are in open water and aren’t connected to land in any way, forcing offshore mooring permit holders to use a smaller boat or dinghy to access and board their larger vessel.
The current rate for offshore moorings is $3.34 per linear foot per month. That means people can store a boat on a 40-foot mooring for about $133 each month.
Under changes proposed by the city for an updated license program, the cost would spike to about $15 per linear foot per month or $600 per month for a 40-foot mooring.
Those changes would also phase out transferability for mooring permits when they become licenses, making them month-to-month agreements managed by the city.
State Lands Commissioners Approve Final Report on Newport Beach Public Lands Management
The three members of the California State Lands Commission discussed Newport Beach’s management of the harbor during a meeting on Dec. 16.
During that meeting, commissioners unanimously approved a report that found the appraisal used to justify the increased rates for offshore moorings does “not violate generally accepted appraisal principles” and can be reasonably relied upon to set costs for mooring permits.
While state commissioners found no apparent issue with the appraisal used to increase mooring rates, they did voice concerns about under-market rates for residential piers, claiming that docks attached to waterfront homes have not had updated appraisals and corresponding rates have not increased for several years.
The report says the decision to keep rates for residential piers low appears to be political.
“The trend for mooring permit rates has been to use regular appraisals to reflect market conditions, which is generally appropriate; 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,” reads the staff report included with the commission’s agenda.
“The decisions relating to residential piers appear to be political in nature and may violate both the granting statute and the California Constitution. Moving forward, the City should change this practice and follow consistent valuation methodologies, applied at the same time interval, for both mooring permits and residential piers.”
Staff for the state lands commission said the next step is to send the final report to the city and request updates regarding the city’s progress in addressing issues raised in the report.
“From conversations with city staff, staff believes the city understands the severity of the issues raised and is working to address them in good faith,” Jeff Plovnick, granted lands specialist, told commissioners during the meeting on Dec. 16.
Part of the commission’s vote directed staff to coordinate with the city to provide an update within six months and schedule a formal hearing within a year if the city is not making sufficient progress in addressing their concerns.
However, if the city is making sufficient progress, that formal hearing could be deferred to a later date or indefinitely.
Newport Beach City Manager Seimone Jurjis said the city has not yet received the official report from the State Lands Commission as of Wednesday afternoon.
“We expect it soon,” he wrote in an email. “Once we receive it, we will need time to review the official report and talk through the recommendations with the State Lands Commission staff. The City’s goal is to comply with the state’s requirements.”
He said he doesn’t have a timeline for this process yet.
If staff for the state lands commission determines that the city is failing to address issues raised in the report, commissioners can formally request that the attorney general’s office bring litigation against the city.
“The comments that we have received along the way have brought to light some very real and serious issues facing tidelands users in Newport,” said California Lt. Gov. Eleni Kounalaki, who also serves as the commission chair, during the meeting. “We now can see clearly that the rates being charged for the piers are too low, and the staff report highlights the deficiencies in how the pier program is managed.”
She said you shouldn’t have to be wealthy in California in order to access the coast. She also emphasized that the city should ensure that those living permanently on their moored boats don’t lose their homes in this process.
“It is for the city to take our report and to address the concerns that we’ve raised and come up with a plan that we will continue to participate in as they finalize it,” Kounalaki said.
“But what is my hope … is that anyone, in particular anyone who is currently living on a boat on one of these moorings who does not have the financial means to pay the increased rates, that you prioritize those folks to ensure that no one is going to have to lose their livelihood as a result of these changes,” she said at the December State Lands Commission meeting.
Offshore Mooring Permit Holders Fear Being Priced Out
Many people who currently have an offshore mooring permit say they won’t be able to afford the increased costs, effectively pricing them out of Newport Harbor if the new rates are implemented.
“Currently, I pay 238% more than a guy with a dock, and I pay it over more square footage than my boat encumbers,” mooring permit holder Adam Leverenz said in a phone interview. “And I’m okay with that, because I have a mooring in Newport Beach. But to then multiply it by 500% and take away the permit, which I was forced to acquire due to city guidelines, without any compensation … It’s incredibly disheartening.”
Leverenz got his permit in 2023 via private transfer for about $30,000 after saving and planning for 15 years.
“I acquired it; I thought I was going to be able to come to Newport and relax and enjoy life, and within a few months, this all started,” he said.
He emphasized the rate increases will be especially harmful for liveaboards — those who live on their moored boats full-time.
“Dreams are being crushed, people’s retirement plans are being crushed — particularly the liveaboard people,” Leverenz said. “The city is going to eliminate 51 affordable households in Orange County, and there’s a housing crisis. I mean, come on.”
Anne Stenton, president of the Newport Mooring Association, expressed her disappointment about the commissioners’ vote in an email after the meeting.
“As we stated to the [State Lands Commission] in our presentation on December 16th, the new City mooring license system will cost more for the everyday boater,” Stenton wrote. “Self-owned and self-maintained moorings are what keeps boating affordable in Newport. A permit for a 40ft mooring that currently costs $1,632 a year will cost $7,200 a year under the new plan. This will remove one of the last affordable means of berthing a vessel in Southern California.”
Angelina Hicks is the Voice of OC Collegiate News Service Editor. Contact her at ahicks@voiceofoc.org or on Twitter @angelinahicks13.