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HomeMy WebLinkAboutReso 08-25 Lease Agreement_Eric Newton 86-86W_801 EmbarcaderoRESOLUTION NO. 08-25 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING A 40-YEAR MASTER LEASE AGREEMENT FOR LEASE SITE 86186W BETWEEN THE CITY OF MORRO BAY AND CALIFORNIA COASTAL INVESTMENTS, LLC LOCATED AT 801 EMBARCADERO THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain properties on the Morro Bay Waterfront described as City Tidelands leases and properties; and WHEREAS, California Coastal Investments, LLC ("Tenants") have been the lessee of Lease Site 86/86W since 2020, and are tenants in good standing; and WHEREAS, on December 19, 2023, Tenants were approved for a major redevelopment of the lease site which included demolition of the existing building, development of new 7-unit hotel, restaurant, coffee shop, and expanded brewery space; additional public access enhancements and modifications to the approved new Harborwalk public access; demo and reconfigure the dock, and creation of a Public Plaza; and WHEREAS, the tenant will self -finance the $5.2 million for redevelopment. Upon completion of improvements, the tenant will refinance the mortgage subject to CITY attorney review and approval; and WHEREAS, Tenants obtained all necessary approvals from the Planning Commission and City Council for their proposed redevelopment project and are ready to obtain their building permit to completed the improvements; and WHEREAS, in accordance with the City's Master Lease Policy, the City and Tenants have agreed to a new 40-year lease agreement for Lease Site 86/86W located at 801 Embarcadero. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, as follows: 1. The attached new Master Lease Agreement for Lease Site 86/86W is hereby approved. 2. The Mayor is hereby authorized to execute said Master Lease Agreement. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 251' day of February 2025 on the following vote: AYES: Wixom, Eckles, Edwards, Landrum, Luffee NOES: None ABSENT: None ABSTAIN: None RECUSE: None CarlaWixom, Mayor A�JEST: O— Dana Swanson, City Clerk