8B
Date: August 25, 2026
To: Honorable Mayor and Members of the City Council
From: Aram Chaparyan, City Manager
Robert Dunn, Chief of Police
By: Carlos Huizar, Management Associate | [email protected] Subject: City Manager and Police – Adopt Categorical Exemption and Approve Ten-Year Lease Agreement for Torrance Police Substation at Del Amo Fashion Center.
Expenditure: $100 (General Fund: $10 Annually).
RECOMMENDATION
Recommendation of the City Manager and Chief of Police that City Council:
1. Adopt a California Environmental Quality Act (CEQA) Categorical Exemption pursuant to Guideline Section 15301 (Existing Facilities); and
2. Approve lease agreement between the City of Torrance and Del Amo Fashion Center Operating Company, LLC, in the amount of $100 ($10 annually), to continue operation of the Torrance Police Substation at Del Amo Fashion Center, for a ten-year (10) term beginning September 1, 2026 and ending August 31, 2036.
FUNDING
Funding is available in the FY2026-27 Police Operating Budget and is expected to be available in the subsequent fiscal years.
DISCUSSION
The Torrance Police Department (TPD) has maintained a dedicated police substation at the Del Amo Fashion Center since its initial establishment in 1987. Located in the southern portion of the shopping center between Macy’s Men & Home and Dick’s Sporting Goods, the approximately 2,216-square-foot facility serves as a vital operational base for officers to address retail crime, handle localized public safety incidents, and provide a visible, reassuring law enforcement presence within Southern California’s largest retail center.
The approval of this new lease agreement between the City of Torrance and Del Amo Fashion Center Operating Company, LLC permanently restores and stabilizes TPD’s physical footprint at the mall under a highly favorable, long-term structure. Under the proposed agreement, the City will continue to operate the space exclusively for an active police substation and retail crime investigation office. In conjunction with this agreement, TPD plans to execute an interior renovation project to provide a modernized police substation. 1 City Council
August 25, 2026
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The lease covers a ten-year term from September 1, 2026 through August 31, 2036, at a nominal rental rate of $10 per year, totaling $100 over the ten-year period. Del Amo Fashion Center Operating Company, LLC will provide all water, sewer, gas, and electric utilities at no cost to the City.
Securing this lease reinforces TPD’s commitment to community policing and public safety at one of the City's primary commercial hubs. Accordingly, staff recommends that the City Council adopt the CEQA Categorical Exemption and approve the 10-year lease agreement with Del Amo Fashion Center Operating Company, LLC to maintain modernized police operations at the facility through August 31, 2036.
ENVIRONMENTAL FINDINGS
The proposed action consists of leasing existing commercial space involving no expansion of existing or former use. Therefore, the project is Categorically Exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Class 1 - Existing Facilities).
ATTACHMENT
1.Police Substation Lease Agreement – Del Amo Fashion Center Operating Company, LLC. 2 1
POLICE SUBSTATION LEASE
1. Demise of Space. Subject to the terms and conditions set forth below, Del Amo Fashion Center Operating Company, L.L.C. (“Landlord”) leases to City of Torrance (“City”) the premises denoted as “POLICE” on the attached Exhibit A consisting of approximately 2,216 square feet (the “Space”) at the Del Amo Fashion Center in Torrance, California (“Center”).
2. Permitted Use. The Space may be occupied and used by City for the purpose of continuing the operation of a police substation and retail crime investigation office. City shall not use the Space for any other purpose without Landlord’s consent. City shall maintain the Space staffed for active police substation operations, and open to the public during regular mall operating hours or such other hours as may be mutually agreed, and shall maintain an active, visible police presence consistent with its law-enforcement purpose. If City fails to maintain such minimum operations for any period of thirty (30) consecutive days, Landlord shall have the right to terminate this Lease upon written notice to City.
3. Term. This Lease shall be for a term of ten (10) years beginning on September 1, 2026, and expiring on August 31, 2036. If at any time City ceases to use the Space for operation as a police substation, or fails to maintain minimum operating standards as set forth in Section 2, Landlord shall have the right to terminate this Lease on thirty (30) days written notice. No implied renewal or extension of this Lease shall result from City’s continued occupancy after the expiration of the Term.
4. Termination For Convenience. Landlord may terminate this agreement at any time by giving no less than 180 days’ prior notice. If Landlord exercises its right to terminate for convenience with a termination date effective within the first three (3) years of the Lease, then Landlord will reimburse City for the unamortized cost of the improvements incurred and paid by City, but such reimbursement obligation shall not exceed $150,000.
5. Rent. City agrees to pay $10 per year for the use of the Space.
6. Utilities. Landlord shall provide water, sewer, gas and electric utilities for the Space at Landlord’s cost and expense. All other utilities or services shall be at City’s expense.
7. Insurance. City shall furnish to Landlord certificates of insurance or other evidence of coverage satisfactory to the Landlord, providing evidence that the following coverage is in full force and effect, naming Landlord, Landlord's Property Manager, and Simon Property Group, Inc. as additional insureds on a primary and non-contributory basis. T he required coverages are as follows: (a) a commercial general liability policy with a limit of not less than $2,000,000 per occurrence with a $2,000,000 general aggregate limit of liability; (b) Worker's Compensation in compliance with any and all statutes requiring such coverage in the state where the Center is located; (c) Employer's Liability in a minimum amount of $1,000,000 each accident, $1,000,000 each employee and $1,000,000 policy aggregate; and (d) commercial automobile liability insurance with a combined single limit of not less than $1,000,000 per occurrence for bodily injury and property damage. If City chooses to self- insure any of the insurance requirements, City must provide written notice of such self- 3 ATTACHMENT 1
2 insurance, together with a letter of self-insurance confirming coverage at least equal to the stated limits, defense obligations, and additional-insured and waiver-of-subrogation equivalence. Acceptance by Landlord of City’s self-insurance does not release Tenant of any requirements regarding limits or coverages required herein. Landlord and City each waive any right of recovery against the other, and each other’s officers, employees, and agents, for any loss or damage to the extent such loss or damage is covered by property insurance policies (or would be covered had the required insurance been maintained).
8. Indemnification. (a) To the extent permitted by law, City shall indemnify, defend and hold Landlord (and Landlord’s parent companies, subsidiaries, members, partners, directors, officers, related and affiliated entities, lenders, managers, employees, and agents) (collectively, “Landlord Parties”) harmless from and against any and all claims, liabilities, obligations, losses, penalties, actions, suits, damages, expenses, disbursements (including legal fees and expenses) or costs of any kind and nature whatsoever (“Claims”) in any way relating to or arising out of City’s use of the Space or any occurrence which takes place in or about the Space and arises from Tenant’s use and occupancy of the Space, except to the extent caused by the negligence or willful misconduct of Landlord. City’s obligations under this Section shall be funded by City’s insurance or self-insurance program. The indemnification obligations contained in this paragraph shall survive expiration or early termination of this Lease.
(b) Landlord shall not be liable to City, and City waives all claims against Landlord for injury, death, or damage to persons or property occurring in the Leased Space or the Center, except to the extent caused by the negligence or willful misconduct of Landlord or its employees, agents, or contractors.
(c) City agrees to pay all costs, expenses, and reasonable attorneys’ fees incurred by Landlord in enforcing any provision of this Lease or in any litigation or other proceeding in which Landlord prevails as the prevailing party.
9. Damage and Destruction. If a majority of the Space or the Center is damaged by fire or other casualty, Landlord may elect to repair such damage or to terminate this Lease by written notice to City within sixty (60) days after such damage. If Landlord elects to repair, this Lease shall continue in full force and effect, and Landlord shall proceed with reasonable diligence to restore the Space (excluding Tenant’s personal property, stock in trade, fixtures, furnishings, carpeting, floor coverings, wall coverings, drapes and equipment) to substantially its condition prior to such damage. If Landlord does not elect to repair, or if the damage is so extensive that restoration cannot reasonably be completed within one hundred eighty (180) days, either party may terminate this Lease by written notice to the other.
10. Condemnation. If any portion of the Space is acquired by condemnation or the right of eminent domain, or is conveyed in lieu of such taking, this Lease shall terminate as of the date of such taking. All condemnation awards and proceeds shall belong exclusively to Landlord; provided, however, City may make a separate claim against the condemning authority for relocation expenses and the value of City’s fixtures and personal property, to the extent such claim does 4 3
not diminish Landlord’s award. City hereby waives any right to claim or receive any portion of Landlord’s condemnation award.
11. Default and Remedies. The occurrence of any of the following shall constitute an event of default by City: (i) failure to provide evidence of insurance as required herein, which failure continues for ten (10) days after written notice; (ii) failure to maintain minimum operating standards as set forth in Section 2; (iii) City’s material breach of any other term or condition of this Lease which continues for thirty (30) days after written notice (or such longer period as reasonably necessary to cure, provided City commences cure within such thirty (30) day period and diligently pursues the same to completion). Upon any event of default, Landlord may, at its option and in addition to any other remedies available at law or in equity: (a) terminate this Lease by written notice to City, in which event City shall immediately surrender the Space; or (b) without terminating this Lease, pursue any remedies available to Landlord.
12. Holdover. If City holds over after the expiration or earlier termination of this Lease, such holding over shall constitute a tenancy at sufferance only, and shall not constitute a renewal or extension of this Lease. City agrees that upon expiration or termination of this Lease, City shall vacate the Space immediately and consents to Landlord’s summary recovery of possession by any lawful means.
13. Alterations. City shall not make any structural modifications to the Space. City must obtain Landlord’s written approval prior to making any non-structural modifications to the Space. No construction work may occur during mall hours.
14. Supervision and Control. City shall at all times provide sufficient supervision and maintain adequate control of its employees, representatives, guests and invitees while the same are in or about the Space, so as to prevent unlawful or disruptive activities and actions which are a breach of this Lease.
15. Return of Space. Upon expiration or earlier termination, City shall return the Space to Landlord, remove all of City’s personal property, and peaceably yield up the Space, broom clean and in good repair and condition, ordinary wear and tear excepted. At Landlord’s election, City shall remove any or all alterations, additions, or improvements made by City and restore the Space to its condition prior to Tenant taking possession. If City fails to remove such alterations or restore the Space as required, Landlord may do so at City’s expense.
16. No Liens. City shall not suffer any materialman’s or mechanic’s lien to be filed against the Center by reason of any work, labor or services performed at or materials furnished to the Space. If any lien is filed in breach of this Lease, City agrees to release the lien of record by payment, bond or court order within thirty (30) days of receipt of written notice from Landlord.
17. No Assignment. City shall not assign, mortgage, pledge or in any manner transfer this Lease or any interest therein or sublet all or any part of the Space.
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18. Compliance with Laws. City shall comply with all applicable federal, state, and local laws, ordinances, rules, and regulations (“Laws”) in its use of the Space, including without limitation all Laws relating to accessibility, safety, and security. City shall be solely responsible for all costs of compliance with Laws arising from City’s specific use of the Space or City’s alterations thereto.
19. Landlord Access. Landlord and its agents shall have the right to enter the Space upon reasonable prior notice (except in case of emergency) for the purpose of inspecting the Space, making repairs or improvements to the Space or the Center, and showing the Space to prospective tenants. Landlord shall exercise such right of access in a manner that minimizes disruption to City’s operations and complies with any reasonable security protocols established by City for the Space.
20. Hazardous Materials. City shall not use, store, generate, or dispose of any hazardous or toxic materials, substances, or wastes (“Hazardous Materials”) on or about the Space or the Center, except as necessary for City’s law-enforcement operations and in compliance with all applicable environmental laws. City shall be solely responsible for the proper handling, storage, and disposal of any Hazardous Materials, including without limitation firearms, ammunition, evidence, and controlled substances, and shall indemnify Landlord against all claims arising from City’s use or storage of Hazardous Materials.
21. No Joint Venture. Nothing contained herein shall be deemed or construed by the parties, or by any third party, to create a principal and agent, partnership or joint venture relationship between the parties, or to create any fiduciary duties between the parties. It is further understood and agreed that nothing contained herein, nor any actions of the parties hereto, shall be deemed to create any relationship between the parties other than landlord and tenant.
22. Entire Agreement. This Lease is an integrated agreement which contains the entire agreement between the parties as to the matters addressed herein and incorporates all prior discussions and agreements. There are no agreements between the parties which are not contained herein, and City has not received or relied on any representations from Landlord or Landlord's agents.
No subsequent change, modification or addition to this Lease shall be of any force or effect whatsoever unless in writing and signed by the party to be charged.
23. Governing Law. This Lease shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflicts of law principles. Any action or proceeding arising out of this Lease shall be brought in the state or federals courts located in Los Angeles County.
24. Signage and Rules. City shall not place or install any signs, displays, or other advertising materials on the exterior of the Space or visible from outside the Space without Landlord’s prior written approval. City shall comply with all reasonable rules and regulations established by Landlord for the Center from time to time.
25. Authority. City represents and warrants that the execution, delivery, and performance of this Lease have been duly authorized by all necessary action of the appropriate governing body of the City of Torrance, and that the persons executing this Lease on behalf of City have full 6 5
power and authority to do so. City shall provide Landlord with evidence of such authorization upon request.
26. Limited Offer. The terms of this Lease are offered to City on a limited basis. If this Lease is not executed within 90 days of July 1, 2026, the offer to Lease the Space shall be void and Tenant shall have no further right to occupy the Space and shall to promptly vacate the Space.
Agreed this 25th day of August, 2026
LANDLORD:
DEL AMO FASHION CENTER OPERATING
COMPANY, L.L.C., a Delaware limited liability
company
By: DEL AMO FASHION CENTER
HOLDING COMPANY, L.L.C., a
Delaware limited liability company, its
member
By: DEL AMO MILLS, L.L.C., a
Delaware limited liability
Company, its managing member
By:
Its:
CITY:
CITY OF TORRANCE,
a California Municipal Corporation ATTEST:
____________________________ ______________________________ Sharon Kalani Rebecca Poirier
Mayor City Clerk
APPROVED AS TO FORM
PATRICK Q. SULLIVAN
CITY ATTORNEY:
____________________________
Patrick Q. Sullivan
City Attorney
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EXHIBIT A
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