| | | | | | | | Agenda Item - 4.k.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Omar Sandoval
| | Dept.: | City Manager
| Dept.: | City Attorney
| | Subject: | Approval of a second amendment to Steelcraft lease agreement for property located at 12900 Euclid Street, Garden Grove. (Action Item) | Date: | 11/26/2019 |
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| | | | | | | | OBJECTIVE
For the City Council to approve a second amendment to the Steelcraft lease to extend the optional extensions of the lease from thirty years to a total of fifty-five years. |
| | | | | | | | BACKGROUND
The City and Steelcraft Garden Grove LP entered into a ground lease for the property adjacent to City Hall for a term of ten years with up to four 5-year extensions (for a total of 30 years). Steelcraft has requested to extend the term for an additional fifteen years for a total of 55 years to enable it to secure long-term financing for the operation of the newly constructed commercial project. |
| | | | | | | | DISCUSSION
The attached second amendment to the lease increases the four 5-year extensions to nine 5-year extensions. This amendment will allow the term of the lease to extend from 30 years to a total of 55 years. |
| | | | | | | | FINANCIAL IMPACT
None. There are no changes to the compensation provisions of the lease. Steelcraft currently pays the City $8,120.00 per month in rent, subject to CPI increases every three years. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Approve the second amendment to extend the Steelcraft lease for up to 55 years for property located at 12900 Euclid Street, Garden Grove; and
- Authorize the City Manager to execute the second amendment on behalf of the City.
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| ATTACHMENTS: | | Description | Upload Date | Type | File Name | | Second Amendment to Lease | 11/20/2019 | Agreement | SteelCraft_Second_Amendment_of_Lease.pdf |
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