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HomeMy WebLinkAbout25L - LICENSE AGMT - K.LEE GIF CITY COUNCIL MEETING DATE: ~ ~ REQUEST FOR COUNCIL ACTION CLERK OF COUNCIL USE ONLY: NOVEMBER 15, 2004 TITLE: APPROVED LICENSE AGREEMENT WITH K. LEE GIFTS D As Recommended D As Amended D Ordinance on 1 st Reading D Ordinance on 2nd Reading D Implementing Resolution D Set Public Hearing For -/' a/c;a~ CITY MANAGER CONTINUED TO FILE NUMBER RECOMMENDED ACTION Direct the City Attorney to prepare and authorize the City Manager and the Clerk of the Council to execute a License Agreement with K. Lee Gifts for a gift shop at The Depot at Santa Ana. DISCUSSION K. Lee Gift Shop has been located in the alcove area adjacent to the entry doors serving the bus bays on the southwest side of The Depot since July 1, 1998. In this location, K. Lee Gifts has provided a limited merchandise mix for the travelers, visitors, and tenants of The Depot. The existing Lease Agreement expired on June 30, 2004. Therefore, staff is recommending entering into a License Agreement with K. Lee for a term of two years beginning July 1, 2004, and ending June 30, 2006, with two, one-year extensions by mutual agreement. Under the new agreement, monthly compensation to the City will be $576.81 per month for year one and $660 per month for year two. The only alternative is not to execute the License Agreement and terminate gift shop operations at The Depot. This alternative would result in a loss of revenues of $6,921.72 for FY 04-05 and $7,920 for FY 05-06. 25L-1 License Agreement with K. Lee Gifts November 15, 2004 Page 2 FISCAL IMPACT Funds from the License Agreement payments will be deposited in The Depot at Santa Ana Rental - K. Lee revenue account (account no. 67-01-5493). Y!ketJkd patricia C. Whitaker Executive Director Community Development Agency APPROVED AS TO FUNDS AND ACCOUNTS: .,IC ,t;E~ecuti v ~ F1.nance & ma Director fl) Management Services Agency PCW/CKF /m1r H:Actions\2004CC\LicenseAgreernentK.LeeGifts 11-15-04 25L-2