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De Anza Harbor Resort is a residential mobile home park located on city-owned, dedicated public parkland in De Anza Cove on the northern boundary of Mission Bay Park. De Anza Harbor Resort & Golf, LLC leased the property from the City of San Diego. The City's ground lease with De Anza Harbor Resort & Golf, LLC expired on November 23, 2003. The state legislation authorizing residential use on the property (Kapiloff Bill) also expired on November 23, 2003.
Background
In 1945 the Mission Bay Tidelands were conveyed to the City by the State subject to specific conditions in the grant. In 1953, the City entered into a 50-year lease with De Anza Harbor Resort and Golf's predecessor for "tourist and travel trailer purposes." As time passed, trailers became less mobile and more like permanent residences. In the late 1970's the issue of legality was raised, and the City Attorney opined that use of State tidelands and dedicated park for permanent private residences was not a legal use.
The legality of the mobile home park use was addressed by state legislation sponsored by then Assembly member Larry Kapiloff and adopted in 1982 (the Kapiloff Bill). The Kapiloff Bill acknowledged the hardships which would have resulted to the tenants and authorized continued residential use until the end of the lease on November 23, 2003. The Kapiloff Bill requires that the property be used for park and recreation purposes at the end of the current lease. The Kapiloff Bill requires that all occupants and subsequent buyers acknowledge that no mobile home park use can continue after 2003 and that there would be no relocations benefits provided.
To be consistent with this legislation, the City and De Anza entered into a lease amendment in 1982, which provides that the residential mobile home park use would cease upon lease expiration. The lease amendment also provided De Anza the right to submit a plan for redevelopment of the property which the City could accept, reject or modify. De Anza entered into Long Term Rental Agreements with approximately 98% of the mobile home owners at the Harbor Resort. The Long Term Rental Agreements provided the original tenants the opportunity to either sell their units or continue occupying them knowing approximately twenty-two years in advance that the mobile home park would not continue after 2003. The Long Term Rental Agreements also provide fixed rental rates and the certainty of a long term lease and do not provide for any relocation benefits at the end of the lease term. The Agreements also govern the benefits the mobile home owners would receive in the event of development of a different use on the site during the lease term, however, such development has not taken place. There are currently approximately 500 mobile homes at De Anza.
 Memoranda of Law
On June 10, 1993 the City Attorney responded to the question: "What changes in the State law and City Charter would be necessary to allow the continued use of De Anza Harbor as a mobile home park?" The City Attorney responded that with regard to State law, the State legislature would have to adopt legislation determining that De Anza is not presently needed for public tidelands purposes and authorizing continued private residential use.
As to the City Charter, either a two-thirds vote of the electorate would be required to authorize private residential use of the dedicated park lands, or the Charter itself could be changed by a majority vote of the electorate to authorize private residential use of the De Anza property.
On July 11, 1994, the City Attorney opined that the De Anza residents are not entitled to any relocation payment from the City. The opinion was based in part on a specific case on this issue in California, Stevens vs. Perry, 134 Cal. App. 3d748, 184 Cal. Rptr. 701 (2nd District 1982). In that case, the Court held that residents of a mobile home park located on land leased from a municipal district were not entitled to relocation benefits upon the expiration of the lease pursuant to the provisions of Government Code section 7260 et seq. (which constitute the California relocation assistance law).
Memorandum of Understanding
On July 27, 1999, the City and De Anza entered into a Memorandum of Understanding (MOU) regarding a proposal by De Anza for a resort hotel development on the property. The MOU authorized the City Manager to enter into exclusive negotiations with De Anza on its development proposal, and provided an option to enter into a new lease. The option was not exercised, and the MOU has expired.
Current Status
The State's authorization for residential use on the tidelands trust land at De Anza Harbor Resort ended on November 23, 2003. The Lease between the City and De Anza terminated on November 23, 2003. There is no bill currently before the State Legislature seeking to extend residential use on the property. The City is currently involved in litigation filed by the De Anza Homeowners Association.
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