CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: October 2, 2024
To: Honorable Mayor and City Council Members
From: Rochelle Clayton, Acting City Manager;
Kenneth Chapa, Director of Economic Development
Department: Economic Development
Subject: Lease Assignment and Estoppel for 295 E. Club Center Drive (Parking Lot Lease No. 15.06-136) (Ward 3)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to:
1. Execute an Assignment and Assumption Agreement, authorizing the assignment of Parking Lot Lease No. 15.06-136 from CCI Club SB, LLC, to 295 Club Center LLC; and
2. Execute an Estoppel Certificate certifying the status of Parking Lot Lease No.
15.06-136.
Executive Summary
The Lease Assignment and Estoppel Certification will transfer Parking Lot Lease No.
15.06-136, a City-owned parking lot, from CCI Cub SB, LLC to 295 Club Center, LLC.
The City-owned parking lot is located at the southwest corner of Waterman Avenue and Caroline Street, which was originally leased to Weyerhaeuser Financial Investments, Inc. on January 1, 1990. The original terms of the lease will remain in effect and the Lease will expire on January 1, 2040.
Background
On July 5, 1990, the City of San Bernardino entered into a Parking Lot Lease (No.
15.06-136) with Simchowitz-W No. 1 (SW1) a California limited partnership (Exhibit A).
The Parking Lot Lease is subject to a City-owned parking lot located in the City of San Bernardino at the southwest corner of Waterman Avenue and Caroline Street, otherwise known as APN: 0164-321-79-0000, with an initial term of 50 (fifty) years and has a good through date of January 1, 2040.
On July 26, 1996, the Parking Lot Lease was assigned from Weyerhaeuser Financial Investments, Inc., a Neveda Corporation to Club Investors, L.P., a California limited partnership, as recording on document number 19960269045, Official Records of San Bernardino County, California (Exhibit B).
On September 9, 2003. The Lease was assigned from Club Investors, L.P., a California limited partnership to CCI Club SB, LLC, a Colorado limited liability company. As recorded on document number 2003-0678353 (Exhibit C).
On December 6, 2023, Staff received a request from the current Lessee, CCI Club, SB, LLC, a Colorado limited liability company, to assign the Lease to 295 Club Center, LLC. The assignment is being requested because of a proposed change in ownership of the underlying parcels impacted by Parking Lot Lease No 15.06-136.
Discussion
The current request to assign Parking Lot Lease No. 15.06-136 is in accordance with Section 10 of the Lease (Exhibit A). Section 27(c)(4) of the Lease provides language that guides the issuance of an Estoppel Certificate to certify the current standing and status of the Lease prior to any assignment.
Staff is recommending that the Mayor and City Council approve the Lease Assignment and provide the requested Estoppel Certificate. Parking Lot Lease No. 15.06-136 is currently in good standing with no deficiencies.
2021-2025 Strategic Targets and Goals
The assignment of Parking Lot lease No. 15.06-136 achieves Key Strategic Target No. 1: Improved Operational & Financial Capacity. The assignment of Parking Lot Lease No. 15.06-136 preserves revenue that is generated to the City.
Fiscal Impact
There is no impact to the General Fund.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to:
1. Execute an Assignment and Assumption Agreement, authorizing the assignment of Parking Lot Lease No. 15.06-136 from CCI Club SB, LLC, to 295 Club Center LLC; and
2. Execute an Estoppel Certificate certifying the status of Parking Lot Lease No.
15.06-136.
Attachments
Attachment 1: Lease Assignment and Assumption Agreement Attachment 2: Estoppel Certificate
Attachment 3: Exhibit A – Original lease
Attachment 4: Exhibit B – Lease Assignment 1 – Club Investors L.P.
Attachment 5: Exhibit C – Lease Assignment 2 - 295 Club Center, LLC Ward:
Third Ward
Synopsis of Previous Council Actions:
July 5, 1990, the City and Simchowitz-W No. 1, a California limited partnership (“SW1”) City Council entered into lease agreement – Parking Lot Lease No. 15.16-136, described on Exhibit A.