Long Beach, CA
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File #: 20-0372    Version: 1 Name: ED - Lease w/Malibu Ceramics Works D1
Type: Contract Status: CCIS
File created: 4/15/2020 In control: City Council
On agenda: 5/5/2020 Final action: 5/5/2020
Title: Recommendation to authorize City Manager, or designee, to execute all documents necessary for the Second Amendment to Lease No. 29143 with Cal Art Design Group, Inc., dba Malibu Ceramic Works, for City-owned property at 903 Fairbanks Avenue. (District 1)
Sponsors: Economic Development, Parks, Recreation and Marine
Attachments: 1. 050520-C-12sr.pdf
Related files: 29143_002
TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for the Second Amendment to Lease No. 29143 with Cal Art Design Group, Inc., dba Malibu Ceramic Works, for City-owned property at 903 Fairbanks Avenue. (District 1)

DISCUSSION
On May 24, 2005, the City Council authorized the execution of Lease No. 29143 (Lease) with Cal Art Design Group, Inc., dba Malibu Ceramic Works (Tenant), for its tenancy of 903 Fairbanks Avenue (Premises) for the production and sale of commercial and residential tile and terra cotta products. The 1.22-acre Premises, which was originally purchased by the City of Long Beach (City) for the Drake/Chavez Greenbelt Project (Greenbelt Project), includes a single-story industrial building and employee parking lot. Malibu Ceramic Works was the tenant at the time of acquisition and the Lease allowed them to continue their tenancy on a month-to-month basis, until the commencement of the Greenbelt Project.

The first phase of the Greenbelt Project was opened in 2017, but additional funding for expansion to the Premises has yet to be identified. Concurrently, the Public Works Department identified a symbiotic use for the Premises, through its incorporation into the Long Beach Municipal Urban Stormwater Treatment (LB-MUST) project. LB-MUST, which proposes to improve water quality by intercepting and treating stormwater runoff normally discharging into the Los Angeles River, will require the demolition of the Premises to make way for the construction of a coastal wetland habitat area that is connected to the treatment facility located across the street. LB-MUST is scheduled to begin construction in 2021.

In early 2019, the Economic Development Department (ED) began discussions with the Tenant to negotiate a termination of the Lease. The Tenant is a longstanding local business with approximately 40 employees. In an effort to mitigate the anticipated impact that the termination of the Lease may have on the T...

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