TITLE
Recommendation to authorize City Manager to execute the Sixth Addendum to Lease No. 21427 with 3221 Industry, LLC, for warehouse space at 3221 Industry Drive, Signal Hill, for use by the Long Beach Gas and Oil Department and the Long Beach Junior Concert Band at the monthly rent of $10,300 for the first 12 months, increasing 3 percent per year for the remainder of the five-year term; and
DISCUSSION
In 2001, the City Council approved the Fifth Addendum to Lease No. 21427 for the
warehouse facility at 3221 Industry Drive, Signal Hill (Site) for five additional years
through March 31, 2006 and providing one option to renew for a period of five years.
(See attached Council letter dated April 24, 2001). The Site is used to provide storage
space for the Oil Bureau in the Long Beach Gas and Oil Department and through a
sublease, to house the Long Beach Junior Concert Band (Band). During the term of the
Lease, the property has been sold multiple times. The current owner is “3221 Industry,
LLC” (Landlord).
The Site contains approximately 15,714 square feet of warehouse space and is located
in an industrial park in the City of Signal Hill. The Oil Bureau utilizes approximately
5,814 square feet of the facility. The remaining portion, measuring approximately 9,900
square feet, is subleased to the Band for its office headquarters, rehearsal halls and
storage facilities. The Department of Parks, Recreation and Marine (PRM) provides the
funding for the Sublease for the Band.
The Long Beach Gas and Oil Department and the Long Beach Junior Concert Band
wish to continue their tenancy at the Site beyond the end of the current term. The
proposed Sixth Addendum between the City and the Landlord contains the following
major provisions:
Premises: The leased premises are composed of approximately 15,714 square
feet of warehouse space at 3221 Industry Drive, Signal Hill.
Lenqth of Term: The term of the Lease shall be extended for five additional years
and shall terminate on Marc...
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