Administrative
Report
H.12., File # 24-1029 Meeting Date: 6/18/2024
To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT & ECONOMIC DEVELOPMENT
DIRECTOR
TITLE
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2406-045, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, LEASING CERTAIN PROPERTY TO WATERFRONT PIZZERIA, INC.
APPROVE A LEASE WITH WATERFRONT PIZZERIA, INC. FOR THE PREMISES AT 203 FISHERMAN’S WHARF FOR A MONTH-TO-MONTH TERM STARTING JUNE 18, 2024
EXECUTIVE SUMMARY
In 1995, the City of Redondo Beach (City) purchased the Fisherman’s Wharf Leasehold which includes the 200 block of Fisherman’s Wharf. The leasehold is comprised of several buildings that total approximately 13,000 square feet of leasable space. The space at 203 Fisherman’s Wharf (Premises) is approximately 735 square feet and has accommodated a food-service use for decades.
The proposed lease with Waterfront Pizzeria Inc. (Tenant) will allow for a new month-to-month lease term. Rental to the City’s Harbor Tidelands Fund is the minimum of $1,837.50, or 10% of gross sales, whichever is greater.
BACKGROUND
In 1995, the City purchased the former Redondo Horseshoe Pier Company leasehold containing the buildings from 200 to 250 Wharf on the Redondo Beach Pier. The approximately 13,000 square feet of leasable space is made up of retail, restaurant, and entertainment uses.
Waterfront Pizzeria was an existing restaurant at this location originally operated by Robert Borgese of Sapori Di Roma, whose lease has been terminated. The City has negotiated a new lease with the tenant for the 735 square foot space.
The proposed lease carries a month-to-month term with a minimum monthly rent of $1,837.50, or approximately $2.50 per square foot, which is consistent with other similar leases in the waterfront.
The monthly rent paid to the City will be the greater of the minimum monthly rent, or 10% of monthly gross sales. The monthly rent increases by 3% on the anniversary date for each year the lease remains in effect.
The tenant will take the Premises as-is and will be responsible for utilities and all other improvements to the space. The lease is personally guaranteed by Maricela Martinez Acencio, and a security
H.12., File # 24-1029 Meeting Date: 6/18/2024
to the space. The lease is personally guaranteed by Maricela Martinez Acencio, and a security deposit of $1,837.50 will be kept on file.
COORDINATION
The Waterfront and Economic Development Department collaborated with the City Attorney’s Office for the preparation of the lease. The City Attorney’s Office has approved the associated documents as to form.
FISCAL IMPACT
Lease revenue from the property will accrue to the City’s Harbor Tidelands Fund. The proposed lease will result in a minimum monthly rent of $1,837.50 for the first lease year, or 10% of monthly gross sales, whichever is greater, with an annual increase of 3% to the base rent each year thereafter. Revenue to the Tidelands Fund will be a minimum of $22,050 over a one-year term.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Reso - No. CC-2406-045, Lease Certain Property to Waterfront Pizzeria, Inc. · Agmt - Lease Between the City of Redondo Beach and Waterfront Pizzeria, Inc.