TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for a First Amendment to Lease No. 35645 with GCC Long Beach, LLC (Landlord), for the City of Long Beach’s continued use of 2019 East Wardlow Road as a temporary Fire Station 9 for an additional 18 months through March 31, 2025. (District 5)
Levine Act: Yes
DISCUSSION
In 2019, the City of Long Beach (City) permanently closed Long Beach Fire Department (LBFD) Station 9 located at 3917 Long Beach Boulevard due to recurring issues with mold and employee safety. On July 14, 2020, City Council approved Lease No. 35645 (Lease) with GCC Long Beach, LLC, a Delaware limited liability company (Landlord) for the City’s use of 2019 East Wardlow Road (Premises - Attachment) as a temporary Fire Station 9 for a period of three years through 2023. Concurrently, the City identified and purchased 4101 Long Beach Boulevard for the construction of the permanent Fire Station 9 (New Site) and began efforts to plan, develop and construct the New Site to the required needs and specifications of the new Fire Station. As the planning of the New Site is ongoing, an extension to the Lease is necessary to avoid any disruptions to service in the response area. The Landlord has agreed to extend the Lease under certain modified provisions, which includes a rent increase to $40,000 per month, or $2.40 per rentable-square-foot (RSF) of building space. While the increase is significant from the original Lease rate of $10,000 per month, it should be noted that the original Lease rate was substantially below market and the proposed rent of $2.40 per RSF is still below the current market rate for similar properties.
To that end, staff has negotiated a First Amendment to the Lease containing the following significant terms and provisions:
· Landlord: GCC Long Beach, LLC, a Delaware limited liability corporation.
· Tenant: City of Long Beach, a municipal corporation.
· Premises: Approximately 2.8 ...
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