To: MAYOR AND CITY COUNCIL
From: STEPHEN PROUD, WATERFRONT & ECONOMIC DEVELOPMENT DIRECTOR
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ADOPT BY TITLE ONLY RESOLUTION NO. CC-2106-049, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, LEASING CERTAIN PROPERTY TO SUNRISE-HARBOR, LTD.
APPROVE THE 1st AMENDMENT TO THE MASTER LEASE BETWEEN THE CITY OF REDONDO BEACH AND SUNRISE-HARBOR, LTD, A CALIFORNIA LIMITED PARTNERSHIP, FOR THE LEASEHOLD COMMONLY KNOWN AS THE REDONDO BEACH HOTEL TO REMOVE THE REQUIREMENT FOR THE FURNITURE FIXTURES AND EQUIPMENT FUND
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EXECUTIVE SUMMARY
In December 2013, the City executed a lease with Sunrise-Harbor Ltd. ("Lessee") for the leasehold commonly referred to as The Redondo Beach Hotel. Lessee is seeking a First Amendment to the lease to remove the requirement for a Furniture, Fixtures, and Equipment ("FF&E") Fund and to release the current fund balance back to the Lessee.
BACKGROUND
In December 2013, the City executed a lease with Sunrise-Harbor Ltd. ("Lessee") for the leasehold commonly referred to as The Redondo Beach Hotel, located at 400 N. Harbor Dr, on the northeast corner of Harbor Drive and Beryl Street. The hotel occupies a site that is approximately 2.31 acres and the hotel is comprised of 112 guest rooms and suites. The leasehold provides rent revenue to the Harbor Uplands Fund and Transient Occupancy Taxes ("TOT") to the City's General Fund.
When the lease was executed with the City, it contained a provision that the Lessee maintain three different funds to ensure the property remain well maintained and under periodic renovations. The three funds are a Capital Improvement Fund, a Renovation Fund, and a Furniture, Fixtures and Equipment ("FF&E") Fund. While the Capital Improvement and Renovation Funds are standard lease provisions for properties throughout the Waterfront, the FF&E Fund is a unique requirement of the Sunrise-Harbor leasehold.
Recently, the Lessee requested and City Council granted the use of the F...
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