TITLE
Recommendation to authorize City Manager, on behalf of the Successor Agency to the Redevelopment Agency of the City of Long Beach, to execute a second amendment to the Ground Lease originally executed by the Redevelopment Agency of the City of Long Beach and American Stores Properties, Inc., for the property commonly known as Wrigley Marketplace. (District 6)
DISCUSSION
The City of Long Beach (City), as Successor Agency to the Redevelopment Agency of the City of Long Beach (Successor Agency), owns certain real property located at 101 to 281 East Willow Street, and commonly known as the Wrigley Marketplace (Property). The Property is categorized as “for sale” in the Long Range Property Management Plan approved by the State of California Department of Finance on March 10, 2015, and amended on June 24, 2015 (Revised Plan). The Revised Plan identified 57 for-sale properties, comprising 27 sites. The Wrigley Marketplace is one of just two sites that have not yet been sold or entered escrow.
The Property is encumbered by a Ground Lease dated January 26, 1998 (Ground Lease), executed by and between the former Redevelopment Agency of the City of Long Beach (Agency), as landlord, and American Stores Properties, Inc. (Tenant), as tenant. The Ground Lease was amended on April 21, 1999. The Successor Agency has succeeded to the interest of the Agency as landlord under the Ground Lease. The initial lease term began on February 1, 2008 and will expire on February 1, 2043. The Tenant has ten five-year options that may be used to extend the Lease.
The Ground Lease grants the Tenant a right of first refusal in connection with any proposed sale of the Property by the Agency (or its successors) to a third-party (the Right of First Refusal). The Successor Agency must provide notice of any proposed sale terms to the Tenant. The Tenant thereafter has six months within which to accept or reject such proposed terms. If the Tenant rejects the terms, then the Successor Agency...
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