RESOLUTION NO. 2025-37
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TORRANCE, CALIFORNIA, DETERMINING CERTAIN
CITY-OWNED PROPERTY IS NOT REQUIRED FOR CITY
PURPOSES AND THAT LEASING THE PROPERTY IS IN
THE PUBLIC INTEREST
WHEREAS, the City of Torrance (CITY) is the owner in fee of approximately 14-acres of real property (PROPERTY) located at for reference purposes 2600 Skypark Drive; and WHEREAS, the PROPERTY has been leased since August 1, 2004, pursuant to the lease dated July 27, 2004 (as subsequently amended) and is currently developed with an aerospace light industrial building and ancillary structures that compromise portions of the Torrance Municipal Airport Parcel 7377-006-906; and
WHEREAS, the lease of the PROPERTY by CITY has and will continue to benefit the CITY by providing services, jobs, and revenue to the CITY; and
WHEREAS, as a part of an overall settlement of litigation between the City and Hi-Shear Corporation ("Consent Decree") over environmental contamination on and migrating from the PROPERTY, and effective upon final approval of the U.S. District Court of the Consent Decree, the CITY has negotiated an amendment (AMENDMENT) to the lease of the PROPERTY with HI-SHEAR CORPORATION (LESSEE) that provides the best ECONOMIC CONSIDERATIONS OF THE CITY given the additional public benefits that will result from market adjustments to minimum base rent, signing fee payment, additional percentage rent increases and additional fair market valuations over the extended term that will BENEFIT THE PUBLIC in the form of continued local employment and rental revenue to fund public services; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TORRANCE, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
1. That, pursuant to the California Environmental Quality Act (CEQA), the Second Amendment to Lease is exempt under CEQA (2025) Categorical Exemption 15301, Class 1 -Existing Facilities, as the subject request is the letting of property involving existing facilities with no expansion of an existing use currently planned; and
2. That the PROPERTY is not required for CITY purposes; and
3. That it is in the BEST INTERESTS of the public and the City that the non-competitive bid AMENDMENT between the CITY and HI-SHEAR CORPORATION be executed by the City and delivered to the LESSEE as it represents a substantial immediate revenue increase and additional on-going rental revenue growth for the City; and
4. That the pursuant to CALIFORNIA GOVERNMENT CODE SECTION 37280 (b)(1) the subject AMENDMENT percentage rent provisions allow for City rental revenue to respond to market conditions without the necessity of discretionary review by a City officer; and
5. That the AMENDMENT, by its own terms, will not become unless and until the Consent Decree entered into between the City and Hi-Shear Corporation over environmental contamination on and migrating from the PROPERTY, has been finally approved by the U.S. District Court; and
6. That the Mayor is authorized to execute the AMENDMENT on behalf of the CITY and the City Clerk shall attest to the Mayor's signature and deliver the AMENDMENT to the LESSEE.
INTRODUCED, APPROVED, and ADOPTED this 17th day of June 2025.
Mayo George K. Chen
APPROVED AS TO FORM:
PATRICK Q. SULLIVAN, City Attorney ATTEST:
b. ~ tlaY.Strader,Asney , City Clerk
TORRANCE CITY COUNCIL RESOLUTION NO. 2025-37
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF TORRANCE
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I, Rebecca Poirier, City Clerk of the City of Torrance, California, do hereby certify that the foregoing resolution was duly introduced, approved, and adopted by the City Council of the City of Torrance at a regular meeting of said Council held on the 17th day of June 2025 by the following roll call vote:
AYES:
NOES:
ABSTAIN :
ABSENT:
COUNCILMEMBERS
COUNCILMEMBERS
COUNCILMEMBERS
COUNCILMEMBERS
Date: (p /20 }--:)5 --,--,------
Gerson, Kaji, Kalani, Lewis, Mattucci, and Mayor Chen .
None.
None.
Sheikh. ~
W.Rebecca
City Clerk of Torrance