Title
Authorization to Amend Lease 141402 with Corner Capital, LLC dba Stickler's Cafe to Extend the Term (Ordinance S-45903)
Description
Request to authorize the City Manager, or designee, to amend Contract 141402 with Corner Capital, LLC dba Stickler's Cafe to provide one additional five-year option period. Further request authorization for the City Treasurer to accept all funds related to this item.
Report
Summary
Corner Capital, LLC dba Stickler's Cafe (Tenant) currently leases approximately 2,981 square feet of interior retail space and 1,700 square feet of patio space located on the ground floor at 30 N. 3rd Ave. The current contract term expires Oct. 9, 2020, with one five-year option period remaining. Rent will increase by 5 percent at the beginning of the five-year option period under the terms of the current contract. Tenant is in good standing at this location.
For business planning purposes, Tenant has requested to add one additional five-year option period to the contract. The additional option period will be exercised upon mutual agreement of the City and the Tenant. Contract rent at the beginning of the additional five-year option period will increase by 5 percent, consistent with the terms of the current contract. Tenant will continue to pay a monthly pro rata share of electricity and chilled water, which is adjusted annually according to usage.
Financial Impact
Contract rent at the beginning of the additional option period, beginning Oct. 10, 2025, will be adjusted to $45,781.56 per year, plus applicable taxes.
Concurrence/Previous Council Action
This contract was authorized by Ordinance S-41582, adopted April 15, 2015.
Location
30 N. 3rd Ave.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works and Finance departments.