TITLE
Recommendation to authorize City Manager to execute all documents necessary to assign Lease No. 28285 from Naples Yacht Sales, Inc., a California corporation, to Heritage Yacht Sales, Inc., a California corporation. (District 3)
DISCUSSION
On January 28, 2003, the City Council authorized the execution of a five-year lease (Lease) with Naples Yacht Sales, Inc. (Assignor), for the operation of a marine vessel sales and brokerage business at 231 Marina Drive in the Alamitos Bay Marina. The leased facilities consist of building improvements and immediately adjacent dock space in the Alamitos Bay Channel.
On June 19, 2006, the Assignor contacted the Department of Parks, Recreation and Marine (Department) regarding the pending sale of the business to Heritage Yacht Sales, Inc. (Assignee), owned and operated by Toni and Ann Duni. In accordance with the Lease, the City must provide prior written approval to assign the Lease interest.
Keyser Marston Associates (KMA) was requested to review the financial capacity and business expertise of Toni and Ann Duni. KMA's analysis report supports a conditional assignment of the Lease requiring the Duni's to provide a letter of credit as a guarantee for the annual minimum rent.
The terms and conditions of the assignment are as follows:
· Assignor: Naples Yacht Sales, Inc., a California corporation.
· Assignee: Heritage Yacht Sales, Inc., a California corporation.
· Security deposit: Assignee shall provide a letter of credit in favor of the City of Long Beach in the amount of the annual minimum rent. If Assignee fully performs under the Lease and Assignee's account is in good standing at the end of the initial five-year term, the letter of credit requirement shall be terminated.
· Premises: Building located at 231 Marina Drive and immediately adjacent dock space in the Alamitos Bay Channel.
· Use: The premises shall be used for office space in conjunction with the sale and brokering of marine vessels. The assigned d...
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