REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Chris Slama, Director of Community & Library Services
PREPARED BY: Chris Cole, Community & Library Services Manager
Subject:
title
Approve Amendment No. 1 to the Lease Agreement between the City of Huntington Beach and Michael Ali, dba Zack's Too Beach Concession
body
Statement of Issue:
The City Council is being asked to approve a 5-year Amendment No. 1 to the Lease Agreement, with an option to renew for two additional 5-year terms, between the City of Huntington Beach and Michael Ali for the continued operation of the beach concession known as Zack's Too, located at 21579 E. Pacific Coast Highway, Huntington Beach, California.
Financial Impact:
Monthly, the City will receive a minimum base rent or a percentage of gross revenues generated at the facility, whichever is greater. Beginning with Year 2 of the Amendment, the base rent will increase annually by the Consumer Price Index for the Los Angeles - Long Beach - Anaheim, CPI-U.
Season
Minimum Base Rent (Year 1)
Percentage Rent
Low Season - (January, February, November & December)
$327.29
4.5% of Gross Sales
Mid-Season - (March, April, September & October)
$975.95
8.0% of Gross Sales
Peak Season - (May, June, July & August)
$1,951.89
11% of Gross Sales
Recommended Action:
recommendation
Approve and authorize the Mayor and City Clerk to execute "Amendment No. 1 to Lease Agreement between the City of Huntington Beach and Michael Ali, dba Zack's Too" for the continued operation of Zack's Too Beach Concession.
end
Alternative Action(s):
Do not approve the recommended action and direct staff accordingly.
Analysis:
On January 1, 1995, the City entered into a Lease Agreement with Michael Ali (Lessee) to operate the City-owned beach concession at 21579 E. Pacific Coast Highway (Premises), adjacent to Beach Boulevard. The concession is known as Zack's Too, and has ser...
Click here for full text