AGENDA REPORT
Meeting Date: April 18, 2023
Item Number:
To:
E-10
Honorable Mayor & City Council
From: Logan Phillippo, Real Property Development Manager Jonathan Gernes, Management Analyst
Subject: APPROVAL OF SECOND AMENDMENT/TERMINATION OF LEASE
BY AND BETWEEN THE CITY OF BEVERLY HILLS AND DESTOMIL
LLC AT LA CIENEGA PARK
Attachment: 1. Second Amendment/Termination of Lease
RECOMMENDATION
Staff recommends City Council approve the Second Amendment/Termination of Lease by and between the City of Beverly Hills and Destomil LLC (the “Tenant”) at La Cienega Park.
INTRODUCTION
The proposed lease amendment with Destomil LLC will terminate the lease effective February 28, 2023. The Tenant will have no further obligations under the lease and the City will retain the security deposit.
DISCUSSION
The City entered into a lease with Destomil LLC for the use and operation of the snack bar at La Cienega Park on November 17, 2021. Destomil LLC operates the snack bar as Blasteran. The lease consists of a two-year term after which time either the City or Tenant may terminate the agreement upon 90 days prior written notice. The Tenant completed improvements and repairs at the snack bar at its sole cost and performance per the terms of the lease; the City did not conduct any landlord improvements nor did it provide an allowance for the tenant improvements. The Tenant commenced operations in April 2022 after completion of the tenant improvements and receipt of the necessary government approvals. The Tenant’s sales have been unable to sustain the costs of operating the snack bar, and the Tenant has not consistently remained open under the operating hours required under the lease. The Tenant has entirely ceased operations of the snack bar as of February 28, 2023. The Second Amendment/Termination of Lease will terminate the lease early as of February 28, 2023, and the City will retain the security deposit.
Meeting Date: April 18, 2023
FISCAL IMPACT
The termination of the lease will shorten the term by approximately eight and a half months and will release the Tenant of $4,266.67 in rent payable to the City during this period. The City will retain the $1,500.00 security deposit.
Ryan Gohlich,
Assistant City Manager
Approved By
Attachment 1
B0785-0001\2788574v1.doc
SECOND AMENDMENT/TERMINATION OF LEASE
THIS SECOND AMENDMENT/TERMINATION OF LEASE (this “Amendment”) is dated as of April 18, 2023 (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, and amended it by an Amendment of Lease dated October 11, 2022 (the “Lease”).
B. Tenant vacated the Premises (as defined in the Lease) on February 28, 2023.
C. Landlord and Tenant desire to terminate the Lease, and also desire to terminate (of record) the Memorandum of Lease.
A G R E E M E N T
NOW, THEREFORE, in consideration of the foregoing, the mutual covenants and terms hereof, and other consideration, the sufficiency of which is hereby acknowledged, Landlord and Tenant agree as follows:
1. Termination of Lease. The Lease is terminated as of February 28, 2023, and Tenant shall have no obligations under the Lease after February 28, 2023.
2. Landlord Retention of Security Deposit. In consideration of Landlord’s agreement in Section 1 above to terminate the Lease, Tenant hereby agrees that Landlord shall be entitled to retain the security deposit under the Lease.
3. Recordable Termination 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 a Termination of Memorandum of Lease in the form attached to this Amendment as Exhibit “A”. The City Manager shall have the authority to execute such Termination on behalf of the Landlord.
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.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the Effective Date.
DocuSign Envelope ID: A6CCBD49-C917-460C-8FD2-3680B316D0D7 B0785-0001\2788574v1.doc
LANDLORD:
ATTEST:
____________________________
Huma Ahmed, City Clerk
CITY OF BEVERLY HILLS
By:
Julian A. Gold, M.D., Mayor
APPROVED AS TO FORM:
______________________________
Laurence S. Wiener, City Attorney
APPROVED AS TO CONTENT:
______________________________
Nancy Hunt-Coffey, City Manager
TENANT:
DESTOMIL LLC,
a California limited liability company
By:
Norma Ashton, Manager
DocuSign Envelope ID: A6CCBD49-C917-460C-8FD2-3680B316D0D7 B0785-0001\2788574v1.doc
EXHIBIT “A”
FORM OF TERMINATION OF MEMORANDUM OF LEASE
(Attached.)
DocuSign Envelope ID: A6CCBD49-C917-460C-8FD2-3680B316D0D7 B0785-0001\2788574v1.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.
TERMINATION OF MEMORANDUM OF LEASE
THIS TERMINATION OF MEMORANDUM OF LEASE (this “Termination”) is dated as of April 18, 2023, 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, and amended it by an Amendment of Lease dated October 11, 2022 (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. A Memorandum of Lease dated October 11, 2022 was recorded on December 29, 2022 as Document Number 20221207892 in the Official Records of Los Angeles County, California (“Memorandum”).
C. Landlord and Tenant have entered into a Second Amendment/Termination of Lease (“Amendment”) dated April 18, 2023, which terminated the Lease.
D. Landlord and Tenant desire to record this Termination of Memorandum of Lease, in order to terminate the Memorandum of record.
A G R E E M E N T
The Memorandum is hereby terminated.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Termination.
LANDLORD: CITY OF BEVERLY HILLS
By:
Nancy Hunt-Coffey, City Manager
DocuSign Envelope ID: A6CCBD49-C917-460C-8FD2-3680B316D0D7 B0785-0001\2788574v1.doc
TENANT: DESTOMIL LLC,
a California limited liability company
By:
Norma Ashton, Manager
DocuSign Envelope ID: A6CCBD49-C917-460C-8FD2-3680B316D0D7 B0785-0001\2788574v1.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: A6CCBD49-C917-460C-8FD2-3680B316D0D7 B0785-0001\2788574v1.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: A6CCBD49-C917-460C-8FD2-3680B316D0D7 Certificate Of Completion
Envelope Id: A6CCBD49C917460C8FD23680B316D0D7 Status: Sent Subject: Complete with DocuSign: Second Amendment_Termination 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
3/17/2023 3:18:39 PM
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: 166.205.107.84
Signed using mobile
Sent: 3/17/2023 3:55:26 PM
Viewed: 3/17/2023 4:01:05 PM
Signed: 3/17/2023 4:01:37 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: 208.87.234.180
Sent: 3/17/2023 4:01:39 PM
Viewed: 3/17/2023 4:17:23 PM
Signed: 3/17/2023 4:17:31 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Logan Phillippo
[email protected]
Real Property Development Manager
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Sent: 3/17/2023 4:17:33 PM
Viewed: 3/21/2023 9:33:23 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Nancy Hunt-Coffey
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Julian A. Gold, M.D.
[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]
Real Property Development Manager
City of Beverly Hills
Security Level: Email, Account Authentication
(None)
Sent: 3/17/2023 3:55:26 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
Megan Grilley
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Michelle Ramos-Vergara
[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 3/17/2023 3:55:26 PM
Payment Events Status Timestamps