City Council

(15) 24­0501 CD 6 CATEGORICAL EXEMPTION and COMMUNICATION FROM THE BOARD OF AIRPORTS COMMISSIONERS (Board) relative to Board Resolution No.27892, authorizing Los Angeles World Airports to execute a lease with MLG Insurance Group, dba InTouch Insurance Services, for office space in the Los Angeles World Airports­owned Aviation Plaza, located at 16461 Sherman Way. Recommendations for Council action: 1. ADOPT the determination by the Board that the proposed action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article III, Class 1(18)(c) and (e) of the Los Angeles City CEQA Guidelines. 2. APPROVE a 60­month Lease with MLG Insurance Group, a California corporation, dba InTouch Insurance Services, covering office space in the Los Angeles World Airports­owned Aviation Plaza, located at 16461 Sherman Way, Van Nuys. 3. CONCUR with the Board’s action on February 1, 2024, by Resolution No. 27892, authorizing the Chief Executive Officer, or designee, of Los Angeles World Airports to execute the Lease with MLG Insurance Group, a California corporation, dba InTouch Insurance Services. Fiscal Impact Statement: The City Administrative Officer reports that approval of the proposed lease between the LAWA and MLG Insurance Group, a California Corporation, dba InTouch Insurance Services at Aviation Plaza will result in annual rent revenue of $27,363 during the first year. LAWA is projected to receive net revenues of approximately $160,885 over the 60­month term of the lease (excluding automatic annual rental rate adjustments) after deductions for expenses such as broker Wednesday - May 29, commissions, tenant 2024 - improvements, PAGE and rent abatement. The15expenses associated with the proposed lease agreement will be appropriated from Insurance Services. Fiscal Impact Statement: The City Administrative Officer reports that approval of the proposed lease between the LAWA and MLG Insurance Group, a California Corporation, dba InTouch Insurance Services at Aviation Plaza will result in annual rent revenue of $27,363 during the first year. LAWA is projected to receive net revenues of approximately $160,885 over the 60­month term of the lease (excluding automatic annual rental rate adjustments) after deductions for expenses such as broker commissions, tenant improvements, and rent abatement. The expenses associated with the proposed lease agreement will be appropriated from the LAWA Van Nuys Airport Revenue Fund, while revenue generated through the lease will be deposited into the same LAWA Van Nuys Airport Revenue Fund. The recommendations in the report comply with the Department’s adopted Financial Policies. Approval of the proposed lease agreement will have no impact on the City’s General Fund.