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Home My WebLink AboutAGMT - The Jewel at Rivers End (DavCo Realty Advisors) Proposal to LeaseItr,M ° - , ., . � July 12, 2017 Jill Ingram City Manager City of Seal Beach 211 Eight Street Seal Beach, CA 90740 C/o Mohammed Baghdadi - Westridge Commercial James Lehigh -CBRE VIA EMAIL: mb @wcil.net RE: PROPOSAL TO LEASE / THE JEWEL @ RIVERS' END, SEAL BEACH Dear Ms. Ingram: Pursuant to our recent discussions, The Jewel @ River's End, LLC and/or entity or DBA to follow (Tenant), has exclusively retained DAVCO Realty Advisors ( "DRA") as their representative to evaluate and negotiate a lease at the above referenced building. Tenant is an entity created specifically for this unique, local oceanfront venue on the Strategic Gold Coast area of Downtown Seal Beach. Tenant is a partnership and consortium of unique diversified individuals with an array of extensive experience and local restaurant concepts. Our concept is best understood to be sensitive to both this unique location, as well as the City unique needs. The partnership is made up of current and past Seal Beach residence including Brian Kyle, David Coe, and other Seal Beach locals including holding esteemed offices such as Seal Beach Grand Marshal, and serving on several Seal Beach commissions and community committees. With these strategic partners covering collectively 5 decades of relationship, reputation, quality servicing this community, our team is confident of its success with the goal of operating a quality restaurant venue for the City on the Gold Coast. Details on this specific business model will be confidential until the point of achieving an exclusive but brief, negotiating period with the City of Seal Beach. At this point, Tenant will make clear their concept with the City's involvement, will cooperate in a quasi - partnership incorporating the needs and goals of the City. Our intent is to achieve an exclusive negotiating period with the City, so both the community and City can cooperatively prioritize the optimal goals and objectives, both physical and conceptual, for this location. From there, the two parties can quickly memorialize the business model and financial package. Recognizing that municipal and State Land forces are at hand, we feel strongly that a fluid team effort between Tenant and the City in a quasi - partnership relationship, will ultimately best serve the proud City of DavCo Realty Advisors Direct (562) 822 -1405 dcoe[mdavcorealtv.com Seal Beach. Lastly, we would like to stress we are local, not a chain, and have the `Pulse of the Community'. Please consider this Proposal to Lease as the basics terms and conditions to pursue tenancy. Tenant look forward to submitting detailed conceptual drawings, and business plan in the next stage of negotiations. 1. PREMISES: 15 1 st Street, Seal Beach, CA, Ground Floor plus patio, consisting of approximately 2,234 gross square feet of building (TBC with legal definition), with sphere of influence extending from the new City Park through City Parking lot to the South border of Premises extending to Beach sand area. 2. TERM: Twenty (20) year tern. Tenant shall have the rights to Four (4) Five (5) year renewal options. 3. COMMENCEMENT: 120 days from business opening. 4. USE: General restaurant or any other legally permitted use. 5. RENTAL SCHEDULE: $3.00 per gross square foot of building, on a modified gross basis, adjusting by CPI each 30 months' capped at 5 %. Option rents shall also be increased accordingly. 6. OPERATING EXPENSES: To be addressed in exclusive negotiating period. TENANT IMPROVEMENTS: It is estimate that Tenant shall contribute over $175,000 over the buildings current condition. Landlord shall insure power, water, gas, and RVAC are appropriately provided to Premises in good working condition. 8. CAPTIAL IMPROVEMENTS: To be addressed in exclusive negotiating period. (Landlord shall be responsible for HVAC and roof systems to be in good working order for a minimum of 10 years + of useful life, all seismic upgrades, window integrity and all systems of the building in a waterproof condition, as well as all major elements of the building to be in generally acceptable good working order) 9. PARIUNG /CITY LOT: Lot uses shall have Tenant's exclusivity to promote special events and other venues for City benefit and insure competitive advantage to include Lions' Club, Woman of Night, LAEF, Navy Weapons Station, Surfrider Foundation, and other local fundraisers and organizations. City shall keep parking lot in good condition and free from all hazardous substances on a past, present and future uses. Tenant shall have minimal employee parking stalls at no cost and a delivery area to support the quality of establishment Seal Beach deserves. All public facilities shall be the responsibility of the City inclusive of all maintenance costs. 10. SIGNAGE: Tenant shall have signage rights on top of building, monument signs, as well as at entry off Ocean Avenue, off River Jetty, and on City property at l' and PCH. All signage proposed will be pending Coastal Commission approval. 11. FINANCIALS: Tenant is a well healed, highly motivated entity that is willing and able to perform all functions necessary in this endeavor. Financial strength can be verified in the final stage of negotiations as needed. 12. CONTINGENCY: This transaction shall be contingent upon Tenant receiving all appropriate permits, zoning designations, and appropriate liquor licenses first contemplated as a beer and wine license. Further, this proposal is subject to a meeting with City of Seal Beach officials to improve common areas surrounding Premises, as to insure quality of amenities both on and off beach uses. 13. COMMISSIONS: In the event of a mutual execution of a lease agreement, Landlord shall be responsible for compensation to CBRE and Davco Realty Advisors per sharing of market standard fees. 14. TIME IS OF TBE ESSENCE: Recognizing this will be a patient process, we would like to request that City of Seal Beach provide Davco Realty with a response to this Proposal to Lease at your earliest convenience. This letter shall not create a legally binding agreement between Landlord and Tenant, but is meant only to form a basis from which discussions may proceed and definitive terms and conditions may be negotiated. Neither party shall be legally bound to engage in any transaction regarding the property until a mutually agreed upon, definitive Lease agreement has been negotiated, approved by counsel and all necessary persons and signed on behalf of all parties. On behalf of our client, we look forward to your response to this Proposal to Lease. Should you have any questions, please contact me directly at (562) 822 -1405. Sincerely, DAVCO REALTY ADVISORS ' Z /r ' David G. Coe President ACCEPTED & AGREED TENANT A-�, Its Iy /RNA4l -w6 Alkn 4 k --x Date $ / G 17 ACCEPTED & AGREED LANDLORD