HomeMy WebLinkAboutCC AG PKT 2012-11-13 #GAGENDA STAFF REPORT
DATE: November 13, 2012
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Sean P. Crumby, Assistant City Manager/Public Works
SUBJECT: RUBY'S DINER UPDATE
SUMMARY:
Staff is requesting that the City Council ratify the City's Manager's consent to
Ruby's continuing to operate the restaurant on the Seal Beach Pier on a month-
to-month tenancy.
BACKGROUND AND ANALYSIS:
The City has leased the restaurant at the end of the Seal Beach Pier to Ruby's
Diner for over 25 years. The most recent lease ("Lease") was executed on
September 23, 2002 and expired on October 31, 2012. However, City staff and
the operator of Ruby's—Art Haack—have been engaged in discussions
concerning a new lease.
Accordingly, on October 31, 2012, the City Manager sent the attached letter
consenting to the tenant remaining in possession of the premises on a month-to-
month basis to provide the parties more time for negotiations. In the event the
parties are unable to reach an agreement, or for any other reason, either party
may provide notice of termination of the lease by providing 30 days written notice
pursuant to Section 20.2 of the Lease.
Section 20.2 provides:
If Tenant, with City's consent, remains in possession of the
Premises after Expiration or Termination of the Term, or after the
date in any notice given by City to Tenant terminating this Lease,
such possession by Tenant shall be deemed to be a month-to-
month tenancy terminable on thirty (30) days' notice given at any
time by either Party. All Provisions of this Lease shall apply to the
month-to-month tenancy except the provisions of Section 3 and
Section 5.1, and the Minimum Monthly Rent payable by Tenant
shall increase by one hundred fifty percent (150%) during such
holdover period.
Agenda Item
FISCAL IMPACT:
The City will continue to receive rent during the month-to-month tenancy. The
holdover provision increases the rent by 150%.
ENVIRONMENTAL IMPACT:
There will be no environmental impact associated with this action.
CITY ATTORNEY REVIEW:
The City Attorney has reviewed and approved as to form.
RECOMMENDATION:
The Council ratifies the City Manager's consent.
SUBMITTED BY:
Sean P. Crumby,
Assistant City Manager/Public Works
Attachment:
A. Letter to The Ruby Restaurant Group
Page 2
NOTED AND APPROVED:
,. ill Ingram, Cit, nager
CITY HALL 211 EIGHTH STREET
SEAL BEACH, CALIFORNIA 90740
(562) 431-2527 • www.ci.seal-beltelLea.us
October 31, 2012
HAND DELIVERED AND FIRST-CLASS MAIL
Doug Cavanaugh
The Ruby Restaurant Group
660 Newport Center Drive, Suite 850
Newport Beach, CA 90740
Re: That Certain Lease ("Lease") re the Seal Beach Pier Restaurant ("Premises") dated
September 23, 2002 between the City of Seal Beach ("City") and Ruby's Diner, Inc. ("Tenant")
Dear Mr. Cavanaugh:
As you know, the Lease expires on October 31, 2012. However, the City and Mr. Haack have
been in negotiations concerning the Premises. Pursuant to the provisions of Section 20.2,
Holding Over, the City hereby consents to the Tenant remaining in possession of the Premises
until (a) such time that negotiations are complete and a new lease is fully executed by the parties;
or either party provides notice pursuant to Section 20.2.
For your ease of reference, below is the full text of Section 20.2:
If Tenant, with City's consent, remains in possession of the Premises after
Expiration or Termination of the Term, or after the date in any notice given by
City to Tenant terminating this Lease, such possession by Tenant shall be deemed
to be a month-to-month tenancy terminable on thirty (30) days' notice given at any
time by either Party. All Provisions of this Lease shall apply to the month-to-
month tenancy except the provisions of Section 3 and Section 5.1, and the
Minimum Monthly Rent payable by Tenant shall increase by one hundred fifty
percent (150%) during such holdover period.
If you have any questions, please do not hesitate to call Sean Crumby.
ety truLry9urs,
ager
City CitvofSeal Beach
Cc: City Council
City Attorney
Art Haack