LONG BEACH—The city of Long Beach agreed to extend the lease terms for Alamitos Bay Marina Center, according to a May 14 City Council vote. Alamitos Bay Marina Center, which is managed by Bancap Marina Center, is hope to Stan Miller Yachts, Alan Andrews Yacht Design, West Marine, Scuba Duba (boat hull cleaning company), Schooner or Later restaurant and Seal Beach Yacht Club.
Lease terms were extended three years, according to city staff; the current lease expires on June 30.
The lease extension was on the short side due to the impending completion of CenterCal’s 2nd & PCH project, which is less than one mile away from Alamitos Bay Marina Center.
“[Long Beach city] staff anticipates adjustments to the local real estate market due to current and upcoming developments within the area, including the 2nd & PCH project that consists of over 200,000 square feet of contemporary retail and dining experiences. As the subtenants have been operating successfully at [Alamitos Bay Marina Center] under the current lease, and a lease extension would allow the lessee to extend the subtenant leases, staff proposes a limited three-year lease extension,” city staff stated.
“The shorter Lease term extension will allow the City and Lessee an opportunity to reassess the impact of these potentially catalytic developments on [Alamitos Bay Marina Center] and evaluate future development opportunities for the site,” city staff continued.
Long Beach would receive a base rent of $37,803 per month (or $453,636 per year), subject to adjustment, from Alamitos Bay Marine Center from July 1 to and June 30, 2022.
“Rental revenue from the Master Lease will continue to accrue in the Tidelands Area Fund Group in the Economic Development Department,” city staff stated.
Bancap Marina Center, which serves as Long Beach’s lessee, must make certain improvements on the commercial property by the end of this year, according to terms.
“Lessee will renovate the exterior of the buildings within the first six months of lease execution, including painting, new awnings, and roof repair. The lessee anticipates the cost will be approximately $48,000,” city staff stated in a report to City Council members. “The design is subject to city approval.”
All parties are expected to revisit lease terms in 2022, when 2nd & PCH is expected to be in full operation and both the city and Alamitos Bay Marina Center are expected to have a better understanding of whether any new opportunities become available.
“The shorter lease term extension will allow the City and Lessee an opportunity to reassess the impact of these potentially catalytic developments on [Alamitos Bay Marina Center] and evaluate future development opportunities for the site,” city staff stated.
Alamitos Bay Marina Center, which sits on city-owned property, is located at 241-255 Marina Drive, which is at the southeast corner of Alamitos Bay Marina.
The original lease between Bancap Marina Center and Long Beach was entered into on Feb. 1, 1994. Bancap Marina Center and Long Beach have since amended the lease agreement four times; the May 14 action was the fifth lease amendment.
