To: MAYOR AND CITY COUNCIL
From: ELIZABETH HAUSE, WATERFRONT AND COMMUNITY SERVICES DIRECTOR
TITLE
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ADOPT BY TITLE ONLY, RESOLUTION NO. CC-2611-092, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, LEASING CERTAIN PROPERTY TO KING HARBOR CANTINA, LLC
APPROVE THE FIRST AMENDMENT TO THE LEASE WITH KING HARBOR CANTINA, LLC FOR THE PREMISES AT 207 NORTH HARBOR DRIVE TO INCREASE THE LEASED AREA BY 690 SQUARE FEET FOR THE EXISTING TERM THROUGH NOVEMBER 20, 2027
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EXECUTIVE SUMMARY
On November 21, 2023, the City entered into a lease with King Harbor Cantina, LLC, for the restaurant premises at 207 North Harbor Drive, formerly occupied by Samba by the Sea. The proposed first amendment to the lease authorizes the addition of an approximately 690-square-foot outdoor patio adjacent to the banquet room, expanding the total leased premises to approximately 10,933 square feet. The additional patio space is expected to support increased business activity and provide an opportunity for additional City revenue through the lease’s percentage rent structure. The amendment also updates the legal description and depiction of the premises, requires insurance coverage for the expanded area, and adds a lease guaranty from Christopher Bredesen and George Loren. The lease term remains unchanged and expires on November 20, 2027.
BACKGROUND
In May 2014, the City completed its purchase of the Redondo Beach Marina leasehold, which includes stand-alone restaurants, a marina, a large surface parking lot, and a public boat hoist. Following the termination of Samba by the Sea’s lease in 2023, the City entered into a four-year lease with King Harbor Cantina, LLC (Tenant), for the restaurant space at 207 North Harbor Drive (Premises), for the period November 21, 2023, through November 20, 2027. The Tenant operates a restaurant providing food, beverage, and alcohol service.
The existing lease provides for monthly minimum rent, currently $3,182 and subject to a 3% annual increase each November, or 8% of total gross sales, whichever is greater. In 2025, the Tenant paid $245,648 in rent to the City, with percentage rent exceeding the minimum rent each month.
The proposed First Amendment would expand the Premises to approximately 10,933 square feet by adding an approximately 690-square-foot outdoor patio adjacent to the banquet room. The expanded Premises would consist of an approximately 9,800-square-foot building, the existing 443-square-foot outdoor dining patio, and the new outdoor auxiliary patio. While the amendment does not change the lease’s rent structure or term, the additional patio space is expected to support business activity and may contribute to increased gross sales and, consequently, contributing additional percentage rent revenue to the City.
The amendment also replaces the lease’s existing legal description and depiction of the Premises with updated exhibits, requires the Tenant to provide insurance certificates covering the expanded Premises, and includes a lease guaranty from Christopher Bredesen and George Loren, who would be jointly and severally liable under the guaranty.
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 accrues to the City’s Harbor Tidelands Fund. The proposed amendment does not change the tenant’s monthly minimum rent. The lease requires the greater of a monthly minimum rent, currently $3,182, or 8% of gross sales. The tenant’s sales consistently exceed the minimum rent amount. To date the tenant has paid percentage rent every month of the lease. In 2025, the tenant paid $245,648 in total rent to the City.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Reso - No. CC-2611-092 Leasing Certain Property to King Harbor Cantina, LLC
• Agmt - Proposed First Amendment to the Lease between the City of Redondo Beach and King Harbor Cantina, LLC
• Agmt - Lease between the City of Redondo Beach and King Harbor Cantina, LLC, November 21, 2023