TITLE
WITHDRAWN
Recommendation to authorize City Manager to execute all documents necessary for the assignment of the lease for City-owned property at 600 Queensway Drive from Long Beach Group Inc., a California Corporation, to LBH Land Holding Company, LLC, a California limited liability company, and to execute an Amended and Restated Lease between LBH Land Holding Company, LLC, and the City of Long Beach for development of a 152-room hotel. (District 2)
DISCUSSION
In April 1987, the Board of Harbor Commissioners entered into a lease with Quiet Cannon Long Beach, Inc., for the operation of a restaurant with a banquet room and cocktail lounge at 600 Queensway Drive (see Exhibit "A). Subsequently, a number of
lease assignments ensued and in 1994, the Lease was assigned to the current lessee, Long Beach Group Inc., DBA Naga Restaurant. Per the Lease terms, the City receives an annual base rent of $32,196 and percentage rent based on gross sales above the annual base rent. Over the past eight years, the Lease has generated only the minimum base rental as the restaurant has not achieved the success anticipated. The Department of Community Development currently administers the Lease. Long Beach Group has requested the City's consent to the assignment of the Lease to LBH Land Holding Company, LLC, a California limited liability company (LBH). It is LBH's intention to enter into an Amended and Restated Lease for the removal of the existing improvements and the development of a hotel. The proposed hotel, "Residence Inn by Marriott," will be the only extended stay hotel located on the waterfront in the Queensway Bay area.
Staff, with the assistance of real estate consulting firm Keyser Marston and Associates (KMA), have reviewed LBH's financial background for assignment of the Lease and for the development and operation of the proposed hotel. KMA has concluded that LBH has the financial capability and sufficient background and experience as a hotel developer and opera...
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