November 21, 2024
BOARD OF HARBOR COMMISSIONERS MEETING NOTICE
SUBJECT: SPECIAL MEETING – FRIDAY, NOVEMBER 22, 2024
The Los Angeles Board of Harbor Commissioners are scheduled to meet for a Special Board Meeting on Friday, November 22, 2024 at 12:45pm at the following location;
Banning’s Landing Community Center
100 East Water Street
Wilmington, California 90744
Please refer to the Port of Los Angeles website at Commission | Port of Los Angeles | Port of Los Angeles for meeting and agenda details.
AMKlesges
AMBER M. KLESGES
Board Secretary
Los Angeles Board of Harbor Commissioners
Banning's Landing Community Center
100 E. Water Street
Wilmington, California 90744
SPECIAL MEETING AGENDA
FRIDAY, NOVEMBER 22, 2024 AT 12:45 PM
Board of Harbor Commissioners
Lucille Roybal-Allard, President
John A. Pérez, Vice President
Michael Muñoz
Edward R. Renwick
I. Lee Williams
ORDER OF BUSINESS
OPEN SESSION
A. Roll Call
B. Approval of the Minutes
None
C. Executive Director Remarks
D. Comment from the Public on Non-Agenda Items
E. Report from the Neighborhood Council Representatives – An opportunity for Neighborhood Council representatives to provide remarks on Neighborhood Council Resolutions or Community Impact Statements filed with the City Clerk which relate to any agenda item listed or being considered on this agenda for the Board of Harbor Commissioners.
F. Reports of the Commissioners
G. Board Committee Reports
None
H. Presentation
None
I. Level I Coastal Development Permit
None
J. Board Reports of the Executive Director
Regular Item No. 1
Waterfront & Commercial Real Estate
Summary: Staff requests approval of the Seventh Amendment to Lease No. 915 and consent to an assignment for security purposes to a Leasehold Mortgagee (Consent) for Lease No. 915 between the City of Los Angeles Harbor Department (Harbor Department) and San Pedro Public Market LLC (SPPM). The leasehold mortgage proposed for consent is between SPPM and Oceanview Commercial Mortgage Finance, LLC (Oceanview). The Lease is a 66-year agreement with SPPM for the West Harbor development sited on approximately 40 acres in the area formerly known as Ports O' Call in San Pedro. SPPM is required to secure financing as part of its obligations under the Lease. SPPM closed financing in November 2022 and project construction commenced in the first quarter of 2023. In November 2022, SPPM secured $90M in third-party financing for the construction of buildings 1A and 1B, as well as the southern open space from two lenders: Petros PACE Finance ($55M) and Parkview Financial REIT (Parkview) ($35M). SPPM now intends to raise a total of $26.5 million in new debt to finance additional phases of their project. Their proposed capital raise will include 1) refinancing their current senior construction loan with Parkview including increasing the loan amount by up to $26.5 million to $61.5 million in a new senior construction loan with Oceanview. The proposed consent to transfer for security purposes to Oceanview as a leasehold mortgagee is not anticipated to have a financial impact on the Harbor Department.
Recommendation: Board resolve to (1) find that the Director of Environmental Management has determined that the proposed action is administratively exempt from the requirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f) of the Los Angeles City CEQA Guidelines; (2) approve the proposed Seventh Amendment to Lease No. 915 with San Pedro Public Market, (3) direct the Board Secretary to transmit the Seventh Amendment to Lease No. 915 to the City Council pursuant to Charter Section 607; (4) authorize the Executive Director to execute and the Board Secretary to attest to the Seventh Amendment to Lease No. 915 upon approval by the Los Angeles City Council; (5) authorize the Executive Director to execute and the Board Secretary to attest to the Consent to Hypothecation and Agreement with Oceanview Commercial Mortgage Finance, LLC upon approval of the Seventh Amendment by City Council and the loan has been conditionally approved indicated by the opening of escrow; and (6) adopt Resolution No.____________.
K. Closed Session
1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to San Pedro Public Market LLC:
Property: Berths 74-83, San Pedro
City Negotiator: Michael Galvin
Tenant Negotiator: Eric Johnson
Negotiating Parties: City and San Pedro Public Market LLC
Under Negotiation: Price and Terms
2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Provide instructions to its real estate negotiators with respect to Cabrillo Way Partners:
Property: 2293 S. Miner Street, San Pedro, CA 90731
City Negotiator: Michael Galvin
Tenant Negotiator: Joe Ueberroth and Robert Olson
Negotiating Parties: City and Cabrillo Way Partners
Under Negotiation: Price and Terms
L. Adjournment