TITLE
Recommendation to authorize City Manager to amend and extend the Key Tenant Loan with Marina Pacifica, LLC, allowing for a 10-year extension without additional loan funding. (District 3)
DISCUSSION
Approval is recommended to amend and extend an existing Key Tenant Loan (Loan) with Marina Pacifica, LLC (Marina Pacifica). The existing 15-year Loan, which went into effect in the first calendar quarter of 1997, expired on January 1, 2012. Marina Pacifica is requesting that the City grant an extension of 10 years to amortize the original loan amount of $750,000. No additional loan funds will be dispersed with this extension. The Loan extension is contingent upon Marina Pacifica maintaining a suitable retail tenant, generating retail sales tax, as a tenant at 6274 East Pacific Coast Highway. Marina Pacifica’s failure to maintain such a tenant shall constitute a Loan default and trigger repayment of the Loan.
On April 8, 1997, the City Council authorized a 15-year Sales Tax Incentive Agreement and a Key Tenant Loan to provide financial assistance for capital improvements to rebuild Marina Pacifica. The Loan was funded through Community Development Block Grant (CDBG) funds. Marina Pacifica is fully compliant with the terms of the loan.
Marina Pacifica is requesting the City’s assistance, through an extension of the terms of the loan, to partially offset the economic impacts of this protracted recessionary period and increased cost to maintain an attractive and viable retail center. The City’s extension of the terms of the Loan will assist in enhancing the overall business at Marina Pacifica, and maintaining sales tax revenue.
The City has made Key Tenant Loans to retailers to promote additional retail opportunities and to generate additional sales tax revenue. A Key Tenant Loan provides that, in lieu of making monthly principal and interest payments, the borrower will continue to operate the business at a specified location in Long Beach for the...
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