Long Beach, CA
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File #: 22-0542    Version: 1 Name: ED - Lease for office space for certain veterans organizations D1
Type: Contract Status: CCIS
File created: 4/28/2022 In control: City Council
On agenda: 5/17/2022 Final action: 5/17/2022
Title: Recommendation to authorize City Manager, or designee, to execute all documents necessary for the Sixth Amendment to Lease No. 29995 (Lease) between Long Beach Center Loan, LLC, a Delaware limited liability company, as successor in interest to Long Beach Center, LLC (Landlord), and the City of Long Beach (Tenant), for a three-month extension for City-leased office space at 420 Pine Avenue, Suite No. P-100 (Premises), for the offices of certain veterans' organizations; and Authorize City Manager, or designee, to execute all documents necessary to amend Sublease No. 30276 with Arthur L. Peterson Post No. 27, Inc., The American Legion, Department of California, and Sublease No. 30277 with Long Beach Chapter No. 17, Disabled American Veterans, Inc. (collectively, Subtenants), for the sublease of the Premises. (District 1)
Sponsors: Economic Development
Attachments: 1. 051722-C-4sr&att.pdf
Related files: 29995_007

TITLE

Recommendation to authorize City Manager, or designee, to execute all documents necessary for the Sixth Amendment to Lease No. 29995 (Lease) between Long Beach Center Loan, LLC, a Delaware  limited liability company, as successor in interest to Long Beach Center, LLC (Landlord), and the City of Long Beach (Tenant), for a three-month extension for City-leased office space at 420 Pine Avenue, Suite No. P-100 (Premises), for the offices of certain veterans' organizations; and

 

Authorize City Manager, or designee, to execute all documents necessary to amend Sublease No. 30276 with Arthur L. Peterson Post No. 27, Inc., The American Legion, Department of California, and Sublease No. 30277 with Long Beach Chapter No. 17, Disabled American Veterans, Inc. (collectively, Subtenants), for the sublease of the Premises.  (District 1)

 

DISCUSSION

On June 8, 2021, the City Council authorized the execution of the Fifth Amendment to Lease No. 29995 (Lease) for the City's continued leasing of 420 Pine Avenue, Suite No. P-100 (Premises) (Attachment) and amendments to Subleases No. 30276 and 30277 with Subtenants for the continued sublease of the Premises. The Lease expired on March 31, 2022 and is currently on a month-to-month holdover status.

 

In 1936, the City of Long Beach (City) and the County of Los Angeles (County) joined together to construct the Veterans' Memorial Building (Original Building) at the northwest corner of Broadway and Pacific Avenue for the exclusive use and benefit of the Subtenants. The City contributed the land, and the County contributed the funding for the construction of the Original Building. The Agreement required that the City be given exclusive jurisdiction over the management, operation, control, maintenance, upkeep, and repair of the Original Building. In 1952, the State Attorney General opined that the Agreement created an easement benefiting the Subtenants, thereby obligating the City to maintain a facility for the Subtenants until the easement is abandoned.

 

Since that time, the City has continued to maintain office space for Subtenants which necessitated several relocations. The Subtenants have occupied the Premises since 2016, when they relocated at the option of the Landlord. To find a permanent location for Subtenants and reduce operating costs, space was identified within the Billie Jean King Main Library (Library). Planning and relocation efforts were underway until the onset of the COVID-19 pandemic, which delayed the move process.  While move efforts are currently underway, the Landlord and City have negotiated an extension to the Lease to provide sufficient time for the Subtenants to relocate.

 

To continue to meet the City's obligation to provide a facility for the Subtenants and the additional time needed to complete the Subtenants' relocation, staff recommends a Sixth Amendment to Lease No. 29995 containing the following major terms and conditions:

 

                     Landlord: Long Beach Center Loan, LLC, a Delaware limited liability company, as successor in interest to Long Beach Center, LLC.

 

                     Tenant: City of Long Beach, a municipal corporation.

 

                     Premises: Approximately 1,908 square feet of ground floor office space at 420 Pine Avenue, Suite No. P-100.

 

                     Use: General offices for the Subtenants.

 

                     Amended Term: Lease will be extended through June 30, 2022.

 

                     Rent: The monthly base rent will remain at $4,378.56.

 

                     Utilities Services and Taxes: The City will continue to be responsible for its pro-rata share of the property operation costs including common area maintenance charges, real estate taxes, utilities, and other property-related expenses.

 

The Sublease with each of the Subtenants will be amended to contain the following major terms and conditions:

 

                     Sublandlord: City of Long Beach, a municipal corporation.

 

                     Subtenants: Arthur L. Peterson Post No. 27, Inc., The American Legion, Department of California, and Long Beach Chapter No. 17, Disabled American Veterans, Inc.

 

                     Premises: Approximately 1,908 square feet of ground floor office space for the veterans' organizations at 420 Pine Avenue, Suite No. P-100.

 

                     Use: General offices of the Subtenants.

 

                     Amended Term: Each Sublease will be extended through June 30, 2022.

 

                     Rent, Utilities, Services, and Taxes: As discussed above, it is the City's obligation to provide office space for the Subtenants.

 

All remaining terms and provisions of Lease No. 29995 and Subleases No. 30276 and 30277 will remain in full force and effect.

 

This matter was reviewed by Principal Deputy City Attorney Richard F. Anthony on April 25, 2022 and by Budget Operations and Development Officer Rhutu Amin Gharib on May 1, 2022.

 

TIMING CONSIDERATIONS

City Council consideration of this Amendment is requested on May 17, 2022, to finalize and execute the Sixth Amendment to Lease No. 29995 and Subleases.

 

FISCAL IMPACT

The recommended action will extend the term of the Lease for an additional three months. The monthly cost, including base rent and common area operating expenses, will be approximately $5,900. The total rent for the three-month extension term will be $17,700 in Fiscal Year 22. Funding to cover these expenses is budgeted in the Civic Center Fund Group in the Economic Development Department. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.

 

SUGGESTED ACTION

Approve recommendation.

 

Respectfully Submitted,

JOHNNY M. VALLEJO

ACTING DIRECTOR OF

ECONOMIC DEVELOPMENT

 

 

 

APPROVED:

 

THOMAS B. MODICA

CITY MANAGER