REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Ashley Wysocki, Director of Community & Library Services
PREPARED BY: Chris Cole, Community & Library Services Manager
Subject:
title
Approve Amendment No. 2 to Lease Agreement with Michael and Christie Bartusick dba Park Bench Café and Approve Consent to Assignment and Assumption of Lease Agreement from Michael and Christie Bartusick dba Park Bench Café to 2R2S, LLC for the operation of a restaurant/food concession in Huntington Central Park located at 17732 Goldenwest Street, Huntington Beach, California
body
Statement of Issue:
Approve and authorize the Mayor and City Clerk to execute Amendment No. 2 and the Consent to Assignment and Assumption of Lease Agreement to the lease dated August 6, 2012, between the City of Huntington Beach and Park Bench Café, for a café style restaurant concession in east Huntington Central Park located at 17732 Goldenwest Street, Huntington Beach, California.
Financial Impact:
The Lease Agreement will continue the existing rent structure with a base rent of $1,600.61 and tiered percentage rent of 8%, 9%, 10% and 11% according to Gross Sales volume. No impacts to the General Fund are anticipated because of this action.
Recommended Action:
recommendation
A) Approve and authorize the Mayor and City Clerk to execute Amendment No. 2 for Lease Agreement with Michael & Charistie Bartusick dba Park Bench Café; and,
B) Approve and authorize the Mayor and City Clerk to execute the Consent to Assignment and Assumption of Lease Agreement for Park Bench Café.
end
Alternative Action(s):
Do not approve the recommended actions and direct staff accordingly.
Analysis:
On August 6, 2012, the City Council approved a 10-year Lease (“Lease”) with Michael and Christie Bartusick, dba Park Bench Café, a California Corporation for the operation of a food concession located at 17732 Goldenwest Street. Since 1988, the Bartusick family has operated Park Bench Café, a café style restaurant in east Huntington Central Park, serving residents and visitors out of the approximately 1,300 square foot concession. The lease was amended in March 21, 2023, with the new (current) rent structure and 10-year extension ending on August 5, 2032.
Recently, Michael Bartusick approached staff about selling the business known as Park Bench Café to 2R2S, LLC. Park Bench Café has a history of providing excellent customer service and enhancing the visitors’ experience for tourists and the local community. In addition, Park Bench Café is among the strongest revenue generating food concessionaires operating in Huntington Central Park, generating over $110,000 in General Fund revenue annually.
2R2S, LLC is a locally rooted ownership group combining decades of experience in restaurant operations, real estate, business management, and community-focused programming. The team brings a balanced approach of operational expertise, financial oversight, and a strong commitment to maintaining and enhancing Park Bench Café as a valued community asset.
2R2S, LLC provides a well-rounded and highly capable leadership structure:
• Proven Restaurant Experience on-site daily
• Nearly 50+ combined years of restaurant ownership and operations
• Local leadership & community connection
• Deep roots in Huntington Beach and a commitment to serving local families
• Financial discipline & business stability
• Strong on-site oversight from experienced operators and property owners
• Legal & compliance expertise
• In-house legal knowledge ensuring proper contracts, risk management, and regulatory adherence Commitment to the City of Huntington Beach
2R2S, LLC intends to carry on the legacy and menu the Bartusick family has designed in addition to enhancing operations and revenue generation through:
• Continued collaboration with the Bartusick family
• Hosting low-impact community events designed to activate weekday mornings
• Upon City approval, construct an enclosed patio area
• Exploring the opportunity for a beer and wine ABC license
• Expanding business hours during peak season
• Develop partnerships with local schools and animal rescue organizations
For 2R2S, LLC to operate Park Bench Café, a formal Assignment and Assumption of the Lease is needed to transfer the Lease terms, conditions, and all obligations. Section 34 (a) of the Lease states that the Lessee shall not voluntarily assign or otherwise transfer its interest to the Lease or to the Premises, without prior written consent of the City. The City Attorney’s Office has prepared a Consent to Assignment and Assumption of Lease Agreement and Amendment No. 2 to complete the transaction. The basic terms of the Lease are as follows:
• Term: 10-year term from date of amendment execution
• Options: One 5-year option
• Base Monthly Rent: $1,600.61 - subject to annual CPI increases
o The base rent escalates by utilizing the All-Urban Consumers (CPI-U) for the Los Angeles-Long Beach-Anaheim Area (1982-84=100) as published by the U.S. Bureau of Labor Statistics
• Percentage Rent of Gross Sales:
o $0 - $100,000 = 8.0%
o $100,000.01 - $150,000 = 9.0%
o 150,000.01 - $200,000 = 10.0%
o Over $200,000.01 = 11.0%
• Lessee is responsible for all existing maintenance requirements and will also be responsible for the roofing system and HVAC systems.
The City may consider a rent credit to assist with the proposed construction and installation of an enclosed patio under the following conditions:
• If the proposed project were completed within 3 years of execution of this Amendment, the City would contribute up to 50%, not to exceed $20,000 in rent credit to offset a portion of the hard construction costs incurred by tenants. Such rent credit will not be used to compensate for any soft cost such as permitting, entitlements, architectural, administrative, or any other non-construction related expenses.
• If the proposed project were not completed by the end of year 3 of this Amendment, the City would not be obligated to pay any amount in any form to offset any cost of the proposed project.
A 45-day timeline would be granted to complete the business transfer. The City would require proof of the transfer being completed, by submission of a closing statement from the Escrow company, bill of sale, or other legal transfer documents. If the transfers were not completed, this amendment would be terminated, and the existing agreement would be held in place.
It is understood that execution of this Amendment is required to settle the business transaction. It is further understood that during this escrow period the current operators will continue business operations uninterrupted.
The Lease Ad-Hoc Committee (EDC) reviewed the request for Assignment at the May 13, 2026, meeting and recommended approval. Based on the foregoing, staff is recommending approval of the assignment.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. RCA Contract Agreement Summary
2. Amendment No. 2 for Park Bench Cafe
3. Assignment and Assumption of Lease Agreement for Park Bench Café
4. PowerPoint Presentation