REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Ursula Luna-Reynosa, Director of Community Development
Subject:
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Termination of Rent Abatement for Certain Tenants at City-owned Facilities effective August 1, 2020 and authorize City Manager to reinstate if necessary
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Statement of Issue:
Authorize and direct the City Manager to terminate Rent Abatement, effective August 1, 2020, for concessionaire tenants leasing City-owned property, which was put in place as a response to the financial impacts from the COVID-19 pandemic. Additionally, Authorize the City Manager to reinstate the Rent Abatement if future actions due to COVID-19 severely impact the tenants ability to operate.
Financial Impact:
The rent abatement went into effect in March 2020. The City will have foregone base rent revenue for the months of March through July, totaling approximately $582,152. Should the City Council direct the City Manager to terminate the rent abatement, the City expects to collect approximately $120,994, in base rent only, for the month of August 2020, and decreasing amounts for the following months as the peak seasonal season comes to an end. Revenue collected will be deposited into concessionaire lease accounts (10000100.43165; 10000100.43085; 10000100.43095; 10000100.43145; 10000100.43150; 10000100.43155).
Recommended Action:
recommendation
A) Authorize and direct the City Manager, or his designee, to terminate Rent Abatement to concessionaire tenants of various City-owned facilities, effective August 1, 2020. A list of the tenants is outlined in Attachment No. 1; and,
B) Authorize the City Manager, or his designee, to reinstate the Rent Abatement if future COVID-19 pandemic actions severely impact the tenants ability to operate.
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Alternative Action(s):
Do no approve the termination of Rent Abatement, and direct staff accordingly.
Analysis:
On March 31, 2...
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