DATE: November 17, 2015
SUBJECT:
Title
ORDINANCE AUTHORIZING AGREEMENT FOR AMENDMENT OF LEASE AMENDMENT NO. 1 TO THE LEASE WITH THE CITY OF CORONADO FOR THE GLORIETTA BAY MARINA LOCATED AT 1715 STRAND WAY IN THE CITY OF CORONADO AMENDING RENT TERMS, REVISING THE LEASEHOLD DESCRIPTION, AND UPDATING CERTAIN LEASE PROVISIONS
Body
EXECUTIVE SUMMARY:
In August 2012, the Board approved a 40-year lease agreement11 (Lease) with the City of Coronado (City) for a public boat rental dock and approximately 100-slip marina, commonly known as Glorietta Bay Marina. The Lease covers approximately 144,555 square feet of water area and 4,948 square feet of land area located in Glorietta Bay at 1715 Strand Way in the City of Coronado (Attachment A).
In 2007, the City invested $3.6 million in waterside improvements on the District's parcel, which included the replacement of two of the three docks, known as Docks A and B. The third dock, known as Dock C, was not part of the initial redevelopment but the City plans to invest an additional $3 million to replace and reconfigure Dock C. Due to unexpected potential litigation and environmental review, the construction of Dock C has been delayed.
The Lease requires a fixed annual rent payment of $11,616 with no percentage rent through June 30, 2015. Effective July 1, 2015 through June 30, 2022, rent is based on percentage rents with Minimum Annual Rent (MAR) of $95,000. The City is requesting a continuation of the fixed annual rent for two additional years through June 30, 2017 to provide the City with financial relief during the anticipated construction period for Dock C. In exchange for continuation of the fixed annual rent, the City has agreed to an increase in the percentage rate for boat slip income from 11% to 16% for the period of July 1, 2017 through June 30, 2022.
Staff has analyzed the City's request and believes increasing the percentage rate for boat slip income from 11% to 16% for the period of ...
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