DATE: November 9, 2021
SUBJECT:
Title
CALIFORNIA YACHT MARINA - CHULA VISTA, LLC LOCATED AT 640 MARINA PARKWAY, CHULA VISTA:
A. RESOLUTION CONSENTING TO THE ASSIGNMENT AND ASSUMPTION OF THE LEASEHOLD INTEREST FROM CALIFORNIA YACHT MARINA - CHULA VISTA, LLC TO SHM SOUTH BAY, LLC DBA SAFE HARBOR SOUTH BAY; AND,
B. ORDINANCE GRANTING AN AMENDED AND RESTATED LEASE TO SHM SOUTH BAY, LLC DBA SAFE HARBOR SOUTH BAY TO UPDATE LEASE TO CURRENT TERMS.
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EXECUTIVE SUMMARY:
California Yacht Marina - Chula Vista, LLC, a California limited liability company ("California Yacht Marina") operates a marina at 640 Marina Parkway, Chula Vista and is a tenant in good standing. California Yacht Marina's lease with the District expires June 30, 20321 (the "Existing Lease"). California Yacht Marina is proposing to assign its rights and obligations under the Existing Lease to SHM South Bay, LLC dba Safe Harbor South Bay, a Delaware limited liability company ("SHM South Bay").
SHM South Bay is a subsidiary of Safe Harbor Marinas, LLC ("Safe Harbor"), which is well known within the recreational boating industry for its successful portfolio of both marinas and boatyards.
The Existing Lease requires the Board of Port Commissioners' ("Board") to consent to the Assignment and Assumption of Lease ("Assignment"), attached hereto as Attachment A. As a condition of granting consent to the Assignment, the District may adjust rent to market and update the terms and provisions of the Existing Lease. SHM South Bay has agreed to an Amended and Restated Lease in the form attached hereto as Attachment B (the "Restated Lease") with the District's current standard lease terms, which includes, among other provisions, the following items not present in the existing Lease: updated rent; District participation in refinance proceeds not reinvested in District tidelands; participation in proceeds resulting from a future assignment or sale of the leasehold interest; and a demolition and remediation f...
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