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HomeMy WebLinkAboutItem 14 - License Agreement with East End Realty Partnership, LP and Wursthaus, Inc. Parks, Recreation, and Community Services www.santa-ana.org/parks Item # 14 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report October 19, 2021 TOPIC: License Agreement with East End Realty Partnership, LP and Wursthaus, Inc. AGENDA TITLE: Approve a Third Amendment to Extend the Term for the License Agreement with East End Realty Partnership, LP and Wursthaus, Inc. to Allow Temporary Outdoor Dining Activities to Occur within Plaza Calle Cuatro RECOMMENDED ACTION Authorize the City Manager to execute a third amendment to extend the term for the License Agreement with East End Realty Partnership, LP and the Wursthaus Inc. to allow temporary outdoor dining activities to occur within Plaza Calle Cuatro for the period December 1, 2021 through November 30, 2022, for an amount not to exceed $2,028, subject to non-substantive changes approved by the City Manager and the City Attorney. DISCUSSION Downtown Santa Ana has several entry points, but the corner of 4th and French is a unique entry-point into Downtown Santa Ana because of the open space at Plaza Calle Cuatro, the convenient parking structure, vibrant murals, and a variety of active businesses. Among those businesses in that prime location is Wursthaus, a restaurant that provides an authentic Euro-dining experience that serves hand-made sausages and German and Belgian beer. The property owner and business owner are both committed to the success of Downtown Santa Ana. On May 7, 2019, the City Council approved a license agreement with East End Realty Partnership, LP and Wursthaus (located at 305 E 4th Street, Suite 106, Santa Ana, CA 92701) to conduct temporary outdoor dining activities within Plaza Calle Cuatro for the period of June 1, 2019 to November 30, 2019. The parties were unable to implement the outdoor dining experience within the Plaza during the initial year due to unanticipated delays and loitering concerns within the Plaza. Amendments to the agreement were approved on November 5, 2019, and November 17, 2020, to extend the agreement to November 31, 2020 and November 31 2021, respectively. The outdoor dining activity by Wursthaus has contributed to positive activity within Plaza Calle Cuatro. The use of the space will continue to be limited to food and beverage services conducted by Wursthaus. The outdoor dining activities will coincide with the License Agreement with East End Realty Partnership, LP and Wursthaus, Inc. October 19, 2021 Page 2 2 1 1 4 hours of operation from the restaurant. While these hours are subject to change, the restaurant operates from 11 a.m. to 12 a.m., Sundays through Tuesdays, 11 a.m. to 1 a.m. Wednesdays through Thursdays, and 11 a.m. to 2 a.m. Fridays through Saturdays. Fixtures within this outdoor dining area are limited to temporary/removable outdoor chairs, tables, umbrellas, and border barriers (fences) that can be removed upon notice and request by the City of Santa Ana, in accordance with the license agreement. Salient terms of second amendment to the License Agreement are as follows: Twelve-month term No outdoor dining events permitted when the City of Santa is conducting special events The City will retain the right to conduct unplanned events upon 24-hour notice to the licensed party License fee of $169 per month. Calculation of monthly fee is as follows: o 30 days at $161 per day (per City Miscellaneous Fee Schedule) of entire plaza = $4,830 o Square footage of entire plaza = 8564 (per assessor’s records) o Square footage of dining space = 300 (300 divided by 8,564 = 3.5 percent of Plaza, multiplied by $4,830 monthly fee = $169 (rounded) Licensee will be responsible for maintenance of the dining area, possession of insurance coverage, and compliance with all other City regulations. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT The City of Santa Ana will be receiving revenue in the amount of $2,028 from this twelve- month license. Funds will be deposited in the following account for the specified year. Fiscal Year Accounting Unit-Account # Fund Description Accounting Unit, Account Description Amount FY 21-22 01113002- 57361 General Fund PRCSA-Recreation Facility Rental $2,028 EXHIBIT(S) 1. License Agreement (Third Amendment) Submitted By: Lisa Rudloff, Executive Dir. of Parks, Recreation and Community Services Approved By: Kristine Ridge, City Manager 1 THIRD AMENDMENT TO TEMPORARY OUTDOOR DINING LICENSE AGREEMENT This THIRD AMENDMENT TO TEMPORARY OUTDOOR DINING LICENSE AGREEMENT (“Third Amendment to License Agreement”) is entered into this day of , 2021, by and between the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California (“City”), East End Realty Partnership, LP, and Wursthaus, Inc. (collectively “Licensee”). RECITALS A.On May 7, 2019, the City and Licensee entered into the Temporary Outdoor Dining License Agreement No. A-2019-063 (“License Agreement”) to allow temporary outdoor dining activities within a portion of Plaza Calle Cuatro (“Plaza”), adjacent to real property located at 301-305 East Fourth Street, Suite 106, Santa Ana. B.On November 30, 2019, the City and Licensee entered into a First Amendment to Temporary Outdoor Dining License Agreement No. A-2019-200 to extend the term of said License Agreement, increase the amount of the License Fee to cover the extended term, and clarify the type of fencing that may be installed on the Licensed Property. C.On November 17, 2020, the City and Licensee entered into a Second Amendment to Temporary Outdoor Dining License Agreement No. A-2020-213 to extend the term of said License Agreement and increase the outdoor dining space. D.In accordance with the terms and conditions of said License Agreement, the parties desire to amend said License Agreement to extend the term of said License Agreement for an additional one year, subject to the payment of an additional License Fee by Licensee; and, increase the amount of the License Fee to cover the extended term. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said License Agreement, except as herein modified, the parties agree as follows: 1.Section 1, Term and Purpose of License, shall be amended to extend the term of the License Agreement from November 30, 2021, until November 30, 2022. 2.Section 3, License Fee, shall be amended to reflect that, upon execution of this First Amendment to License Agreement, Licensee shall pay to the City a one-time non-refundable fee of Two-Thousand and Twenty-Eight dollars ($2,028) to cover this third extended term of the License. 3.Except as hereinabove modified, the terms and conditions of said License Agreement remain unchanged and in full force and effect. Exhibit 1 2 IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment to License Agreement the date and year first above written. ATTEST: CITY OF SANTA ANA ___________________________ ________________________ DAISY GOMEZ KRISTINE RIDGE Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney EAST END REALTY PARTNERSHIP, LP _____________________________ ________________________ Ryan O. Hodge Ryan Chase Assistant City Attorney RECOMMENDED FOR APPROVAL: WURSTHAUS, INC. _____________________________ ________________________ LISA RUDLOFF Gabriel Ruiz Executive Director Parks, Recreation and Community Services Exhibit 1 See Attached Signature Page See Attached Signature Page Exhibit 1 Exhibit 1