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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 19, 2006 <br />TITLE: <br />LEASE AGREEMENT WITH <br />GEORGE & ANCA CABAN DBA <br />CAFE EXPRESS <br />C TY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1St Reading <br />^ Ordinance on 2"d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Direct the City Attorney to prepare and authorize the City Manager and <br />the Clerk of the Council to execute a Lease Agreement with Cafe Express <br />for a restaurant at The Depot at Santa Ana. <br />DISCUSSION <br />The Cafe Express has been located in Suite 102 at The Depot at Santa Ana <br />since June 1988. In this location, Cafe Express has provided food <br />products for travelers, visitors and tenants of The Depot. The previous <br />Lease Agreement has expired, and their tenancy has continued on a month- <br />to-month basis. Therefore, staff is recommending entering into a new <br />Lease Agreement with Cafe Express for a term of three years beginning <br />July 1, 2006, and ending June 30, 2009, with two 3-year extensions by <br />mutual agreement. Under the new agreement, monthly compensation to the <br />City will be $2,275 per month for year one and a Consumer Price Index <br />increase for years two and three. This agreement includes provisions for <br />tenant improvements and operational enhancements to ensure a positive <br />image for the Cafe Express and The Depot at Santa Ana. <br />The alternative is not to execute the Lease Agreement with Cafe Express <br />and terminate its operations at The Depot. This alternative would result <br />in the loss of revenues of $27,300 for FY 06-07 and would create a void <br />in services for our travelers, visitors and tenants. <br />250-1 <br />