DATE: September 13, 2022
SUBJECT:
Title
CHULA VISTA MARINA LP LOCATED AT 550 MARINA PARKWAY, CHULA VISTA:
A. RESOLUTION CONSENTING TO THE ASSIGNMENT AND ASSUMPTION OF THE LEASEHOLD INTEREST FROM CHULA VISTA MARINA LP TO SHM SOUTH BAY, LLC DBA SAFE HARBOR BAYFRONT; AND,
B. ORDINANCE GRANTING AN AMENDED AND RESTATED LEASE TO SHM SOUTH BAY, LLC DBA SAFE HARBOR BAYFRONT TO UPDATE LEASE TO CURRENT TERMS; AND
C. RESOLUTION CONSENTING TO A SUBLEASE AMENDMENT BETWEEN CHULA VISTA MARINA LP AND STERLING MARINA MANAGEMENT, LLC FOR A SUBLEASE TERM EXTENSION OF EIGHT YEARS AND TEN MONTHS
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EXECUTIVE SUMMARY:
Chula Vista Marina LP, a California limited partnership (as successor-in-interest to Chula Vista Marina/RV Park, LTD., "Chula Vista Marina") operates a marina at 550 Marina Parkway, Chula Vista and is a tenant in good standing. Chula Vista Marina's lease with the District expires November 30, 20301 (the "Existing Lease"). Chula Vista Marina is proposing to assign its rights and obligations under the Existing Lease to SHM South Bay, LLC dba Safe Harbor Bayfront, a Delaware limited liability company ("SHM South Bay").
SHM South Bay is a subsidiary of Safe Harbor Marinas, LLC ("Safe Harbor"), which is well known within the recreational boating industry for its successful portfolio of both marinas and boatyards.
The Existing Lease requires the Board of Port Commissioners ("Board") to consent to the assignment and assumption of the Existing Lease by Chula Vista Marina to SHM South Bay (the "Assignment"). As a condition of granting consent to the Assignment, the District may adjust rent to market and update the terms and provisions of the Existing Lease. The rent increase includes a ramp-up to the higher north bay slip rate which staff was able to negotiate based on the Gaylord Pacific project going under construction. This demonstrates the positive impact to the District that our investment in the Chula Vista Bayfront has already made. SHM South Bay has agreed...
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