Long Beach, CA
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File #: 22-012SA    Version: 1 Name: 080222-SA-Agreement-Real Property with IMT Capital IV Gallery, LLC
Type: SA-Resolution Status: In Committee
File created: 7/27/2022 In control: As the Successor Agency to the Redevelopment Agency of the City of Long Beach
On agenda: 8/2/2022 Final action:
Title: Recommendation to approve the second amendment to the Agreement Containing Covenants Affecting Real Property with IMT Capital IV Gallery, LLC., and authorize the City Manager to execute the agreement. (District 1)
Attachments: 1. 080222.sa.item2.pdf
TITLE
Recommendation to approve the second amendment to the Agreement Containing Covenants Affecting Real Property with IMT Capital IV Gallery, LLC., and authorize the City Manager to execute the agreement. (District 1)

DISCUSSION
Gallery 421 is a 291-unit apartment building with ground floor commercial uses on the block bounded by 3rd Street, Chestnut Avenue, Broadway, and Magnolia (Attachment A). The development was the subject of a Disposition and Development Agreement (DDA) among the former Redevelopment Agency of the City of Long Beach (succeeded by the Successor Agency to the Redevelopment Agency of the City of Long Beach ([Successor Agency]), the Long Beach Community Investment Company (formerly known as the Long Beach Housing Development Company) and Lyon West Gateway, LLC. IMT Capital IV Gallery, LLC, acquired Gallery 421 from Lyon West Gateway, LLC. The DDA includes an Agreement Containing Covenants Affecting Real Property (Agreement), executed in 2008, that prohibits certain uses, including a gymnasium or health club.

The Development Services ombudsperson was contacted this spring regarding the interest of 9Round Fitness, a kickboxing gym, in leasing ground floor space at Gallery 421. In order for 9Round Fitness to do so, the Agreement must be amended to remove the provision prohibiting a gymnasium or health club at street level. Development Services staff has reviewed 9Round’s proposal and has no objections to its locating within the ground floor commercial area of Gallery 421. At one time, gymnasiums and health clubs were not considered an activating ground floor use and were prohibited. This determination has changed, and ground floor gymnasiums can be found in Downtown Long Beach.

Staff recommends the Successor Agency authorize the City Manager to execute a second amendment to the Agreement to allow gymnasiums and health clubs at Gallery 421.

This matter was reviewed by Principal Deputy City Attorney Richard F. Anthony on July 18, 2022, and...

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