Title
Recommendation to Authorize the City Manager to Approve the Assignment of Lease for Building 9 from 707 West Tower Avenue, LLC to 651/707 West Tower Avenue, LLC, a Delaware Limited Liability Company. (Base Reuse 819099)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Authorize the City Manager to Approve the Assignment of Lease for Building 9 from 707 West Tower Avenue, LLC to 651/707 West Tower Avenue, LLC, a Delaware limited liability company
BACKGROUND
In November, 2015, the City of Alameda entered into lease agreements with limited liability companies formed by Joe Ernst for Buildings 9 and 91. The tenant under the Building 9 Lease is 707 West Tower Avenue, LLC, a Delaware Limited Liability Company "707 LLC"). The tenant under the Building 91 Lease is 651 West Tower Avenue, LLC, a Delaware Limited Liability Company ("651 LLC"). It is now the intent of Joe Ernst to reorganize 651 West Tower Associates, LLC, and rename it "651/707 West Tower Associates, LLC." ("651/707 LLC") Mr. Ernst has explained that for purposes of obtaining financing for purchasing Buildings 9 and 91, his lender requests that the Building 9 lease be assigned to this reorganized and renamed Limited Liability Company. To that end, he has prepared an Assignment and Assumption of Lease and Consent ("Assignment and Assumption Agreement") and requested that the City sign the same, approving the assignment of the Building 9 Lease. A copy of the Assignment and Assumption Agreement is attached hereto as Exhibit 1.
DISCUSSION
Under both the Building 9 Lease and the Building 91 Lease, the Tenant may not voluntarily assign either lease "without first obtaining the written consent of Landlord, which consent shall not be withheld unreasonably" provided that the Tenant is not in default and that there has been no previous assignment or transfer of the Lease. The one exception is an assignment to a "Tenant Affiliated" which is defined ...
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