TITLE
Recommendation to authorize City Manager to execute all documents necessary for the First Amendment to Agreement No. 29264 with AC-Catalina Landing, LLC, successor in interest to John Hancock Life Insurance Company, to provide a parking revenue credit in an amount not to exceed $30,000 towards the costs incurred for an interim dredge operation at Catalina Landing. (District 2)
DISCUSSION
On June 27, 2000, the City Council authorized the execution of Lease No. 29263 (Ground Lease) between the City of Long Beach (Landlord) and John Hancock Life Insurance Company, a Massachusetts corporation (Hancock), for City-owned property located at 310 through 340 Golden Shore Avenue (Leased Premises). Commonly known as Catalina Landing, the Leased Premises include four office buildings, a three-story parking structure, and an enclosed marina basin. Concurrent with the execution of the Ground Lease, the parties executed Agreement No. 29264 (Dredge Agreement), which clarified the responsibilities related to the dredging and maintenance of the marina basin throughout the term of the Ground Lease. In June 2002, Hancock assigned all its rights and responsibilities under the Ground Lease and Dredge Agreement to AC-Catalina Landing, LLC (Tenant).
For nearly thirty years, Catalina Express has provided a ferry service from the Catalina Landing Boat Terminal (Terminal) to the City of Avalon on Catalina Island, with over 600,000 passengers traveling out of Long Beach each year. Tenant subleases the Terminal to Catalina Express for the operation of the ferry service with parking available to its passengers in the parking structure located on the Leased Premises. Pursuant to the Dredge Agreement, Tenant pays the City thirty percent (30%) of the annual net revenue generated from Catalina Express parking fees in exchange for the City’s ongoing obligation to maintain the marina basin at a minimum depth of fifteen (15) feet at low tide.
The Los Angeles River federal channel serv...
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