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Harbor Region of Los Angeles

An agreement between the Port of Los Angeles and California Yacht Marina and Holiday Harbor/Fleitz Brothers was recently approved by the Citys Board of Referred Powers, allowing for the sale of the Ports Cabrillo Marina for $11 million in addition to monthly lease payments to the Port. The agreement is subject to City Council review which is expected to occur sometime this month. The sale includes approximately 1200 recreational vessel slips, boater restroom facilities and gangways. Also included is a marina operations building, the Cabrillo Community Center, related parking, landscaping and pedestrian promenade improvements located at Berths 29-34.

The Port has been operating Cabrillo Marina since its opening in 1986, but Port Executive Director Larry Keller explained that in keeping with its mission, the Port has now opted to become the landlord rather than the operator, much as they do with other marinas and terminals in the Port. Keller added, "We continue to take a hard look at the way we do business to maximize our investment and our resources. At the same time, we want to ensure that the community receives the best possible facilities for its enjoyment. We are extremely proud of the Cabrillo Marina and its various facilities and are confident that the new operators will maintain the Ports high standards expected of this marina".

He emphasized that the nine individuals who have been running the Cabrillo Marina will remain Port employees and will be transferred to other available positions within the Harbor Department. The Marina lease agreement stipulates that the operators will pay the Port $70,000 per month or 25% of gross receipts, whichever is greater.



Lease agreements with the commercial structures and facilities in the marina area will remain directly with the Port and are not a part of the purchase and sale agreement. Those establishments make lease payments directly to the Port and include the Cabrillo Hilton Hotel, Madeos Restaurant, Mikes Marine, Cabrillo Beach Yacht Club, Los Angeles Yacht Club, Skippers 22nd Street Sportfishing Landing and 22nd Street Seafood Bar and Grill, as well as a commercial office building.

The existing Marina is considered Site I of the Ports West Channel Development Area, a proposed mixed-use commercial entertainment and recreational project. Site II is located east of the existing Marina and is proposed to be developed as an 80-acre complex featuring a new marina as well as retail, recreational and nautical-related components. In approximately 30 days, Site II will be considered by the Board of Referred Powers.

Higher revenues, lower operating expenses and continuation of major capital development were the dominant themes of the Port of Los Angeles' $316.6 million budget for fiscal year 1998-99, approved today by the Los Angeles Board of Harbor Commissioners. Leland Wong, president of the Harbor Commission, stated, "The Port's new fiscal budget strongly reflects the management practices required to succeed in the present-day environment of extremely fierce competition. "This approach required a process of assessment and evolution. The Port examined every aspect of its business operation, determined how to maximize its efficiency without sacrificing customer service and established a strategy for future growth".

Larry A. Keller, executive director for the Port of Los Angeles, noted, "The Port will succeed and thrive through evolution into an extremely efficient seaport, always dedicated to its customers, with the ability to grow quickly while adapting constantly to a volatile business climate".

The Port of Los Angeles' total fiscal 1998-99 budget of $316.6 million is $49.3 million, or 13.5%, lower than the $365.9 million budget approved for fiscal 1997-98 The Port's total operating revenues in the 1998-99 fiscal year (ending June 30, 1999) are anticipated to reach $207.4 million, a 4.6% increase over the 1997-98 fiscal year figure of $198.3 million. Shipping services such as dockage and wharfage totaling an expected $162.6 million will account for nearly 80% of total operating revenues. (Dockage refers to vessel-berthing charges; wharfage refers to cargo-related shipping fees).

Meanwhile, total operating expenses in fiscal 1998-99 are expected to decrease by $7.1 million, or 6.6%, to $100.1 million. Lower costs are attributable to aggressive cost management, improved operating efficiency and management of staffing levels through attrition without layoffs. The Port's total capital budget in fiscal year 1998-99 is anticipated to reach $193.8 million.

The capital improvement program includes extensive dredging, landfilling and construction at Pier 400, where the Port will build the largest proprietary container terminal in the world. The new 315-acre facility will feature an on-dock railyard for highly efficient cargo transportation relays between ships and trains.

Extensive modernization and expansion of the Evergreen container terminal, as well as major infrastructure projects aimed at enhancing cargo transportation efficiency, are also part of the Port's capital improvement program. In recent years, the program has included unprecedented dredging, landfilling and construction activity, including the opening last year of two new world-class cargo terminals on Pier 300.

early 200 palm trees will be planted in Port of Los Angeles locations throughout San Pedro, Wilmington and Terminal Island as part of a beautification project that will include boulders, cobblestone, shrubbery and other durable, low-maintenance landscaping. The project, estimated to cost $125,000 to $250,000, was announced recently in a Port presentation at the meeting of the Los Angeles Board of Harbor Commissioners.

"The effort by the Port of Los Angeles to enhance the San Pedro community with greenery is very much appreciated," said Harbor District Councilman Rudy Svorinich, Jr. "Beautifying the area along Harbor Boulevard and 22nd Street in San Pedro and the Banning’s Landing and other areas in Wilmington is a giant leap forward in improving the image of the areas for the enjoyment of all".

Leland Wong, president of the Harbor Commission, stated, "Towering container cranes, massive trains and other powerful, heavy-duty equipment accurately characterize the Port of Los Angeles’ rugged industrial landscape. There now is an opportunity, however, to enhance Los Angeles Harbor by creating a softer environment at key locations".

Larry A. Keller, the Port’s executive director, added, "New landscaping will have great visual appeal at many popular Port gateways and serve as enduring landmarks for the enjoyment of everyone living and working here, as well as for our hundreds of visitors".

The beautification project represents a continuation of landscaping efforts coordinated through Port development of new cargo facilities, such as Global Gateway South and the Los Angeles Export Terminal on Pier 300, and redevelopment or expansion of existing complexes such as the container terminal operated by Yang Ming Line.

Potential locations for landscaping, which could begin this autumn with planting of the palm trees, may include:

Berths 69-70, near the Port Pilot station and Main Channel entrance; Harbor Boulevard, near the World Cruise Center in San Pedro; Sections of 22nd Street, Crescent Avenue, Miner Street, Beacon Street, Front Street, Pacific Avenue and John S. Gibson Boulevard in San Pedro; Water Street, near the Banning’s Landing Community Center in Wilmington; Stretches of Harry Bridges Boulevard and Alameda Street in Wilmington; Sections of Henry Ford Avenue, Ocean Boulevard, Seaside Avenue, Navy Way, Earle Street and Terminal Way on Terminal Island.

The beautification project complements the recent installation of a blue tarp fence covering along Harbor Boulevard near the World Cruise Center, and will include trimming trees and landscaping with a wind-resistant mulch produced by the City of Los Angeles’ agricultural recycling program.