TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to terminate Lease No. 28285, and enter into a new lease with Heritage Yacht Sales, Inc., and Seacoast of Channel Islands, LLC, dba Seacoast Heritage Yacht Sales, for facilities located at 231 North Marina Drive, for a term of 15 years and one month, from February 1, 2018 through February 28, 2033. (District 3)
DISCUSSION
On January 28, 2003, the City Council authorized the execution of Lease No. 28285 with Naples Yacht Sales, Inc., for facilities located at 215 Marina Drive (Premises), in the Alamitos Bay Marina, for the operation of a marine vessel sales and brokerage business. The leased facilities consisted of building improvements and immediately adjacent dock space in the Alamitos Bay Channel. On October 17, 2006, the City Council approved a First Amendment to assign Lease No. 28285 from Naples Yacht Sales, Inc., to Heritage Yacht Sales, Inc. (Heritage). On February 17, 2009, the City Council approved a Second Amendment to Lease No. 28285 to amend the term and provisions of the lease allowing for the construction of a new reconfigured dock, gangway, and utilities, and adding Yacht Haven Marina, Inc., as a lease holder.
In May 2016, Heritage requested to sublet the Premises to a new company, Seacoast Heritage Yacht Sales (Seacoast), of which Heritage owns a 10 percent interest. Subsequently, Yacht Haven Marina, Inc., indicated its desire to terminate its portion of Lease No. 28285. To address these requested changes, ensure clear lines of responsibility, and properly reflect Seacoast’s interest, Heritage and City of Long Beach (City) staff have agreed to terminate Lease No. 28285, and enter into a new lease.
The proposed new lease (Lease) includes the docks as part of the leased Premises, provides a negotiated rent that recognizes Heritage’s prior investment in the docks, defines Seacoast’s use of the docks solely for the brokerage and sale of vessels,...
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