To: MAYOR AND CITY COUNCIL
From: JOHN LA ROCK, COMMUNITY SERVICES DIRECTOR
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APPROVAL OF THE SIXTH AMENDMENT TO THE LICENSE AGREEMENT WITH NORTHROP GRUMMAN SYSTEMS CORPORATION FOR USE OF THE AVIATION PARK GYMNASIUM AND A RENTAL FEE PAID TO THE CITY IN THE AMOUNT OF $9,404 PER MONTH FOR THE TERM APRIL 1, 2021 THROUGH MARCH 31, 2024 AND A TOTAL VALUE OF $338,544, WITH OPTIONS TO EXTEND THROUGH MARCH 31, 2030.
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EXECUTIVE SUMMARY
The public/private partnership between the City and Northrop Grumman for use of Aviation Gymnasium began in 1990 and continues through a negotiated license agreement. The recommended Sixth Amendment to the License Agreement has been prepared to continue the successful relationship between the parties under the original agreement and all subsequent amendments. Under the Sixth Amendment, the annual fee for Northrop Grumman's use of the facility will be $112,848. In addition to the use agreement for the Aviation Gymnasium, the City and Northrop Grumman maintain a separate agreement for the City's use of North Grumman property parking to support the events and activities at the Redondo Beach Performing Arts Center and the Aviation Gymnasium and Park.
The term of the Sixth Amendment is for a period of three years, beginning on April 1, 2021 and expiring on March 31, 2024. Extensions of the amendment and agreement are available to the parties for 2 three-year terms beyond the termination date of the recommended Sixth Amendment.
BACKGROUND
Since 1990, a use agreement between the City and Northrop Grumman for use of the Aviation Park Gymnasium has generated income to offset operating costs of the Gym, while minimally impacting the community recreation and organized sports that use the facility. The user agreement and amendments require monthly rent paid by Northrop Grumman to the City for Northrop's use of the facilities. In addition to the use fees, the use agreement is companion to a separate agreement between the City ...
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