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HomeMy WebLinkAbout08/23/1965- Z,7�� P z�x I -y TO '06 I r r .� .., �.= -rte -,-� , �,.r,� . � �.= -rte -,-� , �,.r,� . � b �7. 250 1%5 //� Mr. J. A. Seek 610 South Ray Front Balboa Island, California Nor-'Mr. Seekt Rat jman, &Ar' f osse The City Council has directed an to write to YOU regarding the enforcement of the rental readjustment clause which appears on page 6 0f the Beacon Bayy Master Lease. The clause in question provides .in substance that all subleases of the Beacon say prop- EyntshatelLCY l contain a provision providing for read- of the rents payable by the sublessas'at five years in accordanee.With c�aanngga$ is the "Cost of Living Index ". Although. the required.:' provision was.included in all of the subleases ,.a readjustment of rentals has ewer been made. i Our research discloses that the rentals payable under { the subleases more subject to adjustment on January. 1 1955,, January 1, 1960, and January 1 1965', The . Chy Council has determined that Lt wili not stteapt to claim the additianal.rental.payments which appar- ently would have resulted bad rental adjustments been wade in 1955 and 1960. However, the Council does) request that you proccad to make a readjustment of the rentals payable under the 'subleases as of January 1, 1%3, in accordance with the readjustment provisions in the master lesee. Based upon our preliminary estL- mete we anticipate that the City will-recaive an addi- tional rental increment of a prosimatsly'$20206 for the year I965,as a result of such readjustment. If you have any Questions regarding this matter$ :please contact the undersigned or Mr. Harvey L. Hurlburt,'our City Manager. May I take this. opportunity to thank you for sending us copies of the Goveremneat Code provision relating to the