AGENDA REPORT
Meeting Date: October 18, 2022
Item Number:
To: Honorable Mayor & City Council
From: Logan Phillippo, Real Property Development Manager Jonathan Gernes, Management Analyst
Subject: APPROVAL OF AMENDMENT OF LEASE BY AND BETWEEN THE
CITY OF BEVERLY HILLS AND BEVERLY HILLS CONFERENCE &
VISITORS BUREAU AT 9400 SANTA MONICA BOULEVARD
Attachment: 1. Amendment of Lease
RECOMMENDATION
Staff recommends City Council approve the Amendment of Lease by and between the City of Beverly Hills and Beverly Hills Conference & Visitors Bureau (“the CVB”) at 9400 Santa Monica Boulevard.
INTRODUCTION
The lease agreement with Beverly Hills Conference & Visitors Bureau expires October 31, 2022. The proposed amendment would extend the term of the lease for five years and revise the late fee and janitorial service provisions to reflect standardized lease language and building services.
DISCUSSION
In 2012, the City entered into a ten-year office lease at 9400 Santa Monica Boulevard, Suite 102 with the CVB. The lease provides the tenant with two, five-year options to extend the term, subject to fair-market-rental-rate adjustments. The tenant did not exercise its first option, however, has requested to extend the lease term.
The proposed lease amendment provides the following key terms:
Term: The term has been extended to October 31, 2027, with no additional options to extend the term;
Rent: Rent starts at $15,843.15 per month beginning November 1, 2022 and will increase by 3.5% annually;
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Meeting Date: October 18, 2022
Late Fee: Any amount required to be paid by the CVB under the lease and not paid within 5 days after written notice will be subject to a late fee equal to 5% of the outstanding amount; and
Janitorial Service: The City shall provide janitorial services to the space 5 days per week at the City’s expense per the City’s standardized janitorial specification for leased office spaces. The addition of this language will make the lease consistent with existing practices and consistent with the services expected for a Class A office space.
FISCAL IMPACT
The proposed lease amendment will generate $1,019,500.44 in revenue from monthly base rent through the extended expiration date, October 31, 2027.
Since the building’s construction, the City has budgeted for and provided janitorial services for the entire 9400 Santa Monica Boulevard building, excluding one retail tenant space.
The City and the CVB are not represented by brokers in this agreement and no broker commission is payable for the extension of the lease.
Gabriella Yap,
Deputy City Manager
Approved By
Attachment 1
-1-
B0785-0001\2723096v1.doc
AMENDMENT OF LEASE
THIS AMENDMENT OF LEASE (this “Amendment”) is dated as of October 18, 2022 (the “Effective Date”), and is entered into by and between the CITY OF BEVERLY HILLS (“Landlord”), and the BEVERLY HILLS CONFERENCE & VISITORS BUREAU, a California nonprofit mutual benefit corporation (“Tenant”).
R E C I T A L S
A. Landlord and Tenant entered into that certain “Lease Between The City of Beverly Hills and the Beverly Hills Conference and Visitor’s Bureau for Space at 9400 Santa Monica Boulevard” dated February 21, 2012 (the “Lease”), pursuant to which City agreed to lease and demise to Tenant, and Tenant agreed to lease and accept from City, space in the building at 9400 Santa Monica Boulevard (the “Building”) in the City of Beverly Hills, County of Los Angeles, State of California, as more particularly described in the Lease (the “Premises”).
B. Landlord and Tenant entered into a Memorandum of Lease dated February 21, 2012, which was recorded on April 24, 2012 as Document No. 20120603949.
C. Landlord and Tenant desire to amend the Lease as hereinafter set forth.
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. Extension of Term; No Extension Options. The term of the Lease is hereby extended to October 31, 2027. Section 3.2 of the Lease is hereby deleted.
2. Monthly Rent; Late Charges. The monthly fixed rent for the Premises shall be as follows for the periods described below:
Period
Monthly
Rent
11/01/2022 - 10/31/2023 $15,843.15
11/01/2023 - 10/31/2024 $16,397.66
11/01/2024 - 10/31/2025 $16,971.58
11/01/2025 - 10/31/2026 $17,565.59
11/01/2026 - 10/31/2027 $18,180.39
Additionally, the second sentence of Section 27.12 of the Lease is hereby deleted and the following is hereby substituted in lieu thereof:
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“If any monthly rent, or any other sum due, is not received by Landlord from Tenant within five (5) days after Landlord delivers written notice to Tenant that such sum is past due, Tenant shall immediately pay to Landlord a late charge equal to five percent (5%) of such sum due, and Landlord and Tenant agree that this late charge represents a reasonable estimate of the direct and indirect costs, expenses and damages Landlord will incur as a result of Tenant’s late payment (which damages would be impractical and extremely difficult to calculate accurately) and is therefore fair compensation to Landlord for its loss suffered by reason of late payment by Tenant.”
3. Janitorial Services by Landlord. Notwithstanding anything to the contrary in Section 12.2 of the Lease, Landlord shall provide janitorial services five (5) days per week in accordance with the janitorial specifications attached hereto as Exhibit “A”.
4. 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.
5. City Manager Authority. The City Manager of Landlord shall have the authority to execute this Amendment and any and all other documents contemplated by this Amendment.
6. Recordable Amendment of Memorandum of Lease. Upon its execution and delivery of this Amendment, Tenant shall concurrently execute and deliver a duly acknowledged recordable original counterpart of an Amendment to Memorandum of Lease in the form attached to this Amendment as Exhibit “B”.
7. Brokers. Each party represents to the other that no brokers have been involved with this Amendment.
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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the Effective Date.
LANDLORD: CITY OF BEVERLY HILLS
By:
Lili Bosse, Mayor
ATTEST:
____________________________
Huma Ahmed, City Clerk
APPROVED AS TO FORM:
______________________________
Laurence S. Wiener, City Attorney
APPROVED AS TO CONTENT:
______________________________
George Chavez, City Manager
TENANT: BEVERLY HILLS CONFERENCE &
VISITORS BUREAU
By:
Julie Wagner, Executive Director
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EXHIBIT “A”
JANITORIAL SPECIFICATIONS
(Attached.)
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B0785-0001\2723096v1.doc
1. OFFICE AREAS
a. Nightly Services (Five (5) nights per week)
i. General Offices
1. Empty all waste and recycling receptacles and sort for recyclable versus nonrecyclable. Clean, and reline when needed. Remove material to designated areas.
2. Vacuum all carpeted areas (moving only light furniture (desks, file cabinets, etc. not to be moved)), including conference rooms, reception areas, interior stairwells, hallways, corridors and individual offices. All hard surfaced flooring to be swept using approved dustdown preparation and damp mopped.
3. Wash and sanitize all drinking fountains and coolers.
4. Damp mop all hard surface areas that have been cleared of personal property by Tenant.
5. Spot clean carpets to remove light spillage. Report large spills and stains to supervisor.
6. Assure all designated locked doors are closed after area has been cleaned.
7. Activate all alarm systems as instructed by occupant (if applicable).
8. Arrange chairs at desk and conference room tables and turn off lights upon exiting.
9. Clean conference room tables that have been cleared of personal property by Tenant and remove any remaining food items.
10. Clean and sweep all lunchroom/eating areas. Wash and wipe tables that have been cleared of personal property by Tenant and counter tops that have been cleared of personal property by Tenant and clean sinks.
11. Remove scuff marks on floor as needed.
12. Hand dust and wipe clean all furniture, fixtures and window sills.
13. Sweep all private stairways.
ii. Lavatories
1. Sweep and wash all floors, using proper disinfectants.
2. Wash and polish all mirrors, shelves, bright work and enameled surfaces.
3. Wash and disinfect all basins, bowls and urinals.
4. Disinfect and wash all toilet seats.
5. Hand dust and clean all partitions, tile walls, dispensers and receptacles in lavatories and restrooms.
6. Empty paper receptacles, fill receptacles from tenant supply and remove wastepaper.
7. Fill toilet tissue holders from tenant supply.
8. Empty and clean sanitary disposal receptacles.
b. Weekly Services
1. Remove recycling and trash material from designated areas when containers are full.
2. Dust and wipe clean with damp or treated cloth all office furniture, file cabinets, and cubicle partition tops that have been cleared of personal property by Tenant.
3. Remove all finger marks and smudges from all vertical surfaces, including doors, door frames, around light switches, private entrance glass, and partitions.
4. Damp wipe and polish all glass furniture tops that have been cleared of personal property by Tenant.
5. Damp mop hard surfaced floors and/or uncarpeted surface floors.
6. Sweep uncarpeted floors employing dust control techniques with exception of lunchroom (which is to be performed nightly)
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7. Dust all door louvers and other ventilating louvers within a person’s normal reach.
8. Wipe clean all brass and other bright work that have been cleared of personal property by Tenant.
c. Monthly Services
1. Dust and wipe clean chair bases and arms, telephones, cubicle shelves, window sills, relite ledges and all other horizontal surfaces as needed to maintain clean appearance. The foregoing is limited to surfaces that have been cleared of personal property by Tenant.
2. Edge vacuum all carpeted areas, as needed.
3. High dust premises complete including the following:
Dust all pictures, frames, charts, graphs and similar wall hangings not reached in nightly cleaning.
Dust all vertical surfaces, such as walls, partitions, doors, bucks and other surfaces not reached in nightly cleaning.
Dust all venetian blinds.
Wash all exterior windows.
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B0785-0001\2723096v1.doc
EXHIBIT “B”
FORM OF AMENDMENT OF MEMORANDUM OF LEASE
(Attached.)
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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.
AMENDMENT OF MEMORANDUM OF LEASE
THIS AMENDMENT MEMORANDUM OF LEASE (this “Memorandum”) is dated as of October 18, 2022, and is entered into by and between the CITY OF BEVERLY HILLS (“Landlord”), and the BEVERLY HILLS CONFERENCE & VISITORS BUREAU, a California nonprofit mutual benefit corporation (“Tenant”).
R E C I T A L S
A. Landlord and Tenant entered into that certain “Lease Between The City of Beverly Hills and the Beverly Hills Conference and Visitor’s Bureau for Space at 9400 Santa Monica Boulevard” dated February 21, 2012.
B. Landlord and Tenant entered into a Memorandum of Lease dated February 21, 2012, which was recorded on April 24, 2012 as Document No. 20120603949.
C. Landlord and Tenant have entered in to an Amendment of Lease dated October 18, 2022 (“Amendment”).
D. Landlord and Tenant desire to record this Amendment of 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 extension option(s) and termination option(s) set forth in the Lease, as amended by the Amendment.
The Premises are leased at the rental rates and upon the other terms and conditions set forth in the Lease as amended by the Amendment, which are incorporated herein by this reference.
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B0785-0001\2723096v1.doc
IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment of Memorandum of Lease.
LANDLORD: CITY OF BEVERLY HILLS
By:
George Chavez, City Manager
TENANT: BEVERLY HILLS CONFERENCE &
VISITORS BUREAU
By:
Julie Wagner, Executive Director
DocuSign Envelope ID: 35BC384C-6EA1-4668-AFDA-8F4C0E2D49F9 B-4
B0785-0001\2723096v1.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: 35BC384C-6EA1-4668-AFDA-8F4C0E2D49F9 B-5
B0785-0001\2723096v1.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: 35BC384C-6EA1-4668-AFDA-8F4C0E2D49F9 Certificate Of Completion
Envelope Id: 35BC384C6EA14668AFDA8F4C0E2D49F9 Status: Sent Subject: Complete with DocuSign: Amendment of Lease - Beverly Hills Conference & Visitors Bureau.pdf Source Envelope:
Document Pages: 11 Signatures: 2 Envelope Originator:
Certificate Pages: 3 Initials: 0 Jonathan Gernes
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455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 104.175.192.151
Record Tracking
Status: Original
10/11/2022 10:30:53 AM
Holder: Jonathan Gernes
[email protected]
Location: DocuSign
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Julie Wagner
[email protected]
CEO
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Logan Phillippo
[email protected]
Senior Management Analyst
City of Beverly Hills
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Sent: 10/12/2022 8:12:43 AM
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George Chavez
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Lili Bosse
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Huma Ahmed
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Bill Wiley
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Logan Phillippo
[email protected]
Senior Management Analyst
City of Beverly Hills
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Sent: 10/11/2022 10:39:27 AM
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Adrianne Tarazon
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Dorina Mohan
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Flora Flowers
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