TITLE
Recommendation to authorize City Manager to execute any and all documents necessary for the Second Amendment to Amended and Restated Lease with Kilroy Realty, L.P., a Delaware Limited Partnership, for property owned by the City of Long Beach and the Water Department 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 an Amended and Restated Lease with Kilroy Realty, L.P., a Delaware Limited Partnership (KRC), for property owned by the City of Long Beach (City) and the Water Department 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 the Lease. Effective as of April 1, 2003 and expiring on July 16, 2084, the Lease 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. The 9.16-acre Site is comprised of a 5.1-acre City-owned parcel formerly Leased to the California National Guard (Parcel 7) and a 4.06-acre Water Department-owned parcel (Parcel 9), which together with an adjoining 2.92-acre Water Department-owned parcel (Parcel 10), are considered Phase IV of development of the Kilroy Airport Center and the subject of this Lease amendment. Please see the attached Exhibit "A."
As set forth in the Lease, KRC has paid Holding Rent in the amount of $12,500 per month since the date that Parcel 7 was delivered to KRC (on or about April 15, 2003). The Lease stipulates that the City and KRC would determine the Initial Ground Rent for the Site through negotiations over a six-month period commencing on or about April 14, 2007, and ending on or about October 14, 2007 (54 months after delivery of Parcel 7).
At the end of this process, KRC wo...
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