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-2611-093, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, LEASING CERTAIN PROPERTY TO SUNRISE-HARBOR LTD.
APPROVE THE SECOND AMENDMENT TO THE LEASE WITH SUNRISE-HARBOR LTD. FOR THE REDONDO BEACH HOTEL AT 400 NORTH HARBOR DRIVE TO UPDATE THE REQUIRED HOTEL STANDARD AND MODIFY THE RENOVATION FUND PROVISIONS
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EXECUTIVE SUMMARY
The Redondo Beach Hotel, located at 400 North Harbor Drive, is owned and operated by Sunrise-Harbor Ltd. (Lessee) under a Ground Lease with the City dated December 18, 2013. In 2020, the Lessee entered into a franchise agreement with Hilton Franchise Holding LLC to operate the hotel as part of the Hilton Tapestry Collection, an upper-midscale soft brand. In 2021, the City Council approved a First Amendment to the Lease in response to the Lessee’s request for COVID-19-related financial relief, eliminating the Furniture, Fixtures, and Equipment (FF&E) Fund and releasing the remaining fund balance to the Lessee. To align the existing lease with the requirements of the Hilton franchise, the Lessee has requested a second amendment to the Lease.
The proposed second amendment updates the Required Hotel Standard to reflect current franchise brand standards and modifies the Renovation Fund provisions to allow for ongoing, incremental improvements consistent with the franchise agreement, rather than a single fixed renovation event. The amendment also includes a provision that, should the Hilton franchise agreement terminate or expire, the original single-renovation-event requirement would be reinstated. Adoption of the Resolution is required to implement the proposed second amendment.
BACKGROUND
Sunrise-Harbor Ltd. Is the current Lessee under the Ground Lease with the City of Redondo Beach, dated December 17, 2013, for the premises occupied by the Redondo Beach H...
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