AgdaPkt 2009-04-27 - Laserfiche WebLink

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. .' . .. .".. .'. .'. . .' ."' .....: ..... . '. . . R.\P::O~Rt... . .... ......:<. . '. ....... .....\:);i.......;:ii?;;;).. ..T~~h~.~O....;:...............;:.nM:;;;To,.::...ah.r.:....n.~.._.a.~.R.l. :.:.e~...;r:_M;...:.......a;.....in...e.d...._.Q._..I..;..~t;h~:_...e;.~.........dE....~...~....e1.c:~u,...'.'~ttvO....~:n...e.......~......O;... C.t....:.Br:...,iel.O..C..a..:..a"tor:r...,: ..........'........:;'.:.:...:.:i....>>y:.:...'........H,:...::'~.:::#..b~::t~~~.:~i:. _" ~ _ ~ _ 6.10 Page 1 April 27, 2009 SUBJECT Courthouse Square Vendors - Amendments to the Lease and License Agreements for Daily Boost and Lease Agreement for Lulu's and Leasing Update RECOMMENDATION 1. Authorize, by motion, the Redevelopment Agency Executive Director to execute Amendment NO.1 to the Lease Agreement with Daily Boost LLC in Courthouse Square and 2. Authorize, by motion, the City Manager to execute Amendment NO.1 to the License Agreement with Daily Boost LLC in Courthouse Square, and 3., Authorize, by motion, the Redevelopment Agency Executive Director to execute Amendment No. 1 to the Lease Agreement with Nancy Radcliffe, doing business as Lulu's, in Courthouse Square. BACKGROUND Since the completion of Courthouse Square in Fall, 2006, the City and the Redevelopment Agency (RDA) have been working with applicants who have proposed to locate small business operations in the four vendor spaces at each end of the two pavilions (the kiosks). The goal has been to fill the four spaces with businesses that could help to activate the Square on a year round basis and also maintain a successful business operation. The challenge has been to find the right business fit for the space given the limited size. Food vendors have faced additional difficulty in meeting the San Mateo County Health Dept. requirements. One food vendor, Daily Boost, was able to satisfy requirements and opened in July 2008. A small retail use, Lulu's, opened in summer 2008 on a temporary basis. Both hope to continue operations, but are presently facing financial difficulties and thus have requested amendments to their agreements with the City and RDA. The original agreements included lease rents for the 190+ SF lease area that were commensurate with the "going-rates" in the downtown last year ($2.50-$3.00 per SF). Given the state of the current economy, and the cost of tenant improvements, a proposal to adjust the lease rates is being presented for consideration by the Agency Board and Council. The license area (approximately 1360 SF) rent has been $.06 per square foot per month for each space. Additionally, there has been a common area maintenance charge ($600) which is used to offset maintenance costs for the entire Square. Please note that since Lulu's was leasing on a temporary basis, only the lease rent was applied in that case. The following includes more detail for each business. (For clarification, both Agency Board and Council need to act because the vendor space of