TITLE
Recommendation to authorize City Manager to execute any and all documents necessary for the termination of Lease No. 25952 with Olen Commercial Realty Corp., a Nevada corporation, for City-subleased property at 3501 N. Lakewood Boulevard. (District 5)
DISCUSSION
In 1998, the City Council authorized the execution of Lease No. 25952 (Lease) between the City of Long Beach and Olen Properties Corp., as predecessor in interest to Olen Commercial Realty Corp. (Olen), for property at 3501 N. Lakewood Boulevard for use by the Field Services Division of the Long Beach Police Department. In 2007, the City Council authorized the execution of a new agreement for property at 3205 N. Lakewood Boulevard for the relocation of the Long Beach Fire Department Headquarters and the Field Services Division of the Long Beach Police Department. Occupancy of the new site occurred in early 2008.
Under the terms of the Lease for the Olen property, the City is responsible for the restoration of the leased premises prior to expiration or early termination of the Lease.
This includes the removal of all furniture, fixture and equipment and cleaning of the site, the removal of tenant improvements from and restoration of the north and south hangars, asphalt repair and the removal of underground storage tanks for gasoline and jet fuel installed on the leased premises by the City. All work necessary for restoration of the leased premises has been completed except for the removal of the jet fuel tank (Tank).
The cost for removal of the Tank, restoration of the Tank site and salvaging of the excavated Tank improvements is estimated at approximately $55,000. Because of the damage caused to the Tank upon removal, there is no resale value for the improvements. The improvements are salvaged and the salvage value received is included in determining the cost estimate for removal. In lieu of removing the Tank, the Landlord has agreed to accept responsibility for the Tank in its "as-is" condition...
Click here for full text