REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Kellee Fritzal, Deputy Director of Economic Development
Subject:
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Approve and authorize execution of a Lease Agreement between the City of Huntington Beach and Primo Nosh Chefs LLC, for operation of food concessions at the Huntington Beach Sports Complex
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Statement of Issue:
The City Council is asked to approve a five-year Lease Agreement, between the City of Huntington Beach and Primo Nosh Chefs LLC, for operation of two concession buildings located at the Huntington Beach Sports Complex, with an option to extend for up to one additional five-year term.
Financial Impact:
The proposed lease agreement will result in rent for the Sports Complex Concessions. The Operator will pay the greater of minimum rent or a percentage of gross revenue. Per year, the operator will pay a minimum rent of $15,000, which shall be deposited in Account No. 10000100.43150. The lease will be adjusted by the annual increase in the Consumer Price Index each year. Additional percentage revenues may be realized based on the formula presented below. In the first year of the Agreement, gross revenues would need to exceed $150,000 in order for the Operator to pay more than the minimum rent amount of $15,000.
Recommended Action:
recommendation
A) Approve the "Lease Agreement Between the City of Huntington Beach and Primo Nosh Chefs LLC, For Operation of a Food Concession at the Huntington Beach Sport Complex;" and,
B) Authorize City Manager to execute the Agreement and other related documents.
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Alternative Action(s):
Do not approve the lease agreement and direct staff accordingly
Analysis:
In September of 2018, the City released a RFP for the operation of the Sports Complex Concession Stands. The City received three proposals which were reviewed by staff from the Office of Business Development and Community Services. Th...
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