DATE: December 5, 2017
SUBJECT:
Title
RESOLUTION CONSENTING TO A SUBLEASE BETWEEN LFS DEVELOPERS, LLC, DBA INTERCONTINENTAL HOTEL AND DEL FRISCO'S OF CALIFORNIA, LLC, DBA DEL FRISCO'S DOUBLE EAGLE STEAK HOUSE, FOR A FIFTEEN-YEAR TERM WITH FOUR FIVE-YEAR OPTIONS, WITH CONDITIONS
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EXECUTIVE SUMMARY:
The District entered into a 66-year Lease1 (Lease) with LFS Developers, LLC, (Lane Field South) on June 1, 2016 to develop and operate a 400-room single-branded Intercontinental Hotel located between Pacific Highway and North Harbor Drive, north of Broadway, in the City of San Diego. Lane Field South is requesting consent for a sublease with Del Frisco's of California, LLC, dba Del Frisco's Double Eagle Steak House (Del Frisco's) to operate a restaurant within the Intercontinental Hotel. The proposed sublease with Del Frisco's is a fifteen-year term with four five-year options to extend conditioned upon consent of the sublease by the Board of Port Commissioners (Board). The proposed sublease is consistent with the terms of the Lease and Board of Port Commissioners Policy No. 355 (BPC 355), and staff recommends the Board consent to the sublease.
RECOMMENDATION:
Recommendation
Adopt a Resolution consenting to a sublease between LFS Developers, LLC, dba Intercontinental Hotel and Del Frisco's of California, LLC, dba Del Frisco's Double Eagle Steak House, for a fifteen-year term with four five-year options, with conditions.
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FISCAL IMPACT:
Del Frisco's will contribute to percentage rent, based on gross sales, beginning their first year of operations. Lane Field South will begin paying minimum annual rent to the District on June 1, 2018. Once the hotel is operational, Lane Field South will begin paying percentage rent that ramps up annually for 24 years.
This agenda item is subject to Board Policy No. 106 - Cost Recovery User Fee Policy.
COMPASS STRATEGIC GOALS:
This agenda item supports the following Strategic Goal(s).
* A vibrant waterfr...
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