TITLE
Recommendation to authorize City Manager to execute a fifth amendment to Lease No. 17448 between the City of Long Beach and American Golf Corporation for the removal of operational oversight of approximately 38,760 square feet of land and building area, more commonly known as 6730 East Carson Street, from the leased premises. (District 5)
DISCUSSION
More than 30 years ago, Special Olympics Southern California (SOSC) set up their first Southern California office in Long Beach. SOSC currently occupies office space in Culver City, California. The office space has become too small for the growing organization and the lease will expire in August 2008. In October 2006, SOSC issued a request for proposal (RFP) to solicit proposals for larger accommodations. The RFP was distributed to several cities, including Long Beach. The City of Long Beach (City) submitted the best RFP response and is now working with SOSC to identify an appropriate relocation site. To accommodate SOSC's interim office needs and provide a local command post for their logistics efforts, SOSC will lease City-owned property located at 6730 East Carson Street. It is anticipated SOSC may require use of the property for up to five years.
American Golf Corporation (AGC) has an existing lease for the management and operation of the City's five golf courses:
· Recreation Park - 18 holes
· EI Dorado Park - 18 holes
· Skylinks - 18 holes
· Recreation Park South - 9 holes
· Heartwell Park - 18 holes
The Heartwell Park Golf Course encompasses 6730 East Carson Street, approximately 38,760 square feet of land and building. AGC has acknowledged use of the 6730 East Carson Street property is limited. The City discussed the SOSC transaction with AGC to obtain their consent to the removal of 6730 East Carson Street from the leased premises. AGC has agreed to the removal (Attachment 1).
AGC also agreed to retain responsibility of the landscape maintenance. SOSC will, however, be required to reimburse AGC for the expense, which is estimated at an annual cost of $4,000. AGC will invoice SOSC for the services.
A lease amendment is required to document the removal of 6730 East Carson Street from the leased premises. Golf operations and revenue to the City will not be impacted by the proposed amendment. All other terms and provisions of Lease No. 17448 will remain unchanged.
This matter was reviewed by Deputy City Attorney Gary J. Anderson on May 3, 2007, and Budget and Performance Management Bureau Manager David Wodynski on May 10,2007.
TIMING CONSIDERATIONS
City Council action is requested on June 5, 2007, to enable the execution of the fifth amendment to Lease No. 17448 with American Golf Corporation and the execution of a new lease with Special Olympics of Southern California, Inc.
FISCAL IMPACT
There is no fiscal impact associated with the proposed transaction.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
PHIL T. HESTER
DIRECTOR OF PARKS, RECREATION AND MARINE
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APPROVED: |
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GERALD R. MILLER |
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CITY MANAGER |