Recommendation to authorize City Manager, or designee, to execute all documents necessary for the First Amendment to Lease No. 29263 with CDCF III Pacific Catalina Landing Long Beach, LLC, a Delaware limited liability company, for City-owned property generally located at 310-340 Golden Shore Avenue, commonly known as Catalina Landing, to extend the term of the Lease by 16 years, for a new expiration date of April 28, 2084.  (District 2)
Thank you. I believe we're on item 29. Is that correct? Yes. Thank you. Was here item 29, please. Report. From economic development recommendation to execute all documents necessary for the First Amendment to lease with Catalina Landing to extend the term of the lease by six years district to. Councilmember Pierce. I matter of fact is that staff that's going to stay. Here. Staff report first John Geisler and Johnny Vallejo. Hello Vice Mayor City Council. A Catalina landing is located at 310 340 Golden Shore Avenue in downtown Long Beach. The property includes four office buildings, a parking structure and an enclosed boat base in L.A. facility adjacent to those office buildings. August eight, 2015. The current lessee acquired the property upon purchase by its parent company, Colony Capital. Now Colony Northstar, Mr. Murchison is here on behalf of the lessee. The original lease established a rental rate with CPI adjustments every five years. Current ground rent under those existing terms is $1,166,400 per year and the lease currently runs through April 28, 2068. The current tenant has begun an ambitious and innovative Capital Improvement and Asset Enhancement Program, with an estimated investment of over $15 million through 2021. The improvements will include structural and placemaking improvements to the promenade, elevator and restroom upgrades solar and solar battery projects, allied retrofits, electric vehicle charging stations, improved suites in common areas, landscape improvements. Monument wayfinding. Signage, mural and bike share enhancements, free public Wi-Fi and more. To encourage this level of investment, the tenant has requested a lease. Extension of six. Years. In considering the. Proposal, city staff assess. The feature value of the extended term based on expected cash flows. And took into. Consideration the lack of fair market value adjustments in the current lease. To that end, the proposed First Amendment to lease number 29263 have been negotiated containing the following major amended terms and conditions. The terms shall be extended for an additional six years through April 28, 2084, the maximum. Six. Years allowed within the Caitlin's area. The amendment includes to fair market value rental adjustments on May 1st, 2043, and on May 1st, 2068 to reflect the fair market value of the premises based on the existing use and improvements, tenant shall make a one time lease. Extension fee. Payment to the landlord. The city in the amount of $1.9 million due upon execution of the First Amendment, and Tenant. Shall make a one time wayfinding fee payment. To landlord in the amount of $250,000 to be used exclusively by landlord to install and or upgrade gateway and. Wayfinding. Signage and make improvements to the general vicinity of the leased premises or remaining terms of lease to 1963 shall remain in full force. In effect, the city's fiscal consultant, Kizer Marston Associates, has reviewed the proposed amended terms and associated financial assumptions and supports approval of the proposed amendment. This concludes my staff report. Thank you. Back to council reporters. Yes, I want to thank Staff and Colony. And Mr. Martinson, I know that. This has been I feel like. I had this first meeting of my first week in. Office. So I want to recognize the. Skills of our city staff and really trying to make sure that we could get to an agreement that is. Beneficial to community members, where you have a community space, where they're working with. Us to make sure that it's a project that we can be proud of and really transform that into a space where people are engaged in the space where they're not now. As well as the wayfinding and some of. Those other efforts. So just I want to applaud you guys for really sticking it together and really going back and forth. I'm very excited to vote. Yes and ask my colleagues to do the same. Councilwoman Gonzalez. Very much looking forward to this and thank you for your work. Economic development. This is great. Draw public comment on this item. Good evening, mayor and Council. You have a very difficult staff to negotiate with and economic development. Okay, thank you. There's a motion and a second and membership is going to cast your votes. This is I'm really glad this is finally getting done as well. So it's good to see you. Very happy to have negotiated with you guys. Councilman Mungo, mike member Mungo. She's not here. She is. Where is she? Miss Mungo, are you voting yes on this or no? Okay, thank you. All right.