Administrative
Report
H.11., File # 23-6481 Meeting Date: 9/5/2023
To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT & ECONOMIC DEVELOPMENT DIRECTOR TITLE
ADOPT BY TITLE ONLY RESOLUTION NO CC-2309-089, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, LEASING CERTAIN PROPERTY
TO SHAW KOEPKE & SATTER, LLP
APPROVE THE LEASE WITH SHAW KOEPKE & SATTER, LLP, FOR THE PREMISES AT 105 W.
TORRANCE BLVD., SUITE 106 FOR A MONTHLY MINIMUM RENT OF $2,763.75 FOR THE TERM SEPTEMBER 5, 2023 THROUGH SEPTEMBER 4, 2024, WITH AN ANNUAL 3% BASE RENT
INCREASE ON THE FIRST ANNIVERSARY OF THE COMMENCEMENT DATE
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 office lease with Shaw Koepke & Satter, LLP (Tenant) is for the space at 105 W. Torrance Blvd., Suite 106 (Premises). The lease area totals approximately 1,005 square feet.
The proposed lease is for 12 months, with the City retaining the option to terminate the lease with a 12-month prior written notice. Monthly rental revenue to the City’s Harbor Uplands Fund will be $2,763.75, or approximately $2.75 per square foot. Once the lease expires on September 4, 2024, it will transition to a month-to-month lease, with a 3% increase on the first anniversary date.
BACKGROUND
The Pier Plaza leasehold is comprised of buildings 103 - 131 West Torrance Boulevard (on 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. The lone exceptions are a restaurant, bike rental shop, and a child care center. The proposed lease with Shaw Koepke & Satter, LLP is for the office space at 105 W. Torrance Blvd., Suite 106. The lease area totals approximately 1,005 square feet. The Shaw Koepke & Satter, LLP law office has been a tenant at Pier Plaza since 2021. The original 2-year term expired July 12, 2023 and transitioned to a month-to-month lease.
The proposed lease carries a 12-month term and $2,763.75 monthly rent, or approximately $2.75 per square foot, which is consistent with other similar office leases in the waterfront and the broader market. The lease contains a provision that escalates the rent at 3% per year once the lease transitions to a month-to-month term. The City retains the right to terminate the lease with a 12-
H.11., File # 23-6481 Meeting Date: 9/5/2023
transitions to a month-to-month term. The City retains the right to terminate the lease with a 12- month written notice. John Shaw will continue as the personal guarantor of the lease. Additionally a security deposit of $2,763.75 will be kept on file. The tenant has occupied the premises since 2021, will continue to utilize the space as an office and will accept the location in an as-is condition.
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 Resolution and lease documents as to form.
FISCAL IMPACT
Lease revenue from the property will accrue to the City’s Harbor Uplands Fund. The proposed lease will result in a monthly rent of $2,763.75, with an annual total of $33,165.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Reso - No. CC-2309-089 Leasing Property to Shaw Koepke & Satter, LLP · Agmt - Lease Between the City of Redondo Beach and Shaw Koepke & Satter, LLP · Agmt - Original Lease Between the City of Redondo Beach and Shaw Koepke & Satter, LLP, July 20, 2021