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Agenda Item 5.

City Council Special General Session Meeting

Meeting Date:	06/30/2023
FROM:	Bill Gallardo

Subject:

Landlord’s Consent to Leasehold Deed of Trust related to the City’s Retail Commercial Parcel located at 910 East Birch Street (Lessee: Nesbitt Partners Brea Venture, Ltd.)

RECOMMENDATION

Staff Recommends that the City Council take the following action:

Authorize the City Manager to execute the attached Landlord’s Consent to Leasehold Deed of Trust to allow Nesbitt Partners Brea Venture, Ltd. (“Nesbitt”) to sell the improvements, equipment, and other personal property located on the Retail Parcel located at 910 East Birch Street.

BACKGROUND/DISCUSSION

The City of Brea owns the property located at 900 and 910 East Birch Street, adjacent to the Brea Civic and Cultural Center. The properties are occupied by Embassy Suites Hotel and Retail Commercial Center, respectively through a ground sublease with Nesbitt.

Last year, Nesbitt informed the City of their interest to sell the Retail Commercial Center, which requires the City’s consent as the landowner. After the City Attorney’s Office and Community Development Department review, this item was placed on the City Council Meeting agenda on June 7, 2022 under City Council - Consent Items. However, the sale of the building and improvements never occurred in 2022.

Earlier in 2023, Nesbitt informed the City of their exploration once again to sell the improvements, equipment, and other personal property located on the Retail Parcel located at 910 East Birch Street.

On June 12, 2023, Nesbitt informed the City of a new potential buyer, which subsequently resulted in the City Attorney’s Office and the Community Development Department staff preparing the attached Landlord Consent to Leasehold Deed of Trust.

COMMISSION/COMMITTEE RECOMMENDATION

This agreement was not required to be reviewed by the Finance Committee, given that there are no City-related financial elements associated with this action.

FISCAL IMPACT/SUMMARY

There is no fiscal impact to the City related to this action. The tenant is current on all rent due to the City.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Darron Usher, Senior Management Analyst
Concurrence: Melissa Davis, Community Development Manager and Jason Killebrew, Community Development Director

Attachments
Landlords' Consent to Leasehold Deed of Trust