San Diego Unified Port District - File #: 2021-0306

• File #: 2021-0306
• Version: 1
• Type: Action Item
• Status: Passed
• File created: 8/2/2021
• In control: Board of Port Commissioners
• On agenda: 10/12/2021
• Final action: 10/12/2021
• Title: SUNROAD HARBOR ISLAND, INC., DBA SUNROAD ENTERPRISES LOCATED AT 880 HARBOR ISLAND DRIVE, IN THE CITY OF SAN DIEGO, WHICH LEASEHOLD INCLUDES THE COASTERRA, C-LEVEL, AND ISLAND PRIME RESTAURANTS: A. RESOLUTION CONSENTING TO THE ASSIGNMENT AND ASSUMPTION OF THE LEASEHOLD INTEREST FROM SUNROAD HARBOR ISLAND, INC., DBA SUNROAD ENTERPRISES TO SHM SUNROAD, LLC, DBA SAFE HARBOR SUNROAD; AND, B. ORDINANCE GRANTING AN AMENDED AND RESTATED LEASE TO SHM SUNROAD, LLC, DBA SAFE HARBOR SUNROAD TO UPDATE LEASE TO CURRENT TERMS; AND, C. RESOLUTION CONSENTING TO A SUBLEASE BETWEEN SUNROAD HARBOR ISLAND, INC., AND KIRSCHCOHN, INC., FOR A TWENTY FIVE-YEAR TERM WITH A NINE-YEAR AND 11-MONTH OPTION TO EXTEND.

Date	Ver.	Action By	Action	Result
10/12/2021	1	Board of Port Commissioners	adopted	Pass

DATE: October 12, 2021

SUBJECT:

Title
SUNROAD HARBOR ISLAND, INC., DBA SUNROAD ENTERPRISES LOCATED AT 880 HARBOR ISLAND DRIVE, IN THE CITY OF SAN DIEGO, WHICH LEASEHOLD INCLUDES THE COASTERRA, C-LEVEL, AND ISLAND PRIME RESTAURANTS:

A. RESOLUTION CONSENTING TO THE ASSIGNMENT AND ASSUMPTION OF THE LEASEHOLD INTEREST FROM SUNROAD HARBOR ISLAND, INC., DBA SUNROAD ENTERPRISES TO SHM SUNROAD, LLC, DBA SAFE HARBOR SUNROAD; AND,

B. ORDINANCE GRANTING AN AMENDED AND RESTATED LEASE TO SHM SUNROAD, LLC, DBA SAFE HARBOR SUNROAD TO UPDATE LEASE TO CURRENT TERMS; AND,

C. RESOLUTION CONSENTING TO A SUBLEASE BETWEEN SUNROAD HARBOR ISLAND, INC., AND KIRSCHCOHN, INC., FOR A TWENTY FIVE-YEAR TERM WITH A NINE-YEAR AND 11-MONTH OPTION TO EXTEND.
Body

EXECUTIVE SUMMARY:

Sunroad Harbor Island, Inc. dba Sunroad Enterprises (Sunroad Enterprises) has a lease1 (Current Lease) with the District to operate restaurants and a shared parking lot located at 880 Harbor Island Drive, in the city of San Diego (Attachment A - Location Map). The Current Lease has a 30-year term with a 10-year option to extend through July 31, 2052. The leasehold includes two restaurant buildings which are home to the Coasterra, C-Level, and Island Prime restaurants.

Sunroad Enterprises wishes to transfer its leasehold interest to SHM Sunroad, LLC dba Safe Harbor Sunroad (SHM Sunroad) through an assignment and assumption of the Current Lease (Transaction) (see Attachment B - Assignment and Assumption of Lease). SHM Sunroad's parent company, Safe Harbor Marinas, LLC (Safe Harbor), is well known within the recreational boating industry for its successful portfolio of marinas, boatyards, and their adjacent and adjoining restaurants. SHM Sunroad shares common ownership with three other entities that currently have three additional leases on District tidelands. Such entities include SHM Cabrillo Isle, LLC dba SHM Cabrillo Isle, SHM Shelter Island, LLC dba SHM Shelter Island, and Sun Chula Vista Bayfront ...