Redondo Beach : Leaseholders Seek to Sell

Two major business investors of King Harbor are trying to sell their interests because of changes in the federal tax law, city officials said this week.

The city owns the land at King Harbor, which includes the pier, but leases the properties to 18 master lessees. Those lessees may then sublease portions of their leasehold with city approval.

Mary Davis, master lessee of the Portofino leasehold, owner of the hotel and apartments on the site and holder of the marina’s boat slips, wants to sell her interests after owning them more than 25 years. Davis is the only lessee who has been at King Harbor since it opened in 1961.

Goodwin Lyons, master lessee of the Harbor Cove apartment complex, which includes the Chart House restaurant, is also selling his interests, city officials said.

Both reportedly have potential buyers, but city officials would not disclose their names and Davis and Lyons could not be reached for comment.

City Manager Timothy Casey said, however, that neither of the potential buyers is currently doing business in the harbor.

The City Council will hold a special meeting tonight to try to complete negotiations with Davis and Lyons that are reportedly holding up the sale of their properties.

The city is renegotiating rents for the Portofino leasehold and several other lease amendments have been discussed, Casey said. Details of the negotiations have been discussed in closed sessions and city officials declined to make those public. Parts of tonight’s meeting will be open, however.

Under the new tax law, a larger portion of capital gains will be taxed and at a higher rate after Jan. 1, Casey explained. The longer a person has held a property, the more money he would lose by waiting to sell, Casey said, adding that Davis could lose millions of dollars.