AGENDA REPORT
Meeting Date: August 11, 2026
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: FIRST AMENDMENT OF LEASE BY AND BETWEEN THE PARKING
AUTHORITY OF THE CITY OF BEVERLY HILLS AND PATRICK
LENNARTZ AND ASSOCIATES PHYSICAL THERAPY INC. AT 439
NORTH CAÑON DRIVE, SUITE 207
Attachment: 1. First Amendment of Lease
RECOMMENDATION
Staff recommends the Parking Authority Board of Directors approve the First Amendment of Lease by and between the Parking Authority of the City of Beverly Hills (the “Parking Authority” or “Landlord”) and Patrick Lennartz and Associates Physical Therapy Inc. (the “Tenant”) for the property located at 439 North Cañon Drive, Suite 207.
INTRODUCTION
The proposed amendment would abate one month of base rent payable ($25,142.30) in consideration of possessory interest tax payments issued by the Tenant for calendar year 2025 to the Los Angeles County Assessor Office.
DISCUSSION
The Parking Authority entered into a lease agreement with Patrick Lennartz and Associates Physical Therapy Inc. on January 1, 2025. The Tenant operates Lennartz & Scherr Physical Therapy, a certified physical therapy provider that has been operating since 1979. The lease requires the Tenant to pay for all possessory interest taxes (“PIT”) assessed by other governmental authorities, including but not limited to Los Angeles County. These taxes are in consideration of the property being owned by a municipality, the City of Beverly Hills, exempting it from real property tax assessment, and the Tenant’s occupancy constituting a possessory interest in the property.
Meeting Date: August 11, 2026
At the time of lease execution, the Tenant had reviewed publicly available PIT bill copies for other spaces in the building and budgeted approximately $6,000 for annual Los Angeles County PIT. The Tenant’s 2025 bill totaled approximately $33,000, an amount the Tenant attempted to appeal, however was unsuccessful in modifying. A key factor in the large discrepancy with neighboring spaces is the term of the corresponding lease agreements. The City has an initial term of five years and one, five-year renewal option with Patrick Lennartz and Associates Physical therapy Inc. Most neighboring spaces have under two years remaining on the term, which affects the Los Angeles County Assessor calculation.
The proposed First Amendment of Lease provides the Tenant with a one-time rent abatement of $25,142.30 for base rent payable in September 2026 in consideration of this discrepancy. The Tenant will be wholly responsible for future PIT bills without any additional rent abatement consideration.
FISCAL IMPACT
The proposed lease amendment would provide the Tenant with one month of base rent abatement for September 2026, valued at $25,142.30.
Ryan Gohlich,
Executive Director
Approved By
Attachment 1
B0785-0001\3067877v4.doc
FIRST AMENDMENT OF LEASE
THIS FIRST AMENDMENT OF LEASE (this “Amendment”) is dated as of August 11, 2026 (the “Effective Date”), and is entered into by and between THE PARKING AUTHORITY OF THE CITY OF BEVERLY HILLS (“Landlord”), and PATRICK LENNARTZ AND ASSOCIATES PHYSICAL THERAPY, INC., a California corporation (“Tenant”).
R E C I T A L S
A. Landlord and Tenant entered into that certain Office Lease dated January 1, 2025, and have not subsequently amended it (the “Lease”), pursuant to which Landlord agreed to lease and demise to Tenant, and Tenant agreed to lease and accept from Landlord, Suite 207 of 439 North Cañon Drive in the City of Beverly Hills, County of Los Angeles, State of California.
B. Landlord and Tenant entered into a Memorandum of Lease dated January 1, 2025 which was recorded on December 4, 2025, as Document No. 20250875085 in the Official Records of Los Angeles County, California, and are not amending such recorded Memorandum in connection with this First Amendment of Lease.
C. Landlord and Tenant desire to amend the Lease.
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, Landlord and Tenant agree as follows:
1. Abatement of Rent. Base Rent shall be abated 100% the first full month of the Lease following the execution hereof; for example, if this Amendment is executed on August 3, 2026, Base Rent but no other sums due under the Lease would be abated to $0 in September of 2026 and would not be abated in October. Base Rent shall not, by effect of this Amendment, be abated in any other month.
2. 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.
3. City Manager Authority. The City Manager of Landlord shall have the authority to execute this Amendment and any and all other documents contemplated by this Amendment.
4. Time of the Essence. Time is of the essence of each provision of this Amendment in which time is a factor.
5. No Further Amendments. Except as modified herein, all other terms and conditions of the Lease shall continue in full force and effect and Tenant and Landlord hereby ratify and Docusign Envelope ID: A01518D7-89C6-8108-81F2-BD97B0180483 B0785-0001\3067877v4.doc
confirm their obligations thereunder. The parties acknowledge that as of the date of this Amendment, neither party (i) is in default under the terms of the Lease; (ii) has any defense, set off or counterclaim to the enforcement by the other party of the terms of the Lease; and (iii) is not aware of any action or inaction by the other party that would constitute a default by such party under the Lease.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the Effective Date.
LANDLORD:
THE PARKING AUTHORITY OF THE
CITY OF BEVERLY HILLS
By:
Craig A. Corman
Chair
ATTEST:
By:
Huma Ahmed
Secretary
APPROVED AS TO FORM:
By:
Laurence S. Wiener
General Counsel
APPROVED AS TO CONTENT:
By:
Ryan Gohlich
Executive Director
TENANT:
PATRICK LENNARTZ AND ASSOCIATES
PHYSICAL THERAPY, INC.,
a California corporation
By:
Patrick Lennartz
President
Docusign Envelope ID: A01518D7-89C6-8108-81F2-BD97B0180483 Certificate Of Completion
Envelope Id: A01518D7-89C6-8108-81F2-BD97B0180483 Status: Sent Subject: Complete with Docusign: First Amendment of Lease - Patrick Lennartz and Associates (Corrected).pdf Source Envelope:
Document Pages: 2 Signatures: 2 Envelope Originator:
Certificate Pages: 2 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: 198.245.189.166
Record Tracking
Status: Original
7/27/2026 9:32:52 AM
Holder: Jonathan Gernes
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Patrick Lennartz
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Drawn on Device
Using IP Address: 76.91.35.115
Signed using mobile
Sent: 7/27/2026 9:41:47 AM
Viewed: 7/27/2026 10:03:45 AM
Signed: 7/27/2026 10:04:11 AM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Andrew Bragin for
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 208.87.233.201
Sent: 7/27/2026 10:04:13 AM
Viewed: 7/27/2026 10:04:55 AM
Signed: 7/27/2026 10:05:20 AM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Logan Phillippo
[email protected]
Security Level: Email, Account Authentication
(None)
Sent: 7/27/2026 10:05:22 AM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Ryan Gohlich
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Craig A. Corman
[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
Denise Garcia
[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 7/27/2026 9:41:47 AM
Payment Events Status Timestamps