AGENDA REPORT
Meeting Date: October 11, 2022
Item Number:
To: Honorable Mayor & City Council
From: Logan Phillippo, Policy & Management Analyst
Jonathan Gernes, Management Analyst
Subject: APPROVAL OF AMENDMENT OF LEASE BY AND BETWEEN THE
CITY OF BEVERLY HILLS AND DESTOMIL LLC AT LA CIENEGA
PARK
Attachment: 1. Amendment of Lease
RECOMMENDATION
Staff recommends City Council approve the Amendment of Lease by and between the City of Beverly Hills and Destomil LLC (the “Tenant”) at La Cienega Park.
INTRODUCTION
The Tenant signed a lease agreement on November 16, 2021 for the snack bar at La Cienega Park. The proposed amendment corrects a clerical error in the breakpoint for calculating monthly percentage rent.
DISCUSSION
The City entered into a lease with Destomil LLC for the use and operation of the snack bar at La Cienega Park.
The proposed amendment corrects the gross sales breakpoint to the intended $5,000 per month from the incorrect $500 per month currently in the lease due to a clerical error. This means the Tenant shall pay, as additional rent, 10% of gross sales that exceed $5,000 per month. This $5,000 breakpoint (also referred to as a natural breakpoint) is consistent with standard practices regarding percentage rent and is consistent with communications prior to the signature of the agreement.
E-8
Meeting Date: October 11, 2022
FISCAL IMPACT
The proposed amendment will reverse $851.14 in charges for the percentage rent billable through September 2022, an amount that only applies when utilizing the incorrect $500 breakpoint.
Gabriella Yap,
Deputy City Manager
Approved By
Attachment 1
B0785-0001\2714953v1.doc
AMENDMENT OF LEASE
THIS AMENDMENT OF LEASE (this “Amendment”) is dated as of October 11, 2022 (the “Effective Date”), and is entered into by and between the CITY OF BEVERLY HILLS (“Landlord”), and DESTOMIL LLC, a California limited liability company (“Tenant”).
R E C I T A L S
A. Landlord and Tenant entered into that certain “Lease by and between the City of Beverly Hills and Destomil LLC for a Snack Bar at La Cienega Park” dated November 16, 2021.
B. Landlord and Tenant desire to amend such lease (the “Lease”) to clarify the calculation of monthly rent.
A G R E E M E N T
NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant agree as follows:
1. Rent Calculation. Section 5(a) of the Lease is hereby deleted and the following is hereby substituted in lieu thereof:
a. Rent. Commencing on the Commencement Date, TENANT shall pay to LANDLORD as rent for the Premises, without deduction, setoff, prior notice, or demand: (i) Five Hundred and No/100 Dollars ($500.00) per calendar month, which shall be paid by the first (1st) day of each calendar month; plus (ii) ten percent (10%) of the amount by which Gross Revenues for the previous calendar month exceed Five Thousand and No/100 Dollars ($5000.00), which shall be paid by the tenth (10th) day of each calendar month (for the prior calendar month of Gross Revenues) and shall be accompanied by the statement described below.
2. Recordable Memorandum of Lease. Upon its execution and delivery of this Amendment, Tenant shall concurrently execute and deliver a duly acknowledged recordable original counterpart of a Memorandum of Lease in the form attached to this Amendment as Exhibit “A”. The City Manager shall have the authority to execute such Memorandum on behalf of the Landlord.
3. Counterparts. This 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. This Amendment must be executed through the e-signature application known as DocuSign, and such electronic signatures shall be considered binding upon the parties.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the Effective Date.
DocuSign Envelope ID: 4D4F081D-612E-4CB6-B55D-0CF527129AD0 B0785-0001\2714953v1.doc
LANDLORD:
ATTEST:
____________________________
Huma Ahmed, City Clerk
CITY OF BEVERLY HILLS
By:
Lili Bosse, Mayor
APPROVED AS TO FORM:
______________________________
Laurence S. Wiener, City Attorney
APPROVED AS TO CONTENT:
______________________________
George Chavez, City Manager
TENANT:
DESTOMIL LLC,
a California limited liability company
By:
Norma Ashton, Manager
DocuSign Envelope ID: 4D4F081D-612E-4CB6-B55D-0CF527129AD0 B0785-0001\2714953v1.doc
EXHIBIT “A”
FORM OF MEMORANDUM OF LEASE
(Attached.)
DocuSign Envelope ID: 4D4F081D-612E-4CB6-B55D-0CF527129AD0 B0785-0001\2714953v1.doc
RECORDING REQUESTED BY, AND
WHEN RECORDED MAIL TO:
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.
MEMORANDUM OF LEASE
THIS MEMORANDUM OF LEASE (this “Memorandum”) is dated as of October 11, 2022, and is entered into by and between the CITY OF BEVERLY HILLS (“Landlord”), and DESTOMIL LLC, a California limited liability company (“Tenant”).
R E C I T A L S
A. Landlord and Tenant entered into that certain “Lease by and between the City of Beverly Hills and Destomil LLC for a Snack Bar at La Cienega Park” dated as of November 16, 2021 (the “Lease”) for premises in the City of Beverly Hills, County of Los Angeles, State of California, more particularly described in the Lease (the “Premises”).
B. Landlord and Tenant have entered into an Amendment of Lease (“Amendment”) dated October 11, 2022.
D. Landlord and Tenant desire to record this Memorandum of Lease, as required under California law for municipal leases.
A G R E E M E N T
Landlord hereby leases and demises to Tenant, and Tenant hereby leases and accepts from Landlord, the Premises for the term and subject to the provisions set forth in the Lease, as amended by the Amendment, which are incorporated herein by this reference.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Memorandum of Lease.
LANDLORD: CITY OF BEVERLY HILLS
By:
George Chavez, City Manager
DocuSign Envelope ID: 4D4F081D-612E-4CB6-B55D-0CF527129AD0 B0785-0001\2714953v1.doc
TENANT: DESTOMIL LLC,
a California limited liability company
By:
Norma Ashton, Manager
DocuSign Envelope ID: 4D4F081D-612E-4CB6-B55D-0CF527129AD0 B0785-0001\2714953v1.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: 4D4F081D-612E-4CB6-B55D-0CF527129AD0 B0785-0001\2714953v1.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: 4D4F081D-612E-4CB6-B55D-0CF527129AD0 Certificate Of Completion
Envelope Id: 4D4F081D612E4CB6B55D0CF527129AD0 Status: Sent Subject: Complete with DocuSign: Amendment of Lease - Destomil LLC.pdf Source Envelope:
Document Pages: 7 Signatures: 2 Envelope Originator:
Certificate Pages: 3 Initials: 0 Jonathan Gernes
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 104.175.192.151
Record Tracking
Status: Original
10/3/2022 11:58:03 AM
Holder: Jonathan Gernes
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Norma Ashton
[email protected]
Owner
Security Level: Email, Account Authentication
(None) Signature Adoption: Drawn on Device
Using IP Address: 107.127.56.85
Signed using mobile
Sent: 10/3/2022 12:20:13 PM
Viewed: 10/3/2022 12:30:32 PM
Signed: 10/3/2022 12:51:13 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Bruce Galloway for
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 208.87.235.180
Sent: 10/3/2022 12:51:15 PM
Viewed: 10/3/2022 12:58:23 PM
Signed: 10/3/2022 12:58:29 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Logan Phillippo
[email protected]
Senior Management Analyst
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Sent: 10/3/2022 12:58:32 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
George Chavez
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Lili Bosse
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Signer Events Signature Timestamp
Huma Ahmed
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Logan Phillippo
[email protected]
Senior Management Analyst
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Sent: 10/3/2022 12:20:12 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Adrianne Tarazon
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Dorina Mohan
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Flora Flowers
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Michael Dunn
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 10/3/2022 12:20:12 PM
Payment Events Status Timestamps