AGENDA REPORT
Meeting Date: March 4, 2026
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 EIGHTEENTH AMENDMENT OF LEASE BY AND
BETWEEN THE PARKING AUTHORITY OF THE CITY OF BEVERLY
HILLS AND LUCERNE HARDWARE CO. AT 333 NORTH
CRESCENT DRIVE
Attachment: 1. Eighteenth Amendment of Lease
RECOMMENDATION
Staff recommends the Parking Authority Board of Directors approve the Eighteenth Amendment of Lease by and between the Parking Authority of the City of Beverly Hills and Lucerne Hardware Co. (the “Tenant”) for the property located at 333 North Crescent Drive.
INTRODUCTION
The proposed amendment would extend the term of the lease to December 31, 2033, and increase the monthly rent beginning January 1, 2027.
DISCUSSION
The City entered into a lease agreement with Lucerne Hardware Co. at 315 North Crescent in November 1988. The Tenant operates Pioneer Hardware, a full-service hardware and home goods store.
The proposed Eighteenth Amendment of Lease provides the following key terms:
• Extension of the Term: The lease shall expire December 31, 2033; and • Base Rent: The monthly base rent shall be $8,013.06 beginning January 1, 2027, and thereafter shall increase on an annual basis subject to changes in the consumer price index, however not exceeding a 5% cumulative increase over any two years.
Meeting Date: March 4, 2026
FISCAL IMPACT
The proposed lease amendment extends the term of the lease through December 31, 2033, and increases the rent payable from $7,271.18 per month to $8,013.06 per month beginning January 1, 2027. Under the maximum 5% increases, an approximate $732,738.24 would be collected in base rent over the extension term.
There are no brokerage commissions associated with this lease amendment.
Ryan Gohlich,
Assistant City Manager
Approved By
Attachment 1
-1-
B0785-0001\3211759v2.doc
EIGHTEENTH AMENDMENT TO LEASE
THIS EIGHTEENTH AMENDMENT TO LEASE (this “Amendment”) is made and entered into as of March 4, 2026, by and between THE PARKING AUTHORITY OF THE CITY OF BEVERLY HILLS (“Landlord”), and LUCERNE HARDWARE CO., a California corporation (“Tenant”).
R E C I T A L S
A. The City of Beverly Hills and Tenant executed that certain Lease dated November 1, 1988 (the “Original Lease”). The Original Lease was amended by that letter dated December 22, 1988, executed by the City and Tenant (the “Letter Amendment”); that certain Amendment to Lease dated as of September 8, 1992, executed by the City and Tenant (the “First Amendment”); that certain Second Amendment to Lease dated September 7, 1993 (the “Second Amendment”); that certain Third Amendment to Lease dated March 7, 1995, executed by the City and Tenant (the “Third Amendment”); that certain Fourth Amendment to Lease dated January 16, 1996, executed by the City and Tenant (the “Fourth Amendment”); that certain Fifth Amendment to Lease dated as of February 4, 1997, executed by the City and Tenant (the “Fifth Amendment”); that certain Sixth Amendment to Lease dated as of September 22, 1998, executed by the City and Tenant (the “Sixth Amendment”); that certain Seventh Amendment to Lease dated as of January 4, 2000, executed by the City and Tenant (the “Seventh Amendment”); that certain Eighth Amendment to Lease dated April 13, 2004 executed by the City and Tenant, recorded on May 25, 2004 as Document No. 041341231 in the Official Records of Los Angeles County, California (the “Eighth Amendment”); that certain Ninth Amendment to Lease dated as of March 11, 2009 executed by the City and Tenant, recorded on April 14, 2009 as Document No. 20090538735 in said Official Records (the “Ninth Amendment”); and that certain Tenth Amendment to Lease dated as of August 3, 2010 executed by the City and Tenant, recorded on October 22, 2010 as Document No. 20101520636 in said Official Records (the “Tenth Amendment”); that certain Eleventh Amendment to Lease dated as of November 15, 2011 executed by the City and Tenant, recorded on December 23, 2011 as Document No. 20111748761 in said Official Records (the “Eleventh Amendment”); that certain Twelfth Amendment to Lease dated as of June 19, 2012 executed by the City and Tenant, recorded on August 9, 2012 as Document No. 20121182303 in said Official Records (the “Twelfth Amendment”); that certain Thirteenth Amendment to Lease dated as of January 8, 2013, recorded on February 1, 2013 as Document No. 20130172116 in said Official Records (the “Thirteenth Amendment”); and that certain Fourteenth Amendment to Lease dated as of June 18, 2013, recorded on September 27, 2013 as Document No. 20131406029 in said Official Records (the “Fourteenth Amendment”); that certain Fifteenth Amendment to Lease dated March 5, 2019 recorded on March 22, 2019 as Document No. 20190258724 in said Official Records (the “Fifteenth Amendment”); and that certain Sixteenth Amendment to Lease dated November 19, 2019 recorded on January 29, 2020 as Document No. 20200115255 in said Official Records (the “Sixteenth Amendment”), and the Seventeenth Amendment; and that certain Seventeenth Amendment to Lease dated March 18, 2024 (the “Seventeenth Amendment”). The Original Lease, as amended by the Letter Amendment, the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the Seventh Amendment, the Eight Amendment, the Ninth Amendment, the Tenth Amendment, the Eleventh Amendment, the Twelfth Amendment, the Thirteenth Amendment, the Fourteenth Amendment, the Fifteenth Amendment, the Sixteenth Amendment, and the Seventeenth Amendment are hereinafter referred to as the “Lease.” Docusign Envelope ID: 853B47C2-B62B-432D-B2C8-A6CA11DD0CEB -2-
B0785-0001\3211759v2.doc
B. The Lease affects a portion of the building located at 333 North Crescent Drive, Beverly Hills, California (the “Property”).
C. Landlord and Tenant now desire to further amend the Lease as provided herein.
A G R E E M E N T
NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, the rents to be paid hereunder and of the covenants and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant hereby agree as follows:
1. Monthly Rent. Commencing on January 1, 2027, the monthly rent payable under the Lease shall be Eight Thousand Thirteen Dollars and Six Cents ($8,013.06) per month and shall thereafter increase annually by changes in the CPI (further described below).
2. CPI Rent Adjustment. On January 1, 2028, and each anniversary thereof (each, an “Adjustment Date”), the Base Monthly Rent shall be adjusted as follows:
The base for computing the adjustment is the Consumer Price Index for All Urban Consumers, not seasonally adjusted for the Los Angeles-Long Beach-Anaheim, CA Area, published by the United States Department of Labor, Bureau of Labor Statistics (“Index”), which is published for the twenty-seventh month preceding that Adjustment Date (“Beginning Index”). If the Index published for the third month preceding that Adjustment Date (“Extension Index”) is less than or equal to the Beginning Index, the Monthly Base Rent shall not be adjusted, and the Monthly Base Rent shall remain the same as in effect immediately prior to that Adjustment Date. If the Extension Index is more than the Beginning Index but less than one hundred five percent (105%) of the Beginning Index, the Monthly Base Rent shall be adjusted to an amount determined by multiplying the Monthly Base Rent in effect immediately prior to that Adjustment Date by a fraction, the numerator of which is the Extension Index and the denominator of which is the Beginning Index. However, in no event shall Base Monthly Rent decrease, and in no event shall cumulative increases over any two years exceed five percent (5%) of the Base Monthly Rent in effect prior to the applicable two-year period. If the Extension Index is equal to or more than one hundred five percent (105%) of the Beginning Index, the Monthly Base Rent shall be adjusted to an amount equal to one hundred five percent (105%) of the Monthly Base Rent in effect immediately prior to that Adjustment Date.
If the Index is changed so that the base year differs from that used for the Beginning Index, the Index shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is Docusign Envelope ID: 853B47C2-B62B-432D-B2C8-A6CA11DD0CEB -3-
B0785-0001\3211759v2.doc
discontinued or revised during the term, such other government index or computation with which it is replaced shall be used in order to obtain substantially the same result as would be obtained if the Index had not been discontinued or revised.
3. Extension of Term. The term of the Lease is hereby extended to December 31, 2033. Tenant shall not have any right to further extend the term.
4. Assignment and Subletting. Tenant shall not assign the Lease or sublet the Premises without the Landlord’s prior written consent, in its sole and absolute discretion.
5. Waiver of Relocation Benefits. Tenant shall take full responsibility for moving all personal and business assets, furnishings, fixtures, equipment and personal property, from the leased premises upon the expiration of the Term or any earlier termination of the Lease pursuant to the terms hereof, and for any resulting loss of business goodwill and going out of business expenses (the “Relocation”). Landlord shall not have any obligation to provide assistance to Tenant in connection therewith under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et seq.), if applicable, or under Title 1, Division 7, Chapter 1 of the Government Code of the State of California (Section 7260 et seq.), or any similar and applicable local laws or regulations. In connection therewith, and to the fullest extent permitted by law, Tenant further agrees that, effective upon the expiration of the Term or any earlier termination of this Lease pursuant to the terms hereof, Landlord shall be, and hereby is, fully and forever released from any and all claims and liabilities, whether direct or indirect, known or unknown, foreseen or unforeseen, that have arisen, or that may arise, in connection with the Relocation. By such release, Tenant expressly waives the provisions of California Civil Code Section 1542 that provide:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
THAT THE CREDITOR OR RELEASING PARTY DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT
THE TIME OF EXECUTING THE RELEASE AND THAT, IF
KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR
OR RELEASED PARTY.”
Tenant understands that, by waiving these provisions, Tenant waives the right to make claims against Lessor for matters pertaining to the Relocation that are presently unknown or unanticipated.
__________
Tenant’s Initials
6. 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 Amendment shall prevail and control.
Docusign Envelope ID: 853B47C2-B62B-432D-B2C8-A6CA11DD0CEB -4-
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7. Continuing Effect. Except as specifically modified hereby, the Lease shall remain unaffected and unchanged by reason of this Amendment. The Lease is hereby ratified and affirmed by Landlord and Tenant and remains in full force and effect as modified hereby.
8. Memorandum of Amendment of Lease. Upon its execution and delivery of this Amendment, Tenant shall concurrently execute and deliver a duly acknowledged counterpart of the Memorandum of Amendment of Lease in the form attached hereto as Exhibit “A”. The Executive Director of Landlord may execute the Memorandum.
9. DocuSign. The parties may use DocuSign to execute and deliver this Amendment, but Tenant must deliver an executed original of the Memorandum of Amendment of Lease to Landlord, duly acknowledged, so that it can be executed and recorded by Landlord.
10. 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.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the date and year first above written.
LANDLORD: 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, General Counsel
APPROVED AS TO CONTENT:
Nancy Hunt-Coffey, Executive Director
TENANT: LUCERNE HARDWARE CO.,
a California corporation
By:
Jeffrey Tilem
President
Docusign Envelope ID: 853B47C2-B62B-432D-B2C8-A6CA11DD0CEB -5-
B0785-0001\3211759v2.doc
REAFFIRMATION
The undersigned (“Guarantor”) has reviewed the Eighteenth Amendment to Lease dated March 4, 2026 to which this Reaffirmation is attached (the “Amendment”) and hereby consents to the execution and delivery of the Amendment by Tenant, and Guarantor further agrees that the execution and delivery of the Amendment by Tenant shall not impair, limit, abrogate or reduce in any manner or to any extent, the obligations of Guarantor under that certain Guaranty of Lease dated March 7, 1995, executed by Guarantor in favor of The Parking Authority of the City of Beverly Hills, and that such Guaranty of Lease guarantees the Lease as so amended, and that such Guaranty shall inure to the benefit of the Landlord.
Guarantor acknowledges and agrees that, notwithstanding the execution and delivery of the Amendment by Tenant, (a) Guarantor remains liable under the Guaranty to the fullest extent as if the terms and conditions of the Original Lease were as reflected in the Lease as modified by the Amendment, (b) each of the terms and conditions of, and waivers contained in, the Guaranty remain unmodified and in full force and effect, and (c) Guarantor hereby renews, reaffirms, ratifies and confirms the Guaranty.
Guarantor acknowledges that Landlord would not enter into the Amendment without the execution and delivery of this Reaffirmation.
The execution, delivery and performance by Guarantor of this Reaffirmation is within Guarantor’s powers and have been duly authorized by all necessary action by or on behalf of Guarantor. This Reaffirmation shall be governed by and construed in accordance with the laws of the State of California, without giving effect to conflict of laws principles. This Reaffirmation shall inure to the benefit of Landlord and its successors and assigns, and shall be binding upon Guarantor and his respective successors and assigns.
IN WITNESS WHEREOF, Guarantor has executed this Reaffirmation as of March 4, 2026.
GUARANTOR:
JOSEPH N. TILEM
Docusign Envelope ID: 853B47C2-B62B-432D-B2C8-A6CA11DD0CEB A-1-
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EXHIBIT “A”
FORM OF MEMORANDUM OF AMENDMENT OF LEASE
(Attached.)
Docusign Envelope ID: 853B47C2-B62B-432D-B2C8-A6CA11DD0CEB A-2-
B0785-0001\3211759v2.doc
RECORDING REQUESTED BY, AND
WHEN RECORDED MAIL TO:
The Parking Authority of the City of Beverly
Hills
Office of the City Manager
455 North Rexford Drive
Beverly Hills, California 90210
Attn: Secretary
(Space Above Line For Recorder’s Use)
This memorandum of Eighteenth Amendment to Lease is recorded for the benefit of the City of Beverly Hills and is exempt from Recording Fees pursuant to Sections 6103, 27383 and 27388.1 of the California Government Code.
MEMORANDUM OF EIGHTEENTH AMENDMENT OF LEASE
THIS MEMORANDUM OF EIGHTEENTH AMENDMENT OF LEASE (this “Memorandum”) is dated as of March 4, 2026, and is entered into by and between THE PARKING AUTHORITY OF THE CITY OF BEVERLY HILLS (“Landlord”), and (“Tenant”).
R E C I T A L S
A. The City of Beverly Hills and Tenant executed that certain Lease dated November 1, 1988 (the “Original Lease”). The Original Lease was amended by that letter dated December 22, 1988, executed by the City and Tenant (the “Letter Amendment”); that certain Amendment to Lease dated as of September 8, 1992, executed by the City and Tenant (the “First Amendment”); that certain Second Amendment to Lease dated September 7, 1993 (the “Second Amendment”); that certain Third Amendment to Lease dated March 7, 1995, executed by the City and Tenant (the “Third Amendment”); that certain Fourth Amendment to Lease dated January 16, 1996, executed by the City and Tenant (the “Fourth Amendment”); that certain Fifth Amendment to Lease dated as of February 4, 1997, executed by the City and Tenant (the “Fifth Amendment”); that certain Sixth Amendment to Lease dated as of September 22, 1998, executed by the City and Tenant (the “Sixth Amendment”); that certain Seventh Amendment to Lease dated as of January 4, 2000, executed by the City and Tenant (the “Seventh Amendment”); that certain Eighth Amendment to Lease dated April 13, 2004 executed by the City and Tenant, recorded on May 25, 2004 as Document No. 041341231 in the Official Records of Los Angeles County, California (the “Eighth Amendment”); that certain Ninth Amendment to Lease dated as of March 11, 2009 executed by the City and Tenant, recorded on April 14, 2009 as Document No. 20090538735 in said Official Records (the “Ninth Amendment”); and that certain Tenth Amendment to Lease dated as of August 3, 2010 executed by the City and Tenant, recorded on October 22, 2010 as Document No. 20101520636 in said Official Records (the “Tenth Amendment”); that certain Eleventh Amendment to Lease dated as of November 15, 2011 executed by the City and Tenant, recorded on December 23, 2011 as Document No. 20111748761 in said Official Records (the “Eleventh Amendment”); that certain Twelfth Amendment to Lease dated as of June 19, 2012 executed by the City and Tenant, recorded on August 9, 2012 as Document No. 20121182303 in said Official Records (the “Twelfth Amendment”); that certain Docusign Envelope ID: 853B47C2-B62B-432D-B2C8-A6CA11DD0CEB A-3-
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Thirteenth Amendment to Lease dated as of January 8, 2013, recorded on February 1, 2013 as Document No. 20130172116 in said Official Records (the “Thirteenth Amendment”); and that certain Fourteenth Amendment to Lease dated as of June 18, 2013, recorded on September 27, 2013 as Document No. 20131406029 in said Official Records (the “Fourteenth Amendment”); that certain Fifteenth Amendment to Lease dated March 5, 2019 recorded on March 22, 2019 as Document No. 20190258724 in said Official Records (the “Fifteenth Amendment”); that certain Sixteenth Amendment to Lease dated November 19, 2019 recorded on January 29, 2020 as Document No. 20200115255 in said Official Records (the “Sixteenth Amendment”); and that certain Seventeenth Amendment to Lease dated March 18, 2024 (the “Seventeenth Amendment”). The Original Lease, as amended by the Letter Amendment, the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the Seventh Amendment, the Eighth Amendment, the Ninth Amendment, the Tenth Amendment, the Eleventh Amendment, the Twelfth Amendment, the Thirteenth Amendment, the Fourteenth Amendment, the Fifteenth Amendment, the Sixteenth Amendment and the Seventeenth Amendment are hereinafter referred to as the “Lease.” B. The Lease affects a portion of the building located at 333 North Crescent Drive, Beverly Hills, California (the “Property”). The Property was conveyed to the Landlord subject to the Lease.
C. Landlord and Tenant have entered into a Eighteenth Amendment of Lease and consequently, Landlord and Tenant desire to further amend the Lease of record.
A G R E E M E N T
NOW, THEREFORE, Landlord and Tenant hereby amend the Lease to reflect that the Lease has been amended as set forth in the Eighteenth Amendment of Lease, the terms of which are incorporated herein.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Memorandum.
THE PARKING AUTHORITY OF THE CITY
OF BEVERLY HILLS
By:
Nancy Hunt-Coffey, Executive Director
LUCERNE HARDWARE CO.,
a California corporation
By:
Jeffrey Tilem, President
Docusign Envelope ID: 853B47C2-B62B-432D-B2C8-A6CA11DD0CEB A-4-
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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.
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On before me, ________________________________________ 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, and that by his/her/their signature(s) on the instrument the person(s), or the entity(ies) 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.
Place Notary Seal Above
Signature of Notary Public
Docusign Envelope ID: 853B47C2-B62B-432D-B2C8-A6CA11DD0CEB A-5-
B0785-0001\3211759v2.doc
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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.
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On before me, ________________________________________ 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, and that by his/her/their signature(s) on the instrument the person(s), or the entity(ies) 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.
Place Notary Seal Above
Signature of Notary Public
Docusign Envelope ID: 853B47C2-B62B-432D-B2C8-A6CA11DD0CEB Certificate Of Completion
Envelope Id: 853B47C2-B62B-432D-B2C8-A6CA11DD0CEB Status: Sent Subject: Complete with Docusign: Eighteenth Amendment - Lucerne Hardware Co.pdf Source Envelope:
Document Pages: 10 Signatures: 2 Envelope Originator:
Certificate Pages: 3 Initials: 1 Jonathan Gernes
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 198.245.189.181
Record Tracking
Status: Original
2/17/2026 1:36:26 PM
Holder: Jonathan Gernes
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Andrew Bragin for
[email protected]
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Jeffrey Tilem
[email protected]
OWNER
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Joseph N. Tilem
[email protected]
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Logan Phillippo
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Nancy Hunt-Coffey
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Sharona R. Nazarian, PsyD
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Huma Ahmed
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Logan Phillippo
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Sent: 2/18/2026 8:59:42 AM
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Denise Garcia
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Keith Sterling
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Megan Grilley
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