RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE APPROVING THE LEASE AGREEMENT BETWEEN Between LILEND INVESTMENT, LLC, DBA EL POLLO LOCO AND THE CITY OF COMMERCE, FOR LAND IN THE CITY OF COMMERCE, CALIFORNIA WHEREAS, Commerce is a unique community surrounded by significant industrial activity, truck traffic, rail operations, and major freeways, including the I-5 and I-710. While industry is an important part of the City’s economic base, expanding the City’s retail footprint through acquiring land will allow the City to obtain a greater leverage at managing economic growth and revitalizing the City’s major Washington corridor; and WHEREAS, the City is now seeking to diversify its source of revenue by focusing on retail activity throughout the Washington and Atlantic corridors; and WHEREAS, the City acquired 5555 E. Washington Boulevard on October of 2017 with an existing tenant that operated a Jack in the Box restaurant with a drive-thru; and WHEREAS, the tenant vacated the property which allowed for the City to explore an alternative tenant to occupy the site; and WHEREAS, the City received a proposal from Lilend Investment, LLC, DBA El Pollo Loco; and WHEREAS, the term of the lease agreement will be set at eleven (11) years with a one time option to extend four (4) additional years; and WHEREAS, Upon the Commencement Date of the lease, the monthly base rent of $13,333.33 shall be increased every sixty (60) months thereafter during the original term and the option term (if exercised) by fifteen (15) percent of the monthly base rent scheduled to be paid for the month immediately preceding the applicable percentage increase date; and WHEREAS, Part of conditions in the agreement, the City will allow the Lessee shall have ninety (90) days from the date this Lease is mutually executed (the “Permitting Period”) to obtain any and all required permits for the construction and operation of an El Pollo Loco drive-thru restaurant; and WHEREAS, The City will cooperate with Lessee in obtaining the Permits. The Lessee shall diligently pursue the acquisition of the Permits consistent with an entitlement schedule to be established after completion of Lessee’s Site Feasibility Report, which shall be completed prior to the mutual execution of this Lease; and WHEREAS, If Lessee has not obtained the Permits within the Permitting Period, provided that Lessee is diligently pursuing the Permits, Lessee may, no more than two (2) times, extend the Permitting Period for THIRTY (30) days upon notice to Lessor; and WHEREAS, The City will reimburse Lessee for Lessee’s leasehold improvements and vandalism remediation in the amount of two hundred fifteen thousand five hundred eighty-seven dollars ($215,587.50), payable in the form of rent abatement/free rent, such abatement to commence on Lessee’s Rent Commencement Date. Lessee shall provide all paid invoices and lien waivers upon completion of Lessee’s improvements to the City-owned premises; and WHEREAS, City staff has determined the project to be exempt from environmental review pursuant to the guidelines of the California Environmental Quality Act (Public Resources Code § 21080(b)(9); Administrative Code, Title 14, Chapter 3, § 15301(a), Class 1, Existing Facilities); and WHEREAS, the City of Commerce completed the negotiation of a Lease Agreement with Lilend Investment, LLC, DBA El Pollo Loco to lease the Property at 5555 E. Washington Boulevard, subject to certain contingencies.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMMERCE DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The Lease Agreement between the City of Commerce and Lilend Investment, LLC, DBA El Pollo Loco for the purchase of 5555 E. Washington Boulevard 90040 (APN 6335-024-909) is hereby approved in substantially the form attached hereto.
Section 2. The City Manager, and/or his designee, is authorized to execute any and all documents necessary to implement the City’s approval of the Lease Agreement.
PASSED, APPROVED and ADOPTED this 22nd day of September 2026. ________________________
Kevin Lainez, Mayor
ATTEST:
______________________________
Eduardo Sarmiento
City Clerk
CC Mtg: 9/22/26
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