REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Kellee Fritzal, Deputy Director of Economic Development
Subject:
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Approve and authorize execution of a Lease Agreement for Let's Go Fishing at the Huntington Beach Pier
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Statement of Issue:
The City Council is requested to approve a lease agreement for a concession building located on the Huntington Beach Pier with Let's Go Fishing.
Financial Impact:
Let's Go Fishing currently pays $762.51/month in base rent which will be increased to $950.00/month. The current Percentage Rent is 10% of gross sales that exceed $762.51. The Percentage Rent will be increased to 10.5% at the commencement of the new lease. Revenue from the leases will be deposited into the General Fund (1000100.43095) Beach Concessions.
Recommended Action:
recommendation
A) Approve and authorize the Mayor, City Clerk, and City Manager to execute "Lease between the City of Huntington Beach and Marian Johnson, a sole proprietor, doing business as Let's Go Fishing and Surf City Snack Bar in the City of Huntington Beach"; and,
B) Direct staff to review expectations/options for the Pier Concession and bring back as a Study Session item.
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Alternative Action(s):
Do not approve the Lease Agreement and direct staff accordingly.
Analysis:
On November 16, 2009, the City Council also approved three (3) five (5) year lease agreements with Let's Go Fishing, Surf City Store, and Kite Connection including one five (5) year option to extend.
Each concession stand was visitor serving and focused on separate unique items. Each concession stand is 620 square feet built by the City to replace the former cargo bin stores on the Pier.
The terms of the three leases include a minimum base rent with annual CPI increases, and a percentage rent, if sales exceed the base rent. The three concession leases are set to expire on November 16, 2019. Staf...
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