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Home My WebLink AboutAbdelmuti Development Company and Clearview Capital - 1996-03-0491-40 W/A`� Council/Agency Meeting Field:--_y-e?� Deferred/Continued to: proved ❑ Conditionally Approved ❑ Denied City Clerk's Signatffe Council Meeting Date: - March 4, 1996 Department ID Number. ED 96-16 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE AND CHAIRMAN AND REDEVELOPMENT AGENCY MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, Executive Director i 11_11 PREPARED BY: DAVID C. BIGGS, Director of Economic Development ff SUBJECT: APPROVAL OF AMENDED LEASE BETWEEN ABDELMUTI DEVELOPMENT COMPANY & CLEARVIEW CAPITAL (Main -Pier Project Area) Statement oI Issue. Funding Source, Recommended Action. Alternative Actlon(s). Analysis, Environnjental Status, Attachment(,) Statement of Issue: The Agency has previously approved in form leases between Abdelmuti Development Company and various tenants which the Agency is subsidizing. The attached lease will reassign or commit an additional 2,430 square feet. Funding Source: Main -Pier Account No. E TM-ED-888-7 75-00. Recommended Action: Motion to: Approve the Amended Lease between Abdelmuti Development Company and Clearview Capital. This approval is as to the fact of the Lease only. Alternative Action(s): 1) Do not approve Lease between Abdelmuti Development Company and Clearview Capital. Analysis: The terms of the Agency's Owner Participation Agreement (OPA) with Abdelmuti Development Company requires Agency approval in fact of each office space lease. The attached lease will commit 2,430 square feet by expanding Clearview Capital's space by (1) re -tenanting currently occupiers space and (2) by leasing additional space now vacant. These actions will reduce the amount of the Agency's subsidy of the office space. t1 REQUEST�OR REDEVELOPMENT AGEkY ACTION MEETING DATE: March 4,1996 DEPARTMENT ID NUMBER: ED 96-16 The Agency is obligated to pay $36,909Imonth in rent differential, minus the actual rent collected (contract rent). While square footage leased is a guide - it does Lot determine the monthly differential payments. If both the Nanko and amended Clearview Capital leases are approved, approximately 3,100 square feet subject to Agency subsidy will remain vacant. Differential payments are made in advance, and the March '96 invoice shows a subsidy of $16,314.18 ($36,909 - $20,594.82); since the differential is simply a fixed amount minus rent collected, no distinction is made between rented or vacant space. Rent differential payments continue for the life of the project area (2018), or until the contract rent meets or exceeds the guaranteed payment of $35,909/month. Environmental Status: N/A City Clerk's, ,Page Number, 1. Lease Amendment. FtAA96-16.DOG -2- 02126/96 2:07 PM Sr1? BY: 2-20-96 :11:560 : R1.UN & TU (ER- CCITT G3:# 3 �1) ETEST AMEMMENJMSP E LEASE This First Amendment to Office Space Lease (this •Amendment') is made this day of February, 1996, by and between ABDELMUTI DEVBLOPMH;�T COMPANY, a Californian partnership ("Landlord"), and CLEARVIEW CAPITAL CORPORATION, a California corporation ("Tenant") . REr.IT&E1q,= A. Landlord and Tenant have previously executed that certain Office Space Lease dated May 31, 1994 ("Lease') demising to Tenant Six Thousand Seven Hundred Sixty -Five (G,7G5) rentable square feet of space designated as Suite 3A (the •Premises") in the building known as Oceanview Promenade (the *Building'). B. Tenant desires to demise an additional Two Thousand Four Hundred Thirty (2,430) rentable :square feet of space from Landlord on the same terms and conditions set forth in the Lease, except as otherwise set forth herein. C. The partien now desire to amend the Lease, pursuant to Section 20.3 thereof, as more particularly set forth below. NOW, THEREFORE, for fair and valuable consideration, the receipt and adequacy of which is hereby acknowledged, Landlord and Tenant agree as follows: 1. premises. As of the "Effective bate" (as defined herein), the Premises as described in Item 2 of the Basic Lease Provisions is amended to include Suites 3G and 3H of the Building. Suites 3G and 311 consists of Two Thousand Four Hundred Thirty (2,430) rentable square feet and are located on the third floor of the Building (the "Expansion Space"). Accordingly, tho Premises shall thereafter comprise Nine Thcusand One Hundred Ninety -Five (9,195) rentable square feet and all references in the Lease to the "Premises* shall mean and refer collectively to Suites 3A, 3G and 311, Upon execution of this Amendment and performance of the obligations set forth in Paragraphs 3, 4 and 7 below, possession of the Expansion Space shall be tendered to Tenant. 2. Basic iftnnual_Rent. The "basic annual rent* under the Lease ie currently Ten Thousand Four Hundred Eighty -Five and 75/100 Dollars ($10, 485.75) per month. As of the "Effective Date", basic annual rent shall be increased to Thirteen Thousand Eight Hundred Eighty -Seven and 75/100 Dollars ($13,887.75) per month, payable in accordance with the terms and conditions of the Lease. 3. Prepaid Rent. Upon execution of this Aamend:ment, Tenant shall pay Landlord as prepaid rent the amount of Three Thousand Four Hundred Two Dollars ($3,402.00), which shall apply to the basic annual rent due as of the Effective Date. �f� Fsr2M1U"4W1%21U149.1 aA't 50% APPROVED AS TO i o5!:: "IL EXITL0';, City- Attorney IV: ricnutY City Attorney SENT BY. 2-20-36 :11:57A.M RUTA.N & 71,C} - CCITT G3.: 4 4. Security Deposit. Upon execution of this Amendment, Tenant shall deposit with Landlord an additional Three Thousand Four Hundred Two Dollars (3,402.000) to increaue the Security Deposit under the Lease to Thirteen Thousand Eight Hundred Eighty - Seven and 75/100 Dollars ($13,887.75). 5. Operating,^ F.xnensee. Due to the inclusion of the Expansion Space within the Premises, TenanLle proportionate share of "Operating Expenses" as defined under the Lease, shall be equitably adjusted as of the Effective Date to reflect the increased rentable area of the Premises. 6. Improvements. Landlord and Tenant hereby agree that no construction work in the Expansion Space is to be performed by Landlord. Tenant hereby accepts and approves the. Rxpansion Space in its current AS -IS condition. Any additional improvements or construction work. in the Expansion Space shall be subject to the approval of Landlord and the provibions of the Lease, including without limitation the Exhibit " " Work Letter and Article VI of the Lease. 7. Vacation of Existino Tgnant. This First Amendment is conditioned upon the vacation of the existing tenant in Suite 3G and the execution of a lease termination agreement acceptable to Landlord with such tenant. 8. =ective „Pate. The Effective Date of this Amendment shall be the date possession of the Expansion Space is tendered to Tenant. 9. Conflict. In the event of a conflict between this Amendment and the Lease, the terms of this Amendment shawl control. 10. 1Fu 1 Force and Effect. Except as specifically modified herein, the Lease remains in full force and effect. IN Wl ESS WUEREOF, the parties have executed this Amendment as of the date first written above. AHDPLKrrI DML.OPMB,NT COMPANY, a California general partnership By: Ahmad H. Ahdelmuti, general partner "LANDLORD" [Signatures continued on next page] F3ra0ro1432UWV,21a149.1 PWISM -2 - -%'*%T BY: 2-20-96 ;11:57A.M RIRA,ti & TLCM- CCITT G3:+ 5 �. CLEARVIEW CAPITAL CORPORATION, a California corporation By: Harold Bakkebo, President %TF,NAW.% psztz6rwua:aaoonziaaua.i 40VIV a -3—