TITLE
Recommendation to authorize City Manager, or designee, to execute any and all documents necessary for a replacement Lease with Aquarium of the Pacific, a California nonprofit public benefit corporation, for City-owned property located at 100 Aquarium Way. (District 1)
DISCUSSION
In 1995, the Aquarium of the Pacific, a California nonprofit public benefit corporation (Corporation), entered into a Ground Lease with the City of Long Beach (City) for the property located at 100 Aquarium Way for the development of the Aquarium of the Pacific (AoP Facility) (Ground Lease). In addition to the land transaction, the Corporation issued revenue bonds to finance the acquisition and construction of the AoP Facility. In 2001, the City, through the Long Beach Bond Finance Authority (Authority), issued lease revenue bonds to restructure the 1995 Corporation bond debt, and the City, Authority, and Corporation entered into a Site Lease Agreement, whereby the City leased the AoP Facility to the Authority and the Authority, in turn, leased the AoP Facility to the Corporation for continued operation. The Authority restructured the 2001 debt in 2012 and has put forth a recommendation to refund the 2012 bonds through the issuance of 2022 bonds in a separate action placed on the August 9, 2022 City Council agenda for consideration (2022 Bonds).
Should the issuance of the 2022 Bonds be approved, the existing Site Lease Agreement between the City, Authority, and Corporation for the AoP Facility will dissolve on the day of closing for the new 2022 Bonds (tentatively scheduled for September 6, 2022). A new lease agreement is necessary for the Corporation to continue to occupy and operate the AoP Facility. The new Lease will incorporate certain provisions of and otherwise replace (i) the Ground Lease, (ii) an ancillary lease for southerly expansion space between the City and Corporation, (iii) an implementation agreement between the City and Corporation related to previously is...
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