TITLE
Recommendation to authorize City Manager to execute an amendment to Lease No. 30946 for lease of excess Terminal Island Freeway right-of-way to Wilmington-Lomita Blvd., LLC, a California limited liability company, increasing the leased land from 2.79 net acres to 5.77 net acres, and the monthly rent from $6,900 to $14,260, with all other lease provisions remaining the same. (District 7)
DISCUSSION
On September 23, 2008, City Council approved a lease of excess Terminal Island Freeway right-of-way to Wilmington-Lomita Blvd., LLC (WLB). Please see the Council letter attached as Exhibit A. WLB has initiated required and requested improvements to the site in anticipation of occupancy in early 2009. On a parallel track, WLB had anticipated acquiring property at the southwest corner of Orange Avenue and Spring Street for parallel operations. This acquisition effort was not successful.
As a result, WLB is in need of additional right-of-way in order to continue operations as originally contemplated. In that regard, staff has identified an additional 2.98 acres of excess Terminal Island Freeway right-of-way, southerly of the existing lease area. Please see the attached Exhibit B.
Staff proposes to amend the existing lease to include the additional excess Terminal Island Freeway right-of-way, increasing the leased land from 2.79 net acres to 5.77 net acres, and the monthly rent from $6,900 to $14,260, with all other lease provisions remaining the same.
This letter was reviewed by Deputy City Attorney Richard F. Anthony on January 14, 2009 and by Budget Management Officer Victoria Bell on January 14, 2009.
TIMING CONSIDERATIONS
City Council action on this matter is requested on February 3, 2009 in order to accommodate WLB's restrictive time frame for occupancy.
FISCAL IMPACT
Monthly rent in the amount of $14,260 including annual adjustments, for the excess Terminal Island Freeway right-of-way will accrue to the General Fund (GP) in the Department of Co...
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