RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE, CALIFORNIA, APPROVING A SUBLEASE AGREEMENT BETWEEN THE CITY OF COMMERCE AND AMITIM GROUP LLC.
WHEREAS, on November 21, 1995, the Commerce Community Development Commission (the “Commission") entered into a Ground Lease with Structural Materials for the property located at 7025 Slauson Avenue, Commerce California (“Subject Property”). The Lease was for a 55-year term (“Master Lease”); and WHEREAS, in 2011 the City became the Successor Agency to the Commerce Community Development Commission (“Agency”) pursuant to the Redevelopment Dissolution Law, and succeeded to the assets and obligations of the former Commerce Community Development Commission; and WHEREAS, on June 1, 2012, the Agency received a letter from Structural Materials advising that they will be going out of business and will be selling their business to Beacon Sales Acquisition, Inc. ("Beacon") and assigning the Master Lease to Beacon; and WHEREAS, the Agency approved the Assignment and Assumption of the Master Lease to Beacon on July 3, 2012; and WHEREAS, at the beginning of calendar year 2020, Beacon approached the City regarding the Lease-Purchase of said property; and WHEREAS, Beacon exercised its option to cancel the Lease and gave notice to terminate effective June 7, 2021; and WHEREAS, on April 1, 2021, Beacon assigned all of its interest in the Master Lease to the City; and WHEREAS, on October 1, 2022 the City and the Amitim Group LLC entered int a Temporary Lease Agreement for a majority of the Subject Property on a month-to-month basis; and WHEREAS, since the beginning of calendar year 2024, staff has been negotiating with the Amitim Group LLC for a sublease of the Subject Property. The new sublease (“Sublease”) would be subject to the terms of the Master Lease except that the rent would be $85,000 per month on a month-to-month basis.
WHEREAS, the terms of the Master Lease allow the Sublease without the consent of the Agency; and WHEREAS, staff recommends that the City Council approve the Sublease Agreement with Amitim Grouip LLC.
NOW, THEREFORE, THE CITY OF COMMERCE DOES HEREBY RESOLVE AND ORDER AS FOLLOWS:
Section 1. The City Council of the City of Commerce hereby finds and declares that the foregoing recitals are true and correct, and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. The City Council of the City of Commerce hereby approves the Sublease Agreement between the City and Amitim Group LLC effective as of the October 1, 2024 in substantially the form attached hereto as attachment “A” as approved to form by the City Attorney.
Section 3. The Mayor is authorized to execute this Resolution for and on behalf of the City of Commerce.
Section 4. This Resolution shall take full force and effect immediately upon adoption by the City Council.
PASSED, APPROVED and ADOPTED this __ day of ______ , 2024.
ATTEST:
Lena Shumway, City Clerk