To: MAYOR AND CITY COUNCIL
From: STEPHEN PROUD, WATERFRONT & ECONOMIC DEVELOPMENT DIRECTOR
TITLE
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ADOPT BY TITLE ONLY RESOLUTION NO. CC-2104-032, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, LEASING CERTAIN PROPERTY TO RDR PROPERTIES, LLC
APPROVE THE 2ND AMENDMENT TO THE MASTER LEASE BETWEEN THE CITY OF REDONDO BEACH AND RDR PROPERTIES, A CALIFORNIA LLC, FOR THE LEASEHOLD COMMONLY KNOWN AS THE REDONDO PIER APPROACH LOCATED AT 100 FISHERMAN'S WHARF TO MODIFY THE CALCULATION OF PERCENTAGE RENT FOR SPACES 100 "I" AND 100 "J" FISHERMAN'S WHARF
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EXECUTIVE SUMMARY
In 2008, the City executed a lease with RDR Living Trust for the area commonly referred to as the Redondo Pier Approach and/or the Redondo Landing. The lease was amended in 2012 and subsequently assigned to RDR Properties in 2015. RDR Properties is seeking a Second Amendment to the lease to modify the percentage rent applicable to the two basement spaces located at 100 "I' and 100 "J" Fisherman's Wharf.
The proposed lease amendment would modify the percentage rent calculation for the basement spaces from a 3.5% share of all gross revenues to a 12% share of all rent collected by RDR Properties from any tenant occupying the spaces. The basement rent may be comprised of base rent, percentage rent, or a combination of both. The basement spaces have been vacant for several years and the modification to the percentage rent structure is expected to enhance the marketability and occupancy of the spaces.
BACKGROUND
In 2008, the City executed a lease with RDR Living Trust for the area commonly referred to as the Redondo Pier Approach and/or the Redondo Landing. The lease was amended in 2012 and subsequently assigned to RDR Properties in 2015. The leasehold is approximately 30,000 square feet split into 14 spaces on three levels, primarily occupied by retail shops and restaurants.
The basement level of the leasehold is comprised of two spaces - 100 "I" and 100...
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