DATE: May 19, 2020
SUBJECT:
Title
RESOLUTION ESTABLISHING TEMPORARY RENT DEFERRAL PROGRAM FOR QUALIFYING FIXED RENT TENANTS AND TARIFF FEE PAYING TENANTS ALLOWING A TEMPORARY SUSPENSION OF CERTAIN RENTAL AND TARIFF PAYMENTS WITH CONDITIONS AND DIRECTION TO STAFF, AS NECESSARY
Body
EXECUTIVE SUMMARY:
At the April 8, 2020 Special Meeting of the Board of Port Commissioners (Board), the Board adopted a Resolution establishing a temporary rent deferral program for qualifying concession rent paying tenants, tenants that report their gross sales to the District each month, and Seaport Village tenants (collectively, Concession Tenants) to assist them in sustaining economic viability through the COVID-19 public health crisis ( Concession Tenant Rent Deferral Program). As the pandemic continues, staff is returning to the Board to address numerous requests for rent relief from fixed rent tenants and tariff fee paying tenants similarly impacted by the effects of COVID-19. Staff has worked in partnership with the San Diego Port Tenants Association (SDPTA) to develop a program that would offer a temporary rent deferral for qualifying fixed rent tenants and tariff fee paying tenants experiencing financial hardship due to the public health crisis.
The proposed program allows for up to a three-month deferral of 50% of the fixed monthly rent for all fixed rent tenants, including those that pay both concession and fixed rent but excluding the San Diego International Airport, to be paid back over a six-month period beginning in January 2021 with no interest or late charges. Unlike the deferral offered to the Concession Tenants, the deferral period would be for up to three consecutive rental payment months between June and December 2020 (i.e., rental months of May - November). A "fixed rent tenant" is a tenant that pays a fixed amount of rent to the District each month, which may be in the form of improvement rent or predetermined monthly amount of rent, and also includ...
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