8D
Date: October 21, 2025
To: Honorable Mayor and Members of the City Council
From: Aram Chaparyan, City Manager
By: Carlos Huizar, Management Associate | [email protected] Subject: City Manager – Adopt Categorical Exemption Under California Environmental Quality Act (CEQA) Section 15301 and Approve a Consent to Alterations Agreement for Proposed Work to an Existing Health Club to Comply with Incorporated Lease Provision Located at 2800 Skypark Drive. Expenditure: None.
RECOMMENDATION
Recommendation of the City Manager that City Council:
1. Adopt a California Environmental Quality Act (CEQA) Categorical Exemption pursuant to Guideline Section 15301 (Existing Facilities); and
2. Approve a Consent to Alterations Agreement with South End Racquet and Health Club (C-1990), located at 2800 Skypark Drive, to proceed with alterations to existing health club while maintaining existing lease terms.
FUNDING
None required.
DISCUSSION
The City originally entered into a lease with South End Racquet and Health Club in July 1977 for a 40-year term. In February 2005, the City executed an Amended and Restated Lease, extending the term by 45 years to 2050, incorporating a fair market rent evaluation schedule, and requiring adjustments in 2014 (completed), 2024 (completed), 2034, and 2044.
Subsequent amendments to the lease included:
March 2008 – First Amended and Restated Lease: Expanded permitted uses to include a restaurant, banquet facilities, and catering services.
April 2015 – Second Amended and Restated Lease: Increased the parking lot area and adjusted annual rent from $279,995 to $286,455 effective April 1, 2015, and to $297,221 plus CPI effective January 1, 2016.
July 2024 – Third Amended and Restated Lease: Memorialized the second fair market rent adjustment, setting base rent at $525,000 annually ($43,750 per month) with annual Consumer Price Index (CPI) adjustments effective January 1, 2025. 1 City Council
October 21, 2025
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3 South End Racquet and Health Club has now requested City consent for alterations involving the conversion of an existing racquetball court to create a new staircase and an additional access point to the second-floor exercise room.
Pursuant to the lease, “ Lessee shall not make any changes or alterations, structural or otherwise, to any building, structure, or other improvement on the Leased Premises costing, in the aggregate, more than $10,000 in any given 12-month period unless the consent of the City Council is first obtained. ”
Approval of the proposed Consent to Alterations Agreement will allow the tenant to proceed with the improvements, subject to obtaining all required permits and regulatory approvals.
ENVIRONMENTAL FINDINGS
The proposed project consists of alterations to an existing health club facility located at 2800 Skypark Drive. Pursuant to the California Environmental Quality Act (CEQA) Guidelines, staff has determined the project qualifies for a Categorical Exemption under Section 15301 (Existing Facilities).
Section 15301 exempts projects involving the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures and facilities where there is negligible or no expansion of use. The proposed alterations — consisting of converting an existing racquetball court to accommodate a new staircase and provide an additional access point to an existing exercise room — are minor in nature and will not increase the overall intensity of use of the facility.
Recommendation
Staff recommends that City Council approve the Consent to Alterations Agreement, which would allow South End Racquet and Health Club to proceed with necessary facility improvements while ensuring compliance with the terms of the existing lease. The project qualifies for a CEQA Categorical Exemption under Section 15301 (Existing Facilities), as the alterations are minor in scope and will not result in any expansion of use or significant environmental impacts. Therefore, staff also recommends that the City Council adopt the CEQA exemption and approve the Consent to Alterations Agreement as outlined.
ATTACHMENT
1. Consent to Alterations Agreement
2 CONSENT TO ALTERATIONS AGREEMENT TO C-1990
This CONSENT TO ALTERATION AGREEMENT made and entered into on October 21, 2025, by and between the CITY OF TORRANCE, a municipal corporation, as. Lessor, hereinafter referred to as "City," and SOUTH END RACQUET AND HEALTH CLUB, INC., a California corporation, as Lessee, hereinafter referred to as "Lessee."
RECITALS
1. On July 1, 2024, the City and Lessee entered into a Third Amended and Restated Lease.
2. Article 6 of the Third Amended and Restated Lease is entitled "Alterations and Additional Improvements."
3. Article 6(A) provides that "Lessee shall not construct any building, structure or other improvement on the Leased Premises unless the plan showing the location thereof and construction plans and specifications are first approved by the Director of Building and Safety and by the City Council of the City and the giving of such consent shall be within such Director's and City Council's sole discretion and shall not be a waiver of any rights to object to further or future construction."
4. Article 6(B) provides, in relevant part, that "Lessee shall not make any changes or alterations, structural or otherwise, to any building, structure or other improvement on the Leased Premises costing, in the aggregate, more than $10,000 in any given 12-month period unless the consent of the City Council is first obtained."
5. Lessee has requested to make alterations to the existing leasehold that includes modifications to the existing health club facility.
CONSENT AGREEMENT
1. The City, by and through City Council, in its capacity as lessor, grants its consent to the proposed alterations as provided in Article 6(B) of the Second Amended and Restated Lease subject to the provisions below.
2. The City Council's consent is subject to construction approval as provided in Article 6(A) of the Second Amended and Restated Lease.
3. Lessee will pay for all costs associated with the alterations, including but not limited to the following: architectural costs, engineering costs, construction costs, permit fees, and any other cost or expense related to the proposed alterations.
4. Lessee must comply with the requirements in Article 6(C) and Article 7 of the Third Amended and Restated Lease.
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5. The City and Lessee agree that this CONSENT TO ALTERATION does not modify the Third Amended and Restated Lease and that the Lease remains in full force and effect.
“LESSOR”
CITY OF TORRANCE, ATTEST:
a municipal corporation
_____________________________ ___________________
George K. Chen Rebecca Poirier, MMC
Mayor City Clerk
APPROVED AS TO FORM:
PATRICK Q. SULLIVAN
City Attorney
By: __________________________
Tatia Y. Strader
Assistant City Attorney
“LESSEE”
SOUTH END RACQUET AND HEALTH CLUB, INC.,
a California corporation
By___________________________
Hooshang Nader, General Manager
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