TITLE
Recommendation to authorize City Manager to execute a Fourth Amendment to Lease No. 23858 between the City of Long Beach and Golden Shore Recreational Vehicle Park, Inc. to change the basis for Lease rental payment calculations from gross receipts to gross revenues. (District 2)
DISCUSSION
On January 24, 1995, the City Council authorized the City Manager to enter into a 25-year lease (Lease No. 23858) with Golden Shore Recreation Vehicle Park, Inc., (GSRVP) for use of approximately five acres of Tidelands Trust property to develop and operate a recreational vehicle park. On September 26, 1995, the City Council authorized the City Manager to execute a First Amendment to the lease to expand the area of the new recreational vehicle park to modify the development schedule, in accordance with the plans for demolition of the Shoreline Aquatic Park, and to enable GSRVP to salvage certain equipment and trees. On April 30, 1996, the City Council authorized the execution of a Second Amendment to provide for a 25-year lease extension option, expansion of both the lease area and the maintenance requirements, and grant permission to GSRVP to sublet a part of the premises for the installation and operation of a telecommunication
antenna. On April 15, 2003, the City Council authorized a Third Amendment to clarify lease language concerning base rent adjustments.
Last fall, the City Auditor completed an audit of Lease No. 23858 that included review of payment records, bank statements and tax returns. The audit findings identified the underpayment of rent, in the amount of $8,379, to the City in Fiscal Year 2003. GSRVP agreed with the audit findings and remitted the appropriate payment to the City, which was deposited in the Tidelands Operating Fund (TF).
In addition, the City Auditor identified a discrepancy in the Tenant’s rental payment calculations. Currently, the lease requires a monthly rental payment of 7 percent of the gross receipts received for the prior month...
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