AGENDA REPORT
Meeting Date: January 13, 2026
Jonathan Gernes, Senior Management Analyst
Subject: AUTHORIZE THE CITY MANAGER TO NEGOTIATE AND EXECUTE A SHORT TERM COMMERCIAL LEASE AGREEMENT WITH 8447
WILSHIRE BOULEVARD ASSOCIATES II LLC AT 8447 WILSHIRE
BOULEVARD
Attachment: 1. Draft Short Term Commercial Lease Agreement
RECOMMENDATION
Staff recommends City Council authorize the City Manager to negotiate and execute a short-term commercial lease agreement with 8447 Wilshire Boulevard Associates II LLC (the “Property Owner”) at 8447 Wilshire Boulevard on terms as described herein or that are similar thereto and with a negotiation time period that will not extend later than March 31, 2026. Based on discussions with the Property Owner’s representatives to date, Staff anticipates a lease substantially in the form as shown in Attachment 1 can be finalized within the next two weeks.
INTRODUCTION
The short-term lease will allow the City of Beverly Hills to utilize a portion of ground-floor space at 8447 Wilshire Boulevard to construct and operate a temporary public safety center serving Wilshire/La Cienega Station while construction of the permanent public safety center is completed.
DISCUSSION
The Los Angeles County Metropolitan Transportation Authority (“Metro”) is nearing completion of Wilshire/La Cienega Station. With the upcoming opening of the station, the City will operate a public safety center on the plaza of the station property with a highlyvisible presence, providing additional support to nearby safety operations.
Item Number:
To: Honorable Mayor & City Council
From: Logan Phillippo, Real Property Development Manager Meeting Date: January 13, 2026
Construction of the on-site permanent public safety center, currently in progress, is anticipated to be completed after the opening of Wilshire/La Cienega Station. Staff recommends leasing a portion of 8447 Wilshire, immediately adjacent to the station, so that the City can construct a temporary public safety center and have a presence when the Station opens and through completion of the permanent facility’s construction. The Property Owner’s representatives have stated the terms included in attached draft shortterm lease are acceptable.
The draft lease, prepared by the City, includes the following key terms:
• Term: A term of two years, allowing the City ample time to construct the temporary facility, operate it, and return the property to its prior condition; • Termination Option: Given the two-year period is longer than Staff currently anticipates is necessary, the City may terminate the lease upon 30 days’ prior written notice to the Property Owner;
• Rent: The City shall pay rent in the amount of $100 for the entire two-year term; • Utilities: The City shall reimburse the Property Owner for the City’s use of electricity, water, and any other utilities serving the leased premises; • Use: The City shall utilize the premises for the construction and operation of a temporary public safety center;
• Parking: The City shall have one reserved parking space on the property; and • Tenant Improvements: The City shall perform all improvements for the temporary public safety center at its sole expense. Prior to the end of the term, the City must remove the improvements and return the property to its previous condition.
FISCAL IMPACT
The City will make a one-time rent payment of $100 and reimburse the Property Owner for the City’s use of utilities. Staff anticipates construction for the temporary facility to be approximately $75,000 and deconstruction/removal of the improvements to be approximately $35,000. Although no appropriation is requested at this time, a funding request will be brought forward in the near future to augment funds in the Fiscal Year 2025-2026 Capital Improvement Program to account for this project.
Ryan Gohlich,
Assistant City Manager
Approved By
Attachment 1
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SHORT TERM COMMERCIAL LEASE AGREEMENT
(Temporary Public Safety Center; Premises at 8447 Wilshire Boulevard) THIS SHORT TERM COMMERCIAL LEASE AGREEMENT (the “Lease”) is dated _________________, 2026 and is entered into by and between 8447 WILSHIRE BOULEVARD ASSOCIATES II LLC, a __________________________ (“Landlord”) and the CITY OF BEVERLY HILLS, a California municipal corporation (“Tenant”).
RECITALS
A. Landlord owns the land and improvements at 8447 Wilshire Boulevard in Beverly Hills, California (the “Property”). The “Premises” being leased under this Lease are within the Property, and are described on Exhibit “A.”
B. The Property is adjacent to the Wilshire/La Cienega Metro Line Station, a public transportation station open to the general public (“La Cienega Station”).
C. Tenant is in the process of constructing a permanent public safety center for use by the Beverly Hills Police Department to monitor La Cienega Station for safety-related matters and to take inquiries from the general public.
D. Tenant anticipates that operation of La Cienega Station will commence prior to completion of construction and opening of the permanent public safety center; consequently, Tenant desires to lease the Premises and one (1) reserved/marked parking space at 8447 Wilshire Boulevard to construct and operate a temporary public safety center on the Premises (“Temporary Public Safety Center”) while the permanent public safety center is being constructed.
NOW THEREFORE, in consideration of the foregoing recitals, the mutual covenants herein, and other consideration, the sufficiency of which is hereby acknowledged, Landlord and Tenant hereby agree as follows:
1. Demise.
Landlord hereby leases the Premises and parking space to Tenant, and Tenant hereby leases the Premises and parking space from Landlord, upon and subject to the terms and conditions hereinafter set forth.
2. Term and Occupancy.
a. Term. The term of this Lease (“Term”) shall be for two (2) years commencing on _______________________, 2026 (the “Commencement Date”). However, Tenant may terminate this Lease at any time upon thirty (30) days’ prior written notice to Landlord. b. Possession; Rent. Upon delivery to Landlord of the Rent for the Term which shall be $100.00, Landlord shall deliver possession of the Premises and parking space to Tenant.
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3. Place of Payment. Rent and all other sums which shall become due under this Lease shall be payable at the office of the Landlord located at _____________________, or at such other place as Landlord may designate from time to time in writing (and may be delivered by hand or by mail).
4. Parking. Landlord shall provide one (1) reserved parking space on the Premises exclusively for Tenant’s use, which shall be located as shown on Exhibit “B”. At Tenant’s expense, Landlord shall clearly mark the parking space as “Reserved for City of Beverly Hills Police”, and shall otherwise use good faith efforts to ensure that no unauthorized vehicles utilize Tenant’s reserved parking space (but shall not be obligated to tow vehicles).
5. Condition of, and Improvements to, Premises.
a. Improvements. Landlord shall have no obligation or responsibility, actual or implied, to repair, alter, install, construct, accommodate, or make any improvements to the Premises.
b. Condition. Tenant agrees to take possession of the Property in an AS-IS condition, without representation or warranty, express or implied. c. Tenant Improvements. Tenant may construct improvements on the Premises (“Tenant Improvements”) consisting of the Temporary Public Safety Center, as described on Exhibit “C”. Tenant shall limit construction hours to hours permitted by the City of Beverly Hills Municipal Code.
d. Condition Upon Surrender. Upon termination of this Lease, Tenant shall remove the Tenant Improvements, repair any damage to the Premises caused by such removal, return the Premises to a condition comparable to that immediately prior to Tenant’s construction of the Tenant Improvements, and surrender the Premises (and parking space) to Landlord, ordinary wear and tear excepted.
e. CASp Disclosure. Landlord discloses that the Property (including the Premises) has not undergone inspection by a Certified Access Specialist as referenced in California Civil Code Section 1938 subsection (e) which provides:
“A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.”
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Pursuant to the foregoing Section 1938, subd. (e), Tenant acknowledges and agrees that, if Tenant wishes to have the Property inspected by a CASp: (i) Tenant must notify Landlord in writing; (ii) the inspection will be at Tenant’s sole cost and expense; and (iii) Tenant shall provide a copy of the CASp report to Landlord on completion. Should any CASp alterations be required, Tenant shall be solely responsible for the CASp alterations.
6. Use. The Premises shall be used for Tenant to construct and operate the Temporary Public Safety Center. Tenant shall have access to Landlord’s ground-floor common area restrooms.
7. Compliance with Laws/Hazardous Materials.
a. Tenant shall comply with all applicable laws, ordinances, rules and regulations of governmental authorities applicable to the Premises or Tenant’s construction activities, or the use or occupancy of the Premises or parking space, as applicable (“Laws”). b. Tenant shall not cause or permit any Hazardous Materials, as defined below, to be brought upon, kept, used, discharged, deposited or leaked in or about the Property or the Premises by Tenant or any of Tenant’s agents or by anyone in the Property (other than Landlord or its agents, employees or contractors), except to the extent such Hazardous Materials are cleaning or office supplies customarily kept or used by typical office tenants or are typically used in a vehicle (for the parking space) and are kept and used in accordance with Laws. If Tenant breaches the obligations stated in the preceding sentence, or if the presence of any Hazardous Material on the Property or the Premises caused or suffered or permitted by Tenant or any of Tenant’s agents or by anyone in the Property (other than Landlord or its agents, employees or contractors) results in contamination of the Property or the Premises for which Tenant is legally liable, then Tenant shall indemnify, defend and hold Landlord harmless from any and all claims, damages, costs, liabilities and expenses (including, without limitation, diminution in value or use of the Premises, attorneys’ fees, consultant fees and expert fees) which arise during or after the Term as a result of such contamination. “Hazardous Materials” shall mean any toxic or hazardous substance, material or waste or any pollutant or contaminant or infectious or radioactive material, including but not limited to those substances, materials or wastes regulated now or in the future under any of the following statutes or regulations promulgated thereto: (1) any “hazardous substance” within the meaning of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”) 42 U.S.C. §9601, et seq. or the California Hazardous Substance Account Act, Cal. Health and Safety Code §25300 et seq. or the Porter-Cologne Water Quality Act, Cal. Water Code §13000 et seq. or the Hazardous Materials Transportation Act, 49 U.S.C. §1801, et seq.; (2) any “hazardous waste” within the meaning of the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq.; or (3) any other substance, chemical, waste, toxicant, pollutant or contaminate regulated by any federal, state or local law, statute, rule, regulation or ordinance for the protection of health or the environment, including, without limitation, any petroleum products or fractions thereof.
8. Waste; Nuisance. Tenant shall not commit any waste or nuisance on the Premises or Property.
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9. Repair and Maintenance. Tenant shall, at Tenant’s sole cost and expense, maintain the Premises in good condition and repair. Landlord shall be responsible for all repair and maintenance of the parking space and the remainder of the Property (excluding the Premises).
Landlord shall maintain in good condition and repair: the structural components and foundations, roofs and exterior surfaces of the exterior walls of all the Property (exclusive of doors, door frames, door checks, windows, window frames, storefronts and storefront awnings), common areas and the electrical, plumbing, and all other utility lines located outside the Premises or in the floor or foundation, and all mechanical, electrical, life safety, plumbing, vertical transportation system, sprinkler systems and HVAC systems which do not exclusively service the Premises, except for improvements made by Tenant and damage caused by Tenant or its agents, contractors, employees, customers, and visitors.
10. Utilities. Tenant shall pay for its reasonably allocated proportionate share of utilities and services furnished to or used by Tenant upon the Property, including electrical service, water, gas, and trash services. Landlord shall invoice Tenant on a monthly basis for the cost of utilities utilized during the preceding month. Upon delivery of the invoice from Landlord, Tenant shall make payment to Landlord within fifteen (15) days.
11. Assignment and Subletting. Tenant shall not sublet the Premises or parking space or assign or encumber this Lease either voluntarily or by operation of law to any other entity without the prior written consent of Landlord, which consent may be withheld in Landlord’s sole and absolute discretion. Consent to one assignment, subletting, or use by any person other than Tenant shall not be deemed to be consent to a subsequent assignment, subletting, or use by any other person.
12. Entry by Landlord. Upon reasonable prior written notice to Tenant, Landlord and its agents may enter the Premises at reasonable times to inspect and examine the same and to make repairs to the Property for which access to the Premises is necessary. Landlord and its agents may enter the Premises in an emergency without prior notice to Tenant but shall be accompanied by a Beverly Hills Police Department officer prior to entry.
13. Indemnification.
a. General Indemnity. Tenant shall indemnify, defend, protect and hold harmless Landlord, its employees, agents, officers, assigns, any successor or successors to Landlord’s interest in the Property (hereinafter collectively referred to as the “Indemnitees”) from and against all claims, damages (including but not limited to special and consequential damages), injuries, costs, response costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties and expenses arising out of any damage to any person or property occurring in or on the Premises or parking space, except for any acts of negligence or willful misconduct by Landlord. Tenant’s obligation under this Section to indemnify and hold the Indemnitees harmless shall be limited to the sum that exceeds the amount of insurance proceeds from insurance, if any, received by Landlord. -5-
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14. Insurance.
a. Required Insurance. Tenant has a self-insurance program with respect to risks typically covered by Commercial General Liability insurance. Throughout the term of this Lease, Tenant shall maintain: (a) with respect to the Premises, Commercial General Liability (CGL), or such self-insurance program equivalent, with limits no less than Two Million Dollars ($2,000,000.00) per occurrence basis including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than Two Million Dollars ($2,000,000) per occurrence, which shall insure and indemnify Landlord against liability or financial loss resulting from any suits, claims or actions brought by any person or persons and from all costs and expense of litigation brought against Tenant for any injury to persons and/or damage to property within the Premises; and (b) property insurance against all risk of loss at full replacement cost with no coinsurance penalty provision covering the Premises and Tenant’s Improvements with respect to any risk/peril typically included under insurance industry practices in the City of Beverly Hills within the classification “fire and extended coverage,” as well as insurance against vandalism, malicious mischief, and sprinkler leakage or other sprinkler damage, if sprinklers are installed.
b. Waiver of Subrogation. The parties release each other, and their respective authorized representatives, from any claims (for damage to any person or to the Property or fixtures, personal property, Tenant’s Improvements, and alterations of either Landlord or Tenant) that are caused by or result from risks which are insured against under any insurance policies carried by the parties and in force at the time of any such damage to the full extent of any proceeds paid under said policies.
15. Destruction of Premises. If the Premises are totally or substantially destroyed during the term of this Lease, then either Landlord or Tenant may terminate this Lease.
16. Default and Remedies.
a. Default. It shall be an “Event of Default” if a party shall fail to observe, keep or perform any of the terms, covenants, agreements or conditions contained in this Lease to be performed by such party, and such default continues for a period of thirty (30) days after written notice by the other party specifying the nature of the default with reasonable particularity, unless the nature of the default is such that more than thirty days is required to cure it and the party commences to cure it within such thirty-day period and thereafter diligently pursues the cure to completion.
b. Remedies. If any Event of Default shall occur, the other party shall have the right to terminate this Lease by written notice.
17. Signs. Tenant may install signs for the Temporary Public Safety Center as more particularly described in Exhibit “D”. Tenant shall remove all such signs and repair any damage caused by such removal, upon the expiration or earlier termination of this Lease.
18. Eminent Domain. In case the whole of the Premises, or such part thereof that substantially interferes with the reasonable use thereof, shall be taken for any public or quasipublic purpose by any lawful power or authority by exercise of the right of appropriation, -6-
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condemnation or eminent domain, or sold to prevent such taking, either party shall have the right to terminate this Lease effective as of the date possession is required to be surrendered to said authority. Tenant shall not assert any claim against Landlord or the taking authority for any compensation because of such taking and Landlord shall be entitled to receive the entire amount of any award without deduction for any estate or interest of Tenant.
19. No Brokers. Tenant and Landlord each represent and warrant to each other that no broker has represented either of them or is otherwise entitled to a commission or fee in connection with this Lease. Each party hereby indemnifies, defends and holds the other party harmless from all claims, liabilities, losses, costs and expenses (including reasonable attorneys’ fees) arising out of a breach of its representation set forth in this Section. The provisions of this Section shall survive the expiration or earlier termination of the Lease.
20. Attorneys’ Fees. If either party commences an action against the other party arising out of or in connection with this Lease, the prevailing party shall be entitled to have and recover from the losing party reasonable attorneys’ fees and costs of suit.
21. Notices. Any notice required or permitted to be given hereunder may be given by personal delivery or by United States certified mail, postage prepaid, addressed to Landlord at [Insert Contact Information], and to Tenant at City of Beverly Hills, City Hall, Attn: Real Estate Management, 455 North Rexford Drive, Beverly Hills, CA 90210, or at such other address as the Landlord or Tenant shall designate in a notice given pursuant to this Section.
22. Waiver. No delay or omission in the exercise of any right or remedy of either party on any default shall impair such right or be construed as a waiver.
23. Successors and Assigns. Except as otherwise provided herein, all of the terms and conditions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns and successors-in-interest. In the event of any transfer, assignment or other conveyance by Landlord, Landlord herein named (and in case of any subsequent transfers or conveyances, the then grantor) shall be automatically freed and relieved from and after the date of such transfer of all liability accruing after the date of such transfer or assignment.
24. Entire Agreement; Amendments. This Lease contains the entire agreement of the parties and supersedes all prior negotiations, drafts, and other understandings which the parties may have had concerning the subject matter hereof. This Lease may not be modified except by written instrument duly executed by the parties hereto or their successors in interest.
25. Choice of Law. This Lease shall be governed by and construed pursuant to the laws of the State of California.
26. Authority. Each of the persons executing this Lease on behalf of each party warrants and represents that each party is a duly organized and validly existing entity, that each party has full right and authority to enter into this Lease and that the persons signing on behalf of each party are authorized to do so and have the power to bind their respective entity to this Lease. -7-
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27. Time of the Essence. Time is of the essence of every provision hereof in which time is a factor.
[Signatures on the Following Page.]
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IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the date and year first set forth above.
LANDLORD:
8447 WILSHIRE BOULEVARD
ASSOCIATES II LLC,
____________________________
By:
Print Name: _____________________
Title: __________________________
TENANT:
CITY OF BEVERLY HILLS,
a California municipal corporation
By:
Sharona R. Nazarian, PsyD, Mayor
APPROVED AS TO CONTENT:
Nancy Hunt-Coffey, City Manager
Sharon L’Heureux Dressel, Risk Manager
APPROVED AS TO FORM:
Laurence S. Wiener, City Attorney
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EXHIBIT “A”
DESCRIPTION OF PREMISES
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EXHIBIT “B”
LOCATION OF RESERVED PARKING SPACE
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EXHIBIT “C”
DESCRIPTION OF TENANT IMPROVEMENTS
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EXHIBIT “D”
DESCRIPTION OF TEMPORARY PUBLIC SAFETY CENTER SIGNAGE