To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT & ECONOMIC DEVELOPMENT DIRECTOR
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ADOPT BY TITLE ONLY RESOLUTION NO. CC-2503-016, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, LEASING CERTAIN PROPERTY TO FIRSTSTEPS FOR KIDS, INC.
APPROVE AN AMENDMENT TO THE LEASE WITH FIRSTSTEPS FOR KIDS, INC. FOR A MONTHLY MINIMUM RENT OF $12,886 AND THE TERM MARCH 18, 2025 THROUGH APRIL 17, 2030
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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 City of Redondo Beach and FirstSteps for Kids, Inc. (Tenant) originally entered into a lease on April 6, 2021 to utilize three separate tenant spaces within Pier Plaza for office purposes. On December 21, 2021, an amendment to the Lease was approved, which allowed the tenant to vacate the three separate tenant spaces and move into one larger space within Pier Plaza at 119 West Torrance Boulevard, Suite 100 for a total square footage of 5,851 square feet.
The proposed second amendment to the Lease, would allow the business to expand into an adjacent tenant space and increase the total leased area to 6,377 square feet. The additional space would increase the revenue generated by the lease from $11,702 per month to $12,885.50. The lease includes a 61-month term and an annual 3% rate increase on the anniversary date.
BACKGROUND
The City of Redondo Beach and FirstSteps for Kids, Inc. (Tenant) originally entered into a lease on April 6, 2021 to utilize three separate tenant spaces within Pier Plaza for office purposes located within two suites at 109 West Torrance Boulevard, and one suite at 105 West Torrance Boulevard, totaling 5,271 square feet in size. On December 21, 2021, the parties entered into an amendment to the Lease, which allowed the tenant to vacate th...
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