AgdaPkt 2010-08-23 - Laserfiche WebLink

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i 6.1 E REP�RT To the Honorable Mayor and City Council and The Redevelopment Agency Board From the Cit IUlana er and Executive Director August 23, 2010 SUBJECT Courthouse Square Vendor Kiosks-Amendments to Hidden Dragon Tea House Lease and License Agreements RECQMMENDATION 1. Authorize, by motion, the Redevelopment Agency to amend a lease with HD Food Service, lnc. doing business as "Hidden Dragon Tea House" for Lease Area 1A in Courthouse Square. 2. Authorize, by motion, the City to amend a license with HD Food Service, Inc. doing business as "Hidden Dragon Tea House" for License Area 1A in Courthouse Square. BACKGROUND In June 2009, the Agency Board and City Council approved a Lease and License Agreement for HD Food Service, lnc. doing business as Hidden Dragon Tea House to occupy a kiosk in Courthouse Square to sell tapioca drinks, Asian teas, soft drinks, slush, beer and wine, and Asian food. Due to the delay in store opening, high tenant improvements costs, current market conditions, unusually cold and wet months, and #he store closu�e for finro months earlier this year to revise the menu products, HD Food Service has not achieved its targeted revenues and, therefore, has requested a modification to its terms of payment in order to continue to serve Redwood City residents, downtown employees, and visitors. The original lease and license included lease rents for the 191 square foot lease area that were commensurate with commercial retail market rates in the downtown that averaged $3.00 per square foot. The current marke# rates have decreased to $2.11 per square foot. The proposed modifications to the Lease and License are as follows: Lease A reement RDA Term Current Pro osed Monthly Rent $1.00 per month from September $1.00 per month effective March 1, 2010 1, 2009 to February 28, 2010; through April 3�, 2Q11; thereafter $403.00 $573 per month ($3.00 per per month ($2.11 per square foot). square foot). Amendments Only in writing and by mutual The Redevelopment Agency Board to to the Lease agreement between the authorize the Executive Director or his/her Executive Director and the designee to amend the monthly rents, rent Lessee. due dates, hours of operations, and CPI ad'ustment administrativel .