The Long Beach Yacht Club has extended its lease agreement with the city until 2091, which will allow the organization to make capital improvements to the clubhouse, as well as open the doors to fellow residents to offer more programs and community space.

The City Council unanimously approved the updated agreement last week, which extends the term of the lease, facilitates capital improvements, and establishes and defines rent offsets for the city-owned property where the yacht club is located, 6201 Appian Way.

While the Long Beach Yacht Club’s current lease wasn’t set to expire until 2050, the city and club entered into a series of negotiations and discussions over the past couple of years as LBYC proposed a significant capital improvement project that includes upgrades to the clubhouse and pool that will add about 20,000 square feet to the facility, officials said.

The project also includes constructing a new community room, which will be made available for community-based programming and meetings, and was approved by the California Coastal Commission in August. Public benefit of the renovated yacht club is another reason why the city and club were looking to amend its current lease agreement, City Manager Tom Modica said.

Since the Long Beach Yacht Club is a private group and will use its own funds to invest in the renovations, it required a 41-year extension of the lease through Dec. 31, 2091, according to the staff report. The amendment also resets the base rent to the current fair market value and establishes a formal structure for rent offsets based on the continuation of community benefits provided by the club.

This includes providing the city with priority use of the new community room for up to 600 hours per year at no cost, according to the staff report. This structure aligns the lease with current city policy, officials said, by introducing fair market rent that is subject to offset by the quantifiable value of community benefits delivered by the Long Beach Yacht Club.

“Once the community room is constructed and available for use, city programs and services, as well as community groups, will be eligible to reserve the space,” said Mary Torres, the city’s real estate development bureau manager. “An example of some of these community benefits are swim and sailing scholarships with a nonprofit such as the YMCA or Boys and Girls Club to offer outreach scholarships for swimming and sailing lessons; Panthers at Sea, which is a free day program for students at Jordan High School; and scholarships for yearround junior sailing program for non-members.”

The Long Beach Yacht Club will also have to provide a community benefit report to the city, which will contain all proposed community benefits provided at the clubhouse.

Base rent will be $200,000 per year, which is fair market rent as determined by an independent appraisal. Of the base rent, 10%, or $20,000, will be paid annually in cash, and the remaining 90% will be eligible for various rent offsets, according to the staff report.

The increase in the base rent will not take effect until a final certificate of occupancy for the capital improvement project has been issued by the city acting in its regulatory capacity, according to the staff report.

City staffers recommended that the council agree to the amendment, as the facility is city-owned property and investments will be made by the yacht club, but eventually, after the lease ends, it will become a city asset. It also aligns with the city’s 2030 Strategic Vision theme of education and creating opportunities for families and youth to access resources, according to the staff report.

“When this project, opened up the opportunity to reopen the lease,” Third District Councilmember Kristina Duggan said. “I wanted to support renegotiation to bring forward a formal community benefit package, 25 years earlier than expected.”

Some councilmembers with districts farther from the waterfront, such as Eighth District Councilmember Tunua Thrash-Ntuk, shared their concerns about ensuring that the community benefit hours were distributed equally for all residents to use.

“I’ve heard concerns about how 600 hours of community access asking how it’s going to be managed,” Duggan said during the Tuesday, Jan. 6, meeting. “Let’s be clear, this is going to be overseen by the city and not by the Yacht Club. I believe these hours must be transparent. They have to be programmed equitably, and this is a city-controlled public benefit, and it must be treated that way.”

Within the next year — and in the time the yacht club’s improvements are constructed and completed — city staffers and Duggan said, they will work with every councilmember to ensure that there are citywide benefits to the project, especially those who have historically lacked access to these waterfront spaces.

During public comment, there were people who spoke in support of the project, as well as some who wanted the City Council to delay the agreement.

Those in support were Long Beach Yacht Club leadership, local organizations that currently work with the club, and the carpenters’ union, all sharing similar sentiments of the value the project and community benefits will bring to Long Beach.

“This is not just an investment in our club, it’s a contribution to our entire community,” said Bob Piercy, 2026 commodore for the Long Beach Yacht Club. “Extending our lease reflects not just commitment to our club but an affirmation of the value we bring to this community. With your support, we can continue to embrace our waterfront, provide valuable programs for our residents and keep the spirit of adventure alive for generations to come.”

In opposition were workers of the yacht club, represented by Unite Here Local 11, asking that the City Council consider some of the rent offsets be used for health benefits and wage increases.

“We must consider other offsets directed toward wages or health care payments for workers at the Long Beach Yacht Club,” said Jonah Breslau, an organizer with Unite Here Local 11. “Investments in worker compensation and healthcare produce ongoing public benefits, including more stable employment, reduced reliance on taxpayer-funded public assistance, and higher quality services while still fitting within the leases’ community benefit rent offset framework.”

City staffers said that since the yacht club is a private organization in negotiation with the union, allocating funds from the rent offset would not be possible. Councilmembers said that they hoped the union and club would continue to negotiate in good faith during their contract negotiations.

“I’m pleased to know that the building will be built by unionized workers and that the building will be serviced by unionized workers,” Thrash-Ntuk said, “and look forward to ensuring that there is an opportunity for living wages and opportunities for workers within our city.”