Long Beach, CA
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File #: 20-0441    Version: 1 Name: ED - Lease w/MHA D6
Type: Contract Status: CCIS
File created: 4/30/2020 In control: City Council
On agenda: 5/19/2020 Final action: 5/19/2020
Title: Recommendation to authorize City Manager, or designee, to execute all documents necessary for a Fifth Amendment to Lease No. 34078 (Lease) with Mental Health America of Los Angeles (MHA), to amend the default provision in the Lease. (District 6)
Sponsors: Economic Development
Attachments: 1. 051920-C-4sr.pdf
TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for a Fifth Amendment to Lease No. 34078 (Lease) with Mental Health America of Los Angeles (MHA), to amend the default provision in the Lease. (District 6)

DISCUSSION
On March 19, 2013 and May 2, 2017, the City Council authorized Lease No. 34078 (Lease) with Mental Health America of Los Angeles (MHA) for tenancy of City-owned property located at 1955-65 Long Beach Boulevard (Leased Premises). The Leased Premises, which were purchased by the City expressly for the purpose of providing homeless services by MHA, needed significant improvements. In addition to authorizing execution of the Lease, $1,200,000 was approved for tenant improvements (TIs), which are nearing completion. The Lease contains a requirement that MHA begin significant operations at the Leased Premises on or before the third anniversary of the Commencement Date, which was later made time-certain as June 1, 2019 (Operational Date) via the Second Amendment to the Lease, and further extended to October 31, 2019 via the Third Amendment to the Lease, and May 1, 2020 via the Fourth Amendment to the Lease. Due to the COVID-19 pandemic and the closure of non-essential businesses, MHA has requested that the Operational Date be further amended to September 1, 2020. Therefore, approval of a Fifth Amendment is requested to memorialize the new Operational Date.

This matter was reviewed by Deputy City Attorney Richard F. Anthony on April 27, 2020 and by Budget Management Officer Rhutu Amin Gharib on April 29, 2020.

TIMING CONSIDERATIONS
City Council action is requested on May 19, 2020, to memorialize the new Operational Date and allow for the execution of the Fifth Amendment to the Lease.

FISCAL IMPACT
The requested amendment will extend the Operational Date to September 1, 2020. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Counci...

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