To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT AND ECONOMIC DEVELOPMENT DIRECTOR
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ADOPT BY TITLE ONLY RESOLUTION NO. CC-2205-027, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, LEASING CERTAIN PROPERTY TO CALIFORNIA LOCAL, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY
APPROVE THE LEASE WITH CALIFORNIA LOCAL, LLC FOR A RESTAURANT USE FOR THE PREMISES AT 245 NORTH HARBOR DRIVE FOR A MONTHLY MINIMUM RENT OF $11,032 AND A TERM OF MAY 10, 2022 THROUGH MARCH 9, 2028
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EXECUTIVE SUMMARY
In May, 2014 the City of Redondo Beach ("the City") completed its purchase of the Redondo Beach Marina leasehold, which includes restaurant and retail buildings, a small marina, a large surface parking lot and a public boat hoist. The building at 245 North Harbor Drive ("Premises"), which consists of approximately 6,266 square feet of indoor building and outdoor patio space, was occupied by Ruby's Diner from 1991 through October, 2020.
The proposed lease with California Local, LLC ("Tenant") is for a restaurant specializing in Coastal California cuisine for a 70-month (5 year) term. The City has the sole right to terminate the lease with twelve months prior written notice following the first year of the agreement. The lease rent will be $1,000 per month for the initial ten (10) months of term, or when the Tenant opens for business, whichever is earlier, to allow the Tenant time to complete improvements to the building. Following the 10-month "remodel" period, the monthly minimum rent will increase to $11,032, or 8% of gross sales, whichever is greater. The lease also includes annual rent increases of 3%.
BACKGROUND
In May 2014, the City purchased the Redondo Beach Marina leasehold and began the process of entering into direct leases with various tenants. The leasehold is comprised of stand-alone restaurant pads, a marina, a large surface parking lot, and a public boat hoist to access King Harbor. The building loc...
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