Administrative
Report
H.12., File # 24-1373 Meeting Date: 8/20/2024
To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT & ECONOMIC DEVELOPMENT
DIRECTOR
TITLE
APPROVE THE CONSENT TO HK PACIFIC, LLC’S SUBLEASE WITH JORGE-ANTHONY HERNANDEZ, DBA NADORA JEWELERS, FOR PROPERTY LOCATED AT 112 FISHERMAN’S WHARF
EXECUTIVE SUMMARY
The City has a lease with HK Pacific, LLC (HK Pacific or Lessee) for the premises located at 110-151 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. HK Pacific has requested the City consent to the sublease with Jorge-Anthony Hernandez (Sublessee) dba Nadora Jewelers, a retail jewelry store to be located at 112 Fisherman’s Wharf. The previous use at 112 Fisherman’s Wharf was Mie Pearl, which was also a retail jewelry business. The two parties have negotiated a month-to-month lease. It is recommended that the City Council approve the consent and allow for execution of the proposed sublease.
BACKGROUND
On April 1, 1968, the City of Redondo Beach entered into a master lease with Tony’s On The Pier and Donald T. Ballard for the premises located at 110-151 Fisherman’s Wharf on the Redondo Beach Pier. On July 28, 1969, the Original Amended Lease was assigned to Redondo Beach Fisherman’s Wharf Company. On January 22, 2019, Redondo Beach Fisherman’s Wharf Company, LLC assigned all of its right, title and interest in the Lease to Next Century Power LLC. On June 7, 2021, Next Century Power, LLC, as Assignor, assigned all of its right, title and interest in and to the Lease to HK Pacific LLC. 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.
HK Pacific is requesting the City’s consent to the sublease between HK Pacific and Jorge-Anthony Hernandez, dba Nadora Jewelers, a retail jewelry store at 112 Fisherman’s Wharf. The previous tenant was also a jewelry store called Mie Pearl. The proposed sublease allows for a month-tomonth tenancy and includes a minimum monthly rent of $2,250.
COORDINATION
The Consent to Sublease document was reviewed and approved as to form by the City Attorney’s Office.
H.12., File # 24-1373 Meeting Date: 8/20/2024
FISCAL IMPACT
The Agreement states that, in addition to the minimum guaranteed monthly rent of $2,250, Nadora Jewelers shall pay HK Pacific rent in the amount of 5% of Sublessee’s gross sales. Nadora Jewelers is also responsible for the percentage rent required to be paid to the City, which totals 5% of gross sales as outlined in the Master Lease Agreement. Lease revenue from the property accrues to the City’s Harbor Tidelands Fund.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Proposed Sublease between HK Pacific LLC (Master Leaseholder) and Jorge-Anthony Hernandez, dba Nadora Jewelers (Sublessee)
· City Consent to the Sublease - Jorge-Anthony Hernandez, dba Nadora Jewelers