Title:
Title
Third Amendment to Lease Agreement for Rio City Caf?
End
FileID
File ID: 2019-01631
Location
Location: Old Sacramento, District 4
Recommendation:
Recommendation
Pass a Motion authorizing the City Manager, or City Manager's designee, to execute the Third Amendment to Agreement No. 93-0098.
Contact: Dustin Hollingsworth, Facilities and Real Property Superintendent, (916) 808-5538; Jody Ulich, Director, (916) 808-5105, Convention and Cultural Services
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Third Amendment to the Lease Agreement
Description/Analysis
Issue Detail: In 1993, the City entered into a lease agreement ("Agreement") with Waterfront Management, Inc. ("Waterfront") whereby Waterfront leased the premises located at 1110 Front Street for operation of a full-service restaurant and cocktail lounge, which is currently known as the Rio City Caf?. The initial term of the Agreement was July 27, 1993, through July 26, 2004. The Agreement provided for extensions of up to three additional five-year terms, with the Agreement expiring on July 26, 2019 if all extension options were exercised. The first two five-year extensions were executed in 2004 and in 2009, with the Agreement set to expire on July 26, 2014.
In 2014, Waterfront attempted to sell the Rio City Caf?, but negotiations with the potential new owner stalled. The Miller family, who owned Waterfront Management, ultimately decided to retain Rio City Caf?, and they relocated from Boulder, Colorado to take an active role in its management. In consideration of those events, the City and Waterfront agreed that the Agreement would only be extended for two years, instead of five. Therefore, the City and Waterfront amended the Agreement so that it would expire on July 26, 2016.
In 2016, the Miller family bought out the limited partners of Waterfront and created Riverwalk Ventures, LLC ("Riverwalk"), a California corporation. The Millers actively worked to rebrand ...
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