TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for the Fourth Amendment to Lease No. 20968 with the C. and D. Hansen Revocable Trust to amend certain provisions of the Lease to reconcile rents deferred as a result of the directed temporary closure of the Leasehold due to the COVID-19 pandemic and subsequent Health Order for the Control of COVID-19 distancing directive. (District 3)
DISCUSSION
On August 8, 1989, the City Council authorized the execution of Lease No. 20968 (Lease) with James A. Brennan and Berton J. Simon (Original Tenant) and a sublease with Belmont Brewing Company, Inc. (Sublessee), for the use of approximately 1,600 square feet of City of Long Beach-owned (City) property located at the southern end of 39th Place (Attachment). The Lease allowed the Sublessee to use the City’s property for outdoor seating (Patio) in connection with its adjacent brewpub operation, Belmont Brewing Company. Subsequent modifications to the Lease have included the expansion of the Patio area, term extensions, and various assignments of the leasehold interest. The current Lessee is C. and D. Hansen Revocable trust (Lessee), and the Patio currently totals 2,248 square feet, representing approximately 29.3 percent of Belmont Brewing Company’s total restaurant operations, with the remainder comprised of indoor dining, kitchen, restrooms, etc.
The COVID-19 pandemic and the subsequent Health Order for the Control of COVID-19 distancing directive greatly impacted the restaurant and hospitality sectors in Long Beach. At the height of the COVID-19 surge in both March and November 2020, Long Beach restaurants were directed to close all indoor and outdoor dining for an extended period of time. This directive forced restaurants to pivot to take-out and delivery-only service models, which allowed them to continue to generate sales albeit at a significantly reduced capacity. During this time, the sales generated by the Lessee we...
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