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HomeMy WebLinkAbout25O - LEASE - CAFE EXPRESS CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: REQUEST FOR COUNCIL ACTION JUNE 19, 2006 TITLE: APPROVED o As Recommended o As Amended o Ordinance on 1 st Reading o Ordinance on 2nd Reading o Implementing Resolution o Set Public Hearing For LEASE AGREEMENT WITH GEORGE & ANCA CABAN DBA cAFE EXPRESS A Qi4.a- C TY 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 Lease Agreement with Cafe Express for a restaurant at The Depot at Santa Ana. DISCUSSION The Cafe Express has been located in Suite 102 at The Depot at Santa Ana since June 1988. In this location, Cafe Express has provided food products for travelers, visitors and tenants of The Depot. The previous Lease Agreement has expired, and their tenancy has continued on a month- to-month basis. Therefore, staff is recommending entering into a new Lease Agreement with Cafe Express for a term of three years beginning July 1, 2006, and ending June 30, 2009, with two 3-year extensions by mutual agreement. Under the new agreement, monthly compensation to the Ci ty will be $2,275 per month for year one and a Consumer Price Index increase for years two and three. This agreement includes provisions for tenant improvements and operational enhancements to ensure a posi ti ve image for the Cafe Express and The Depot at Santa Ana. The alternative is not to execute the Lease Agreement with Cafe Express and terminate its operations at The Depot. This alternative would result in the loss of revenues of $27,300 for FY 06-07 and would create a void in services for our travelers, visitors and tenants. 250-1 Lease Agreement with Cafe Express June 19, 2006 Page 2 FISCAL IMPACT Funds from the Lease Agreement payments will be deposited into The Depot at Santa Ana Rental - Cafe Express revenue account (account no. 67-01- 5495) . APPROVED AS TO FUNDS AND ACCOUNTS: JIL~~/;-{(ttd~~Ao o Executi~~Director Community Development Agency ~ tk..&-"':5 "-2, ~rancisco Gutierrez 1 rLJ-~xecutive Director Finance & Management Services Agency PCW/CF/mlr H:\ACTIONS\2006 CC\LeaseAgreeGeo&AncaCabandbaCafeExpress 6-19-06.doc 250-2