DATE: November 5, 2019
SUBJECT:
Title
RESOLUTION CONSENTING TO AMENDMENT NO. 1 TO SUBLEASE BETWEEN LFS DEVELOPMENT, LLC, DBA INTERCONTINENTAL SAN DIEGO, AND STOIC HOLDINGS, INC., TO INCREASE THE TERM FROM A TEN-YEAR TERM WITH TWO FIVE-YEAR OPTIONS TO A TEN-YEAR AND FIVE-MONTH TERM WITH TWO FIVE-YEAR OPTIONS
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EXECUTIVE SUMMARY:
The District entered into a 66-year lease1 (Lease) with LFS Development, LLC (Lane Field South), on June 1, 2016 to 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 received District approval to enter into a sublease with a ten-year term with two five-year options to extend with STOIC Holdings, Inc. (STOIC Holdings) to operate a rooftop bar and restaurant on the 19th floor of the hotel building on September 12, 2017 (Sublease).
Lane Field South is requesting Board consent for Amendment No. 1 (Amendment) to the Sublease with STOIC Holdings. The Amendment increases the original term of the Sublease by five months from a ten-year term with two five-year options to a ten-year and five-month term with two five-year options (with a commencement date of January 15, 2019). The Amendment also adds a ten and a half month rent abatement period commencing on January 15, 2019 and terminating November 30, 2019. As discussed below, the limited-term rent abatement will not have a fiscal impact on the District. The Amendment is consistent with the terms of the Lease and Board of Port Commissioners Policy No. 355 (BPC 355) and staff recommends that the Board consent to the Amendment.
RECOMMENDATION:
Recommendation
Adopt a Resolution consenting to Amendment No. 1 to Sublease between LFS Development, LLC dba Intercontinental San Diego and STOIC Holdings, Inc. to increase the term from a ten-year term with two five-year options to a ten-year and five-month term with two five-year options.
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FISCAL IMPACT:
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