To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT & ECONOMIC DEVELOPMENT DIRECTOR
TITLE
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ADOPT BY TITLE ONLY RESOLUTION NO. CC-2509-067, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, LEASING CERTAIN PROPERTY TO GUNGHO ONLINE ENTERTAINMENT AMERICA, INC.
APPROVE AN AMENDMENT TO THE LEASE WITH GUNGHO ONLINE ENTERTAINMENT AMERICA, INC. FOR ADMINISTRATIVE OFFICE SPACE AT 127 W. TORRANCE BLVD., SUITE 100 AND 105 W. TORRANCE BLVD., SUITE 106, FOR THE TERM SEPTEMBER 2, 2025 TO SEPTEMBER 1, 2026
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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 GungHo Online Entertainment America, Inc. (GungHo or Tenant) originally entered into a lease on September 7, 2021 for the space located at 127 W. Torrance Blvd., Suite 100 for office purposes. The premises totals approximately 1,180 square feet.
The proposed amendment would increase the square footage of the leased premises to 2,185 square feet with an expansion into 105 W. Torrance Blvd., Suite #106, for a 1-year lease term, and include a new tenant improvement allowance. Monthly rent for the amended lease, which would accrue to the City's Harbor Uplands Fund, would be $5,375 with an annual 3% increase on the anniversary date.
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.
GungHo is a subsidiary of the Japanese gaming company GungHo Online Entertainment, Inc. which is a video game developer and publisher. The City of Redondo Beach and GungHo originally entered in...
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