8J
Date: August 5, 2025
To: Honorable Mayor and Members of the City Council
From: Aram Chaparyan, City Manager
By: Carlos Huizar, Management Associate | [email protected] Subject: Supplemental Material #1 for Agenda Item 8J
DISCUSSION
This supplemental report is provided to clarify and update the assignee entity listed in the original staff report and recommendation associated with the Assignment and Assumption of Ground Lease and the Ground Lessor Estoppel Certificate for the City-owned property located at 3455, 3511, and 3525 Pacific Coast Highway.
The original report identified the assignee as La Caze Development Company, LLC. However, the correct assignee is KLM Madison LLC, an entity affiliated with La Caze Development. The Assignment and Assumption of Ground Lease will be executed by KLM Madison LLC, and all associated documentation reflects this updated assignee entity.
The Assignment and Assumption Agreement and Ground Lessor Estoppel Certificate are now finalized and have been included as attachments to this report for City Council review. These documents memorialize the proposed transfer of leasehold interest and confirm the current status of the lease agreement, in accordance with standard City practices.
The revised recommendation is listed below:
Recommendation of the City Manager that City Council:
1. Approve an Assignment and Assumption of Ground Lease from JAS Madison I, LLC (“Assignor”), to KLM Madison, LLC (“Assignee”) for lease of City-owned property located at 3455, 3511, and 3525 Pacific Coast Highway; and
2. Approve a Ground Lessor Estoppel Certificate to JAS Madison, I, LLC for lease of City- owned property located at 3455, 3511 and 3525 Pacific Coast Highway.
ATTACHMENTS
1. Assignment and Assumption Agreement (Limited Distribution)
2. Ground Lessor Estoppel Certificate (Limited Distribution) 1 1
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