AgdaPkt 2009-04-27 - Laserfiche WebLink

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Lulu's (Nancy Radcliffe) In May 2008, the Agency Board approved a month-to-month Lease Agreement for Lulu's to occupy a kiosk in Courthouse Square to sell gift items, sundries, and periodicals. The Lessee has requested a modification to terms of payment and hours of operation in order to continue to serve Redwood City residents, downtown employees, and visitors. The temporary use by Lulu's would continue to activate this space while staff pursues a long-term tenant. Proposed modifications to the lease are as follows: 6.10 Page 3 1. Reduction of monthly rent from $411.00 per month to $100.00 per month effective January 1, 2009 until a permanent tenant is found for this space, and 2. Change hours of operation to 10 AM to 3 PM Tuesday through Saturday, and closed on Sunday and Monday, and 3. Authorize the Executive Director or designee to negotiate and administratively amend the monthly rent and hours of operation Leasing Update for Other Kiosk Spaces Staff continues to pursue businesses for the two remaining vacant spaces as well as a long term tenant for the space currently in temporary use. Presently there are three viable business applications pending with two more potential ones being considered. In each case, the applicants are developing the design for their tenant improvements, as well as determining their County Health Dept. requirements and doing financial analyses. Staff is in the process of negotiating agreements with one tenant who would like to be open this summer. As soon as the agreements are ready, they will be forwarded to Council and the Agency Board for approval. One of the physical constraints in addition to limited size has been the lack of a heating, ventilation and air conditioning (HVAC) system in the spaces. The kiosks are exposed to full light and considerable heat in the summer, making it difficult for food vendors to operate. Staff is currently determining the feasibility of retrofiting the kiosks with an HVAC system that would provide more comfort for the workers in the spaces. This would make the spaces more appealing to aU potential vendors, but most particularly to food vendors. ALTERNATIVES The Agency Board and City Council may choose to modify the proposed amendments to the Lease and License agreements with Daily Boost and the Lease agreement with Lulu's. FISCAL IMPACT The common area maintenance of $5,400 total ($600 per month) paid by Daily Boost will be lost between October 2008 and June 2009. The City's General Fund currently funds the maintenance of Courthouse Square. There will be a reduction of $311 per month paid by Lulu's to the Redevelopment Agency. It is unknown at this time what the total reduction will be as it is only on a temporary basis until a permanent tenant can be found.