Administrative
Report
H.8., File # 24-1148 Meeting Date: 8/6/2024
To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT & ECONOMIC DEVELOPMENT
DIRECTOR
TITLE
APPROVE THE CITY’S CONSENT TO RDR’S ELEVENTH SUBLEASE AMENDMENT WITH PEGGY HIRAIZUMI, DBA KOBE PEARL, FOR PROPERTY LOCATED AT 100 “D” FISHERMAN’S WHARF
EXECUTIVE SUMMARY
The City has a lease with RDR Living Trust of 1996, Robert Dale Resnick, Trustee (“RDR” or “Lessee”) for the premises located at 100 (A-L) Fisherman’s Wharf on the Redondo Beach Pier.
Under the terms of the lease, the City retains the right to consent to all subleases, amendments to subleases, and assignments within the leasehold area. RDR has requested the City consent to an amendment to the sublease with Peggy Hiraizumi (Sublessee) dba Kobe Pearl, a retail jewelry store located at 100 “D” Fisherman’s Wharf. Kobe Pearl has been in operation at the site since 1991, and the two parties have negotiated a two-year lease extension, through 2026, with an option for the Sublessee to extend the term an additional two years, through 2028. It is recommended that the City Council approve the consent and allow for execution of the proposed sublease amendment.
BACKGROUND
On July 1, 2008 the City of Redondo Beach entered into a master lease with RDR Living Trust of 1996 (RDR” or Lessee) for the premises located at 100 (A-L) Fisherman’s Wharf on the Redondo Beach Pier. The lease allows for portions of the leasehold property to be subleased however, the Lessee is required to obtain City consent for all subleases, amendments to subleases, and assignments.
RDR is requesting the City’s consent to amend the lease between RDR and Peggy Hiraizumi, dba Kobe Pearl at 100 “D” Fisherman’s Wharf. The proposed Eleventh Amendment to the Lease extends the lease term to April 30, 2026 and provides one option to extend the termination date of the lease to April 30, 2028.
COORDINATION
The Consent to Amendment document was reviewed and approved as to form by the City Attorney’s Office.
FISCAL IMPACT
Approval of the amendment will maintain the City’ annual pass through revenue generated by the
1 H.8., File # 24-1148 Meeting Date: 8/6/2024
sublease, which totals approximately $19,000 per year.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Proposed Eleventh Amendment between RDR (Master Leaseholder) and Peggy Hiraizumi (Sublessee)
· City Consent to the Eleventh Amendment of Sublease - Peggy Hiraizumi, dba Kobe Pearl
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