DATE: December 5, 2017
SUBJECT:
Title
RESOLUTION CONSENTING TO A SUBLEASE BETWEEN LFN DEVELOPERS, LLC, DBA MARRIOTT RESIDENCE INN/SPRINGHILL SUITES AND ELEVATE TRAINING, LLC, DBA ELEVATE TRAINING, FOR A FIVE-YEAR TERM WITH ONE FOUR-YEAR OPTION, WITH CONDITIONS
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EXECUTIVE SUMMARY:
The District entered into a 66-year Lease1 (Lease) with LFN Developers, LLC, (Lane Field North) on May 1, 2014 to operate a 400-room dual-branded hotel located at 900 Bayfront Court, in the City of San Diego. Lane Field North is requesting approval of a sublease with Elevate Training, LLC, dba Elevate Training to operate a boutique fitness studio within the hotel building. The proposed sublease with Elevate Training is a five-year term with one four-year option 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 grant consent to the sublease.
RECOMMENDATION:
Recommendation
Adopt a Resolution consenting to a sublease between LFN Developers, LLC, dba Marriott Residence Inn/Springhill Suites and Elevate Training, LLC, dba Elevate Training, for a five-year term with one four-year option, with conditions.
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FISCAL IMPACT:
Lane Field North will begin paying minimum annual rent to the District in the amount of $615,000 on May 1, 2019. Elevate Training expects to generate $372,000 in gross sales in their first year of operation. However, Lane Field North starts paying percentage rent in May 2026 so the proposed Board action has no fiscal impact to the District until the last year of the option period, if exercised.
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 waterfront destination where residents and visitors converge.
* A financially sustainable ...
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