TITLE
Recommendation to authorize City Manager, or designee, to execute any and all documents necessary to include additional provisions in a new Sublease to Master Lease No. 9351 between Million Air North, Inc., a California corporation, and the City of Long Beach, for office space at 4401 Donald Douglas Drive, Suites 100 and 220; and
Increase appropriations in the Airport Fund in the Airport Department (AP) by $283,807. (District 5)
DISCUSSION
On April 19, 2022, City Council authorized both the execution of a First Amendment to Sublease No. 34607 for the continued use of office space in Suites 150 and 250, and a new sublease for additional office space in Suites 100 and 220 (New Sublease) with Million Air North, Inc. (MANI), for the subleased premises in the building located at 4401 Donald Douglas Drive at the Long Beach Airport (Airport). The New Sublease will provide office space for staff from several Airport divisions who need to be relocated from the historic terminal building, including the relocation of the Airport’s Dispatch and Badging Offices (Airport Offices) to a ground floor location that is more accessible and conducive to meet the current security and operational requirements of the Airport.
The respective subleases authorized by the City Council provided for a combined tenant improvement allowance in the amount of $394,540. One of the outstanding items at the time of the previous City Council action was the anticipated tenant improvement costs. The Airport has completed the design for the Airport Offices, which require enhanced tenant improvements to support specialized equipment and security requirements. In addition, construction and material costs have risen substantially due to supply chain issues and demands associated with the pandemic.
MANI has completed the bidding of the project to three general contractors and the lowest bidder has been identified. The total cost of the tenant improvements for the Airport Offices is estimate...
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