TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for a Second Amendment to Sublease No. 35339 with LINC-Palace Hotel Apartments Housing Investors, LP, a California limited partnership, for the City's continued use of a portion of the retail suite at 2640 East Anaheim Street, for pop-up retail and City programs. (District 4)
DISCUSSION
On August 13, 2019, City Council authorized Sublease No. 35339 (Lease) with LINC-Palace Hotel Apartments Housing Investors, LP (LINC), for the City's use of a retail suite measuring approximately 1,000 square feet (SF) on the ground floor of 2640 East Anaheim Street (Premises) (Attachment) for pop-up retail and City programs. LINC, which operates and manages the Premises, also operates a 14-unit affordable housing facility for transition-aged youth above the Premises, known as the Palace Hotel. The building is owned by Long Beach Community Investment Company (LBCIC) and leased to LINC through a long-term ground lease executed on May 28, 2010 and expiring on July 1, 2085.
Due to the impacts of the COVID-19 pandemic and the Safer at Home directive, the Economic Development Department (ED) did not get to utilize the Premises for as much pop-up retail as originally anticipated. However, as local businesses begin their recovery efforts, it is anticipated that demand to utilize the Premises will increase. In addition, ED has been using the Premises to conduct its BizCare Program Corner Pop Ups, wherein business owners who have been impacted by the COVID-19 pandemic are connected to important resources and information, such as grants, loans, technical assistance, information on City policies, and more.
The current term of the Lease expired on August 31, 2021. ED has negotiated an extension with LINC, which would allow the City to continue its use of the Premises for an additional year, with one one-year Renewal Option. To memorialize the extension of the Lease, a Second Amendment of the ...
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