TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for an Exclusive Negotiating Agreement with Urbana Development, LLC, for the proposed development of property owned by the City of Long Beach and the Long Beach Water Department, located at the Long Beach Airport adjacent to the Kilroy Airport Center. (District 5)
DISCUSSION
The City of Long Beach (City) owns approximately 5.10 acres of land (Parcel 7) and the Long Beach Water Department owns approximately 3.37 acres of land (Parcel 9) for a combined total of 8.47 acres (Subject Property), located at the Long Beach Airport westerly of the Kilroy Airport Center (Attachment). The Subject Property was previously leased to Kilroy Realty, L.P. (Kilroy), as part of the planned Phase IV development of the Kilroy Airport Center. Phase IV of the development did not occur and the lease was terminated by Kilroy in 2009. The Subject Property has remained undeveloped with the exception of a portion of Parcel 7 that is currently encumbered by a lease with Don Temple Storage, LLC, but may be terminated by City under certain conditions provided in the agreement.
Urbana Development, LLC (Developer), approached the City about developing the Subject Property with an office building for Epson America, Inc. (Epson). Epson is a technology company headquartered in Long Beach at the Kilroy Airport Center under a sublease. The sublease terminates in 2019 and has approximately 450 employees at the existing location. Epson recently released a request for proposals for the construction of a new building with the goal of providing a modern and creative office environment to enable them to attract and retain the most competitive workforce. Epson does not believe that these goals can be accomplished without a new building. Planned amenities at the new building include creative office space, open floor plans, balcony decks, a showroom, restaurant(s), and coffee shop(s). The new building w...
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