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TO: Honorable Mayor and Members of the City Council
FROM: Ryan Smoot, City Manager
SUBJECT: Consideration and possible action to authorize the City Manager to issue a letter to Hollywood Sports Park, LLC (HSP) regarding the City’s intent to approve, upon HSP’s request, the first lease extension option under the Agency Sublease with HSP for use of real property at 9030 Somerset Boulevard and 9108 Somerset Boulevard.
Date: May 13, 2024
EXECUTIVE SUMMARY
The proposed action seeks authorization for the City Manager to issue a notice of intent letter to Hollywood Sports Park, LLC (HSP) regarding the potential extension of its lease agreement for use of real property located at 9030 Somerset Boulevard and 9108 Somerset Boulevard. The proposed letter expresses the City's intent to approve the next option on the lease when and if requested by HSP as stipulated in the lease.
While the formal request from HSP to exercise its option under the lease may not be made until October 2024, this letter signifies the City's commitment to retaining HSP as a valued tenant and community partner and expresses the City’s intent to approve that request when it is made. This proactive approach emphasizes the City's interest in supporting its long-standing partnership with HSP and assuring HSP and its operators that the City is committed to working together to support our community for many years to come.
RECOMMENDATION TO CITY COUNCIL
1) Authorize the City Manager to issue a letter to Hollywood Sports Park, LLC (HSP) regarding the City’s intent to approve, upon HSP’s request, the first lease extension option under the Agency Sublease with HSP for use of real property at 9030 Somerset Boulevard and 9108 Somerset Boulevard; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
There is no fiscal impact associated with this action.
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Staff Report – Lease Extension Letter to Hollywood Sports Park, LLC May 13, 2024
BACKGROUND
Hollywood Sports Park, LLC has been the tenant of City-owned property at 9030 Somerset Boulevard and 9108 Somerset Boulevard since October 23, 2000. On March 21, 2000, the City and former Bellflower Redevelopment Agency entered into a Disposition and Development Agreement with Hollywood Sports Park, LLC to develop and operate approximately 22 acres into, among other things, an outdoor recreational paintball park and BMX Bike Track. Subsequently, an Agency Sublease ("Sublease") between the former Bellflower Redevelopment Agency and Hollywood Sports Park, LLC was executed on October 23, 2000. The Sublease (which was assigned to the City on February 25, 2013) established a 25-year lease term through October 23, 2025, with three (3) consecutive additional periods of ten (10) years each on the same terms and conditions contained in the Sublease. Written notice of HSP’s exercise of its option to extend the Term of the Sublease must be given to the City no more than twelve (12) months prior, but no less than three (3) months before October 23, 2025.
Accordingly, the earliest HSP can request to exercise its first 10-year option to extend the lease is October 24, 2024. However, issuing this letter signifies the City's commitment to retaining HSP as a valued tenant and community partner.
HSP holds a significant presence as a well-known business within the community, consistently drawing enthusiasts of paintball and BMX from diverse geographic areas throughout the greater L.A. region and contributes positively to the Bellflower community.
HSP continues to make timely lease payments and maintains a collaborative working relationship with City staff.
ATTACHMENT
Letter to Hollywood Sports Park, LLC…………………………………………………………3
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May 13, 2024
Dennis Bukowski
Hollywood Sports Park, LLC
90 Marbella
San Clemente, CA 92673
SUBJECT: Option to Extend – Agency Sublease between the City of Bellflower and Hollywood Sports Park, LLC
Dear Mr. Bukowski:
Thank you for your company’s ongoing partnership with the City of Bellflower (“City”). The City Council values the many years your company has demonstrated good corporate citizenship and looks forward to many more. Toward that end, this letter expresses the City’s intent to approve, upon your company’s request as outlined in your lease agreement, the next option on the lease with Hollywood Sports Park, LLC for use of real property at 9030 Somerset Boulevard and 9108 Somerset Boulevard. As you know, formal acceptance of HSP’s request for an extension may not happen until October of this year, but should you desire to make that request, it is the City’s intent to continue our partnership for many more years.
The City is committed to facilitating a smooth and seamless renewal process and , as always, I am available to address any questions or concerns you may have. Please do not hesitate to contact me at (562) 804-1424 ext. 2207 or via email at [email protected].
Sincerely,
Ryan Smoot
City Manager
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The City of Bellflower
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16600 Civic Center Drive, Bellflowet, CA 90706
Tel 562.804.1424 Fax 562.925.8660 wwwbellflowcnorg “0% M