Commercial Real Estate Loans Refinancing Commercial Real Estate Commercial Mortgage 10 Year Fixed Rate 30 Year Amortization
A commercial mortgage is a mortgage loan secured by commercial property, such as an office building, shopping center, industrial warehouse, or apartment complex. The proceeds from a commercial mortgage are typically used to acquire, refinance, or redevelop commercial property.
Commercial mortgages are structured to meet the needs of the borrower and the lender. Key terms include the loan amount (sometimes referred to as "loan proceeds"), interest rate, term (sometimes referred to as the "maturity"), amortization schedule, and prepayment flexibility. Commercial mortgages are generally subject to extensive underwriting and due diligence prior to closing. The lender's underwriting process may include a financial review of the property and the property owner (or "sponsor"), as well as commissioning and review of various third-party reports, such as an appraisal.
There were $3.1 trillion of commercial and multifamily mortgages outstanding in the U.S. as of June 30, 2013. Of these mortgages, approximately 49% were held by banks, 18% were held by asset-backed trusts (issuers of CMBS), 12% were held by government-sponsored enterprises and Agency and GSE-backed mortgage pools, and 10% were held by life insurance companies.
Commercial mortgages can be structured as first liens or, if a greater loan amount is desired, the borrower may be able to obtain subordinate financing as well, sometimes structured as a mezzanine note or as preferred equity, which generally carries a higher interest rate.
Interest rates for commercial mortgages may be fixed-rate or floating rate. Fixed-rate mortgages on stabilized commercial real estate are generally priced based on a spread to swaps, with the swap spread matched to the term of the loan. Market interest rates as well as underwriting factors greatly affect the interest rate quoted on a particular piece of commercial real estate. Interest rates for commercial mortgages are usually higher than those for residential mortgages.
Many commercial mortgage lenders require an application fee or good-faith deposit, which is typically used by the lender to cover underwriting expenses such as an appraisal on the property. Commercial mortgages may also have origination or underwriting fees (paid at close as a reduction in loan proceeds) and/or exit fees (paid when the loan is repaid).
The term of a commercial mortgage is generally between five and ten years for stabilized commercial properties with established cash flows (sometimes called "permanent loans"), and between one and three years for properties in transition, for example, newly opened properties or properties undergoing renovation or repositioning (sometimes called "bridge loans"). Mortgages on multifamily properties that are provided by a government-sponsored enterprise or government agency may have terms of thirty years or more. Some commercial mortgages may allow extensions if certain conditions are met, which may include payment of an extension fee. Some commercial mortgages have an "anticipated repayment date," which means that if the loan is not repaid by the anticipated repayment date, the loan is not in default.
Commercial mortgages frequently amortize over the term of the loan, meaning the borrower pays both interest and principal over time, and the loan balance at the end of the term is less than the original loan amount. However, unlike residential mortgages, commercial mortgages generally do not fully amortize over the stated term, and therefore frequently end with a balloon payment of the remaining balance, which is often repaid by refinancing the property. Some commercial mortgages have an interest-only period at the beginning of the loan term during which time the borrower only pays interest.
Commercial loans vary in their prepayment terms, that is, whether or not a real estate investor is allowed to refinance the loan at will. Some portfolio lenders, such as banks and insurance companies, may allow prepayment flexibility. In contrast, for a borrower to prepay a conduit loan, the borrower will have to defease the bonds, by buying enough government bonds (treasuries) to provide the investors with the same amount of income as they would have had if the loan was still in place.
A commercial mortgage is typically taken on by a special purpose entity such as a corporation or an LLC created specifically to own just the subject property, rather than by an individual or a larger business. This allows the lender to foreclose on the property in the event of default even if the borrower has gone into bankruptcy, that is, the entity is "bankruptcy remote".
Commercial mortgages may be recourse or non-recourse. A recourse mortgage is supplemented by a general obligation of the borrower or a personal guarantee from the owner(s) of the property, which makes the debt payable in full even if foreclosure on the property does not satisfy the outstanding balance. A nonrecourse mortgage is secured only by the commercial property that serves as collateral. In an event of default, the creditor can foreclose on the property, but has no further claim against the borrower for any remaining deficiency.
If a sponsor is seeking financing on a portfolio of commercial real estate properties, rather than a single property, the sponsor may choose to take out a cross-collateralized loan, in which the all of the properties collateralize the loan.
Lenders may require borrowers to establish reserves to fund specific items at closing, such as anticipated tenant improvement and leasing commission (TI/LC) expense, needed repair and capital expenditure expense, and interest reserves.
Lenders usually require a minimum debt service coverage ratio which typically ranges from 1.1 to 1.4; the ratio is net cash flow (the income the property produces) over the debt service (mortgage payment). As an example if the owner of a shopping mall receives $300,000 per month from tenants, pays $50,000 per month in expenses, a lender will typically not give a loan that requires monthly payments above $227,273 (($300,000-$50,000)/1.1)), a 1.1 debt cover.
Lenders also look at loan to value (LTV). LTV is a mathematical calculation which expresses the amount of a mortgage as a percentage of the total appraised value. For instance, if a borrower wants $6,000,000 to purchase an office worth $10,000,000, the LTV ratio is $6,000,000/$10,000,000 or 60%. Commercial mortgage LTV's are typically between 55% and 70%, unlike residential mortgages which are typically 80% or above.
Lenders look at rents per square foot, cost per square foot and replacement cost per square foot. These metrics vary widely depending on the location and intended use of the property, but can be useful indications of the financial health of the real estate, as well as the likelihood of competitive new developments coming online.
Since the financial crisis, lenders have started to focus on a new metric, debt yield, to complement the debt service coverage ratio. Debt yield is defined as the net operating income (NOI) of a property divided by the amount of the mortgage.
Lenders typically do thorough extreme due diligence on a proposed commercial mortgage loan prior to funding the loan. Such due diligence often includes a site tour, a financial review, and due diligence on the property's sponsor and legal borrowing entity. Many lenders also commission and review third-party reports such as an appraisal, environmental report, engineering report, and background checks.
Providers of commercial mortgages
Banks, large and small, are traditional providers of commercial mortgages. According to the Federal Reserve, banks held $1.5 trillion of commercial mortgages on their books as of June 30, 2013.
Conduit lenders originate commercial mortgages and hold them as investments for a short period of time before securitizing the loans and selling CMBS secured by the underlying commercial mortgage loans. Conduit lenders include both banks and non-bank finance companies. Approximately $560 billion of commercial mortgages were held by issuers of CMBS as of June 30, 2013, according to the Federal Reserve.
Securitization of commercial mortgages in its current form began with the Resolution Trust Corporation's (or RTC's) commercial securitization program in 1992-1997. The RTC applied an approach similar to the one it had begun successfully using with residential mortgages, issuing multiple tranches of securities secured by diversified pools of commercial mortgage loans. Following the introduction of the securitization methods by the RTC, private banks began to originate loans specifically for the purpose of turning them into securities. These loans are typically structured to forbid prepayment beyond a specified amortization schedule. This makes the resultant securities more attractive to investors, because they know that the commercial mortgages will remain outstanding even if interest rates decline.
New CMBS issuance peaked in 2007 at $229 billion. Then, the subprime mortgage crisis and the resultant global financial crisis caused CMBS prices to fall dramatically, and new issuances of CMBS securities came to a virtual halt in 2008-2009. The market has begun to recover, with $12 billion in new issuance in 2010, $37 billion in new issuance in 2011, and $48 billion in new issuance in 2012.
Government-sponsored enterprises such as Fannie Mae and Freddie Mac, as well as government corporations such as Ginnie Mae, are active lenders for multifamily commercial real estate (that is, apartment buildings) in the United States. Approximately $390 billion of multifamily residential mortgages were held by government-sponsored enterprises or Agency and GSE-backed mortgage pools as of June 30, 2013, representing 12% of total commercial mortgages outstanding and 43% of multifamily commercial mortgages outstanding at that time.
Insurance companies are active investors in commercial mortgages, and hold approximately $325 billion of commercial mortgages as of June 30, 2013.
Mortgage brokers do not provide commercial mortgage loans, but are often used to obtain multiple quotes from different potential lenders and to manage the financing process.
Correspondent Lenders do not loan their own money, but provide front end services such as origination, underwriting, and loan servicing for lenders that utilize these types of companies. The correspondent often represents lenders in a particular geographic area.
Huntington Beach is a seaside city in Orange County in Southern California. The city is named after American businessman Henry E. Huntington. The population was 189,992 during the 2010 census, making it the most populous beach city in Orange County and the seventh most populous city in the Los Angeles-Long Beach-Anaheim MSA. Its estimated 2014 population was 200,809. It is bordered by the Pacific Ocean on the southwest, by Seal Beach on the northwest, by Westminster on the north, by Fountain Valley on the northeast, by Costa Mesa on the east, and by Newport Beach on the southeast.
Huntington Beach (locally initialized "HB") is known for its long 9.5-mile (15.3 km) stretch of sandy beach, mild climate, excellent surfing, and beach culture. The ocean waves are enhanced by a natural effect caused by the edge-diffraction of open ocean swells around Santa Catalina Island. Swells generated predominantly from the North Pacific in winter and from a combination of Southern Hemisphere storms and hurricanes in the summer focus on Huntington Beach, creating consistent surf all year long, hence the nickname "Surf City".
The area was originally occupied by the Tongva people. European settlement can be traced to a Spanish soldier, Manuel Nieto, who in 1784 received a Spanish land grant of 300,000 acres (1,200 km2), Rancho Los Nietos, as a reward for his military service and to encourage settlement in Alta California. Nieto's western area was reduced in 1790 because of a dispute with the Mission San Gabriel, but he retained thousands of acres stretching from the hills north of Whittier, Fullerton and Brea, south to the Pacific Ocean, and from today's Los Angeles River on the west, to the Santa Ana River on the east.
The main thoroughfare of Huntington Beach, Beach Boulevard, was originally a cattle route for the main industry of the Rancho. Since its time as a parcel of the enormous Spanish land grant, Huntington Beach has undergone many incarnations. One time it was known as Shell Beach, the town of Smeltzer, and then Gospel Swamp for the revival meetings that were held in the marshland where the community college Golden West College can currently be found. Later it became known as Fairview and then Pacific City, as it developed into a tourist destination. In order to secure access to the Pacific Electric Red Car lines that used to criss-cross Los Angeles and ended in Long Beach, Pacific City ceded enormous power to railroad magnate Henry E. Huntington, and thus became a city whose name has been written into corporate sponsorship, and like much of the history of Southern California, boosterism.
Huntington Beach was incorporated on February 17, 1909 during the tenure of its first mayor, Ed Manning. Its original developer was Huntington Beach Company (formerly the West Coast Land and Water Company), a real-estate development firm owned by Henry Huntington. The Huntington Beach Company is still a major land-owner in the city, and still owns most of the local mineral rights. The company is now wholly owned by the Chevron Corporation.
An interesting hiccup in the settlement of the district occurred when an encyclopedia company gave away free parcels of land, with the purchase of a whole set for $126, in the Huntington Beach area that it had acquired cheaply. The lucky buyers got more than they had bargained for when oil was discovered in the area, and enormous development of the oil reserves followed. Though many of the old reserves are depleted, and the price of land for housing has pushed many of the rigs off the landscape, oil pumps can still be found to dot the city.
Huntington Beach was primarily agricultural in its early years with crops such as celery and sugar beets. Holly Sugar was a major employer with a large processing plant in the city that was later converted to an oil refinery.
The city's first high school, Huntington Beach High School, located on Main Street, was built in 1906. The school's team, the Oilers, is named after the city's original natural resource.
Meadowlark Airport, a small general aviation airport, existed in Huntington Beach from the 1940s until 1989.
According to the United States Census Bureau, the city has a total area of 31.9 square miles (82.6 km2). 26.7 sq mi (69 km2) of it is land and 5.1 sq mi (13 km2) of it (16.10%) is water.
The entire city of Huntington Beach lies in area codes 657 and 714, except for small parts of Huntington Harbour (along with Sunset Beach, the community adjacent to Huntington Harbour), which is in the 562 Area Code.
Huntington Beach has a borderline semi-arid/Mediterranean climate (Kφppen climate classification BSh/Csb). The climate is generally sunny, dry and cool, although evenings can be excessively damp. In the morning and evening, there are often strong breezes that can reach 15 mph (24 km/h). Ocean water temperatures average 55 °F (13 °C) to 65 °F (18 °C). In the summer, temperatures rarely exceed 85 °F (29 °C). In the winter, temperatures rarely fall below 40 °F (4 °C), even on clear nights. There are about 14 inches (360 mm) of rain, almost all in mid-winter. Frost occurs only rarely on the coldest winter nights. The area is annually affected by a marine layer caused by the cool air of the Pacific Ocean meeting the warm air over the land. This results in overcast and foggy conditions in May and June.
Construction of any kind on the beach is prohibited without a vote of the people, allowing Huntington Beach to retain its natural connection to the ocean rather than having the view obstructed by residential and commercial developments.
Between Downtown Huntington Beach and Huntington Harbour lies a large marshy wetland, much of which is protected within the Bolsa Chica Ecological Reserve. A $110 million restoration of the wetlands was completed in 2006. The Reserve is popular with bird watchers and photographers.
South of Downtown, the Talbert, Brookhurst and Magnolia Marshes, which lie across the street from Huntington State Beach, had restoration completed in 2010.
The northern and southern beaches (Bolsa Chica State Beach and Huntington State Beach, respectively) are state parks. Only the central beach (Huntington City Beach) is maintained by the city. Camping and RVs are permitted here, and popular campsites for the Fourth of July and the Surfing Championships must be reserved many months in advance. Bolsa Chica State Beach is actually a sand bar fronting the Bolsa Bay and Bolsa Chica State Ecological Reserve.
The Orange County run Sunset Marina Park next to Huntington Harbour is part of Anaheim Bay. It is suitable for light craft, and includes a marina, launching ramp, basic services, a picnic area and a few restaurants. The park is in Seal Beach, but is only reachable from Huntington Harbour. The Sunset/Huntington Harbour area is patrolled by the Orange County Sheriff's Harbor Patrol.
The 2010 United States Census reported that Huntington Beach had a population of 189,992. The population density was 5,959.1 people per square mile (2,300.8/km²). The racial makeup of Huntington Beach was 145,661 (76.7%) White, 1,813 (1.0%) African American, 992 (0.5%) Native American, 21,070 (11.1%) Asian, 635 (0.3%) Pacific Islander, 11,193 (5.9%) from other races, and 8,628 (4.5%) from two or more races. Hispanic or Latino of any race were 32,411 persons (17.1%). Non-Hispanic Whites were 67.2% of the population in 2010, compared to 90.8% in 1970.
The Census reported that 189,102 people (99.5% of the population) lived in households, 487 (0.3%) lived in non-institutionalized group quarters, and 403 (0.2%) were institutionalized.
There were 74,285 households, out of which 21,922 (29.5%) had children under the age of 18 living in them, 36,729 (49.4%) were opposite-sex married couples living together, 7,685 (10.3%) had a female householder with no husband present, 3,804 (5.1%) had a male householder with no wife present. There were 4,386 (5.9%) unmarried opposite-sex partnerships, and 504 (0.7%) same-sex married couples or partnerships. 18,489 households (24.9%) were made up of individuals and 6,527 (8.8%) had someone living alone who was 65 years of age or older. The average household size was 2.55. There were 48,218 families (64.9% of all households); the average family size was 3.07.
The population was spread out with 39,128 people (20.6%) under the age of 18, 15,906 people (8.4%) aged 18 to 24, 54,024 people (28.4%) aged 25 to 44, 53,978 people (28.4%) aged 45 to 64, and 26,956 people (14.2%) who were 65 years of age or older. The median age was 40.2 years. For every 100 females there were 98.5 males. For every 100 females age 18 and over, there were 96.6 males.
There were 78,003 housing units at an average density of 2,446.5 per square mile (944.6/km²), of which 44,914 (60.5%) were owner-occupied, and 29,371 (39.5%) were occupied by renters. The homeowner vacancy rate was 1.1%; the rental vacancy rate was 5.4%. 115,470 people (60.8% of the population) lived in owner-occupied housing units and 73,632 people (38.8%) lived in rental housing units.
During 20092013, Huntington Beach had a median household income of $81,389, with 8.9% of the population living below the federal poverty line.
At the 2000 census The population density was 7,183.6 inhabitants per square mile (2,773.9/km²). There were 75,662 housing units at an average density of 2,866.8 per square mile (1,107.0/km²). The racial makeup of the city was 79.2% White, 0.8% Black or African American, 0.7% Native American, 9.3% Asian, 0.2% Pacific Islander, 5.8% from other races, and 3.9% from two or more races. 14.7% of the population were Hispanic or Latino of any race.
There were 73,657 households out of which 29.0% had children under the age of 18 living with them, 50.7% were married couples living together, 9.6% had a female householder with no husband present, and 35.2% were non-families. 24.3% of all households were made up of individuals and 6.7% had someone living alone who was 65 years of age or older. The average household size was 2.56 and the average family size was 3.08.
In the city the population was spread out with 22.2% under the age of 18, 8.4% from 18 to 24, 34.9% from 25 to 44, 24.0% from 45 to 64, and 10.4% who were 65 years of age or older. The median age was 36 years. For every 100 females there were 100.4 males. For every 100 females age 18 and over, there were 98.6 males.
The median income for a household in the city was $76,527, and the median income for a family was $94,597. Adult males had a median income of $50,021 versus $33,041 for adult females. The per capita income for the city was $40,183. About 5.1% of families and 7.8% of the population were below the poverty line, including 11.2% of those under age 18 and 4.4% of those age 65 or over.
Huntington Beach sits above a large natural fault structure containing oil. Although the oil is mostly depleted, extraction continues at a slow rate, and still provides significant local income. There are only two off-shore extraction facilities left, however, and the day is not far off when oil production in the city will cease and tourism will replace it as the primary revenue source for resident industry.
The city is discussing closing off Main Street to cars from PCH through the retail shopping and restaurant areas, making it a pedestrian zone only. Other shopping centers include Bella Terra, built on the former Huntington Center site, and Old World Village, a German-themed center.
Huntington Beach has an off-shore oil terminus for the tankers that support the Alaska Pipeline. The terminus pipes run inland to a refinery in Santa Fe Springs. Huntington Beach also has the Gothard-Talbert terminus for the Orange County portion of the pipeline running from the Chevron El Segundo refinery.
Huntington Beach contains a major installation of Boeing, formerly McDonnell-Douglas. A number of installations on the Boeing campus were originally constructed to service the Apollo Program, most notably the production of the S-IVB upper stage for the Saturn IB and Saturn V rockets, and some nearby telephone poles are still marked "Apollo Dedicated Mission Control Line."
Huntington Beach is also home to the headquarters of Cambro Manufacturing, an international foodservice equipment company, with two manufacturing facilities in the city.
Huntington Beach contains a small industrial district in its northwest corner, near the borders with Westminster and Seal Beach.
Surf City USA trademarks
Main article: Surf City, USA
While Huntington Beach retains its 15-year trademark of Surf City Huntington Beach, the Huntington Beach Conference and Visitors Bureau filed four applications to register the "Surf City USA" trademark in November 2004. The idea was to market the city by creating an authentic brand based on Southern California's beach culture and active outdoor lifestyle while at the same time creating a family of product licensees who operate like a franchise family producing a revenue stream that could also be dedicated to promoting the brand and city. A ruling by the U.S. Patent and Trademark Office released on May 12, 2006 awarded three trademark registrations to the Bureau; nine additional trademark registrations have been granted since this time and ten other Surf City USA trademarks are now under consideration. One of the first products the Bureau developed to promote its brand was the Surf City USA Beach Cruiser by Felt Bicycles in 2006. The product has sold out every year in markets worldwide and created demand for a second rental bicycle model that will be marketed to resort locations across the globe starting in 2009. The Bureau now has dozens of other licensed products on the market from Surf City USA soft drinks to clothing to glassware. As of April 2008, the Bureau had more than 20 licensing partners with over 50 different products being prepared to enter the market over the next 18 months. Four of the Bureau's registrations of the trademark are now on the principal register and the remaining ten trademark applications are expected to follow. The Bureau is actively considering registration of the Surf City USA trademark in several different countries and anticipates a growing market for its branded products overseas in coming years.
An ongoing dispute between Huntington Beach and Santa Cruz, California over the trademark garnered national publicity in 2007 when a law firm representing Huntington Beach sent a cease-and-desist letter to a Santa Cruz T-shirt vendor. A settlement was reached in January, 2008, which allows the Huntington Beach Conference and Visitors Bureau to retain the trademark.
The downtown district includes an active art center, a colorful shopping district, and the International Surfing Museum. This district was also the home of the Golden Bear from 1929 to 1986. Originally a fine dining restaurant opened by Harry Bakre in 1929, the Golden Bear became a nightclub in 1963 and hosted famous-name entertainment until it was demolished in 1986. The list of artists who performed there includes BB King, Janis Joplin, Steve Martin, Charles Bukowski, The Ramones and Stevie Ray Vaughan. The Huntington Beach Pier stretches from Main Street into the Pacific Ocean. At the end of the pier is a Ruby's Diner. The Surf Theatre, which was located one block north of the pier, gained fame in the 1960s and 1970s for showing independent surf films such as The Endless Summer and Five Summer Stories. The Surf Theatre was owned and operated by Hugh Larry Thomas from 1961 until it was demolished in 1989. A newer version of The Surf Theatre is now closed, but the Huntington Beach International Surfing Museum has preserved its memory with ongoing screenings of surfing movies once shown at a Huntington Beach theater and the original metal SURF sign. Another surfing-related attraction in Huntington Beach is the Surfing Walk of Fame.
According to Huntington Beach's 2014 Comprehensive Annual Financial Report, the top employers in the city are:
BJ's Restaurant & Brewery is also based in Huntington Beach.
Arts and culture
Many of the events at Huntington Beach are focused around the beach during the summer. The U.S. Open of Surfing is featured on the south side of the pier. Huntington Beach is a stop on the AVP beach volleyball tour. A biathlon (swim/run) hosted by the Bolsa Chica & Huntington State Beach Lifeguards takes place in July, early at dawn. The race begins at the Santa Ana River Jetties and ends at Warner Avenue, Bolsa Chica State Beach. Huntington Beach Junior Lifeguard day camps are held which teaches pre-adolescents and adolescents ocean swimming, running, and first-aid medical knowledge.
In addition to the beach-focused events, the Fourth of July parade has been held since 1904. The SoCal Independent Film Festival takes place every September.
During the winter, the annual Cruise of Lights Boat Tour is held in the Huntington Harbour neighborhood. This is a parade of colorful lighted boats as well as boat tours to view the decorated homes. In February of each year since 1996, the Surf City USA marathon is held with over 20,000 runners. The annual Kite Festival is held just north of the pier in late February.
Huntington Beach hosts car shows such as the Beachcruiser Meet and a Concours d'Elegance. The Beachcruiser Meet is held in March, attracting over 250 classic cars displayed along Main Street and the Pier parking lot. A Concours d'Elegance is held at Central Park in June and benefits the public library. An informal "Donut Derelicts" car show occurs every Saturday morning at the intersection of Adams and Magnolia Street.
Surf City Nights is held every Tuesday night during the year. The Tuesday Surf City Nights is a community-spirited event that features a farmer's market, unique entertainment, food, kiddie rides and a carnival atmosphere. Surf City Nights and the Downtown Huntington Beach Art Walk are presented by the Huntington Beach Downtown Business Improvement District (HBDBID) and the City of Huntington Beach. The Tuesday night Surf City Nights event takes place in the first three blocks of Main Street from Pacific Coast Highway to Orange Avenue.
Huntington Beach is the site of the world surfing championships, held in the summer every year. The city is often referred to as "Surf City" because of this high-profile event, its history and culture of surfing. It is often called the "Surfing Capital of the World", not for the height of the waves, but rather for the consistent quality of surf. Gordon Duane established the city's first surf shop, Gordie's Surfboards, in 1955.
Huntington Beach's Ocean View Little League won the 2011 Little League World Series championship, beating Japan 2-1.
Surf and beaches
George Freeth was the first person to surf in Huntington Beach with a demonstration on June 20, 1914. Freeth had been demonstrating surfing in southern California as a promotion for the city by Henry E. Huntington. Duke Kahanamoku started surfing in Huntington Beach in 1925 and helped popularize the sport. The first surfboard shop, which was located underneath the Huntington Beach Pier, opened in 1956 by Gordie Duane.
Apart from sponsored surf events, Huntington Beach has some of the best surf breaks in the State of California and that of the United States. Huntington Beach has four different facing beaches: Northwest, West, Southwest, and South. Northwest consists of Bolsa Chica State Beach with a length of 3.3 miles (5.3 km), the West consist of "The Cliffs" or "Dog Beach", Southwest is considered everything north of the pier which is operated by the City of Huntington Beach. South consists in everything south of the pier which primarily focuses on Huntington State Beach (2.2 Miles), which almost faces true South.
Bolsa Chica State Beach is operated by the State of California, Dept. Parks & Recreation, and the Bolsa Chica State Beach Lifeguards. The beach is very narrow and the sand is very coarse. Bolsa Chica tends to have better surf with NW/W swells during the winter season. During the summer months the beach picks up south/southwest swells at a very steep angle. Due to the bottom of the beach, surf at Bolsa Chica tends to be slowed down and refined to soft shoulders. Longboards are the best option for surfing in the Bolsa Chica area.
"The Cliffs" or "Dog Beach" is also another popular surf spot. This segment of Huntington Beach obtains these names because dogs are allowed around the cliff area. Beach is very restricted and often is submerged with high tides. Surf at this location tends to be even bigger than Bolsa Chica during the winter and often better. During the summer most of the South/Southwest swells slide right by and often break poorly. The best option is to take out a longboard, but shortboards will do at times. Dolphins have also been sighted in this area.
Just north and south of the Huntington Beach Pier are some well defined sandbars that shift throughout the year with the different swells. Southside of the Pier is often a popular destination during the summer for good surf, but the Northside can be just as well during the winter. Around the Pier it all depends on the swell and the sandbars. Shortboard is your best option for surfing around the Pier.
South Huntington Beach, also known as Huntington State Beach, is where all the south swells impact the coastline. Huntington State Beach is operated by the State of California, Department of Parks & Recreation, and Huntington State Beach Lifeguards. This beach is very wide with plenty of sand. Sandbars dramatically shift during the spring, summer and fall seasons, thus creating excellent surf conditions with a combination South/West/Northwest swell. Due to the Santa Ana River jetties located at the southernmost end of the beach, large sandbars extend across and upcoast, forcing swells to break extremely fast and hollow. Best seasons for surfing at this beach is the summer and fall. The best option for surfing in this area is a shortboard.
Huntington Beach is also a popular destination for kite surfing, and this sport can be viewed on the beach northwest of the pier.
Huntington Beach is the host city of the National Professional Paintball League Super 7 Paintball Championships. The NPPL holds its first event of the year traditionally between the dates of March 23 through March 26.
Huntington Beach also hosts the annual Surf City USA Marathon and Half-Marathon, which is usually held on the first Sunday of February.
Parks and recreation
Huntington Beach has a large central park, known as Huntington Central Park. Central Park is located between Gothard and Edwards Streets to the east and west, and Slater and Ellis Avenues to the north and south. Dedicated on June 15, 1974, Huntington Central Park is the largest city owned park in Orange County with nearly 350 acres (140 ha). The park is vegetated with xeric (low water use) plants, and inhabited by native wildlife. Thick forests encircling the park are supplemented with Australian trees, particularly Blue Gum Eucalyptus, a high water use plant.
The Huntington Beach Public Library is located in Central Park in a notable building designed by Richard Neutra and Dion Neutra. It houses almost a half-million volumes, as well as a theater, gift shop and fountains. The library was founded as a Carnegie library in 1914, and has been continuously supported by the city and local activists, with new buildings and active branches at Banning, Oak View, Main Street, and Graham. The library has significant local historical materials and has a special genealogical reference collection. It is independent of the state and county library systems.
The park is also home of Huntington Central Park Equestrian Center, a top class boarding facility that also offers horse rentals to the public, with guided trail rides through the park. There is also a "mud park" available for kids. The world's second oldest disc golf course is available in the park, as are two small dining areas, a sports complex for adult use, and the Shipley Nature Center.
The Bolsa Chica Wetlands, which are diminishing rapidly due to development, contains numerous trails and scenic routes. The wetlands themselves have recently been connected with the ocean again, in effort to maintain its previous, unaltered conditions.
The following table shows the current and past mayors of Huntington Beach:
According to the city's most recent Comprehensive Annual Financial Report, the city's various funds had $295.6 million in revenues, $287.7 million in expenditures, $1,046.6 million in total assets, $202.8 million in total liabilities, and $87.1 million in cash and investments.
The structure of the management and coordination of city services is:
In the California State Senate, Huntington Beach is in the 37th Senate District, represented by Republican John Moorlach. In the California State Assembly, it is split between the 72nd Assembly District, represented by Republican Travis Allen, and the 74th Assembly District, represented by Republican Matthew Harper.
As of June 1, 2010, the city has 127,660 registered voters. 45.8% are registered Republicans, 28.5% are registered Democrats, 20.7% are unaffiliated, and the remainder are registered with third parties.
Huntington Beach is the home of Golden West College, which offers two-year associates of arts degrees and transfer programs to four-year universities.
Huntington Beach is in the Huntington Beach Union High School District, which includes Edison High School, Huntington Beach High School, Marina High School, and Ocean View High School in the city of Huntington Beach, Fountain Valley High School in the city of Fountain Valley, and Westminster High School in the city of Westminster.
The district also has an alternative school, Valley Vista High School, and an independent study school, Coast High School.
Huntington Beach High School, which is the district's flagship school, celebrated its 100-year anniversary in 2006.
The city has two elementary school districts: Huntington Beach City School District with 9 schools and Ocean View School District with 15. A small part of the city is served by the Fountain Valley School District.
Brethren Christian Junior/Senior High School is a private independent school with about 400 students living within 25 miles (40 km) of the school.
Huntington Christian School is a private K-8 school in the city
Grace Lutheran school is a private K-8 school in the city.
Lycιe International de Los Angeles previously had its Orange County campus in Huntington Beach.
The city was featured in the TruTV series Ocean Force: Huntington Beach. Also, the city is mentioned in the Beach Boys song Surfin' Safari, in Jan and Dean's Surf Route 101 and in Surfer Joe by The Surfaris.
Live cameras are set up at the Huntington Beach Pier and shown on screens at the California-themed Hollister apparel stores. The store pays the city for the cameras, with the money used to fund marine safety equipment. The cameras are also used by lifeguards.
The public television station KOCE-TV operates from the Golden West College campus, in conjunction with the Golden West College Media Arts program.
Fire protection in Huntington Beach is provided by the Huntington Beach Fire Department. Law enforcement is provided by the Huntington Beach Police Department. Huntington Beach Marine Safety Officers and its seasonal lifeguards are recognized as some of the best in the world with a top notch safety record. It has an active Community Emergency Response Team training program, that trains citizens as Disaster Service Workers certified by Federal Emergency Management Agency (FEMA) as a part of a free program run by the fire department's Office of Emergency Services.
Emergency services are also provided at State Beach locations. Peace Officers and lifeguards can be found at Bolsa Chica and Huntington State Beach. Such services consist of: aquatic rescues, boat rescues, first aid and law enforcement. All services are provided by the State of California, Dept. Parks & Recreationclarification needed] .[
In 1926, the Santa Ana River dam failed, and flash-flooded its entire delta. The southern oceanic terminus of this delta is now a settled area of Huntington Beach. The distant dam is still functional, but silting up, which is expected to reduce its storage volume, and therefore its effectiveness at flood-prevention. The flood and dam-endangered areas are protected by a levee, but lenders require expensive flood insurance in the delta. There have been serious discussions to eliminate the need for flood insurance and this requirement has already been waived in some areas and may one day no longer be considered a credible threat.
Since it is a seaside city, Huntington Beach has had tsunami warnings, storm surge (its pier has been rebuilt three times), sewage spills, tornadoes and waterspouts. The cold offshore current prevents hurricanes. The Pier that was rebuilt in the 1990s was engineered to withstand severe storms or earthquakes.
Large fractions of the settled delta are in earthquake liquefaction zones above known active faults. Most of the local faults are named after city streets.
Many residents (and even city hall) live within sight and sound of active oil extraction and drilling operations. These occasionally spew oil, causing expensive clean-ups. Large parts of the developed land have been contaminated by heavy metals from the water separated from oil.
The local oil has such extreme mercury contamination that metallic mercury is regularly drained from oil pipelines and equipment. Oil operations increase when the price of oil rises. Some oil fields have been approved for development. The worst-polluted areas have been reclaimed as parks. At least one Superfund site, too contaminated to be a park, is at the junction of Magnolia and Hamilton streets, near Edison High School.
Huntington Beach has the following sister city relationships, according to the Huntington Beach Sister City Association:
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