TITLE
Recommendation to authorize City Manager, or designee, to amend and restate Permit No. 27276 with Harbor Breeze Corporation, for the use of docks in Rainbow Harbor for charters, harbor cruises, and whale watching tours, for a term of 15 years, with three additional five-year renewal options, at the discretion of the City Manager. (District 2)
DISCUSSION
At its meeting on April 24, 2001, the City Council approved Permit No. 27276 with Harbor Breeze Corporation (Harbor Breeze) to operate charters, harbor cruises, and whale watching tours for a five-year term, with three additional five-year renewal options. Since that time, there have been four amendments to the lease exercising all renewal options and extending the term through November 30, 2027.
Harbor Breeze was one of the first commercial operators in the newly built Rainbow Harbor and has been the most successful single operator in the Rainbow Harbor (Attachment). Company sales have grown from approximately $300,000 in 2001, $3 million in 2011, and over $7 million in 2018 and 2019. Harbor Breeze pays approximately $150,000 a year in dock fees and paid the City approximately $250,000 in percentage rent in 2019.
Harbor Breeze has been a leader in whale watching excursions in Southern California and has brought significant attention to the City of Long Beach (City) due to their success in the whale watching business. In addition, Harbor Breeze partnered with the Aquarium of the Pacific for whale watching and nature tours and has received positive remarks from Aquarium of the Pacific’s Chief Executive Officer Jerry Schubel for its professionalism and contributions to Long Beach.
Harbor Breeze has again expanded its business operations with the purchase of a larger, state-of-the-art passenger vessel, the Sir Winston, which cost approximately $5.3 million. The Sir Winston began operating out of Rainbow Harbor in July 2018. With the addition of the new vessel, Harbor Breeze sales have increased to over $7...
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