TITLE
Recommendation to authorize City Manager, or designee, to execute the Second Amendments to the Leases for Parcels 4, 5, and 6 of Map No. 17454 with 4900 Long Beach Office, LLC, a Delaware limited liability company, a single purpose entity wholly owned by Starwood Property Trust, Incorporated, for City-owned property at the Long Beach Airport Business Park at 4900 and 4910 Airport Plaza Drive. (Districts 4,5)
Levine Act: Yes
DISCUSSION
On April 21, 1981, the City Council authorized the execution of Master Lease No. 15383 with Long Beach Airport Business Park, a California general partnership (Developer), composed of Signal Development Corporation and Carlton Browne and Company, Inc., for the development of the Long Beach Airport Business Park (Business Park) on City-owned property at the southeast corner of Lakewood Boulevard and Spring Street. The Master Lease provided for a 50-year term with a termination date of July 7, 2032.
The Business Park was divided into 16 parcels, each with its own lease, which mirror the Master Lease. The Developer constructed the improvements, acquired subtenants, and subsequently assigned the leasehold interest in the parcels, thus creating multiple master tenants. There are currently nine master tenants in the Business Park. The approximately 45-acre Business Park is composed of eight multi-story buildings containing approximately 842,000 square feet of office space, a 311-room full-service hotel, and structured parking.
Parcels 4, 5, and 6 of Map 17454 (Leases or Leased Premises) were previously leased to Arden Realty Partnership and consist of two office buildings and a parking structure. On December 18, 1995, a First Amendment for Parcels 4 and 5 was executed to extend those Leases for an additional 18-year period, with a new termination date of December 31, 2050. Subsequently, Parcel 6 was also amended in a similar manner on September 11, 2006. The Leases have been subsequently assigned to several different en...
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