TITLE
Recommendation to authorize City Manager to execute all documents necessary for the Fourth Extension Agreement to Lease No. 9406 between the City of Long Beach (Lessor) and Chevron U.S.A., Inc., (Lessee) for the continued operation of the service station at 3405 North Lakewood Boulevard through December 31, 2008 at a monthly rental rate of $12,249, with continued access to the premises through
March 31, 2009, at no cost, for restoration of the premises. (District 5)
DISCUSSION
On November 14, 1967, the City Council authorized the execution of Lease No. 9406 with Standard Oil Company of California, predecessor in interest to Lessee, for the operation of a gasoline service station on City-owned property at 3405 North Lakewood Boulevard (Premises) at the northwest corner of Lakewood Boulevard and Donald Douglas Drive for an initial 25-year term. Subsequent amendments extended the term through May 31 , 2008.
Effective April 1, 2009, the California Environmental Protection Agency, Air Quality Resources Board will require that all gasoline service stations with underground storage tanks shall have a Phase II Enhanced Vapor Recovery System in operation to reduce gasoline vapor emissions. This policy will affect the improvements on the Premises. In light of these new requirements, the Lessee has made the decision to discontinue operations on the Premises in the near future. The current lease term expired on May 31, 2008. The Lessee is currently operating under a holdover status while a firm decision was reached regarding future operations.
The Lessee has requested a lease term extension to continue operations through December 31, 2008. In addition, the extension will allow time for discussions between the Lessee and the Lessee's current on-site operator regarding a potential assignment and further extension of the lease for the continued operation of the station. The City would be in favor of such an arrangement; however, any proposed agreement would require ...
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