TITLE
Recommendation to authorize City Manager to execute any and all documents necessary for a Sublease to Lease No. 27583 between the City of Long Beach and the Long Beach Junior Concert Band, a nonprofit corporation, for use of warehouse and recreational space at 2311 South Street. (District 9)
DISCUSSION
The City leases a 25,000 square foot facility at 3211 Industry Drive in the City of Signal Hill under Lease No. 21427. A portion of this facility is used by Long Beach Gas and Oil and the remaining area is subleased by the City to the Long Beach Junior Concert Band (Band). The Lease for this facility will terminate on March 31, 2011.
Under Lease No. 27583, the City leases a 23,000 square foot facility at 2311 South Street (Site) which is utilized by the Department of Parks, Recreation and Marine (PRM) for various programming and recreational purposes. The City also subleases portions of the Site to the Long Beach Heritage Museum for storage purposes. In an effort to accommodate the Band's immediate need for a new location for storage and rehearsal purposes, PRM has recommended a Sublease with the Band for use of a portion of the Site.
The proposed Sublease would contain the following major terms and provisions:
· Master Lessor: Rivin Properties, L.P.
· Sublessor: City of Long Beach
· Sublessee: Long Beach Junior Concert Band
· Subleased Premises: The Subleased Premises shall consist of approximately 7,500 square feet of space located at 2311 South Street. Sublessor shall have the right to modify the Subleased Premises as needed to maintain its overall operations at the Site.
· Permitted Uses: The Subleased Premises shall be utilized for storage and rehearsal purposes in association with the Long Beach Junior Concert Band.
· Term: The term of the Sublease shall be on a month-to-month basis with an anticipated commencement date of April 1, 2011.
· Rent: As consideration for use of the Subleased Premises, the Sublessee shall provide five performances for City events at no cost. These performances shall be coordinated through the Department of Parks, Recreation and Marine.
· Insurance: Sublessee shall be required to maintain all insurance requirements for the Subleased Premises as outlined in the Master Lease.
The Master Lease for the Site will terminate in August 2012. This will allow sufficient time for the Band to identify and secure a permanent location that meets their needs.
This letter was reviewed by Deputy City Attorney Richard F. Anthony and by Budget Management Officer Victoria Bell on February 14, 2011.
TIMING CONSIDERATIONS
City Council action is requested on March 8, 2011 in order to execute the Sublease and allow the Band sufficient time to relocate.
FISCAL IMPACT
The Master Lease rental payments are paid by the General Fund (GP) in the Police Department (PD) budget within existing appropriations. There is no fiscal impact and no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
GEORGE CHAPJIAN
DIRECTOR OF PARKS, RECREATION AND MARINE
JIM MCDONNELL
CHIEF OF POLICE
APPROVED:
PATRICK H. WEST
CITY MANAGER