TITLE
Recommendation to authorize City Manager to execute the First Amendment to Lease No. 28285 with Heritage Yacht Sales, Inc., to amend the term and provisions of the Lease allowing for the construction of a new reconfigured dock, gangway, and utilities in Basin No. 1, located in Alamitos Bay Marina; and add Yacht Haven Marina, Inc., a California corporation, as a lease holder along with Heritage Yacht Sales, Inc. (District 3)
DISCUSSION
In October 2008, Mr. Tony Duni (Lessee), owner of both Heritage Yacht Sales, Inc.
(Heritage) and Yacht Haven Marina, Inc., submitted a proposal to the Department of Parks, Recreation and Marine (PRM) regarding the construction of a new reconfigured dock, gangway, and utilities at Basin #1, located in Alamitos Bay Marina. The anticipated cost of this project is $400,228, and shall be the sole responsibility of Lessee. Upon completion of the project, all improvements shall become the property of the City of Long Beach.
Heritage operates offices in Long Beach and Newport Beach. Along with the brokering of all types of marine vessels, Heritage is the Southern California dealer for Mainship Trawlers and Alerion Express Sailboats. Heritage owns and operates Yacht Haven Marina, Inc., in the Port of Los Angeles, where they manage a total of 165 slips ranging in size from 30 feet to 65 feet. PRM supports Lessee's ability to coordinate and complete the project, which will increase marine trade, providing a positive economic impact for the City of Long Beach.
In exchange for the capital investment, PRM negotiated the following major provisions:
· Term: March 1,2009 through February 28, 2033.
· Authorized Use: Premises shall be used for the sale and brokering of marine vessels.
· Minimum Rent: The annual minimum rent shall be $24,000. A temporary reduction of the annual minimum rent will become effective upon issuance of the certificate of occupancy. For five consecutive years thereafter, the annual minimum rent shall be $18,000. ...
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