August 1, 2023
HONORABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECOMMENDATION:
Authorize the City Manager, or designee, to execute all documents necessary to enter into a Lease with Long Beach Center Loan, LLC, a Delaware limited liability company, for City -leased office space at 420 Pine Avenue, Suite P -100, for the operation and management of City parking facilities. (District 1)
DISCUSSION
On October 11, 2005, the City Council authorized the execution of Lease No. 29346 (Lease) with Long Beach Center, LLC (Original Landlord), for office space at 275 E. 4 th Street to house the citywide parking operations office (Parking Office) for a five-year term.
The space is located within the development formerly known as CityPlace, a nd is currently occupied by the City of Long Beach (City) parking operator, LAZ Parking, LLC (LAZ). Subsequent Amendments to the Lease were executed in 2010 and 2020, which extended the term of the Lease through September 30, 2022. Since the term expiration, the Lease has operated on a holdover and is currently month-to-month. In March of 2021, Long Beach Center Loan, LLC (Current Landlord) became successor-in-interest to the Original Landlord , who immediately commenced a multi -year effort to redevelop and rebrand the development as Mosaic. The Current Landlord is planning to redevelop large portions of the project to include 900 residential units and 38,405 square feet of commercial space (Project). The Parking Office is currently located within the Project, resulting in a need to relocate the Parking Office.
For the past year, the City, Current Landlord, and LAZ have been working in partnership to find an alternative location to accommodate the Parking Office. The Mos aic development is ideal, as the location is situated near the City’s parking structures, which is convenient and well-suited for security and customer service purposes. With those parameters in mind, the location at 420 Pine Avenue, Suite P-100 (Premises), has been identified as the ideal option to accommodate the relocation . As proposed, the City will lease the Premise s, which measures approximately 1,908 square feet, for a ten-year period, which will commence 90 days after the City takes possession or the City opens the Premises for business, whichever is earlier . The City will have two five-year options Economic Development Department
411 West Ocean Boulevard, 10th Floor Long Beach, CA 90802 (562) 570-6099
C-22
HONORABLE MAYOR AND CITY COUNCIL
August 1, 2023
to extend. Rent will initially be set at $2.37 per square foot, or $4,522 per month (Base Rent), subject to 3 percent annual increases (Rent Escalators). Base Rent for months two and three will be abated. The City will also be responsible for its pro rata share of operating expenses which include taxes, insurance , and common area maintenance (CAM). The Premises will require interior improvements such as HVAC and electrical upgrades, reconfiguration of the customer waiting area, and floor and wall finishes, all of which will be paid for by the Current Landlord.
To allow the City and LAZ to relocate to the Premises and the Current Landlord to pursue redevelopment of the Project, the following are the proposed terms and conditions of the Lease:
Landlord: Long Beach C enter Loan, LLC, a Del aware limited liability company.
Tenant: City of Long Beach, a municipal corporation.
Premises: Approximately 1,908 square feet of ground floor office space at 420 Pine Avenue, Suite P-100.
Use: General office for parking operations.
Initial Term: Ten years, commencing 90 days after the City take s possession or the City opens the Premises for
business, whichever is earlier.
Renewal Options: Two options to extend for a period of five (5) years upon written notice to the Landlord no less than twelve (12) months prior to the prior term’s expiration date.
Base Rent: The initial monthly base rent will be $2. 37 per square foot, or $4,522 monthly, with (3) three percent annual
increases. The first month of base rent will be due upon full execution of the Lease.
Rent Abatement: Base rent will be abated for months two and three of the Lease.
Operating Expenses
(CAM):
The City will be responsible for its pro-rata share of the property operation costs including common area
maintenance charges, real estate taxes, utilities, and
other property-related expenses. Operating expenses
are anticipated to be $0.90 per square foot.
HONORABLE MAYOR AND CITY COUNCIL
August 1, 2023
Tenant
Improvements:
HVAC and electrical upgrades, reconfiguration of the
customer waiting area and floor and wall finishes, all of which will be paid for by the Current Landlord.
Signage: Tenant shall be responsible for its own signage.
This matter was reviewed by Assistant City Attorney Gary Anderson and Budget Management Officer Nader Kaamoush on July 7, 2023.
TIMING CONSIDERATIONS
City Council consideration of this transaction is requested on August 1, 2023, to ensure timely execution of the Lease and completion of improvements for occupancy.
LEVINE ACT
This item is subject to the Levine Act. The Mayor, Councilmembers, and Commissioners who have received a contribution of more than $250 within 12 months prior from a party, participant, or their representatives involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; OR (2) return the portion of the contribution that exceeds $250 within 30 days from the time the elected official knew or should have known about the contribution and participate in the proceeding.
All p arties, participants, and their representatives must disclose on the record of this proceeding any contribution of more than $250 made to the Mayor or any Councilmembers within 12 months prior to the date of the proceeding. The Mayor, Councilmembers, and C ommissioners are prohibited from accepting, soliciting, or directing a contribution of more than $250 from a party, participant, or their representatives during a proceeding and for 12 months following the date a final decision is rendered.
FISCAL IMPACT
The monthly cost, including base rent and common area maintenance expenses, will be approximately $6,239, with rent abated for months two and three. The total annual cost in the first year is estimated at $62,390, estimating the first month’s rent to be expended in Fiscal Year 2023 (FY 23) and rent commencement some time in FY 24 . Future years will be subject to a three ( 3) percent increase. Funding for the cost of the Lease is budgeted in the Civic Center Fund Group and General Fund Group in the Public Works Department. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
HONORABLE MAYOR AND CITY COUNCIL
August 1, 2023
SUGGESTED ACTION:
Approve recommendation.
Respectfully submitted,
BO MARTINEZ
DIRECTOR
ECONOMIC DEVELOPMENT
ERIC LOPEZ
DIRECTOR
PUBLIC WORKS
ATTACHMENTS: A – MAP OF SUBJECT PROPERTIES
APPROVED:
THOMAS B. MODICA
CITY MANAGER
PINE
AVE
E 4TH ST
E 6TH ST
E 3RD ST
CEDAR
AVE
W 6TH ST
W 5TH ST
W 4TH ST
PACIFIC
AVE
W 3RD ST
E 5TH ST
LONG
BEACH
BLVD
THE
PRO
M
ENADE
N
HARVEY MILK
PROMENADE
PARK
5 47
3 1
9 8
6 2
Subject Property:
420 Pine Ave
Council District : 1 ´
100 0 100 20050
Feet
Attachment
Disclaimer
This map from the City of Long Beach is intended for informational purposes only.
While reasonable effort has been made to ensure the accuracy of the data, the City assumes no liability or damages arising from errors or omissions. This map is provided without warranty of any kind. No part of this map may be reproduced or transmitted to any form or by any means, electronic or mechanical, including photocopying or recording system.
As of 7/2023
T:\EconomicDevelopment\Real Estate Division Maps\Complete\420 Pine Ave\420 Pine Ave_7_2023.mxd COLB Levine Act Statement Page 1 of 2
LEVINE ACT DISCLOSURE STATEMENT
California Government Code Section 84308, commonly referred to as the "Levine Act," prohibits any Long Beach City Councilmember, the Mayor, and Commissioner (“City Officer”) from participating in any action related to a proceeding if they receive any political contributions totaling more than $250 within the previous twelve months, while a proceeding is pending, and for 12 months following the date a final decision in a proceeding concerning a license, permit, entitlement, franchise or, contract (collectively “license, permit, or contract”) has been made, from the person or company awarded the said license or contract . The Levine Act also requires a City Officer that has received such a contribution to disclose the contribution on the record of the proceeding.
City Officers are listed at the following sites:
• The Mayor and Councilmembers - https://www.longbeach.gov/officials/ • Harbor Commissioners - https://polb.com/commission
• Water Commissioners - https://lbwater.org/about-us/current-water-commissioners/ • Planning Commissioners - https://www.longbeach.gov/mayor/action/commissions/ • Parks and Recreation Commissioners - https://www.longbeach.gov/mayor/action/commissions/ • Board of Examiners, Appeals, and Condemnation - https://www.longbeach.gov/mayor/action/commissions/ • Cultural Heritage Commission - https://www.longbeach.gov/mayor/action/commissions/ • Long Beach Community Investment Company - https://www.longbeach.gov/lbds/hn/lbcic/ Proposers are responsible for accessing these links to review the names prior to answering the following questions.
1. Have you or your company, or any agent on behalf of you or your company, made any political contributions of more than $250 to any City Officer in the 12 months preceding the date of the submission of your proposals or the anticipated date of any City Council, Board, or Commission action related to this license, permit, or contract?
YES NO
If yes, please identify the City Officer(s):
COLB Levine Act Statement Page 2 of 2
2. Do you or your company, or any agency on behalf of you or your company, anticipate or plan to make any political contribution of more than $250 to any City Officer in the 12 months following any City Council, Board, or Commission action related to this license, permit, or contract?
YES NO
If yes, please identify the City Officer(s):
Answering yes to either of the two questions above does not preclude the City of Long Beach from awarding a license, permit, or contract to your firm or any taking any subsequent action related to the said license, permit, or contract . It does, however, pr eclude the identified City Officers from participating in any actions related to this license, permit, or contract. ____
Date
_____________________________________
Signature of authorized individual
___________________
Type or write name of authorized individual
___________________
Type or write name of company