AgdaPkt 2010-04-26 - Laserfiche WebLink

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6.10 Page 1 REPORT To the Redevelopment Agen.cy Board From the Executive Director April 26,2010 SUBJECT Amendment to the Tarboosh Restaurant License Agreement RECOMMENDATION Authorize, by motion, the Redevelopment Agency Executive Director to execute Amendment No. 1 to the License Agreement with Byrtus Group doing business as Tarboosh Restaurant for a publicly owned portion of the property at 855 Jefferson Avenue. BACKGROUND In October 2005, the Redevelopment Agency ("Agency") entered into a five-year OutJease Agreement with the United States Postal Service that owns the outdoor area abutting the downtown post office located at 855 Jefferson Avenue.1 The Agency funded pedestrian amenities in the outdoor area including a walkway path between the post office and the Tarboosh restaurant, benches, pedestrian lighting, and landscaping. This area, now called liThe Paseo" had historically been underutilized, poorly maintained, and flooded during the rainy season. The Agency, in February 2007 approved the License Agreement ("Agreement") with Tarboosh Restaurant for exclusive use of a portion of The Paseo to allow Tarboosh to expand its outdoor operations by 2,000 square feet.2 The Agency funded the design and construction of the 2,000 square foot concrete pad that allows Tarboosh to place outdoor tables and chairs for dining. According to the License Agreement, Tarboosh agrees to pay $500 per month ($0.25 per square foot) to help offset the estimated $16,000 annual cost to maintain The Paseo. Tarboosh is in arrears making the rent payments, and currently owes the Agency $3,300, going back to October 2009. Staff has been in communication with Tarboosh to understand their challenges and to negotiate a new license agreement. As shown in the table below, staff is recommending modifications to the license fee and other sections in the Agreement. Changing the license fee will assist Tarboosh to attract customers by increasing advertising to employees of nearby businesses including those in Redwood Shores. Staff recommends that the Agency waive half of the $3,000 arrears rent owed. The remaining $1,500 will be taken out of the $3,000 deposit. The accumulated rent late fee of $300 (ten percent of the monthly rent) would also be waived. Tarboosh is requesting a lower license payment than staff is recommending. 1 According to the USPS Outlease Agreement with the Agency, the Outlease Agreement expires October 31,2010 with an automatic 12 month extensions thereafter. 2 Since 2007, Tarboosh Restaurant was and continues to be owned by the Byrtus Group LLC. With this amendment, the correct title of the License Agreement will be utilized going forward.