AgdaPkt 2014-04-28 - Laserfiche WebLink

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7.2.A. - Page 1 REPORT To the Honorable Mayor and City Council From the Executive Director of Successor Agency Board April 28, 2014 SUBJECT Successor Agency Consent to Assignment and Assumption of License between Byrtus Group, Inc. (Tarboosh) and HAP Partners RWC LLC (Howie's Artisan Pizza) RECOMMENDATION By motion, approve and authorize the City Manager to execute the Consent to the Assignment and Assumption of License (Attachment 1) between Tarboosh and Howie's Artisan Pizza. BACKGROUND In October 2005, the Redevelopment Agency ("Agency") entered into an Outlease Agreement with the United States Postal Service that owns the outdoor area abutting the downtown post office located at 855 Jefferson Avenue. The Agency funded pedestrian amenities in the outdoor area including a walkway path between the post office and Tarboosh restaurant, benches, pedestrian lighting, and landscaping. This area, now called "The Paseo," was underutilized, poorly maintained, and flooded during the rainy season. On February 21, 2007, the Agency entered into a License Agreement with Roy Atie (DBA Tarboosh Restaurant/Byrtus Group, INC.). The agreement allowed the partial use of the Paseo property for outdoor dining area in conjunction with Tarboosh Restaurant, located at 837 Jefferson Avenue. The License Agreement identified and allowed 2,000 square feet of the Paseo area to be used for the outdoor dining area as identified in Exhibit B of the Agreement. On May 17, 2010, an Amendment to the License Agreement was made. This amendment revised the "License Payment" section of the agreement to allow a reduced rent ($100.00) during off-peak months (November to April) and the agreed upon rent of $500.00 during the months of May to October. ANALYSIS On January 27, 2014, Howard Bulka (DBA HAP Partners RWC LLC) submitted an application for a Downtown Planned Community Permit to renovate the restaurant and the adjoining outdoor dining area within the Paseo. Mr. Bulka is in-contract to purchase the restaurant and re-open it as Howie's Artisan Pizza. In doing so, Mr. Bulka proposes to take over the terms and conditions of the existing Agreement with the modification that the Agreement is now between Mr. Bulka/HAP Partners RWC LLC and the Successor Agency. This is proposed via the attached Assumption and Assignment of License.