City Council Agenda Report
May 6, 2025
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Alex Hamilton, Interim Director of Community Development SUBJECT: RESOLUTION NO. 25-15 - FIRST AMENDMENT TO GROUND LEASE
AGREEMENT FOR THE CIVIC CENTER PARKING GARAGE
Background:
In 1995, the City and the County of Los Angeles (“County”) entered into a long-term Ground Lease Agreement for the Norwalk Civic Center Parking Garage (“Lease Agreement”). The County leases to the City real property, as more particularly described in Attachment 3.
Concurrently, with the Lease Agreement the City and County entered into an Operating Agreement for the Norwalk Civic Center Parking Structure (Parking Structure); the City constructed and operates the Parking Structure on County premise. The Lease Agreement provided the City with two consecutive lease options to renew the initial term, which were exercised and extend the term until May 8, 2060.
In 2022, City Council approved the Norwalk Entertainment District – Civic Center Specific Plan (“Plan”) as amended for the development and construction of a mixed use development (the “Mixed-Use Project”) consisting of (i) up to three hundred fifty (350) residential units, (ii) up to one hundred ten thousand (110,000) square feet of commercial uses, which may include, but not be limited to, food and beverage establishments, retail, health and wellness facilities, and grocery or supermarket uses, and (iii) approximately one hundred thousand (100,000) square feet of ground-floor open space/plaza area that is publicly accessible but privately maintained and operated. The Mixed-Use Project, which will be developed in phases by one or more affiliates of Primestor is anticipated to provide not less than the minimum number of vehicle parking spaces as required by the Plan.
The current Lease Agreement provides the County with an exclusive right to use four hundred fifty (450) parking spaces within the parking structure between the hours of 7:30 a.m. and 5:30 p.m. on non-holiday weekdays and a non-exclusive right to use an additional four hundred fifty (450) parking spaces within the parking structure between the hours of 7:30 a.m. and 5:30 p.m.
City Council May 6, 2025
Resolution No. 25-15 – First Amendment to Ground
Lease Agreement
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on non-holiday weekdays. To provide parking spaces to users of the Mixed-Use Project in the proposed amendment the County has agreed to relinquish its exclusive rights to use one hundred (100) vehicle parking spaces and its non-exclusive rights to use fifty (50) vehicle parking spaces in the Parking Structure.
The First Amendment to Ground Lease Agreement consists of some of the following contract provisions:
- (1) extend the term of the of the Lease Agreement until May 8, 2094; - (2) revise the County’s rights to use vehicle parking spaces in the Parking Structure; - (3) eliminate early termination rights by County and City; and - (4) make such other modifications and amendments to the Lease Agreement Environmental Review:
The proposed Lease Amendment is Categorically Exempt pursuant to the California Environmental Quality Act (CEQA) as this activity will not have a significant effect on the environment per Section 15301 Class 1 (Existing Facilities) of the CEQA Guidelines and none of the exceptions under CEQA Guidelines Section 15300.2 apply.
Fiscal Impact:
The City will receive sales taxes, property taxes, and percentage rent payments from the Mixed- Use Project. Monthly payments will be submitted to the County as stipulated in the First Amendment to the Ground Lease Agreement and monthly project operating expenses for the relinquished parking spaces shall be paid by Primestor.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
The recommended action will further the City’s Strategic Plan Goal 3: Build Great Public Destinations in that First Amendment to the Ground Lease would contribute implementation of the Plan.
Recommended Action:
Staff recommends City Council:
a. find that the proposed Lease Amendment is Categorically Exempt pursuant to the California Environmental Quality Act (CEQA) as this activity will not have a significant City Council May 6, 2025
Resolution No. 25-15 – First Amendment to Ground
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effect on the environment per Section 15301 Class 1 (Existing Facilities) of the CEQA Guidelines;
b. adopt Resolution No. 25-15, A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NORWALK APPROVING THE FIRST AMENDMENT TO THE GROUND LEASE AGREEMENT – NORWALK CIVIC CENTER PARKING GARAGE BY AND BETWEEN THE CITY OF NORWALK AND THE COUNTY OF LOS ANGLES; and
c. authorize the City Manager to execute the First Amendment to the Ground Lease Agreement and any documents under the terms of the First Amendment and such other ancillary documents, and any additional amendments provided there is funding in the budget, in a form approved by the City Attorney.
Attachments:
1. Resolution No. 25-15
2. Draft First Amendment to Ground Lease Agreement – Norwalk Civic Center Parking Garage
3. Site Plan