AGENDA REPORT
Meeting Date: July 19, 2022
Item Number:
To: Parking Authority Board of Directors
From: Logan Phillippo, Policy & Management Analyst
Jonathan Gernes, Management Analyst
Subject: APPROVAL OF FIFTH AMENDMENT TO LEASE BY AND BETWEEN
THE PARKING AUTHORITY OF THE CITY OF BEVERLY HILLS AND
RESTAURANT BUSINESS STRATEGIES, LLC AT 240 NORTH
BEVERLY DRIVE
Attachment: 1. Fifth Amendment to Lease
RECOMMENDATION
Staff recommends City Council approve the Fifth Amendment to Lease by and between The Parking Authority of the City of Beverly Hills and Restaurant Business Strategies, LLC (the “Tenant”) at 240 North Beverly Drive.
INTRODUCTION
The Tenant, located on the first floor of the Beverly Cañon Garden’s building at 240 North Beverly Drive, currently has an unpaid rent balance of $19,470.85 representing monthly rent from April 1, 2020 through June 30, 2020. The proposed amendment abates the $19,470.85 unpaid rent balance, provides reimbursement for Open Air Dining Permit charges, and memorializes the inclusion of storage space on Level 3 of the parking structure as a part of the leased premises.
DISCUSSION
The City entered into a lease at 240 North Beverly Drive with Restaurant Business Strategies, LLC in 2012. The lease has been subsequently amended to expand the leased premises to include multiple vitrines and to extend the term of the agreement through January 31, 2036. The Tenant operates Sweet Beverly, which offers a variety of specialty crepes, wraps, and drinks.
The proposed Fifth Amendment to Lease provides the following key terms:
D-2
Meeting Date: July 19, 2022
Abated Rent: Monthly rent for April 2020, May 2020, and the unpaid balance for June 2020 shall be abated;
Open Air Dining Permit Reimbursement: The Tenant shall receive a credit equal to the annual Beverly Hills Open Air Dining Permit charges, including the County of Los Angeles Sewer Fee and the Beverly Hills Sidewalk Lease Fee, against the monthly rent payable thirty (30) days from delivery of the evidence that Tenant has paid for such annual fees, but not to exceed $32,572.64 in total; and Storage Space: As of December 17, 2021, the Tenant’s leased premises includes storage space on Level 3 of the Parking Structure at no additional monthly rent.
FISCAL IMPACT
The proposed lease amendment abates the monthly rent for April 2020, May 2020, and the unpaid balance for June 2020, totaling $19,470.85. The maximum annual credit to be applied against the Tenant’s monthly rent for the Tenant’s payment of Beverly Hills Open Air Dinging Permit charges is $32,572.64.
Gabriella Yap,
Deputy City Manager
Approved By
Attachment 1
-1-
B0785-0001\2685037v2.doc
FIFTH AMENDMENT TO LEASE
THIS FIFTH AMENDMENT TO LEASE (this “Amendment”) is dated as of _____________, 2022 (the “Effective Date”), and is entered into by and between THE PARKING AUTHORITY OF THE CITY OF BEVERLY HILLS (“Lessor”) and RESTAURANT BUSINESS STRATEGIES, LLC, a California limited liability company (“Lessee”).
R E C I T A L S
A. Lessor and Lessee entered into that certain Retail Lease dated July 31, 2012 (as amended, the “Lease”) which affects a portion of the building located at 240 N. Beverly Drive, Beverly Hills, California (the “Premises”).
B. A Memorandum of Lease was recorded on August 13, 2012 as Document No. 20121200104 in the Official Records of Los Angeles County.
C. Lessor and Lessee previously entered into an Amendment to Lease dated June 18, 2013, which was recorded on August 13, 2012 as Document No. 20121200104 in the Official Records of Los Angeles County, and a Second Amendment to Lease dated August 20, 2013 which was not recorded, and a Third Amendment to Lease dated April 7, 2015 which was recorded on July 6, 2015 as Document No 20150806245 in such Official Records, and a Fourth Amendment to Lease dated January 5, 2016 which was recorded on February 2, 2016 as Document No. 20160118485 in such Official Records.
D. Vitrine D is a part of the Premises and monthly rent for Vitrine D has been paid Lessee since August 1, 2014 (the monthly rental rate being $830.17 per month, increased annually on each December 7 by 3%).
E. Lessor and Lessee now desire to further amend the Lease.
A G R E E M E N T
NOW, THEREFORE, in consideration of the foregoing recitals, and the covenants and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lessor and Lessee hereby agree as follows:
1. Limited Rent Abatement. The monthly base rent for April 2020, May 2020 and the total unpaid balance for June 2020 is hereby abated.
2. Limited Credits Against Future Monthly Rent. Upon Lessee’s payment of annually recurring Beverly Hills Open Air Dining Permit charges, Tenant shall receive a credit against the Monthly Rent that is due thirty (30) days or more thereafter, and such credit shall equal the amount of the annual fee paid by Lessee. Upon Lessee’s payment to the City of Beverly Hills for a County of Los Angeles Sewer Fee in the amount of Twenty-Two Thousand Two Hundred Twenty-Eight Dollars and Sixty-Four Cents ($22,228.64), a Sidewalk Lease Fee in the amount of Ten Thousand Three Hundred and Forty-Four Dollars ($10,344.00), and Lessee’s delivery to lessor of reasonable evidence of such payment(s), Lessee shall receive a credit against all Monthly Rent amounts that become due after thirty (30) days from the delivery DocuSign Envelope ID: CE51BC0E-87C1-4624-9533-B87B390DA61D -2-
B0785-0001\2685037v2.doc
of such evidence to the City. Such credit shall not exceed $32,572.64, which is the amount of the applicable fees paid by Lessee.
3. Storage Space Added to Premises. As of December 17, 2021, storage space on Level 3 of the Parking Structure shown in Exhibit “A” attached hereto was added to the Premises at no additional monthly rent to Lessee.
4. Executive Director Authority. The Executive Director of Lessor shall have the authority to execute the Amendment to Memorandum of Lease described in Section 4 below, on behalf of Lessor.
5. Amendment of Recorded Memorandum of Lease. Upon its execution and delivery of this Fifth Amendment, Lessee shall concurrently execute and deliver a duly acknowledged counterpart of an Amendment to Memorandum of Lease in the form attached hereto as Exhibit “B”.
6. DocuSign. The parties may use DocuSign to execute and deliver this Fifth Amendment, but Lessee must deliver an executed original of the Amendment to Memorandum of Lease to Lessor, duly acknowledged, so that it can be executed and recorded by Lessor.
7. Brokers. Lessee shall indemnify, defend and hold Lessor harmless from and against any claims that may be asserted against Lessor by any real estate broker, salesperson or finder in connection with this Amendment that is based on any agreements or communications between Lessee and any such real estate broker, salesperson or finder. Lessor represents and warrants that Lessor has not engaged any real estate broker, salesperson or finder in connection with this Amendment, and Lessor shall indemnify, defend and hold Lessee harmless from and against any claims that may be asserted against Lessee by any real estate broker, salesperson or finder in connection with this Amendment that is based on any agreements or communications between Lessor and any such real estate broker, salesperson or finder.
8. Conflict. In the event of a conflict or inconsistency between the terms and conditions of the Lease and the terms and conditions of this Fifth Amendment, the terms and conditions of this Amendment shall prevail and control.
9. Continuing Effect. Except as specifically modified hereby, the Lease shall remain unaffected and unchanged. The Lease is hereby ratified and affirmed by Lessor and Lessee and remains in full force and effect as modified hereby.
10. Counterparts. This Fifth Amendment may be executed in any number of counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, taken together, shall be deemed to be one and the same instrument.
IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment as of the date and year first above written.
DocuSign Envelope ID: CE51BC0E-87C1-4624-9533-B87B390DA61D -3-
B0785-0001\2685037v2.doc
LESSOR: THE PARKING AUTHORITY OF THE
CITY OF BEVERLY HILLS
By:
Lili Bosse, Chair
ATTEST:
______________________________
Huma Ahmed, Secretary
APPROVED AS TO FORM:
_________________________________
Laurence S. Wiener,
General Counsel
APPROVED AS TO CONTENT:
_____________________________
George Chavez, Executive Director
LESSEE: RESTAURANT BUSINESS STRATEGIES,
LLC, a California limited liability company
By: Brand 158 Investment Trust
Established November 15, 2011, its
sole member
By:
Adrienne Lopez, Trustee
DocuSign Envelope ID: CE51BC0E-87C1-4624-9533-B87B390DA61D -4-
B0785-0001\2685037v2.doc
EXHIBIT “A”
DESCRIPTION OF STORAGE SPACE
DocuSign Envelope ID: CE51BC0E-87C1-4624-9533-B87B390DA61D -5-
B0785-0001\2685037v2.doc
EXHIBIT “B”
FORM OF AMENDMENT TO MEMORANDUM OF LEASE
(Attached.)
DocuSign Envelope ID: CE51BC0E-87C1-4624-9533-B87B390DA61D -6-
B0785-0001\2685037v2.doc
RECORDING REQUESTED BY, AND
WHEN RECORDED MAIL TO:
The Parking Authority of the City of Beverly Hills
455 North Rexford Drive
Beverly Hills, California 90210
Attn: City Clerk
(Space Above Line For Recorder’s Use)
Exempt from Recording Fees under California Government Code 27383.
AMENDMENT TO MEMORANDUM OF LEASE
THIS AMENDMENT TO MEMORANDUM OF LEASE (this “Amendment”) is dated as of ___________________, 2022, and is entered into by and between THE PARKING AUTHORITY OF THE CITY OF BEVERLY HILLS (“Landlord”), and RESTAURANT BUSINESS STRATEGIES, LLC, a California limited liability company (“Tenant”).
R E C I T A L S
A. Landlord and Tenant entered into that certain Retail Lease dated July 31, 2012 (as amended, the “Lease”) which affects a portion of the building located at 240 N. Beverly Drive, Beverly Hills, California (the “Premises”).
B. A Memorandum of Lease was recorded on August 13, 2012 as Document No. 20121200104 in the Official Records of Los Angeles County.
C. Landlord and Tenant then entered into an Amendment to Lease dated June 18, 2013, which was recorded on August 13, 2012 as Document No. 20121200104 in the Official Records of Los Angeles County; a Second Amendment to Lease dated August 20, 2013 which was not recorded; a Third Amendment to Lease dated April 7, 2015 which was recorded on July 6, 2015 as Document No 20150806245 in such Official Records; and a Fourth Amendment to Lease dated January 5, 2016 which was recorded on February 2, 2016 as Document No. 20160118485 in such Official Records.
D. Landlord and Tenant have entered into a Fifth Amendment of Lease dated _______________, 2022, and desire to execute and record this Amendment in order to reflect of record such Fifth Amendment.
A G R E E M E N T
NOW, THEREFORE, Landlord and Tenant hereby amend the Memorandum to reflect that the Lease has been amended as set forth in the Fifth Amendment and the unrecorded Second Amendment to Lease (as well as the other amendments to the Lease described in the above Recitals). The Lease, as amended, is incorporated herein by this reference.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment.
DocuSign Envelope ID: CE51BC0E-87C1-4624-9533-B87B390DA61D -7-
B0785-0001\2685037v2.doc
LANDLORD: THE PARKING AUTHORITY OF THE
CITY OF BEVERLY HILLS
By:
George Chavez, Executive Director
TENANT: RESTAURANT BUSINESS STRATEGIES,
LLC, a California limited liability company
By: Brand 158 Investment Trust Established
November 15, 2011, its sole member
By:
Adrienne Lopez, Trustee
DocuSign Envelope ID: CE51BC0E-87C1-4624-9533-B87B390DA61D B0785-0001\2685037v2.doc
State of California )
County of Los Angeles )
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
A notary public or other officer
completing this certificate verifies only
the identity of the individual who signed
the document to which this certificate is
attached, and not the truthfulness,
accuracy, or validity of that document.
DocuSign Envelope ID: CE51BC0E-87C1-4624-9533-B87B390DA61D B0785-0001\2685037v2.doc
State of California )
County of Los Angeles )
On _________________________, before me, ,
(insert name and title of the officer)
Notary Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
A notary public or other officer
completing this certificate verifies only
the identity of the individual who signed
the document to which this certificate is
attached, and not the truthfulness,
accuracy, or validity of that document.
DocuSign Envelope ID: CE51BC0E-87C1-4624-9533-B87B390DA61D Certificate Of Completion
Envelope Id: CE51BC0E87C146249533B87B390DA61D Status: Sent Subject: Please DocuSign: Fifth Amendment to Lease - Restaurant Business Strategies, LLC Source Envelope:
Document Pages: 9 Signatures: 2 Envelope Originator:
Certificate Pages: 3 Initials: 0 Jonathan Gernes
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 104.175.193.255
Record Tracking
Status: Original
7/7/2022 5:13:53 PM
Holder: Jonathan Gernes
[email protected]
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Adrienne Lopez
[email protected]
Officer
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Logan Phillippo
[email protected]
Senior Management Analyst
City of Beverly Hills
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George Chavez
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Lili Bosse
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Huma Ahmed
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Logan Phillippo
[email protected]
Senior Management Analyst
City of Beverly Hills
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Gabriel Frem
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