By way of background, almost all of what we know as Newport Harbor is owned by the State of California and is referred to as public tidelands. Pursuant to the California Constitution and legislation more commonly known as the Beacon Bay Bill, the City of Newport Beach is obligated to manage those public tidelands in trust for the people of California. The Constitution and the Beacon Bay Bill require the payment of fair market rent wherever private parties use or occupy these public tidelands.

As we have previously reported, as required by law and ordinance, the City of Newport Beach conducted appraisals of the fair market rents for the onshore and offshore moorings in late 2021 and December 2023 respectively. The Newport Mooring Association, “NMA”, took exception to the results of the appraisals and had a counter appraisal conducted for the offshore moorings. In April, 2024 the Harbor Commission unanimously adopted an increase in the annual mooring permit fees which was significantly less than the City’s appraisals and proposed phasing in the increases over time and those recommendations were presented to the City Council for action. In the opinion of the Newport Harbor Foundation, the mooring permit fees proposed by the Harbor Commission were very reasonable.

In July, 2024 the City Council reviewed the recommendations of the Harbor Commission but elected to adopt an alternate proposal which would grandfather the current annual mooring permit fees for all current permittees so long as they held their permits, however the permittee’s right to sell their permits would be sunseted after five years.

In response to the City Council’s approval of this new proposal the NMA contacted state agencies, including the State Lands Commission, the agency responsible for administering the public tidelands, alleging that there is discrimination in the setting of permit fees specifically citing the different methods of determining the permit fees charged to dock and pier permittees and those charged to mooring permittees.

As a result of the NMA’s communications with the State Lands Commission, the Commission advised the City of Newport Beach that the Commission would be examining how the City arrived at the fair market rents for mooring permit fees as well as dock and pier permit fees. In their communication, the State Lands Commission was also very critical of the City’s practice of allowing mooring permittees to sell the right to their permit.

The Commission staff report for the August 21, 2025 Commission meeting regarding the Newport Harbor fees specifically stated that the appraisals conducted for the City seemed to be fair determinations of the fair market rents for the onshore and offshore moorings. Several other issues were raised in the staff report. At this point City staff has responded to the August staff report, has presented all of the information requested by the State Lands Commission, and is cooperating with the Commission during their review. For now, the Ordinance approved by the City Council has been placed on hold pending the State Lands Commission’s directives and the City is awaiting the staff report for the upcoming December 16 Commission meeting. In retrospect it appears that the aggressive opposition by the NMA to the City’s legal responsibility to adjust the mooring permit fees may lead to mooring permit fees which are actually higher than those proposed by the Harbor Commission, the abolition of the permittee’s right to sell the rights to their mooring permit and the reappraisal and adjustment of the fees charged to the holders of dock and pier permits.

As the process unfolds you can be assured that the Newport Harbor Foundation will participate in the review and approval process to the greatest extent allowed and will keep our Members up to date on this important issue.