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Mr. J. A. Seek
610 South Ray Front
Balboa Island, California
Nor-'Mr. Seekt Rat jman, &Ar' f osse
The City Council has directed an to write to
YOU
regarding the enforcement of the rental readjustment
clause which appears on page 6 0f the Beacon Bayy
Master Lease. The clause in question provides .in
substance that all subleases of the Beacon say prop-
EyntshatelLCY l contain a provision providing for read-
of the rents payable by the sublessas'at
five years in accordanee.With c�aanngga$ is
the "Cost of Living Index ". Although. the required.:'
provision was.included in all of the subleases ,.a
readjustment of rentals has ewer been made.
i
Our research discloses that the rentals payable under {
the subleases more subject to adjustment on January.
1 1955,, January 1, 1960, and January 1 1965', The .
Chy Council has determined that Lt wili not stteapt
to claim the additianal.rental.payments which appar-
ently would have resulted bad rental adjustments been
wade in 1955 and 1960. However, the Council does)
request that you proccad to make a readjustment of
the rentals payable under the 'subleases as of January
1, 1%3, in accordance with the readjustment provisions
in the master lesee. Based upon our preliminary estL-
mete we anticipate that the City will-recaive an addi-
tional rental increment of a prosimatsly'$20206 for
the year I965,as a result of such readjustment.
If you have any Questions regarding this matter$ :please
contact the undersigned or Mr. Harvey L. Hurlburt,'our
City Manager.
May I take this. opportunity to thank you for sending us
copies of the Goveremneat Code provision relating to the