TITLE
Recommendation to authorize City Manager, or designee, to execute any and all documents necessary for an Amended and Restated Ground Lease with Spring Street Holdings, LLC, a California limited liability company, for City-owned property located at the Southwest corner of East Spring Street and East Airport Lane at the Long Beach Airport. (District 5)
DISCUSSION
In 1971, the City executed Ground Lease No. 10914 (Lease) with Communications MFG Company for the use of approximately 0.95 acres of land as a surface parking lot at the southwest corner of East Spring Street and East Airport Lane (Leased Premises) at the Long Beach Airport (Airport). Since that time, the Lease has been assigned to several different entities with the most recent assignment occurring in 2004 to David P. Mileski, an individual, now doing business as Spring Street Holdings, LLC (Tenant). Tenant owns an adjacent office building at 3200 East Spring Street and utilizes the Leased Premises as surface parking for employees and visitors of its building. Since 2005, Tenant has also subleased the southerly portion of the Leased Premises for storage use to Marine Spill Response Corporation, which is a subtenant of its building.
The term of the Lease expired in 2013 and Tenant has continued to occupy the Leased Premises under a month-to-month tenancy as allowed under the Lease. This allowed the Airport flexibility to terminate the agreement for its own use or to address any changes in regulatory restrictions due its location relative to former Runway 16R-34L. With the removal of Runway 16R-34L and the Tenant’s interest in a longer term to support their business subtenants, an Amended and Restated Ground Lease has been negotiated containing the following major terms and provisions:
· Landlord: City of Long Beach, a municipal corporation.
· Tenant: Spring Street Holdings, LLC, a California limited liability company.
· Leased Premises: Approximately 0.95 acres of land located at the s...
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