TITLE
Recommendation to authorize City Manager, or designee, to execute any and all documents necessary including any necessary subsequent amendments, for a Lease with Mercedes-Benz USA, LLC, a Delaware limited liability company, for the City-owned surface parking lot at the corner of East Wardlow Road and Globemaster Way at the Long Beach Airport. (Districts 5)
DISCUSSION
In November 2015, Mercedes-Benz USA, LLC (Tenant), opened an approximate 1.1 million square foot facility at the 52-acre former Douglas Aircraft Company site on Lakewood Boulevard north of the Long Beach Airport (Airport). This facility includes the Long Beach Vehicle Preparation Center (VPC), which is one of four VPC facilities in the United States that prepare new vehicles destined for dealerships throughout the country. Beginning in 2016, Tenant leased a portion of the Airport’s surface parking lot at the corner of East Wardlow Road and Globemaster Way (Leased Premises) for vehicle storage under a month-to-month Commercial Use Permit (CUP) to support its VPC operation.
In April 2021, Tenant terminated the CUP due to the economic impacts from the COVID-19 pandemic on the automobile sales industry. Given recent increases in vehicle demand, Tenant has expressed an interest in a long-term Lease to meet its future vehicle storage needs. A Lease has been negotiated between the parties containing the following major terms and provisions:
· Landlord: City of Long Beach, a municipal corporation.
· Tenant: Mercedes-Benz USA, LLC, a Delaware limited liability company.
· Leased Premises: Approximately 11 acres of an improved surface parking lot at the corner of East Wardlow Road and Globemaster Way.
· Commencement Date: The target Commencement Date for the Lease is March 1, 2022.
· Term: The term of the Lease will be for a period of two years through February 28, 2024.
· Use: The Leased Premises will be used solely for motor vehicle storage. No vehicle maintenance or repairs will be p...
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