City Council

Item 103: Second Amendment to the Percentage Ground Lease Agreement Between the City of\nSan Diego and MG Stonewood Garden Apartments, LP for the Pointe Luxe\nApartments Located at 3889 Midway Drive, San Diego, CA 92110.\nTotal Estimated Cost of Proposed Action and Funding Source:\nThe City will receive Percentage Rent in the amount of 7.25% of all gross revenue\nmonthly. The Percentage Rent will be adjusted on January 1, 2066, as determined by an\nindependent appraiser. Due to the major renovation and capital improvements of the\nPremises, market rents will increase and so will the percentage rent to City.\nCouncil District(s) Affected: 2.\nProposed Actions:\nSubitem-A: (R-2023-612)\nResolution of the Council of the City of San Diego determining that the renovation of the\nPointe Luxe Apartments located at 3889 Midway Drive in San Diego is categorically\nexempt from the California Environmental Quality Act under guidelines section 15301.\nSubitem-B: (R-2023-611)\nResolution of the Council of the City of San Diego approving a Second Amendment to\nGround Lease between the City of San Diego and MG Stonewood Garden Apartments,\nL.P. for the Pointe Luxe Apartments located at 3889 Midway Drive in San Diego, and\nmaking a related finding that the Second Amendment serves a valid public purpose.\nCommittee Actions Taken:\nThis item was heard at the Land Use and Housing Committee meeting on April 13, 2023.\nACTION: Motion by Committee Member Lee, second by Committee Member LaCava,\nto recommend approval of staff's proposed actions.\nVOTE: 4-0; Moreno-yea, LaCava-yea, Whitburn-yea, Lee-yea.\nDepartment of Real Estate and Airport Management: Lucy Contreras, (619) 517-5185\nCity Attorney Contact: Kate Malcolm