SIXTH AMENDMENT TO AGREEMENT OF SUBLEASE
THIS SIXTH AMENDMENT TO AGREEMENT OF SUBLEASE ("Sixth Amendment") is made and entered into as of April 19, 2022 (the "Effective Date"), by and between the City of Redondo Beach, a chartered municipal corporation ("Lessor" or “Sublessor”), and Redondo Beach Marina Group LLC, dba Captain Kidd’s LLC, a California Limited Liability Company ("Lessee" or “Sublessee”).
RECITALS
A. Sublessor is the owner of certain real property, consisting of approximately 6,593 square feet located at 290 North Harbor Drive, Redondo Beach, California, which property is located in the commercial and marina project commonly known as the Redondo Beach Marina.
B. By an Assignment of Leases dated May 8, 2014, Sublessor is also the Successor-in-Interest to Charles J. Johnston, Inc. and JJJ Enterprises, LTD. (collectively “Former Lessors”), with respect to a Master Lease with the City of Redondo Beach dated March 13, 1961, as amended from time to time (“Master Lease” attached as Exhibit A) and the Agreement of Sublease referred to hereinbelow.
C. An Agreement to Sublease dated as of May 27, 1976, (herein after referred to as “Sublease” which shall include all the subsequent amendments as described below) was entered into by the Former Lessors and John Mills and Harry Mills, jointly and severally, dba Captain Kidd’s (collectively “Sublessee”).
D. The Sublease was amended by a First Amendment to Agreement of Sublease dated as of July 29, 1976 (“First Amendment”). The Sublease was amended by a Second Amendment to Agreement of Sublease dated as of September 10, 1980 (“Second Amendment”). The Sublease was amended by a Third Amendment to Agreement of the Sublease dated as of March 11, 1985 (“Third Amendment”). The Sublease was amended by a Fourth Amendment to Agreement of sublease dated as of January 23, 1996 (“Fourth Amendment”).
E. On April 10, 2012, an Assignment, Assumption and Consent Agreement and Fifth Amendment to Agreement of Sublease (“Fifth Amendment”) was entered into by and among JJJ Enterprises, Ltd. a California limited partnership, as the Landlord, John Mills, an individual, as the Assignor and Redondo Beach Marina Group, LLC, as the Assignee. Harry Mills, one of the two Sublessees, died, leaving John Mills as the surviving Sublessee.
F. On January 19, 2016, a Consent to Assignment was entered into by and among the City of Redondo Beach, as the Landlord, John Mills, an individual, as the Assignor and Redondo Beach Marina Group, LLC, a California Limited Liability Company, as Assignee.
G. The Fourth Amendment extended the Sublease to April 1, 2020 and also provided Sublessee 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.
H. In Section 1 of the Sublease, the premises are identified as the “Included Area” and includes the building, improvements and the land area of the Redondo Beach Marina and depicted in Exhibit A of the Sublease.
NOW, THEREFORE, for and in consideration of the mutual promises herein contained, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
Section 1: Section 21 of the Sublease entitled “Parking Area” is amended by adding the following:
“Sublessee agrees that it will construct or cause to be constructed the Additional Improvements as its own expense and as depicted in Exhibit B attached to this Sixth Amendment and incorporated herein by reference.
The Scope of Work for the Additional Improvements and the completion thereof must be approved by the Waterfront and Economic Development Director. Sublessee’s contractor must obtain any associated licenses, permits, approvals and insurance from any required or necessary agencies including the City of Redondo Beach.
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 agrees that it will, at its own expense, cause to be constructed the Additional Improvements. Sublessor agrees to abate one (1) month of minimum monthly rent of Eight Thousand Dollars and 0/00 ($8,000.00) to off-set the cost of the Additional Improvements.
In addition to the abatement of one (1) month of Minimum Monthly Rent, Sublessor agrees to abate one (1) month of Percentage Rent up to Seventeen Thousand Dollars ($17,000.00).”
Section 2. No Further Changes to Sublease. Except as expressly provided herein, nothing in this Sixth Amendment shall be deemed to waive or modify any of the provisions of the Sublease. ln the event of any conflict between this Sixth Amendment and the Sublease, as amended by the previous amendments, the terms of this Sixth Amendment shall prevail.
Unless otherwise expressly provided in this Sixth Amendment, capitalized terms used in this Sixth Amendment shall have the same meanings as in the Sublease.
IN WITNESS WHEREOF, the parties have executed this Sixth Amendment as of the date first set forth above.
SUBLESSOR:
CITY OR REDONDO BEACH, a chartered city
and municipal corporation
__________________________________
By: William C. Brand
Its: Mayor
SUBLESSEE:
REDONDO BEACH MARINA GROUP, LLC
a California limited liability company
__________________________________
By: Chris Bredesen
ATTEST:
__________________________________
By: Eleanor Manzano
Its: City Clerk
APPROVED AS TO FORM:
__________________________________
By: Michael W. Webb
Its: City Attorney
EXHIBIT A