Administrative
Report
H.8., File # 22-3988 Meeting Date: 4/19/2022
To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT & ECONOMIC DEVELOPMENT
DIRECTOR
TITLE
APPROVAL OF THE SIXTH AMENDMENT TO THE AGREEMENT OF SUBLEASE BETWEEN THE
CITY OF REDONDO BEACH AND REDONDO BEACH MARINA GROUP LLC TO PROVIDE RENT ABATEMENT FOR A NOT-TO-EXCEED AMOUNT OF $25,000 TO OFFSET THE TENANT’S EXPENSE FOR RE-PAVING THE CAPTAIN KIDD’S PARKING LOT
EXECUTIVE SUMMARY
Redondo Beach Marina Group, LLC dba Captain Kidd’s Fish Market and Restaurant (“Capt. Kidd’s”) is the current Sublessee for the property located at 209 North Harbor Drive. The restaurant building is surrounded by an asphalt parking lot on the north, east and south side totaling approximately 13,200 sq. ft. To improve the appearance of the restaurant and address safety concerns of the adjacent public parking lot, the Capt. Kidd’s ownership has requested rent abatement in the amount of $25,000 from the City as an offset for their expense to re-asphalt and re-stripe the lot. The Scope of Work for the parking lot improvements and the completion of the work must be approved by the Waterfront & Economic Development Director prior to receiving the rent abatement. Capt. Kidd’s will start the project, which is anticipated to take four days, as soon as the Amendment is executed so that the parking lot project will be completed in time for the busy season.
BACKGROUND
In May 2014, the City reacquired the Master Lease for the Redondo Beach Marina from JJJ Enterprises Ltd. As part of that acquisition, the City of Redondo Beach (“the City”) became the Successor in Interest to the sublease with Harry and John Mills for the property located at 209 North Harbor Drive which currently operates as Captain Kidd’s. In 2016, the remaining Sublessee, John Mills, assigned his interest in the Sublease to the Redondo Beach Marina Group, LLC dba Captain Kidds Fish Market and Restaurant.
The Fourth Amendment, dated January 23 1996, extended the Sublease to April 1, 2020 and also provided Capt. Kidds with an option to extend the term of the lease for an additional five (5 years).
Sublessee submitted the lease option letter to the City of Redondo Beach on April 4, 2019 thus extending the lease from April 1, 2020 to March 31, 2025.
In February 2022, Capt. Kidds approached the City to request $25,000 in rent abatement to allow them to re-asphalt and re-stripe the restaurant’s dedicated parking lot (see Exhibit A of the Sixth Amendment). The rent abatement will be comprised of one (1) month of base rent of $8,000 and a not-to-exceed amount of $17,000 in percentage rent. The Scope of Work for the parking lot
H.8., File # 22-3988 Meeting Date: 4/19/2022
not-to-exceed amount of $17,000 in percentage rent. The Scope of Work for the parking lot improvements and the completion of the work must be approved by the Waterfront & Economic Development Director prior to receiving the rent abatement.
The Scope of Work to resurface the existing parking lot shall include the following:
1. The repaving of approximately 13,200 sf. of the existing asphalt parking lot;
2. Cold planing (grinding) of all concrete to asphalt joints as marked by contract to a depth of 1” - 3” x 2’;
3. Provide and place a “leveling course” of hot asphalt to approximately 13, 200 sf to improve pavement life and overall smoothness;
4. Clean the new surface and apply a hot adhesive tack coat to help prevent the degradation of the new surface;
5. Provide and place hot asphalt to a 1” - 3” depth to approximately 13,200 sf using a street paving machine. Compact the new asphalt with 2-5 ton rollers; and
6. Restripe the parking stalls on the resurfaced parking lot and add some stenciling.
Sublessee’s contractor must obtain any associated licenses, permits, approvals and insurance from any required or necessary agencies including the City of Redondo Beach. During the four-day project, customers will be able to park in the general Redondo Beach Marina lot and in the Plaza Parking Garage, which is located off of North Harbor Drive and Pacific Avenue and is a short walk to Capt. Kidd’s.
COORDINATION
The Waterfront and Economic Development Department collaborated with the City Attorney’s Office, which has approved the document as to form.
FISCAL IMPACT
The $25,000 rent abatement will impact the Harbor Uplands Fund revenue. However, the parking lot improvement project is a significant reinvestment by Capt. Kidds ownership and will improve the appearance of the leasehold and surrounding public area and the safety of its guests. It is also anticipated that the improvement to the site will increase restaurant sales and thereby increase revenue to the tenant and City.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
Sixth Amendment to Agreement of Sublease Between the City of Redondo Beach and Redondo Beach Group LLC