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6.1C <br /> Page 2 <br /> HD Food Service, inc. License <br /> HD Food Service, Inc. will enter into a iicense agreement witn #he Cify for License Area <br /> �A as shown in the plat map and iega( description in Exhibit A of the License <br /> Agreement. The license area, measuring approximateiy 43' x 36' (1,36� square feet) <br /> wil� have 16 tables and 32 chairs provided by �he City far H� Food Service; [nc. use, and <br /> shall be availabie to the public w�thaut purchase requirement during Hidden Dragon Tea <br /> House's haurs of operations. HD Food Service, Inc. will clean and clear the tabfes and <br /> cl�airs during hours of opera#ior�s. The key fierms ofi the license agreement are as <br /> fallows: <br /> • Month-�o-month term <br /> . License fee of$.06 per square foot per month for a total of$8�.75 per month <br /> • Common area maintenance c�f $60� per mon#h cammencing 30 days after all <br /> four kiosks are occupied and opened with long-term tenants. . <br /> . <br /> The iicense fee paymenfi of$81.75 wilE commence six months (Nlarch 1, 2010} after the <br /> expected Sep#ember 1, 20�9 opening date while #he $640 common area maintenance <br /> wfl! commence 30 days after a!I of the kiosks are occupied and operating with long-term <br /> tenan#s. Simiiar to the rent reduction in the lease agreement, the fees for the license <br /> agreement are reduced to ease the tenant's operating casfis for the firs# six months. <br /> ALTERNAT[VES <br /> Council may choose no� to approue �he execu�ion of �he Lease and Li�ense with HQ <br /> Food Senrices, Inc. The City andlor Agency wou�d need to seek another vendor, which <br /> would de�ay occupancy of the Courthouse Square kiosk. <br /> FiSCAL IMPACT <br /> The lease rent wiil be $3,444 and license fees are $494 during the first 12 months of <br /> operations. Thereafter, the expected annual fease and license fees will be $6,876 and <br /> $981 respectively. HD Food Service Inc. wilf pay its own utilities. In addition, HD Food <br /> 5ervice, inc. will pay a common area maintenance fee of $6�0 per month commencing <br /> 30 days after al� four kiosks are operating to partially fund the Courthouse Square <br /> rr�aintenance. The remaining cosfi of maintenance for Gour�house Square is funded <br /> from the City's Generai Fund and the future �ong-term tenants. <br /> ..�..�..�.�� �---!i���-�-'' <br /> _ •C�� ,,' <br /> Jeann' Young ;.� atricia J. Webb <br /> Red eiopment roject `na r Housing & Economic Development <br /> .>,,� �anager <br /> �` '��'"` ^�, � p� <br /> s`'g '''� ,/� <br /> �� -.��'"'..rr <br /> Chu Chang, P.E. Peter ingram ;��+'+v� <br /> Community Development Director City Manager and'Executive Director <br />