TITLE
Recommendation to authorize City Manager to execute a Second Amendment to Lease No. 30946 with Wilmington-Lomita Blvd., LLC, a Long Beach-based California limited liability company, for lease of approximately 5.61 acres of excess Terminal Island Freeway right-of-way, at a monthly rental rate of $13,931. (District 7)
DISCUSSION
On September 23, 2008, City Council authorized the execution of Lease No. 30946 with Wilmington-Lomita Blvd., LLC (WLB), for approximately 2.79 net acres of excess Terminal Island Freeway right-of-way, for a term of 30 years, at an initial monthly rental rate of $6,900.
Subsequently, on February 3, 2009, City Council authorized the First Amendment to Lease No. 30946, which increased the leased area from 2.79 net acres to 5.77 net acres, and the corresponding monthly rent from $6,900 to $14,260. A final survey of the leased premises has determined the total area is comprised of 5.61 net acres (Premises), which equates to an adjusted initial monthly rental rate of $13,931.
Improvements to the Premises shall further the City's goal of removing blight in the area. In accordance with the California Environmental Quality Act, Categorical Exemption No. CE-78-10 has been issued for this project.
After considerable negotiation between the City and WLB, staff proposes a Second Amendment to Lease No. 30946 containing the following major terms and provisions.
• Landlord: City of Long Beach.
• Tenant: Wilmington-Lomita Blvd., LLC, a California limited liability company.
• Length of Term: The term of the lease shall be for 30 years with two options to extend for periods of 10 years each.
• Premises: The Premises shall consist of approximately 5.61 acres of excess Terminal Island Freeway right-of-way.
• Rent: The initial monthly base rent for the Premises shall be $13,931 and shall be adjusted annually based upon any increase in the Consumer Price Index.
• Improvements: Tenant shall be responsible for constructing all improveme...
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