TITLE
Recommendation to authorize City Manager to execute any and all documents necessary for an amendment to Lease No. 7681 with the Alamitos Bay Yacht Club, a non-profit, public benefit corporation (ABYC), for City-owned land and improvements at 7201 East Ocean Boulevard, for an additional 25 years. (District 3)
DISCUSSION
On August 16, 1962, the City executed Lease No. 7681 with the ABYC for City-owned land at 7201 East Ocean Boulevard (Premises) for a term of 25 years at a rental rate of $1,800 per year. Under the Lease, the ABYC was also required to construct a new clubhouse and related improvements at a cost of not less than $100,000. Upon completion, ownership of the clubhouse and related improvements was transferred to the City.
On November 15, 1963, the City and the ABYC executed an Amendment to Lease, which expanded the premises to its present size of approximately 102,279 square feet (Exhibit A). On December 2, 1969, the City Council authorized the execution of a subsequent Amendment to Lease, which extended the term until August 15, 2022 at an initial rental rate of $2,400 per year, with Consumer Price Index (CPI) increases every five years throughout the term. This Amendment to Lease also required a further investment of $50,000 for capital improvements to the clubhouse. The current lease payment is $10,984 per annum.
The ABYC is now requesting a 25-year lease extension through October 2047 in order to finance a series of capital improvements, which will enhance the building and facilities. In addition to these capital improvements, the proposed extension includes a thirty-seven percent (37%) increase in the annual base rent to $15,000 per year, and a significant expansion to the ABYC Junior Sailing program, as further described.
The ABYC has been the home for a number of prominent sailing events since the early 1960s, and continues to host a variety of sailing activities that bring worldwide recognition to Long Beach, such as the Olympic Clas...
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