DATE: December 10, 2019
SUBJECT:
Title
ORDINANCES APPROVING:
A) AGREEMENT FOR AMENDMENT OF LEASE AMENDMENT NO. 1 TO THE LEASE WITH THE BRIGANTINE, INC. DBA PORTSIDE PIER AT 1360 NORTH HARBOR DRIVE IN THE CITY OF SAN DIEGO TO: RETROACTIVELY MODIFY MINIMUM ANNUAL RENT FROM $733,333 TO $550,000 FOR LEASE YEAR 2 FROM MAY 1, 2019 THROUGH APRIL 30, 2020, MODIFY MINIMUM ANNUAL RENT FROM $1,100,000 TO $1,130,000 FOR LEASE YEARS 3 TO 10 FROM MAY 1, 2020 TO APRIL 30, 2029, EXTEND THE CONSTRUCTION COMPLETION DEADLINE FROM DECEMBER 31, 2019 TO AUGUST 31, 2020; AND TENANT TO PAY FOR THE REMOVAL OR RELOCATION OF UTILITY IMPROVEMENTS; AND
B) AN APPROXIMATELY THIRTY-EIGHT (38) YEAR EASEMENT FOR UTILITY PURPOSES TO SAN DIEGO GAS & ELECTRIC COMPANY FOR ELECTRICAL AND NATURAL GAS FACILITIES TO BE LOCATED NEAR HARBOR DRIVE AND ASH STREET IN THE CITY OF SAN DIEGO, CALIFORNIA COMMENCING JANUARY 11, 2020 AND ENDING ON APRIL 30, 2058
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EXECUTIVE SUMMARY:
On April 27, 2018, the District entered into a 40-year lease1 with The Brigantine Inc., a California corporation, dba Portside Pier (Brigantine), for property located at 1360 North Harbor Drive in the City of San Diego (Attachment A - Location Map). On May 1, 2018, Brigantine began construction on its pilings and platform substructure and two-story overwater restaurant structure which will include four dining concepts, a public viewing deck, and an expanded dock and dine facility (Portside Pier). The lease requires that Brigantine complete construction by December 31, 2019, and while Brigantine has been making a good faith effort to complete construction on schedule, there have been circumstances outside of their control that have delayed the expected completion until mid-2020. R.E. Staite, Brigantine's pilings and platform substructure contractor, experienced unforeseeable challenges due to: (1) limited availability of specialized, in-water work equipment, (2) limited construction days due to conflicts with the cruise seaso...
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