TITLE
Recommendation to authorize City Manager, or designee, to execute the First Amendment to the Lease for Parcel 2 of Parcel Map No. 15307, and the Second Amendments to the Leases for Parcels 3 and 5 of Parcel Map No. 15307, with Legacy Partners II LB Airport GL, LLC, a Delaware limited liability company, for City-owned property at 5000 and 5001 Airport Plaza Drive at the Long Beach Airport Business Park. (District 5)
DISCUSSION
On April 21, 1981, the City Council authorized the execution of Master Lease No. 15383 with Long Beach Airport Business Park, a California general partnership (Developer), composed of Signal Development Corporation and Carlton Browne and Company, Inc., for the development of the Long Beach Airport Business Park (Business Park) on City-owned property at the southeast corner of Lakewood Boulevard and Spring Street. The Master Lease provided for a 50-year term with a termination date of July 7, 2032.
The Business Park was divided into 16 parcels, each with its own lease, which mirror the Master Lease. The Developer constructed the improvements, acquired subtenants and subsequently assigned the leasehold interest in the parcels, thus creating multiple master tenants. There are currently seven master tenants, including the Developer, in the Business Park. The approximate 45-acre Business Park is comprised of 8 multi-story office buildings containing approximately 842,000 square feet (SF) of office space, a 311-room full service hotel, and surface and structured parking.
Parcels 2, 3 and 5 of Parcel Map No. 15307 of the Business Park (Attachment) have been subleased to various entities over the years. Parcel 3 contains a 73,817 SF office building (5000 Airport Plaza Drive) with exclusive parking located on Parcel 2. Parcel 5 contains a 52,401 SF office building (5001 Airport Plaza Drive) with exclusive parking located on Parcel 6, which is memorialized in a Parking and Development Agreement (Parking Agreement) executed in 1990. The P...
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