DATE: October 6, 2022
SUBJECT:
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EICHENLAUB MARINE, INC., DBA EICHENLAUB MARINE LOCATED AT 2608 SHELTER ISLAND DRIVE, SAN DIEGO:
A) RESOLUTION CONSENTING TO THE ASSIGNMENT AND ASSUMPTION OF THE LEASEHOLD INTEREST FROM EICHENLAUB MARINE, INC. DBA EICHENLAUB MARINE TO THE OLDE BOAT YARD LLC.
B) ORDINANCE GRANTING AN AMENDED AND RESTATED LEASE TO THE OLDE BOAT YARD LLC., TO UPDATE LEASE TO CURRENT LEASE TERMS.
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EXECUTIVE SUMMARY:
Eichenlaub Marine, Inc., a California corporation dba Eichenlaub Marine ("Eichenlaub") operates a marine sales and service facility, located at 2608 Shelter Island Drive, San Diego, California (Attachment A - Location Map). The leasehold is comprised of approximately 18,377 square feet of water area and 11,401 square feet of land area ("Premises"). Eichenlaub's lease with the District, which is filed with the District Clerk as Document No. 69048 ("Existing Lease") and is attached hereto as Attachment B, expires on October 31, 2038.
Eichenlaub is proposing to assign its rights and obligations under the Existing Lease to The Olde Boat Yard, LLC, a California limited liability company ("Olde Boat Yard"). Olde Boat Yard's principal owner and operator is Jeff Brown, who is also the owner and operator of Jeff Brown Yachts, a successful bespoke yacht brokerage that operates in multiple locations in the United States.
As a condition of the District's consent to the assignment of the Existing Lease, the District has the right to update the rent to market and to update the Existing Lease to include new or revised lease provisions. As such, staff has negotiated an Amended and Restated Lease with Olde Boat Yard in the form of Attachment C - Amended and Restated Lease. The Amended and Restated Lease includes, among other provisions: updates to: District participation in refinance proceeds not reinvested in District tidelands or used to pay off existing debt secured by the Premises; participation in proceeds resulting from a future assign...
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