TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for the First Amendment to Lease No. 29263 with CDCF III Pacific Catalina Landing Long Beach, LLC, a Delaware limited liability company, for City-owned property generally located at 310-340 Golden Shore Avenue, commonly known as Catalina Landing, to extend the term of the Lease by 16 years, for a new expiration date of April 28, 2084. (District 2)
DISCUSSION
Catalina Landing is located at 310-340 Golden Shore Avenue in Downtown Long Beach. The property includes four office buildings, a parking structure, and an enclosed boat basin and landing facility adjacent to the office buildings. The property was developed under a previous ground lease with Crowley Development Corporation.
On June 27, 2000, the City Council authorized the execution of a new Lease No. 29263 (Lease), with John Hancock Realty Investment, successor-in-interest to Crowley Development Corporation. The Lease was subsequently assigned to AC-Catalina Landing, LLC, on June 25, 2002. In January of 2015, Bank of America acquired the leasehold interest through a foreclosure sale. On August 8, 2015, upon purchase, the Lease was assigned to the current lessee, CDCF III Pacific Catalina Landing Long Beach, LLC (Tenant).
The Lease established rental rates with five-year adjustments based on Consumer Price Index (CPI), while limiting that amount not to exceed 16 percent cumulative adjustment over that five-year timeframe. The ground rent under the existing terms of the Lease is currently $1,166,400 per year, and the Lease runs through April 28, 2068.
The current Tenant has begun an ambitious and innovative Capital Improvement and Asset Enhancement Program with an estimated investment of over $15,000,000 through 2021. The improvements will include structural and place-making improvements to the promenade, elevator and restroom; solar and battery projects; LED retrofits; electric vehicle charging stati...
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