City Council

(21)\n25-1160\nCD 15\nCATEGORICAL EXEMPTION and TRADE, TRAVEL AND TOURISM\nCOMMITTEE REPORT relative to successor Permit No. 942 with LA\nSky Harbor, LLC, dba Doubletree by Hilton Hotel, for the operation of a\nhotel at 2800 Via Cabrillo Marina, in San Pedro.\nRecommendations for Council action:\n1. CONCUR with the determination by the Board of Harbor\nCommissioners (BOHC) that this action is categorically exempt\nfrom the California Environmental Quality Act (CEQA) pursuant\nto Article III, Class 1(14) of the Los Angeles City CEQA\nGuidelines.\n2. APPROVE BOHC Resolution No. 25-10594 authorizing\napproval of proposed successor Permit No. 942 with LA Sky\nHarbor, LLC, dba DoubleTree by Hilton Hotel San Pedro, with a\n50-year term effective upon execution, for the operation of a\nhotel on 8.1 acres at 2800 Via Cabrillo Marina in San Pedro,\nwhich:\na. Increases the fixed minimum annual rent by $145,031.67,\nfrom $284,556.33 to $429,588.\nb. Increases the square footage by 42,350 square feet or\n0.97 acres, from 310,583 square feet or 7.13 acres to\n352,933 square feet or 8.1 acres.\nc. Changes the calculation of percentage rent from being\nbased on sales of Rooms and Food and Beverage to a\nfixed percentage of:\ni. Rooms – five percent\nii. Food and Beverage – five percent\niii. Retail Sales – three percent\niv. Vehicle Parking – 20 percent\nv. Increases the percentage rent from the Sale of\nVessels/Yacht Brokerage by nine percent, from one\npercent to ten percent.\n3. AUTHORIZE the Executive Director, Port of Los Angeles\n(POLA), or designee, to execute the proposed Permit, already\napproved as to form by the City Attorney, and return the\nResolution to the POLA for further processing, including Council\nconsideration.\nFiscal Impact Statement: The City Administrative Officer (CAO)\nreports that there is no impact on the City’s General Fund. Approval of\nproposed successor Permit No. 942 between the POLA and LA Sky\nHarbor, LLC will increase the fixed minimum annual rent by\n$145,031.67, from $284,556.33 to $429,588, subject to annual\nchanges in the Consumer Price Index and compensation resets every\nfifth year based on economic performance. LA Sky Harbor, LLC will\npay percentage rent equivalent to the amount, if any, by which the\ncumulative total percentages of the gross receipts exceed the\nminimum monthly rent payable. Revenues will be deposited in the\nHarbor Revenue Fund. The recommendations in the CAO report and\nproposed actions comply with the POLA’s Financial Policies.