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HomeMy WebLinkAboutItem B (Closed Session)CLOSED SESSION AGENDA REPORT DATE: March 25, 2002 TO: Honorable Mayor and City Council FROM: June Yotsuya, ACM SUBJECT: CLOSED SESSION MATERIAL -REAL PROPERTY NEGOTIATIONS SUMMARY OF REQUEST City Council to provide direction on real property negotiations for City owned properly at 900 Ocean Avenue, 15 First Street, and 201 Eighth Sheet. Property: 900 Ocean Avenue The lease agreement with Ruby's Restaurant will expire on July 31, 2002. The agreement allows Ruby's a right of first refusal to extend the lease. In previous discussion with our property manager, direction was given to prepare a request for proposal for this site. The RFP is provided as Attachment A for your review and comment. Per any changes, the property manager will proceed with the RFP process based on the time schedule outlined in the draft RFP. Property: 15 First Street The property manager has provided a letter outlining the terms of the existing lease with River's End Cafe and his proposed recommendation for terms and conditions for a new lease with the present tenant (Attachment B). Upon direction by the City Council, the property manager will complete negotiations with River's End, prepare a final lease agreement and staff will schedule the agreement for approval at the next available City Council meeting. Property: 201 Eighth Street The property manager is still in the process of evaluating tenant rents, etc for the Old City Hall building. However, staff has moved forward with preparing a lease agreement with the Seal Beach Chamber of Commerce as a new tenant in the building (Attachment Q. The lease agreement is on the March 25, 2002 City Council agenda for consideration. However, as part of real property negotiations, staff has placed it on closed session agenda in the event that City Council would like to discuss any negotiation issues. The Chamber of Commerce would like to occupy tenant space beginning April 1, 2002. Agenda Item Attachment A: Request for Proposal for Restaurant at the End of Seal Beach Pier Q�� Request for Proposal 01 Restaurant at the end of the Seal Beach Pier Bancap Commercial Real Estate Services As Agent for the City of Seal Beach 6265 East Second Street, Suite 102 Long Beach, CA 90803 (562) 598 -3351 Written Proposals due: May 31, 2002 2:00 p.m. ®4# Bancap Commercial Real Estate Services Restaurant at the end of the Seal Beach Pier - Request for Proposal INVITATION Bancap Commercial Real Estate Services on behalf of the City of Seal Beach is requesting proposals from restaurants interested in operating at the end of the pier. The current tenant, Ruby's Diner has occupied the site for the past 15 years and their current lease expires July 31, 2002. H. DESCRIPTION OF SEAL BEACH PREMISES The Restaurant at the end of the Seal Beach Pier is approximately 2,769 square feet. There are two handicap restrooms located adjacent to the restaurant, which are maintained by the operator. In addition there is also a food storage area. All expenses for utilities, janitorial, maintenance, repairs, management, painting, etc. shall be expenses of the operator. III. PROPOSAL REQUIREMENTS A. SEALED PROPOSALS Proposals must be submitted in a sealed envelope or package bearing the title "Restaurant at the end of the Seal Beach Pier Proposal" with the proposer's name and address. The proposer shall submit (3) copies of the completed proposal and other pertinent information to the offices of Bancap Commercial Real Estate Services no later than 2:OOpm Friday, May 31, 2002 at 6265 East Second Street, Suite 102, Long Beach, CA 90803. It is the responsibility of the proposer to ensure that the proposal is delivered on time. Any proposal received after the deadline will be disqualified. B. PUBLIC INFORMATION All submitted proposals, information included therein and attached thereto shall become public record upon receipt by the City Council for consideration of selection. IV. MINIMUM QUALIFICATIONS Restaurants submitting proposals shall meet the following minimum qualifications: A. Shall have or document a minimum of ten years experience in the Restaurant Industry. B. Must demonstrate experience in the operation of more than one facility. C. Must demonstrate financial stability V. SELECTION PROCESS A selection committee designated by the Seal Beach City Manager will review all proposals. The selection process will involve the review of the proposal for compliance with the requirements of the Request for Proposal, along with the qualifications of the restaurant and references. Based upon the selection committee's review of the proposals, interviews may be scheduled at Seal Beach City Hall with the most qualified proposers. Finalists will be notified of specific times and will be allowed a total of thirty minutes for their presentation and to answer questions of the selection committee. The selection committee will rank the proposers and staff will recommend the top ranked firm to the Seal Beach City Council. Once the Restaurant and Proposal have been selected, Ruby's Diner (as part of the first right of refusal clause in their existing lease document) shall have 30 days to match the selected proposal. If Ruby's does not match the proposal within the specified time period, a lease will be prepared and executed with the new operator. VI. CONTENTS OF PROPOSAL Proposals shall contain the following information: A. A summary of the Restaurants' background and key personnel, including but not limited to number of existing restaurants operated, locations, sizes, menus and financial performance. B. 2001 Financial statements (Balance sheet and Income statements) on both existing restaurants operated and the principals involved. C. Proposed menu for the Seal Beach pier location including both food and beverage, pricing and hours of operation. D. Proforma Budget E. Sample Lease document F. Economic proposal based on a 5 -year lease with (2) five -year options including base rent, percentage rent, annual increases and security deposit. G. Suggested improvements to the existing structure and proposed one- time reimbursement to City of Seal Beach for existing structure, improvements and equipment. H. A discussion of how the operator will market and advertise the restaurant to maximize the revenues and returns to the City of Seal Beach. I. A list of 10 references including existing landlords and suppliers. VII. CRITERIA FOR SELECTION Selection of the operator shall be based upon the following criteria: • Experience and reputation. • Financial strength of restaurant and principals • Economic return to the City of Seal Beach VIII. TIME SCHEDULE The City of Seal Beach anticipates using the following time schedule, which should result in the selection of a restaurant by August 1, 2002. April 1, 2002 Authorization of Request for Proposal by City Council April 5, 2002 Mail Request for Proposal to Restaurants May 31, 2002 Written Proposals due to Bancap Commercial Real Estate Services by 2:OOpm June 1-15,2002 Review of Proposals July 1, 2002 Recommendation to City Council and notification to Ruby's Diner August 1, 2002 Selection Any questions regarding this Request for Proposal should be directed to R. Whitney Latimer, Bancap Commercial Real Estate Services, Chief Financial Officer and Agent for the City of Seal Beach. . REQUEST FOR PROPOSAL DISTRIBUTION LIST Bake N Broil 3697 Atlantic Avenue Long Beach, CA 90807 (562) 595 -0396 Belmont Brewery 25 S. 39" Place Long Beach, CA 90803 (562) 433 -3891 Buster's Beach House & Long Board Bar Captain Jack's 168 Marina Drive 16812 Pacific Coast Highway Long Beach, CA 90803 Sunset Beach, CA (562) 598 -9431 (562) 592 -2514 Carrows Restaurant 251 Willow Long Beach, CA 90806 (562) 424 -2116 Coco's 6405 E. Pack Coast Highway Long Beach, CA 90803 (562) 431 -6306 Dick's Last Resort 345 Fourth Avenue San Diego, CA 92101 (619) 231 -9100 Finbars Italian Kitchen 550 E. Pacific Coast Highway Seal Beach, CA 90740 (562) 430 -4303 Harbor House Cafe 16341 Pacific Coast Highway Sunset Beach, CA 90742 (562) 592 -5404 International House of Pancakes 1101 E. Pacific Coast Highway Long Beach, CA 90806 (562) 591 -1050 Claim Jumper 6501 E. Pacific Coast Highway Long Beach, CA 90803 (562) 430 -5004 The Crab Pot 215 Marina Drive Long Beach, CA 90803 (562) 430 -0272 Denny's 5570 E. Pacific Coast Highway Long Beach, CA 90804 (562) 498 -1897 Fish Tale 5506 Britton Drive Long Beach, CA 90815 (562) 594 -6870 Hofs Hut 6257 E. 2n° Street Long Beach, CA 90803 (562) 598 -4070 Jimmy's Fish & Grill 6463 E. Pacific Coast Highway Long Beach, CA 90803 (562) 594 -9479 Joe's Crab Shack Johnny Rockets 6550 Marina Drive 245 Pine Avenue Long Beach, CA 90803 Long Beach, CA 90802 (562) 594 -6551 (562) 983 -1332 Katella Deli La Palapa Del Mar 4470 Katella Ave. 4020 E. Olympic Plaza Los Alamitos, CA 90720 Long Beach, CA 90803 (562) 594 -8611 (562) 433 -5702 Mimi's Cafe Original Fish Company 6670 E. PCH 11061 Los Alamitos Blvd. Long Beach, CA 90803 Los Alamitos, CA 90720 (562) 596 -0831 (562) 594 -4553 Paradise Polly's Bakery Cafe 889 W 190" Street 3490 Atlantic Ave. Gardena, CA 90248 Long Beach, CA 90807 (310) 324 -4800 (562) 595 -5651 Schooner or Later Shore House Cafe 241 Marina Drive 941 East Pacific Coast Highway Long Beach, CA 90803 Seal Beach, CA 90803 (562) 430 -3495 (562) 430 -0116 Walt's Wharf Woody's Diner 201 Main Street 16371 Pacific Coast Highway Seal Beach, CA 90740 Sunset Beach, CA 90742 (562) 598 -4433 (562) 592 -2134 The Yard House 8001 Irvine Center Drive, Ste. 1170 Irvine, CA 92618 (949) 727 -0959 Attachment B: Lease Extension recommendations for River's End Cafe BANCAP 6265 East Second Street, Suite 102 Long Beach, California 90803 -4613 February 14, 2002 June Yotsuya Assistant to the City Manager Office of the City Manager - Seal Beach 211 Eighth Street Seal Beach, CA 90740 Re: River's End Cafe Dear June, (562) 598 -3351 FAX (562) 430 -0712 Pursuant to our meeting on January 28, 2002 and discussions with City Council listed below are the lease extension recommendations for River's End Cafe. Existinc Lease Tenn: Option: Right of First Refusal Minimum Rent: Percentage Rent: Alcohol: Parking: Maintenance and Utilities: Improvements: Rental Status: May 1, 1996 through April 30, 2001 (Currently month to month) 15 Year extension upon mutual agreement 30 day review $6,000 ($500 per month) 6% of gross sales None 2 Permits no charge 3 Permits at market - Customer Validation ($1) Tenant Responsible Tenant Responsible Minimum Rent Current Improvements and Parking improperly deducted ($9,455) from Percentage Recommendation Extend 5 years Term: Option: First Right of Refusal Minimum Rent: Annual. Increases to Minimum: Percentage Rent: Past Due Rents: Alcohol April 1, 2002 to March 31, 2007 None None $12,000 ($1,000 per month) CPI 6% Food, 7% Alcohol Amortize over new lease ($9,455 + 60 months) _ $158 per month Allow tenant to pursue conditional use permit for beer and wine only June, please present to council and advise me of any changes prior to me drafting a lease for signature. V= Truly Yours, R. VVhitrki Latimer CFO for Vgent RWL /tic Attachment C: Office Lease Agreement with Seal Beach Chamber of Commerce OFFICE LEASE AGREEMENT BY AND BETWEEN CITY OF SEAL BEACH AND SEAL BEACH CHAMBER OF COMMERCE This lease is made this day of March, 2002, by and between the CITY OF SEAL BEACH, a municipal corporation (hereinafter referred to as "Lessor"), and the SEAL BEACH CHAMBER OF COMMERCE, a non - profit, mutual benefit corporation (hereinafter referred to as "Lessee "). WHEREAS, Lessor is the owner of that certain real property located in the City of Seal Beach, County of Orange, State of California, commonly known as 201 Eighth Street and now referenced as Old City Hall building, as legally described on Exhibit "A" attached hereto and incorporated by reference herein (the "Property"); and WHEREAS, Lessor and Lessee desire to enter into a lease agreement for use of certain building office space on the Property, referred to as Suite 120; and WHEREAS, said building office space will be used as the site of the Seal Beach Chamber of Commerce; and WHEREAS, the Seal Beach Chamber of Commerce is an organization incorporated and existing for the purpose of serving its members and the general public of the City of Seal Beach; and WHEREAS, the location of the office of the Seal Beach Chamber of Commerce at said Old City Hall building is of benefit to the parties: NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions contained herein, the parties hereto agree as follows: 1. Lessor hereby leases to Lessee and Lessee leases from Lessor that certain office space in the Old City Hall building on the Property, as shown in Exhibit "B" attached hereto and incorporated by reference herein and referenced as 201 Eighth Street, Suite 120, Seal Beach, California (the "Premises "). 2. The term of this lease shall be for a period of five (5) years commencing upon April 1, 2002 and expiring on March 31, 2007; provided, however, it is the intention of the parties that said lease may be renewed for an additional period of years and upon terms and conditions as may be mutually agreed upon between said parties. 3. Lessee shall pay to Lessor for the rights granted hereunder the sum of one dollar ($1.00) per year, for a sum of five dollars ($5.00) to be paid upon the execution of this lease. 4. In exchange for the current lease value of the Premises, the Lessee shall provide community and business service support that will be of public benefit for the City of Seal Beach. 5. The Premises shall be used only for the activities and business conducted by the Seal Beach Chamber of Commerce. In the event Premises is used for any other purpose or use, or in the event Premises remains vacant or unused by Lessee for a period of one hundred eighty (180) consecutive days, Lessor, at its option, may terminate this lease and take possession of the Premises without further notice to Lessee. 6. Lessee shall not damage the Premises or the Property or make any alterations, changes or additions in or to the Premises or the Property, without the written consent of the Lessor first being obtained. No signs shall be placed on the interior or exterior of the Property unless the written approval of the Lessor is first obtained. Lessor's consent or approval, in each instance, may be withheld by Lessor in its sole and absolute discretion. 7. Lessee shall maintain the Premises in a good, safe, neat and sanitary condition to the satisfaction of the Lessor and shall contribute to maintaining the common areas of the Property in good condition and repair. 8. During the term of this lease, Lessee shall procure and keep in force, at its sole cost and expense, commercial general liability insurance in the aggregate amount of One Million Dollars ($1,000,000.00) written by a reliable insurance company authorized to do business in the State of California. Said policy shall provide that the Lessor is an additional insured thereunder and that said policy shall be primary to any other policy of the Lessor. Lessee shall furnish to Lessor, upon or prior to execution of this lease, a certificate of such insurance and shall be notified at least thirty (30) days prior to cancellation, reduction in scope or amount of coverage, or any other modification of said policy. 9. During the term of this lease, Lessee shall procure and keep in force, at its sole cost and expense, a policy insuring loss or damage to all of Lessee's personal property, fixtures, equipment, utility installations and tenant improvements in, on, or about the Premises in an amount equal to one hundred percent (100 %) of their replacement value, and proceeds from such insurance shall be used by Lessee for the replacement of such personal property and the restoration of such fixtures, equipment, utility installations and tenant improvements located on the Premises. 10. Lessee shall pay its pro rata share of common area maintenance and operating expenses and shall pay its pro rata share of all gas, electricity, water, sewer and other public utility services supplied to the Premises during the term of this lease as such charges become due and payable. If any payment is not received within ten (10) days after the due date, then, without any requirement for notice to Lessee, Lessee shall pay to Lessor a late charge equal to ten percent (10 %) of the amount of the overdue payment. 11. If Lessee uses or consumes utilities or services after building hours or in amounts that are appreciably in excess of that which Lessor reasonably determines are average for tenants of the Property, Lessee shall reimburse Lessor for the cost of such excess consumption immediately upon receipt of demand thereof. 12. Lessor shall not be obligated to provide any parking for Lessee. Lessee shall not have the right to use any parking area on the Property, but shall make its own arrangements with the City of Seal Beach, by separate agreement outside of this lease, for use of City public or permit lots. 13. Lessee covenants and agrees with Lessor that Lessor shall not be liable for any injuries or damages to person or property from any cause whatsoever by reason of the use, occupation, control or enjoyment of the Premises and /or the Property by Lessee, Lessee's agents, employees or representatives, or any person invited, suffered or permitted by Lessee to go or be upon the Premises or the Property. Lessee shall indemnify, defend and save Lessor harmless from and against any and all liability, losses, penalties, causes of action, damages, expenses (including attomeys' fees) and judgments whatsoever on account of such injuries or damages. The indemnity provisions contained herein shall survive the expiration or earlier termination of this lease. 14. Lessee shall not assign, convey, hypothecate or otherwise transfer, by operation of law or otherwise, its interest in whole or in part in this lease or sublet all or any portion of the Premises. Any transfer in violation of this section shall be void ab initio and shall be of no force or effect, and shall constitute a breach of this lease by Lessee. 15. In the event of a breach by Lessee of any of the terms, covenants or conditions contained herein, Lessor, at its option, may give Lessee a thirty (30) day written notice to correct such breach. In the event Lessee fails to correct such breach within said thirty (30) day period. Lessor without further notice or process of law may declare this lease terminated and all of Lessee's rights hereunder terminated. And thereupon, all of Lessee's rights and interests in the Premises shall immediately terminate and be of no further force or effect. 16. Lessee may terminate this lease at any time during its term by giving sixty (60) days prior written notice to Lessor. 17. Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party hereunder shall be in writing and shall be deemed given as of the time of hand delivery to the addresses set forth below, on the next business day after delivery by a nationally recognized overnight delivery service, or three (3) days after deposit into the United States mail, postage prepaid, by registered or certified mail, return receipt requested. Unless notice of a different address has been given in accordance with this section, all such notices shall be addressed as follows: To Lessor: City of Seal Beach 211 a Street Seal Beach, California 90740 Attention: City Clerk To Lessee: Seal Beach Chamber of Commerce 201 a Street, Suite 120 Seal Beach, California 90740 Attention: Executive Director 18. Except as provided herein, this lease may be amended or modified only by the written agreement of the parties hereto. 19. In the event any legal or equitable action or proceeding is instituted between the parties hereto seeking enforcement or interpretation of any of the terms or provisions of this lease, the prevailing party in such action shall be entitled to have and to recover from the other party all of the prevailing party's costs of suit, including but not limited to actual attorneys' fees awarded by the court. 20. No waiver of breach of any of the covenants, agreements, restrictions, or conditions of this lease by Lessor shall be construed to be a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions of this lease. No delay or omission of Lessor in exercising any right, power or remedy herein provided in the event of default shall be construed as a waiver thereof, or acquiescence therein, nor shall the acceptance of any payments made in a manner or at a time other than is herein provided be construed as a waiver of, or a variation of, any of the terms of this lease. Lessor's consent to or approval of any act shall not be deemed to render unnecessary the obtaining of Lassoes consent or approval of any subsequent act by Lessee. 21. This lease shall be governed by the laws of the State of California. The captions of the various sections of this lease are for convenience and ease of reference only and do not define, limit, augment, or describe the scope, content, or intent of this lease or of any part or parts of this lease. The neuter gender includes the feminine and masculine, the masculine includes the feminine and neuter, and the feminine includes the neuter, and each includes corporation, partnership, or other legal entity whenever the context so requires. The singular number includes the plural whenever the context so requires. The term "days" as used in this Lease shall refer to calendar days, unless specified otherwise. 22. This lease constitutes the entire agreement between the parties hereto with respect to the subject matter hereof. Lessor and Lessee hereby acknowledge that they have neither made nor accepted any other promise or obligation with respect to the subject matter of this lease. No verbal agreement or implied covenant shall be held to vary the provisions hereof, any statements, law or custom to the contrary notwithstanding. The failure or refusal of either party to inspect the Premises, to read this lease or other documents, or to obtain legal or other advice relevant to this transaction constitutes a waiver of any objection, contention, or claim that might have been based on such reading, inspection, or advice. Each party represents and warrants that it has the power and authority to enter into and carry out the provisions of this lease. 23. Time is of the essence hereunder. 24. Nothing in this lease shall be deemed or construed by the parties hereto or by any third person to create the relationship of principal and agent, partnership, joint venture, or any other association between Lessor and Lessee other than the relationship described herein. 25. Lessee warrants that it has not paid or given, and will not pay or give, to any third person, any money or other consideration for obtaining this lease, other than normal costs of conducting business and costs of professional services such as architects, engineers and attorneys. 26. Each and every provision of this lease is, and shall be construed to be, a separate and independent covenant and agreement. If any term or provision of this lease or the application thereof shall to any extent be held to be invalid or unenforceable as determined by a court of competent jurisdiction, the remainder of this lease, or the application of such term or provision to circumstances other than those to which it is held to be invalid or unenforceable, shall not be affected hereby, and each term and provision of this lease shall be valid and shall be enforced to the extent permitted by law. 27. This lease may be executed simultaneously in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. For purposes of this lease, facsimile signatures shall be deemed to be original signatures, and shall be followed by the immediate overnight delivery of original signature pages. IN WITNESS WHEREOF, the parties hereto have caused this lease to be executed as of the day and year first above written. LESSOR: LESSEE: CITY OF SEAL BEACH SEAL BEACH CHAMBER OF COMMERCE By: By: Mayor Executive ATTEST: By: City Clerk APPROVED AS TO FORM: By: City Attorney STATE OF CALIFORNIA ) ) SS. COUNTY OF ORANGE ) On this _ day of 2002, before me , a notary public in and for said State, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is /are subscribed to the within instrument, and acknowledged to me that he /she/they executed the same in his /her /their authorized capacity(ies), and that by his /her /their signatures) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the within instrument. WITNESS my hand and official seal. Signature: (Seal) Notary Public STATE OF CALIFORNIA ) ) SS. COUNTY OF ORANGE ) On this _ day of 2002, before me a notary public in and for said State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the persons) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he /she/they executed the same in his /her /their authorized capacity(ies), and that by his/her /their signature(s) on the instrument the person(s), or the entity upon behalf of which the persons) acted, executed the within instrument. WITNESS my hand and official seal. Signature: (Seal) Notary Public Exhibit "A" Legal Description of Property Being those portions of Lots 1,35 and 7, and Block 107 of Bay City Map in the City of Seal Beach, County of Orange, State of California, recorded in Book 3, Page 19 of miscellaneous maps, records of Orange County, more particularly described as follows: Beginning at the southeast corner of said Lot 1; Thence, northeasterly 87 feet along the easterly line of aid Lots 1,3,5 and 7, said easterly lot line also being the westerly line of 8' street, to a point of intersection with the easterly prolongation of the exterior face of the northerly wall of the old City Hall building constructed in 1929; Thence, northwesterly perpendicular to said a Street, along the exterior face of said wall and its prolongation, 58.3 feet; Thence, northeasterly, parallel to 8r" Street, 10.7 feet; Thence, northwesterly, perpendicular to 8' Street, 59.2 feet, to the westerly line of said Lots 1,3,5 and 7; Thence, southwesterly 97.7 feet along said westerly line to the southwest comer of Lot 1; Thence, southeasterly 117.5 feet along the southerly line of Lot 1 to the point of beginning. SUITE aFIGE 19 l." 590.$ sa F(. (Q.T I t {rHE4. I orflcc � 13osr 13X70 Rc°.n 2bD S/ t 3'H" H >LLwAY w' L' %11 "V I°9v 6'xwb� ��•� �OIMc IO'L°X 13' 0"1SP 131.5+r \ OVFIc£ Q&A sw.�s sr I b" M Exhibit "B" Site Plan of Premises PA 4ELS � lo' StO PLFgE hbf REVrag� As o�-P1� to JpiA6S 130 zP 13 ' +{pLLWA4 EutE2 y 9K 14 2LSr 5, 9' BILI, 0 orv, 115 x n5 �% 14" Qn15 VIoMf.�S t<2 EXHIBIT A 1st Floor of OLD CITY HALL BUILDING E.1/c2 M I I y re' 22 a vS 13X16 ° Ie FNI' 9�n tse s� FcIUZ loesr �FFIEE 29Z.SSP )X14 J Rmp 1� SP P °vLJ� IQ