HomeMy WebLinkAbout05 MOM'S CAFE LEASE 05-15-00DATE:
May 15, 2000
NO. _5
0.5-15-00
i nter-Com
TO:
FROM'
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
PARKS & REC~ATION SERVICES
AMENDMENT No. 1 TO THE LEASE AGREEMENT BETWEEN MOM'S
SPORTS CAFl~ AND CITY OF TUSTIN
:ement
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servmes for p~hs of Citysponsored programs at the S~:~rts
Park.
RECOMMENDATION:
The City Council execute Amendment No. 1 to the lease A~eement between Mom's
Sports Caf6 and the City of Tustin.
FISCAL IMPACT:
The terms of the Lease Agreement require the lessee to pay a minimUm monthly rent in
the amount of three hundred dollars ($300) per month for the first year and four hundred
dollars ($400) a month for the second through fifth year of the five-year term of the
Agreement. The Lessee is also required to pay the City ten percent (10%) of gross sales
in excess of three thousand dollars ($3,000) per month. A rent increase is scheduled for
April 1, 2000.
Under terms of Amendment No. 1 the Lessee would be required to pay three hundred
dollars ($300) per month as minimum monthly rent, with no percentage of gross sales
due, for the remaining term of the Lease Agreement. Also, no rent would be required
during the month of December of each year when the business is closed.
BACKGROUND:
The City entered into a Lease Agreement with Mom's Sports Caf6 in January of 1999 to
operate a food & beverage concession at the Tustin Sports Park. Mom's Caf6 opened for
business in April 1999. Since that time business has not met the expectations of the City
or operator even though the Lessee has conscientiously operated the facility and complied
with all terms of the Lease regarding the operation of the concession stand.
There is very little walk up traffic to the concession stand. Attendance at tl~e park is
completely activity driven. The only weekday business is from 6:30-9:30 PM from
softball games. Weekend business is confined to tournaments and special events. After
one year with consistent hours of operation business activity is about the same as when
the stand opened.
SUMMARY:
Mom's Sports Caf~ has requested a fixed monthly minimum rent of three hundred dollars
($300) per month with no percentage of gross sales paid to the City for the remainder of
the term of the Lease. In order to continue to offer food & beverage services at the
Tustin Sports Park staff recommends approval of Amendment No. 1 to the Lease
Agreement with Mom's Sports Cafe. The original Lease Agreement and Amendment
have been reviewed by the City Attorney and approved as to form.
Patrick Sanchez
Director
Superintendent
MOMSAMENDMENT
AMENDMENT NO. 1 TO LEASE AGREEMENT
RE MOM'S SPORTS CAFE
This Amendment No. 1 dated for purposes of identification this 1¢' day of April,
2000, is made and entered into between the City of Tustin, a municipal corporation
(hereinafter referred to as "City"), and Marcia Sanserino, doing business as Mom's'
Sports Caf(~ (hereinafter referred to as "Lessee").
RECITALS
A. The City entered into a Lease Agreement with Lessee dated January 19,
1999, for portions of the Sports Park located at 12850 Robinson Drive for Lessee to
operate a food/beverage concession consistent with public park and recreation
purposes (the "Lease Agreement").
B. Section 3.1 of the Lease Agreement requires Lessee to pay a minimum
monthly rent in the amount of Three Hundred Dollars ($300.00) per month for the first
year, Four Hundred Dollars ($400.00) for the second year subject to fair market rent
rate adjustments for the third year through the fifth year of the five-year term of the
Lease Agreement.
C. The business is experiencing difficulties covering its costs and making
increased rent payments that threaten its closure, and Lessee desires relief from
minimum monthly rent increases.
· D. Section 3.2 of the Lease Agreement further requires Lessee to pay the
City ten percent (10%) of the gross sales over Three Thousand Dollars ($3000.00) per
month generated by the operation of the business that may generate income to the City
unless the business seizes to operate.
E. The City wishes that the business continue to operate and provide
services consistent with public park and recreation purposes.
F. Lessee .has changed address and a new address should be provided for
noticing purposes.
Now, therefore, in consideration of the mutual covenants, promises, and
conditions set froth herein, the City and Lessee agree as follows:
AGREEMENT
1. Amendment to Section 3.1 of the Lease Agreement pertaininq to Rent.
Effective April 1, 2000, Section 3.1 of the Lease Agreement is hereby amended
to read as follows: Lessee shall pay City Three Hundred dollars ($300.00) per month
as minimum monthly rent for the term of the Lease Agreement, except during the month
of December of each year, when the business will be closed and no rent shall be due.
119192\1
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,
Rent.
Deletion of Section 3.2 of the Lease Agreement pertaining to Percentage
Effective April 1, 2000, Section 3.2 of the Lease Agreement is hereby deleted
and Lessee shall not be required to pay Percentage Rent.
3. Amendment to Section 28 of the Lease Agreement pertaininq to Notices.
Effective April 1, 2000, the address to be used for any notice as provided in
Section 28 of the Lease Agreement served by mail upon Lessee shall be addressed as
follows:
Marcia Sanserino
22351 Eagle Rock Way
Laguna Beach, CA 92651
4. All Other Provisions of the Lease Agreement Remain in Effect.
All provisions of the Lease Agreement not specifically modified herein shall
remain in full force and effect.
IN WITNESS WHEREOF, the pa,ties have executed this Amendment No. 1 to
the Lease Agreement as of the dates stated below.
CITY OF TUSTIN:
Jeffery M. Thomas, Mayor
Attest:
Pamela Stoker
City Clerk
Dated:
Approved as to form:
Lois E. Jeffrey ,(..,/ 1/ // 0
City Attomey.
LESSEE:
Marcia Sanserino
Owner
Dated:
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