To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT & ECONOMIC DEVELOPMENT DIRECTOR
TITLE
title
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2506-039, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA LEASING CERTAIN PROPERTY TO OPEN LINES SPEECH AND COMMUNICATION, P.C.
APPROVE A LEASE WITH OPEN LINES SPEECH AND COMMUNICATION, P.C. FOR THE PREMISES AT 105 W. TORRANCE BLVD., SUITE 200, FOR THE TERM JUNE 17, 2025 THROUGH JUNE 16, 2030
end
EXECUTIVE SUMMARY
In March 2012, the City purchased the Pier Plaza leasehold and began the process of direct leasing to various tenants. Pier Plaza is comprised of several buildings totaling approximately 75,000 square feet of office and retail uses. The space at 105 W. Torrance Blvd., Suite 200 (Premises) is approximately 2,494 square feet in size and is currently vacant.
The City has negotiated a new lease with Open Lines Speech and Communication, P.C. (Open Lines), a speech pathology practice that offers speech-language pathology and communication training to adults and children. The proposed lease would allow for a five-year term for the space and includes an option to terminate with 12-months prior written notice. Monthly rent for the lease, which would accrue to the City’s Harbor Uplands Fund, is $6,235 with an annual 3% increase.
BACKGROUND
The Pier Plaza leasehold is comprised of buildings 103 to 131 West Torrance Boulevard (on the top level of the Pier Parking Structure) and totals approximately 75,000 square feet of space. The property is comprised almost entirely of office uses, with the lone exceptions being a restaurant and child care center. Open Lines provides speech pathology and communication training and coaching, including nutrition, wellness, mindful movement education, and other non-clinical services.
The proposed lease carries a 5-year term with a minimum monthly rent of $6,235, or approximately $2.50 per square foot, with an annual 3% increase taking effect each year on the anniversary date of the Agreement.
COORDINATION
The Resolution and lease documents were reviewed and approved as to form by the City Attorney’s Office.
FISCAL IMPACT
Lease revenue from the property would accrue to the City’s Harbor Uplands Fund. The proposed lease would result in a minimum monthly rent of $6,235 during the first year, with an annual increase of 3% to the base rent each year thereafter. Over the 5-year term of the lease, revenue to the Harbor Uplands Fund is expected to be $397,229.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Reso - No. CC-2506-039 Leasing Certain Property to Open Lines Speech and Communication, P.C.
• Agmt - Proposed Lease Between the City of Redondo Beach and Open Lines Speech and Communication, P.C.