AGENDA REPORT
Meeting Date: October 28, 2025
Item Number:
To: Board of Directors, Parking Authority of the City of Beverly Hills From: Logan Phillippo, Real Property Development Manager Jonathan Gernes, Senior Management Analyst
Subject: THIRD AMENDMENT TO LEASE BY AND BETWEEN THE PARKING
AUTHORITY OF THE CITY OF BEVERLY HILLS AND
EUROMARKET DESIGNS, INC. AT 438 NORTH BEVERLY DRIVE
Attachment: 1. Third Amendment to Lease
RECOMMENDATION
Staff recommends the Parking Authority Board of Directors approve the Third Amendment to Lease by and between The Parking Authority of the City of Beverly Hills and Euromarket Designs, Inc. (the “Tenant”) at 438 North Beverly Drive.
INTRODUCTION
The Parking Authority’s lease agreement with Euromarket Designs, Inc. expires January 31, 2027, and the proposed third amendment to lease extends the term through January 31, 2030.
DISCUSSION
The City of Beverly Hills initially entered into a lease agreement with Euromarket Designs, Inc. at 438 North Beverly Drive on August 1, 2000. The Tenant operates as Crate & Barrel, a national furniture, home décor, and kitchenware retailer. The agreement has been subsequently amended and extended to now expire on January 31, 2027. There are no additional options to extend the lease term.
The proposed Third Amendment to Lease has the following key terms:
• The lease expiration date shall be January 31, 2030;
• Base rent shall be $116,667 beginning February 1, 2027, and continuing through the lease expiration date; and
Meeting Date: October 28, 2025
• The Parking Authority’s maintenance responsibilities for common-area pedestrian gates is further clarified.
The Third Amendment to Lease also modifies the insurance provisions of the original agreement to better reflect current Tenant business practices. This includes the Tenant providing necessary insurance certificates rather than also providing full insurance policies. The minimum required insurance and policy limits have not been decreased.
FISCAL IMPACT
The proposed First Amendment to Lease sets the monthly base rent payable to $116,667 beginning February 1, 2027 and continuing through the extended term. In total $4,200,012 would be collected in base rent during the three-year extension term.
There is no broker commission payment associated with this Third Amendment to Lease and there is no tenant improvement allowance.
Ryan Gohlich,
Assistant City Manager
Approved By
Attachment 1
-1-
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THIRD AMENDMENT TO LEASE
THIS THIRD AMENDMENT TO LEASE (this “Third Amendment”) is dated as of _____________, 2025 (the “Effective Date”), and is entered into by and between THE PARKING AUTHORITY OF THE CITY OF BEVERLY HILLS (“Lessor”) and EUROMARKET DESIGNS, INC., an Illinois corporation (“Lessee”).
R E C I T A L S
A. The City of Beverly Hills and Lessee entered into that certain Lease dated August 1, 2000 and amended it by a First Amendment to Lease dated January 8, 2002 and a Second Amendment of Lease dated July 27, 2021 (the “Lease”) which affects a portion of the building in Beverly Hills, California (the “Premises”).
B. A Memorandum of Lease was recorded on May 12, 2004 as Document No. 041194799 in the Official Records of Los Angeles County.
C. The City of Beverly Hills has conveyed the building and Premises to Lessor, and Lessor and Lessee 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. Term. The term of the Lease shall expire on January 31, 2030.
2. Base Rent. Beginning February 1, 2027 and continuing through the expiration date, Tenant shall pay $116,667.00 per month, without prior demand, and without offset or deduction, on or before the first day of each calendar month, as minimum base rent.
3. Insurance.
(i) Section 13.1 of the Lease is hereby deleted in its entirety and replaced with the following:
“13.1 Tenant’s Insurance. Tenant, at its sole cost and expense, shall procure, pay for and keep in full force and effect the following types of insurance, in at least the amounts and in the forms specified below:
(a) Commercial general liability insurance with coverage limits of not less than Three Million Dollars ($3,000,000.00) for combined single limit for bodily injury, personal injury, death and property damage liability per occurrence and in the general aggregate per policy, in combination of primary and umbrella/excess liability insurance, insuring against any and all liability of the insureds with respect to the Premises or arising out of the maintenance, use or occupancy of the Premises or related to the exercise of any rights of Tenant pursuant to this Lease, subject to increases in amount as Landlord may reasonably require from time to time. Further, all such liability insurance shall include, but not Docusign Envelope ID: DEAF8152-7F76-4895-9D3E-FD1967A9116D -2-
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be limited to, blanket contractual (as defined in the policy) and severability of interest clauses, independent contractors, owned, non-owned and hired vehicles and, if alcoholic beverages are served, sold, consumed or obtained in the Premises, liquor law liability.
(b) Worker's compensation coverage in an amount adequate to comply with law, and employer's liability coverage with a limit of not less than Five Hundred Thousand Dollars ($500,000.00) per accident / per employee / policy limit. (c) Plate glass insurance covering all plate glass on the Premises at full replacement value. Tenant shall have the option ither to insure this risk or to selfinsure. (d) Insurance covering all of Tenant's Work, Tenant's leasehold improvements and Alterations permitted under Article 10, in an amount not less than their full replacement value from time to time, including replacement cost endorsement, providing protection against any peril included in the special form causes of loss policy form, and earthquake. Any policy proceeds shall be used for the repair or replacement of the property damaged or destroyed unless this Lease shall cease and terminate under the provisions of Article 14.” (ii) Section 13.2 of the Lease is hereby deleted in its entirety and replaced with the following:
“13.2 Policy Form. All policies required of Tenant herein shall be issued by insurance companies with a general policy holder's A.M. Best’s rating of not less than "A-" and a financial rating of not less than Class "VIII", and which are qualified to do business in the State of California.
All such policies, except for the Workers' Compensation coverage, shall name and shall be for the mutual and joint benefit and protection of Landlord, Tenant and Landlord's officers, agents and mortgagee (s) or beneficiary(ies) as additional insureds. The policies described in subparagraphs (c) and (d) of Section 13.1 shall also name Landlord and Landlord' s mortgagee ( s) or beneficiary(ies) as loss payees, and Landlord shall furnish to Tenant the names and addresses of such mortgagee(s) and beneficiary(ies). Copies of the certificates thereof shall be delivered to Landlord prior to Tenant, its agents or employees entering the Premises for any purpose; provided, however, Landlord shall have the right, upon written notice to Tenant, to require Tenant to provide copies of the certificates thereof. Thereafter, copies of renewal certificates thereof shall be delivered to Landlord within ten (10) days after expiration of the term of each policy. All certificates insurance delivered to Landlord must contain a provision that the company writing the policy will give to Landlord thirty (30) days' prior written notice of any cancellation or nonrenewal. All policies required of Tenant herein shall be endorsed to read that such policies are primary policies and any insurance carried by Landlord or Landlord's property manager shall be noncontributing with such policies. No policy required to be maintained by Tenant shall have a deductible greater than One Hundred Thousand Dollars ($100,000.00) unless approved in writing by Landlord, which approval shall not be unreasonably withheld.” (iii) Section 13.6 of the Lease is hereby deleted in its entirety and replaced with the following:
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“13.6 Waiver of Subrogation. Landlord and Tenant each waive any rights each may have against the other on account of any loss or damage occasioned to Landlord or Tenant, as the case may be, their respective property, the Premises or its contents, or to other portions of the Project arising from any loss or damage caused by fire or other casualty for which property insurance is carried or required to be carried pursuant to this Lease. The insurance policies obtained by Landlord and Tenant pursuant to this Lease shall contain endorsements waiving any right of subrogation which the insurer may otherwise have against the non-insuring party. If Landlord has contracted with a third party for the management of the Project, the waiver of subrogation by Tenant herein shall also run in favor of such third party.” (iv) Section 13.7 of the Lease is hereby deleted in its entirety and replaced with the following:
“13.7 Failure by Tenant to Maintain Insurance. If Tenant refuses or neglects to secure and maintain insurance policies complying with the provisions of this Article 13, or to provide certificates or copies of renewal certificates within the time provided in Section 13.2, Landlord may, after providing written notice to Tenant of its intention to do so, secure the appropriate insurance policies and Tenant shall pay, upon thirty (30) days following demand, the cost of same to Landlord, as Additional Triple Net Payments”, but the foregoing shall not limit Landlord’s other remedies for Tenant’s refusal or neglect to maintain insurance or provide certificates.
4. Gate Maintenance. Lessor shall perform any maintenance, repairs or replacements required to the common area gate adjacent to the Premises within 2 business days after notice from Lessee (or such longer period as may be required so long as Lessor has commenced and is diligently pursuing the performance of such maintenance, repair or replacement), except for damage caused by Lessee. Lessor agrees that Lessee shall have the right to close the gate when the Premises are not open for business, but Lessee may not lock the gate and Lessor may revoke Lessee’s right to close the gate in Lessor’s reasonable discretion. In addition, if requested by Lessee, Lessor shall permit Lessee to install motion lighting and/or external cameras at or near the Premises provided Lessee submits detailed plans for such installations to Lessor and Lessor shall have reasonably approved the same in writing. Lessor shall cooperate with Lessee in good faith, at no cost to Lessor, if Lessee reasonably determines that additional actions and procedures are necessary to address security issues.
5. Executive Director Authority. The Executive Director of Lessor shall have the authority to execute the Amendment to Memorandum of Lease described in Section 6 below, on behalf of Lessor.
6. Amendment of Recorded Memorandum of Lease. Upon its execution and delivery of this Third 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 “A”.
7. DocuSign. The parties may use DocuSign to execute and deliver this Third 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.
8. 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 Docusign Envelope ID: DEAF8152-7F76-4895-9D3E-FD1967A9116D -4-
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finder in connection with this Third 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 Third 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 Third Amendment that is based on any agreements or communications between Lessor and any such real estate broker, salesperson or finder.
9. Surrender. Notwithstanding anything in the Lease to the contrary, Lessee’s only obligation when surrendering the Premises to Lessor will be to leave the Premises in a broomclean condition and make any repairs required by any removal of the exterior signage.
10. Conflict. In the event of a conflict or inconsistency between the terms and conditions of the Lease and the terms and conditions of this Third Amendment, the terms and conditions of this Third Amendment shall prevail and control.
11. 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.
12. Counterparts. This Third 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.
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IN WITNESS WHEREOF, Lessor and Lessee have executed this Third Amendment as of the date and year first above written.
LESSOR: THE PARKING AUTHORITY OF THE
CITY OF BEVERLY HILLS
By:
Sharona R. Nazarian, PsyD,
Chairperson
ATTEST:
_________________________________
Huma Ahmed,
Secretary
APPROVED AS TO FORM:
_________________________________
Laurence S. Wiener,
Counsel to Parking Authority
APPROVED AS TO CONTENT:
_________________________________
Nancy Hunt-Coffey,
Executive Director
LESSEE: EUROMARKET DESIGNS, INC.,
an Illinois corporation
By: __________________________
Janet Hayes,
Chief Executive Officer
By: __________________________
Christina Maytum,
Senior Vice President, Finance
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EXHIBIT “A”
FORM OF AMENDMENT TO MEMORANDUM OF LEASE
(Attached.)
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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 ___________________, 2025, and is entered into by and between THE PARKING AUTHORITY OF THE CITY OF BEVERLY HILLS (“Landlord”), and EUROMARKET DESIGNS, INC., an Illinois corporation (“Tenant”).
R E C I T A L S
A. The City of Beverly Hills and Tenant entered into that certain Lease dated August 1, 2020, and amended it by a First Amendment of Lease dated January 8, 2002 and a Second Amendment to Lease dated July 27, 2021 (the “Lease”) which affects a portion of the building in Beverly Hills, California (the “Premises”).
B. A Memorandum of Lease was recorded on May 12, 2004 as Document No. 041194799 in the Official Records of Los Angeles County.
C. Landlord and Tenant have entered into a Third Amendment of Lease dated _______________, 2025, and desire to execute and record this Amendment in order to reflect of record such Third Amendment, as well as the first two amendments.
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 Third Amendment to Lease (as well as the other amendments to the Lease described in the above Recitals), and now has an expiration date of January 31, 2030. The Lease, as amended, is incorporated herein by this reference.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment.
LANDLORD: THE PARKING AUTHORITY OF THE
CITY OF BEVERLY HILLS
By:
Nancy Hunt-Coffey, Executive Director
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TENANT: EUROMARKET DESIGNS, INC.,
an Illinois corporation
By: __________________________
Janet Hayes,
Chief Executive Officer
By: __________________________
Christina Maytum,
Senior Vice President, Finance
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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: DEAF8152-7F76-4895-9D3E-FD1967A9116D -10-
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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: DEAF8152-7F76-4895-9D3E-FD1967A9116D Certificate Of Completion
Envelope Id: DEAF8152-7F76-4895-9D3E-FD1967A9116D Status: Sent Subject: Complete with Docusign: Third Amendment to Lease - Crate & Barrel.pdf Source Envelope:
Document Pages: 10 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
10/3/2025 11:43:52 AM
Holder: Jonathan Gernes
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Christina Maytum
[email protected]
SVP Finance
Security Level: Email, Account Authentication
(None) Signature Adoption: Drawn on Device
Using IP Address: 50.244.39.121
Sent: 10/3/2025 11:47:50 AM
Viewed: 10/5/2025 1:42:17 PM
Signed: 10/5/2025 1:42:21 PM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Janet Hayes
[email protected]
CEO
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Using IP Address: 24.14.136.26
Sent: 10/5/2025 1:42:22 PM
Viewed: 10/5/2025 5:14:27 PM
Signed: 10/5/2025 5:14:44 PM
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Bruce Galloway for
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 208.87.233.201
Sent: 10/5/2025 5:14:45 PM
Viewed: 10/6/2025 8:06:41 AM
Signed: 10/6/2025 8:06:47 AM
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Logan Phillippo
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 10/6/2025 8:06:49 AM
Electronic Record and Signature Disclosure:
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Nancy Hunt-Coffey
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
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Signer Events Signature Timestamp
Sharona R. Nazarian, PsyD
[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
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Elissa Evans
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 10/3/2025 11:47:51 AM
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
Hally Stanley
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
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Megan Grilley
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
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Envelope Sent Hashed/Encrypted 10/3/2025 11:47:51 AM
Payment Events Status Timestamps