Title
Authorization to Amend Lease with Domino's Pizza, LLC to Extend Term (Ordinance S-47245)
Description
Request to authorize the City Manager, or his designee, to amend Agreement 130746 with Domino's Pizza, LLC to extend the lease term for a three-year period plus two additional one-year options. Further request to authorize the City Treasurer to accept all funds related to this item.
Report
Summary
Domino's Pizza, LLC leases approximately 1,495 square feet of interior space located on City-owned property controlled by the Public Transit Department at 1945 W. Dunlap Ave., Suite #205. The current contract term expires April 30, 2021. The contract will be amended to extend the term for a three-year period plus two additional one-year options to extend. Base rent during the initial one-year extension is $1,557.29 per month, plus applicable taxes, which is within the range of market rents as determined by the Real Estate Division. The base rent will increase three percent each year thereafter. Each option period will be exercised upon mutual agreement of the City and tenant. Domino's Pizza is a long-term tenant in good standing.
Financial Impact
Revenue during the first year of the initial three-year extension period will be $18,687.48 per year, plus applicable taxes.
Concurrence/Previous Council Action
The City Council approved:
- Agreement 130746 (Ordinance S-35376) on Aug. 28, 2008;
- Amendment to Agreement 130746 (Ordinance S-37261) on July 7, 2010; and
- Amendment to Agreement 130746 (Ordinance S-40154) on Aug. 28, 2013.
Location
1945 W. Dunlap Ave., Suite 205
Council District: 5
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit and Finance departments.