Administrative
Report
H.7., File # 22-5119 Meeting Date: 3/14/2023
To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATEFRONT & ECONOMIC DEVELOPMENT DIRECTOR TITLE
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2303-025, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, LEASING CERTAIN PROPERTY AT 107 W. TORRANCE BOULEVARD, SUITE #100 TO WATERFRONT EDUCATION, A 501.3C
NONPROFIT ORGANIZATION
APPROVE THE LEASE WITH WATERFRONT EDUCATION FOR A MONTHLY MINIMUM RENT OF $2,371, FOR A MONTH-TO-MONTH TERM, BEGINNING APRIL 1, 2023
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. The property is comprised mainly of office and retail uses with the exception of one restaurant and the Savoir Faire child care center.
The proposed office lease is with Waterfront Education, a 501.3c nonprofit organization, (Tenant) at 107 W. Torrance Boulevard, Suite 100. The lease area totals approximately 1,437 square feet of interior space.
The proposed lease between the Tenant and City is for a month-to-month term which can be terminated by either the City or Tenant with 30 days prior written notice. Monthly rental revenue to the City’s Harbor Uplands Fund will be $2,371, or approximately $1.65 per square foot, with a 3% increase on the anniversary date of each year thereafter.
BACKGROUND
Waterfront Education’s core mission is the education of marine science and marine conservation.
The group utilizes kayaks, stand-up paddle boards, sailboats and local coastal beaches as their primary learning platforms. Waterfront Education has been a fixture in King Harbor since 2012.
Their proposed move to Pier Plaza is due to the expiration of their lease at 1021 Harbor Drive. A majority of the business activity will occur outdoors and on-the-water. As a result, the proposed office space at 107 W. Torrance Boulevard, Suite #100 will be primarily used for administrative purposes and for the storage of equipment and educational materials.
Public Hearing: Exemption Declaration, Conditional Use Permit and Coastal Development Permit
H.7., File # 22-5119 Meeting Date: 3/14/2023
Pursuant to the Redondo Beach Municipal Code, a Conditional Use Permit (CUP) is required for the addition of the waterfront educational facility at 107 W. Torrance Boulevard, Suite 100. The public hearing to consider the CUP and associated Coastal Development Permit (CDP) for the proposed use was held at the February 13, 2023 Harbor Commission meeting. The administrative report and materials for the public hearing were submitted by Sean Scully, Planning Manager, and the discussion was led by Greg Kapovich, the Waterfront and Economic Development Director.
After careful deliberation and review of the potential impacts related to noise and parking, traffic and pedestrian safety, the Harbor Commission did not find any concerns with the proposed use and voted unanimously to approve the Waterfront Education CUP and CDP. There were no appeals received during the 10-day appeal period and the Conditional Use permit is considered finalized.
Given that the Coastal Commission appeal period ends after the date in which the City Council considers this lease agreement, staff has adjusted the Commencement Date of the lease to April 1, 2023. The delayed commencement date will allow City staff the ability to delay commencement further if the Coastal Commission receives an appeal by the deadline. The tenant will procure proper licenses, permits and permissions from appropriate government agencies as needed.
The proposed lease carries a month-to-month term of $2,371, or approximately $1.65 per square foot. The lease contains a provision that escalates the rent at 3% on the anniversary date of each year thereafter.
COORDINATION
The Waterfront and Economic Development Department collaborated with the City Attorney’s Office on preparation of the proposed lease. The City Attorney’s Office has approved the 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 $2,371 with a 3% annual increase on the anniversary date of each year thereafter.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Reso - No. CC-2303-025, Lease Certain Property to Waterfront Education · Proposed Lease between the City of Redondo Beach and Waterfront Education for 107 W.
Torrance Blvd., Suite 100
· Reso - #2023-02-HCR-01 Harbor Commission Resolution, February 13, 2023 · Admin Report - Harbor Commission CUP Evaluation, February 13, 2023 · Minutes - Harbor Commission Meeting, February 13, 2023