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HomeMy WebLinkAboutF-2c - Consent to Balboa Bay Club Sublease0 To: From: Re: 0 0 C- - w75 BY THE CITY COUNCII CITY Of NEWPORT BEACH DEC 12 1983 MEMORANDUM Qd") OFFICE OF THE CITY ATTORNEY December 5, 1983 Agenda Item No. F -2 (c) Hon. Mayor & Members of the City Council Robert Burnham - City Attorney Consent to Balboa Bay Club Sublease BACKGROUND /DISCUSSION The International Bay Club has asked the City to consent to two subleases between the Club and business owners who operate at the Bay Club. (See attached letter). The master lease between the City and the Bay Club obligates the Club to obtain the written consent of the City before it is entitled to sublease any portion of the Balboa Bay Club site. Our office has reviewed the subleases and the terms and rental rates are identical to agreements previously approved by the Council. RECOMMENDATION It is recommended that the City Council adopt a resolution approving the subleases between the International Bay Club and HMS Clipper Ship and Eagle American. Robert 0 0 November 8, 1983 Mr. Robert Burnham, City Attorney City of Newport Beach 3300 Newport Blvd. Newport Beach, CA., 92663 Dear Mr. Burnham: As I discussed with you by telephone, we renewed our sub -lease with Eagle American, our jewelry store concession for a 3 year period commencing 10/15/83 and also modified our sub -lease with HMS Clippership to include their expanded hair and beauty services for a 5 year period commencing 9/15/83. As required by the terms of our City lease, we are submitting copies of these sub - leases to you for review and approval. We have previously reported and paid rent to the City for these concessions based upon their monthly gross sales at 02% on the first $1,000, 2% on the next $1,000 and 1� %.on the excess of $2,000. Please do not hesitate to call should you have any questions or need additional information. Yours very truly, Robert O. Ba.majian i Vice Pres nt & Treasurer ROB /cg enclosures CC: Thomas Deemer 1221 West Coast Highway, Newport Beach, California 92663 (714) 645 -5000 RESOLUTION NO. 83 -128 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING INTERNATIONAL BAY CLUBS, INC., TO SUBLET CERTAIN PORTIONS OF THE BALBOA BAY CLUB PREMISES AND ESTABLISHING THE RATE OF RENTAL PAYMENTS TO THE CITY FOR SUBLEASES OF THE BALBOA BAY CLUB PREMISES FOR COMMERCIAL PURPOSES FOR TERMS IN EXCESS OF ONE YEAR WHEREAS, the City of Newport Beach has entered into a lease dated March.24, 1948., with the predecessors -in- interest to International-Bay Clubs, Inc., of 'certain City -owned real property generally referred to as The Balboa Bay Club site; and WHEREAS,.said lease provides that International Bay C1ubs,.Inc., shall not sublet.the premises described in said lease, or any part thereof, for the purposes of operating and conducting.'.any business enterprise for a term in excess of the period of one year without the written consent of the City; and WHEREAS, International Bay Clubs, Inc., has requested that the City Council'approve.two subleases which, after consideration thereof, the City Council wishes to approve. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach as follows: 1. The City Council hereby approves the following proposed sublease: a) A sublease between the international Bay Clubs, Inc., lessor, and Eagle American, a California corporation, d /b /a Brett Walker Newport, lessee, for a term of five (5) years. The, purposes for which the premises are subleased are the operation of a women's beauty parlor and.for the sale of cosmetics and beauty accessories incidental thereto. 2. It is mutually agreed between the City and International Bay Clubs, .Inc., that the consideration to be paid to the City for all subrentals received by International Bay C1ubs,.Inc., from any and all subtenants carrying on and conducting a business on any part or portion of the leased premises under any sublease.or subleases providing for a .term of more than one year shall be.based upon the following formula: 2 1/2 % of the first $1,000 of gross sales per month; 2% of the second $1,000 of gross sales per month; and 1.1/2% of the balance of gross sales per month. ADOPTED this. 12th day of December 1983. ATTEST: City Clerk RSP /BayClub- Mayor 4