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Recommendation to authorize City Manager to execute any and all documents necessary for a lease with Long Beach AirPark, LLC, a California limited liability company, for the development of approximately 1.23 acres of City-owned property at the Long Beach Airport, for a forty-year term, at the initial monthly rental rate of $3,220. (District 5)
DISCUSSION
The City of Long Beach is the owner of an undeveloped 1.23-acre parcel of land known as Parcel X-2 (Site), which is located on the southwest corner of the Long Beach Airport (Exhibit A).
In 2005, the City issued a Request for Qualifications (RFQ) for the development of an aviation-based project on the Site. The purpose of the RFQ was to elicit proposals from qualified developers with experience and financial strength/resources to develop the Site in a comprehensive manner. Of the six proposals received, five respondents were interviewed and Long Beach Airpark, LLC, (LBA) was selected as the prospective developer for the Site. Following the selection, LBA was required to obtain the necessary Federal Aviation Administration (FAA) approvals and further evaluate its business model. This process took approximately two years to complete.
On May 15, 2007, the City Council authorized the execution of an Exclusive Negotiating Agreement and Right of Entry Agreement between the City and LBA for the proposed development of Parcel X-2, for a one-year term through June 1, 2008. Subsequently, both parties executed the First Amendment to Agreement to Negotiate Exclusively, thereby extending the period of exclusive negotiations for an additional ninety-day period through September 1, 2008.
In an effort to facilitate the development and operation of the Site, a long-term lease has been negotiated with Long Beach Airpark, LLC. The proposed lease contains the following major terms and conditions:
· Lessor: City of Long Beach.
· Lessee: Long Beach Airpark, LLC, a California limited liability company.
· Premises: The...
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