Administrative
Report
H.11., File # 22-3706 Meeting Date: 2/15/2022
To: MAYOR AND CITY COUNCIL
From: LAURIE KOIKE, ACTING DIRECTOR, WATERFRONT & ECONOMIC
DEVELOPMENT DEPARTMENT
TITLE
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2202-006, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, LEASING CERTAIN PROPERTY
TO RANDY WATERS, AN INDIVIDUAL
APPROVE THE LEASE WITH RANDY WATERS, AN INDIVIDUAL, FOR THE PREMISES AT 115 W.
TORRANCE BLVD., SUITE 100 FOR A MONTHLY AMOUNT OF $1,775.25 AND A MONTH-TOMONTH TERM
EXECUTIVE SUMMARY
In March 2012, the City purchased the Pier Plaza leasehold and began the process of direct leasing to various tenants. Pier Plaza is comprised of several buildings totaling approximately 75,000 square feet of office and retail uses. The proposed lease with Randy Waters, an individual, is for office space at 115. W. Torrance Boulevard, Suite 100. The lease area totals approximately 789 square feet.
The proposed lease is for a month-to-month term with the City retaining the ability to terminate the lease with thirty (30) days prior written notice. Monthly rental revenue to the City’s Harbor Uplands Fund will be $1,775.25, or approximately $2.25 per square foot, with a 3% increase on the first anniversary date and each subsequent year thereafter.
BACKGROUND
The Pier Plaza leasehold is comprised of buildings 103 to 131 West Torrance Boulevard (on the top level of the Pier Parking Structure) and totals approximately 75,000 square feet of space. The property is comprised almost entirely of office uses; with the lone exception being a restaurant use of less than 4,000 square feet. The proposed office lease with Randy Waters, an individual (the “Tenant”), is for space 115 W. Torrance Boulevard, Suite 100 (the “Premises”). The lease area totals approximately 789 square feet.
Randy Waters has over 30 years of entrepreneurship, technical innovation, software, engineering, and product and operations executive leadership. The proposed Lease is for a month-to-month term with a monthly rent of $1,775.25 or approximately $2.25 per square foot, which is consistent with other similar office leases in the waterfront and broader market. The Lease contains a provision that escalates the rent at 3% per year for the remaining term of the Lease. Since the term for this Lease is month-to-month, the Landlord is able to give a 30-day prior written notice The Lease is personally guaranteed by Randy Waters and there will be a $1,775.25 security deposit kept on file. Since the
H.11., File # 22-3706 Meeting Date: 2/15/2022
guaranteed by Randy Waters and there will be a $1,775.25 security deposit kept on file. Since the Tenant is taking the space as-is, there is no Landlord expense associated with this Lease.
COORDINATION
The Waterfront and Economic Development Department collaborated with the City Attorney’s Office on this report. The City Attorney’s Office has approved the lease document as to form.
FISCAL IMPACT
Lease revenue from the property will accrue to the City’s Harbor Uplands Fund. The proposed month -to-month lease will result in a monthly rent of $1,775.25.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
Resolution No. CC-2202-006
Lease Between the City of Redondo Beach and Randy Waters