AGENDA REPORT
Meeting Date: August 6, 2024
Item Number:
To: Board of Directors, The Parking Authority of the City of Beverly Hills From: Logan Phillippo, Real Property Development Manager Jonathan Gernes, Senior Management Analyst
Subject: APPROVAL OF AMENDMENT OF LEASE BY AND BETWEEN THE
PARKING AUTHORITY OF THE CITY OF BEVERLY HILLS AND
LUKARO, INC. AT 313 NORTH CRESCENT DRIVE
Attachment: 1. Amendment of Lease
RECOMMENDATION
Staff recommends The Parking Authority Board of Directors approve the Amendment of Lease by and between The Parking Authority of the City of Beverly Hills and Lukaro, Inc. for the property located at 313 North Crescent Drive.
INTRODUCTION
The proposed amendment would extend the term of the lease by two years and increase the monthly rent beginning January 1, 2025.
DISCUSSION
The City entered into a lease agreement with Lukaro, Inc. at 313 North Crescent Drive in August 2021 for operation of a hair salon.
The proposed Amendment of Lease provides the following key terms:
• Extension of the Term: The lease shall expire December 31, 2026; and • Base Rent: The monthly base rent shall be $5,373.08 beginning January 1, 2025.
FISCAL IMPACT
The proposed lease amendment extends the term of the lease through December 31, 2026, and increases the rent payable from $5,166.42 to $5,373.08 per month beginning January 1, 2025. In total, $128,953.92 would be collected in base rent over the two-year extension, an increase of $8,985.17 over the prior two-year period.
Meeting Date: August 6, 2024
There are no broker’s commissions associated with this lease amendment.
Ryan Gohlich,
Assistant City Manager
Approved By
Attachment 1
-1-
B0785-0001\2983476v1.doc
AMENDMENT OF LEASE
THIS AMENDMENT OF LEASE (this “Amendment”) is dated as of ____________________, 2024, and is entered into by and between THE PARKING AUTHORITY OF THE CITY OF BEVERLY HILLS (“Landlord”), and LUKARO, INC., a California corporation (“Tenant”).
R E C I T A L S
A. Landlord and Tenant entered into that certain Retail Lease dated August 3, 2021 (the “Lease”), for premises (the “Premises”) in the City of Beverly Hills, County of Los Angeles, State of California, at 313 North Crescent Drive, Beverly Hills, CA 90210.
B. Capitalized terms used but not defined herein shall have the meaning set forth in the Lease.
C. Tenant and Landlord 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, Tenant and Landlord agree as follows:
1. Extension of Lease Term. The term of the Lease is hereby extended to December 31, 2026. Tenant shall have no right to further extend the term of the Lease.
2. Rent. Commencing on January 1, 2025, monthly rent under the Lease shall be Five Thousand Three Hundred Seventy-Three and 08/100 Dollars ($5,373.08).
3. Conflict. In the event of a conflict or inconsistency between the terms and conditions of the Lease and the terms and conditions of this Amendment, the terms and conditions of this Fifth Amendment shall prevail and control.
4. Continuing Effect. Except as specifically modified hereby, the Lease shall remain unaffected and unchanged. The Lease is hereby ratified and affirmed by Landlord and Tenant and remains in full force and effect as modified hereby.
5. 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.
6. Executive Director Authority. The Executive Director of Landlord shall have the authority to execute the Amendment to Memorandum of Lease contemplated by this Amendment.
7. Memorandum of Lease. Upon its execution and delivery of this Amendment, Tenant shall concurrently execute and deliver a duly acknowledged counterpart of a Memorandum of Lease in the form attached hereto as Exhibit “A”.
Docusign Envelope ID: FCE06C6F-31C5-4B65-A4FB-9061E886CBBE -2-
B0785-0001\2983476v1.doc
8. DocuSign. The parties may use DocuSign to execute and deliver this Amendment, but Tenant must deliver an executed original of the Memorandum of Lease to Landlord, duly acknowledged, so that it can be executed and recorded by Landlord.
9. Default. A default by Tenant under this Amendment shall constitute a default by Tenant under the Lease.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first written above.
LANDLORD: THE PARKING AUTHORITY OF THE
CITY OF BEVERLY HILLS
By:
Lester J. Friedman, Chairperson
ATTEST:
Huma Ahmed, Secretary
APPROVED AS TO FORM:
Laurence S. Wiener, General Counsel
APPROVED AS TO CONTENT:
Nancy Hunt-Coffey, Executive Director
TENANT: LUKARO, INC.,
By:
Luke O’Connor, President and Chief Executive
Officer
By:
Rona O’Connor, Vice President, Chief
Financial Officer, and Secretary
Docusign Envelope ID: FCE06C6F-31C5-4B65-A4FB-9061E886CBBE B-1
B0785-0001\2983476v1.doc
EXHIBIT “A”
FORM OF MEMORANDUM OF LEASE
(Attached.)
Docusign Envelope ID: FCE06C6F-31C5-4B65-A4FB-9061E886CBBE B-2
B0785-0001\2983476v1.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
Attention: City Clerk
SPACE ABOVE THIS LINE FOR RECORDER'S USE
The undersigned declare that this Memorandum of Lease is exempt from Recording Fees pursuant to California Government Code Section 27383 and exempt from Documentary Transfer Tax pursuant to California Revenue and Taxation Code Section 11922.
MEMORANDUM OF LEASE
THIS MEMORANDUM OF LEASE (this “Memorandum”) is dated as of _______, 2024, and is entered into by and between LUKARO, INC., a California corporation (“Tenant”), and THE PARKING AUTHORITY OF THE CITY OF BEVERLY HILLS (“Landlord”).
RECITALS
A. Tenant and Landlord have entered into that certain Retail Lease dated August 3, 2021, and an Amendment of Lease dated in 2024 (the “Lease”), pursuant to which Landlord has agreed to lease and demise to Tenant, and Tenant has agreed to lease and accept from Landlord, a portion (the “Premises”) of that certain building located in the City of Beverly Hills, County of Los Angeles, State of California, commonly known as 313 North Crescent Drive. The Premises are more particularly described in the Lease.
B. Landlord and Tenant now desire to enter into this Memorandum to comply with applicable law requiring that municipal leases be recorded.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Tenant and City agree as follows:
1. Lease. Landlord hereby leases and demises to Tenant, and Tenant hereby leases and accepts from Landlord, the “Premises” described in the Lease, at the rental rates and upon the other terms and conditions set forth in the Lease, which are incorporated herein by this reference.
2. Purpose. This Memorandum is prepared for the purposes of recordation only and in no way modifies the terms and conditions of the Lease. In the event any provision of this Docusign Envelope ID: FCE06C6F-31C5-4B65-A4FB-9061E886CBBE B-3
B0785-0001\2983476v1.doc
Memorandum is inconsistent with any term or condition of the Lease, the term or condition of the Lease shall prevail.
3. Counterparts. This Memorandum 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, the parties hereto have executed this Memorandum of Lease as of the date first written above.
LANDLORD:
THE PARKING AUTHORITY OF THE CITY
OF BEVERLY HILLS
By:
Nancy Hunt-Coffey, Executive Director
TENANT:
LUKARO, INC.,
a California corporation
By:
Luke O’Connor, President and Chief Executive
Officer
By:
Rona O’Connor, Vice President, Chief
Financial Officer, and Secretary
Docusign Envelope ID: FCE06C6F-31C5-4B65-A4FB-9061E886CBBE B-4
B0785-0001\2983476v1.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: FCE06C6F-31C5-4B65-A4FB-9061E886CBBE B-5
B0785-0001\2983476v1.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: FCE06C6F-31C5-4B65-A4FB-9061E886CBBE Certificate Of Completion
Envelope Id: FCE06C6F31C54B65A4FB9061E886CBBE Status: Sent Subject: Complete with Docusign: Amendment of Lease - Lukaro, Inc.
Source Envelope:
Document Pages: 7 Signatures: 3 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: 72.134.81.22
Record Tracking
Status: Original
7/11/2024 2:42:10 PM
Holder: Jonathan Gernes
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Luke O'Connor
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 166.198.198.89
Signed using mobile
Sent: 7/11/2024 4:38:42 PM
Viewed: 7/11/2024 7:28:25 PM
Signed: 7/11/2024 7:28:39 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Rona O'Connor
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Drawn on Device
Using IP Address: 104.33.193.172
Signed using mobile
Sent: 7/11/2024 4:38:43 PM
Resent: 7/18/2024 1:24:27 PM
Viewed: 7/18/2024 2:55:55 PM
Signed: 7/18/2024 3:08:24 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: 208.87.233.201
Sent: 7/18/2024 3:08:25 PM
Viewed: 7/18/2024 3:21:54 PM
Signed: 7/18/2024 3:22:00 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: 7/18/2024 3:22:01 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Nancy Hunt-Coffey
[email protected]
Security Level: Email, Account Authentication
(None)
Signer Events Signature Timestamp
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Lester J. Friedman
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
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: 7/11/2024 4:38:43 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Jessika Vasquez
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Keith Sterling
[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
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 7/11/2024 4:38:43 PM
Payment Events Status Timestamps