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HomeMy WebLinkAbout08 FOOD/BEVERAGE CONCESSION AT TSP... ~" AGENDA REPORT MEETING DATE TO: FROM: SUBJECT: APRIL 5, 2011 Agenda Item 8 Reviewed: City Manager Finance Director -- WILLIAM A. HUSTON, INTERIM CITY MANAGER DAVID A. WILSON, DIRECTOR, PARKS & RECREATION EXTENSION OF LEASE AGREEMENT FOR OPERATION OF FOOD/BEVERAGE CONCESSION AT TUSTIN SPORTS PARK SUMMARY: The City entered into a five (5) year Lease Agreement with Luigi and Amy Ravetto, dba Express Sports Cafe, in March 2006 to operate the food/beverage concession at the Tustin Sports Park. Consistent with the terms of the Agreement, the lessee has requested an extension of their lease. Staff recommends approval of Amendment No. 1 which would extend the terms of the Agreement for three (3) years and allow the business to continue providing food and beverage concessions to park patrons. RECOMMENDATION: That the City Council execute Amendment No. 1 to the Lease Agreement between Luigi and Amy Ravetto (dba Express Sports Cafe) and the City of Tustin, thus extending their lease by three (3) years. FISCAL IMPACT: The terms of the Lease Agreement require the lessee to pay a rent of three hundred dollars ($300) per month except during the month of December of each year, when the business will be closed and no rent shall be due. After reviewing the last two years of gross receipts, staff is recommending that the current monthly lease amount be continued for the duration of this extension. BACKGROUND: The Express Sports Cafe began operating the food beverage concession at the Tustin Sports Park in October 2000 on an assigned lease. When that lease ended, the City entered into a five (5) year Lease Agreement with Express Sports Cafe in March 2006. In this time, the business has conscientiously operated the facility and complied with all terms of the Lease regarding the operation of the concession. In a letter dated January 6, 2011, Luigi and Amy Ravetto requested that the Lease Agreement be extended for a term of five (5) years. Staff evaluated the operation and reviewed two years worth of tax returns from the business. Based on this analysis, staff concluded that raising the lease amount was not a feasible option at this time. However, staff is recommending that terms of the Lease Agreement be extended for three (3) years rather than five (5) years as specified as an option in the agreement. In the future economic conditions may improve and thus warrant an increase in the monthly lease amount. This matter has been reviewed by the City Attorney's office and Amendment No. 1 has been approvgd as to form. Da~l'd A. Wilson, Director Parks & Recreation Services Attachment: Amendment No. 1 to Lease Agreement to the Tustin Sports Park Food/Beverage Concession January 6, 2011 Letter from Amy & Luigi Ravetto AMENDMENT NO. 1 TO THE LEASE AGREEMENT FOR THE TUSTIN SPORTS PARK FOOD/BEVERAGE CONCESSION This Amendment No. 1 is made this 5th day of April, 2011 by and between the CITY OF TUSTIN ("CITY") and Luigi and Amy Ravetto, P.O. Box 4685, Orange, CA 92863, dba Express Sports Cafe ("LESSEE"). RFC'.ITAI Whereas, on March 20, 2006 CITY and LESSEE entered into a five (5) year Lease Agreement ("AGREEMENT") to operate the food/beverage concession at the Tustin Sports Park (12850 Robinson Drive), and Whereas, LESSEE may apply for an extension of this Lease Agreement subject to CITY's exclusive discretion under section 2.3 of the Agreement, and Whereas, LESSEE has requested an extension to the Agreement, and Whereas, LESSEE is in compliance with the terms of this lease and the CITY wishes that the LESSEE continues to operate the food/beverage concession at Tustin Sports Park, and Whereas, it is in the best interest of both parties that the Agreement be extended for a period of three years, NOW, THEREFORE, based on the promises and mutual covenants herein, the parties hereby agree as follows: 1. Extension of Agreement. Effective April 5, 2011, the term of this lease shall be extended for a period of three (3) years. 2. Notices. Effective April 5, 2011, the address to be used for any notice served by mail upon LESSEE as provided in Section 28 of AGREEMENT shall be addressed as follows: Luigi and Amy Ravetto Express Sports Cafe P.O. Box 61524 Irvine, CA 92602 753998.1 3. Other Terms and Conditions of Agreement All other terms of the Agreement remain in full force and effect. In Witness Whereof, the parties hereto have executed this Amendment No. 1 to be effective as of the date set forth above. LESSEE Approved as to Form: ~__-- ~J glas Holland Attorney Luigi Ravetto Express Sports Cafe Amy Ravetto Express Sports Cafe LESSOR CITY OF TUSTIN William A. Huston Interim City Manager 753998.1 January 6, 2011 C Parks and Recreation Services City of Tustin 300 Centennial Way Tustin, CA 92780 Attn: Dave Wilson Re: Express Sports Cafe Dear Dave, We would like to apply for an extension of our lease dated March 20, 2006 for a term of five years (one of the two option terms). We are not requesting any other changes to the lease. Thank you for your attention to this matter. Sincerely, _~ cc: City Manager, City of Tustin