Administrative
Report
H.10., File # 24-1445 Meeting Date: 9/3/2024
To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT & ECONOMIC DEVELOPMENT
DIRECTOR
TITLE
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2409-072, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, LEASING CERTAIN PROPERTY TO PIERO QUINCI, DMD, MS INC., A CALIFORNIA CORPORATION APPROVE AN AMENDMENT TO THE LEASE WITH PIERO QUINCI, DMD, MS INC. FOR A MONTHLY MINIMUM RENT OF $5,520 AND THE TERM SEPTEMBER 3, 2024 THROUGH SEPTEMBER 2, 2029
EXECUTIVE SUMMARY
In March 2012, the City of Redondo Beach (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 City of Redondo Beach and Piero Quinci, D.M.D., M.S., Inc. dba Aloha Braces (Aloha Braces or Tenant) entered into a lease beginning March 15, 2016 for the space located at 105 West Torrance Boulevard, Suite 100 (Premises). The lease area totals approximately 2,303 square feet.
The proposed amendment to the Lease allows for a 5-year term with the City retaining the option to terminate the lease with 12-months written notice. Monthly rental revenue to the City’s Harbor Uplands Fund will be increased to $5,520, with an annual 3% escalator on the anniversary date.
BACKGROUND
The Pier Plaza leasehold is comprised of buildings 103 to 131 West Torrance Boulevard (on the top level of the Pier Parking Structure) and totals approximately 75,000 square feet of space. The property generally contains office uses, with the lone exceptions being a restaurant and child care center. Aloha Braces is a dental and orthodontics office for children and adults.
On March 15, 2016, the City entered into a lease with Aloha Braces for the space located at 105 West Torrance Boulevard, Suite 100, consisting of approximately 2,303 square feet. The original term of the lease expired on March 14, 2021, and has remained, in effect, on a month-to-month basis since that date.
The proposed amendment allows for a 5-year lease term to expire on November 2, 2029, with the City retaining the option to terminate the lease with 12-months written notice. Monthly rental revenue to the City’s Harbor Uplands Fund will be $5,520, or approximately $2.40 per square foot, with an
H.10., File # 24-1445 Meeting Date: 9/3/2024
to the City’s Harbor Uplands Fund will be $5,520, or approximately $2.40 per square foot, with an annual 3% increase on the anniversary date.
COORDINATION
The Resolution and lease documents were reviewed and approved as to form by the City Attorney’s Office.
FISCAL IMPACT
Lease revenue from the property will accrue to the City’s Harbor Uplands Fund. The proposed First Amendment will result in monthly rent of $5,520 and an annual total of over $66,000. The City is expected to receive roughly $330,000 over the term of the lease.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Reso - No. CC-2409-072 Leasing Certain Property to Piero Quinci, D.M.D., M.S., Inc. · Exhibit A - Proposed Amendment to the Office Lease between the City of Redondo Beach and Piero Quinci, D.M.D., M.S., Inc.