Title:
Title
Lease Agreement: Memorial Garage - 1430 H Street
End
FileID
File ID: 2018-01660
Location
Location: 1430 H Street, District 4
Recommendation:
Recommendation
Pass a Motion: 1) determining that pursuant to City Code Section 3.68.110(D) the leasing of 1430 H Street without bidding is in the best interest of the City; 2) authorizing the City Manager or the City Manager's designee to execute a lease agreement with GoodSide Coffee, LLC for an initial lease term of five years, with two five-year options to extend; and 3) authorizing the City Manager or the City Manager's designee to execute minor lease amendments pursuant to City Code Section 3.68.120.
Contact: Steve Ward, Real Property Agent, (916) 808-1081; Matt Eierman, Parking Services Manager, Department of Public Works
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Lease Agreement
Description/Analysis
Issue Detail: GoodSide Coffee, LLC (GoodSide Coffee) submitted an offer to lease a vacant City property located at 1430 H Street for operation of a coffee shop. The space measures approximately 1,550 square feet on the ground floor of the Memorial Garage. The tenant space was vacated by Starbucks on July 31, 2014. GoodSide Coffee's offer for rent accords with the fair market rate of $2.096 per square foot (which includes common area fees) for comparable, similarly situated properties. GoodSide Coffee's lease would be for an initial term of five (5) years and two additional five-year options to extend. City and GoodSide Coffee will both perform certain initial improvements, as specified in the lease, before GoodSide Coffee's business begins operations.
Policy Considerations: City Code Section 3.68.110(D) allows the City to lease City property without bidding when a firm and complete written offer for lease has been submitted with rent at or above fair market rate for comparable, similarly situated properties and the City Council finds that leasing the property withou...
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