TITLE
Recommendation to authorize City Manager to execute the First Amendment to Amended and Restated Lease No. WDL-96 with Kilroy Realty, L.P., a Delaware Limited Partnership, for City and Water Department-owned property at the Kilroy Airport Center. (District 5)
DISCUSSION
On May 21, 2002, pursuant to Ordinance No. C-7808, the City Council authorized the General Manager of the Water Department to execute Amended and Restated Lease No. WDL-96 (WDL-96) with Kilroy Realty, L.P., a Delaware Limited Partnership (KRC), for Water Department and City-owned land at the Long Beach Airport. On September 3, 2002, the City Council authorized the execution of a Memorandum of Understanding between the Water Department and the City of Long Beach authorizing the City to act as the administrator of WDL-96. Effective as of April 1, 2003 and expiring on July 16, 2084, WDL-96 sets forth terms and conditions for the development of approximately 9.16 acres of land located adjacent to and westerly of Phase I through III of Kilroy Airport Center (Site). The Site is comprised of a 5.1-acre City-owned parcel formerly leased to the California National Guard (Parcel 7 or the CNG Parcel) and a 4.06acre Water Department-owned parcel (Parcel 9). Together with an adjoining 2.92-acre Water Department-owned parcel (Parcel 10), leased to KRC under Parking Lot Lease WDL-112, Parcels 7, 9 and 10 are considered Phase IV of development of the Kilroy Airport Center. Please see the attached Exhibit "A".
As set forth in WDL-96, KRC has been paying Holding Rent in the amount of $12,500 per month from the date that the CNG Parcel was delivered to KRC (on or about April 15, 2003) to the present. WDL-96 provides that the City and KRC will determine the Initial Ground Rent for the Site through negotiations over a sixmonth period commencing on or about April 14, 2007 and ending on or about October 14, 2007 (54 months after the delivery of the CNG Parcel). At the end of this process, KRC would (i) commence...
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