HomeMy WebLinkAbout09 LEASE AGREEMENT FOR OPERATION OF THE FOOD/ BEVERAGE CONCESSION AT TUSTIN SPORTS PARKAgenda Item 9
Reviewed:
AGENDA REPORT City Manager r --e
Finance Director N A
MEETING DATE: SEPTEMBER 4, 2018
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: DAVID A. WILSON, DIRECTOR, PARKS AND RECREATION
SUBJECT: LEASE AGREEMENT FOR OPERATION OF THE FOOD/BEVERAGE
CONCESSION AT TUSTIN SPORTS PARK
SUMMARY:
The current operators of the food and beverage concession at Tustin Sports Park (Luigi
and Amy Ravetto, dba Express Sports Cafe) have notified staff that they intend to sell
their business to Kathy Gallardo and Rob Stait, dba Best of Friends Cafe. Because
there are only seven (7) months left on the Ravetto's current lease, staff is
recommending that that their lease be terminated and a new lease agreement be
entered into with Ms. Gallardo and Mr. Stait.
RECOMMENDATION:
Staff recommends that the City Council:
1. Terminate the Lease Agreement between Luigi and Amy Ravetto (dba Express
Sports Cafe) and the City of Tustin.
2. Approve a new three (3) year Lease Agreement between Kathy Gallardo and
Rob Stait (dba Best of Friends Cafe) and the City of Tustin for the operation of
the food and beverage concession at Tustin Sports Park.
FISCAL IMPACT:
For the first six months of the new Lease Agreement, the terms require the lessee to pay a
rent of four hundred dollars ($400) per month, which is the same amount that Luigi and
Amy Ravetto have been paying for the past five years. After the first six months, the rent
will go up to five hundred dollars ($500) per month for the remainder of the Agreement.
The only exception is during the month of December of each year, when the concession
will be closed and no rent shall be due.
CORRELATION TO THE STRATEGIC PLAN
This recommendation advances Strategy 6
Plan regarding Economic and Neighborhood
for expanding recreational activities.
BACKGROUND:
of Goal A in the City of Tustin Strategic
Development by exploring opportunities
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 new five (5) year Lease Agreement with Express Sports Cafe in March
2006, which was then extended for three (3) years in April 2011 and again for five (5)
years in April 2014. In this time, the business has satisfactorily operated the facility and
complied with all terms of the lease regarding the operation of the concession.
In May 2018, Luigi and Amy Ravetto informed staff that they intended to sell their business
to Kathy Gallardo and Rob Stait. As such, they have requested that their current lease,
which is set to expire in April 2019, be terminated once the sale is completed. Staff has
met twice with Ms. Gallardo and Mr. Stait to discuss their intent and approach in taking
over the operation. After these meetings and a review of their business plan (including
menu, hours and staffing), statement of experience and references, staff has deemed
them capable of operating the concession and is recommending a three (3) year initial
term, with the potential for two successive five (5) year extensions.
This matter has been reviewed by the City Attorney's office and the Lease Agreement
been approved as to form.
Ily submitted,
bidid A. Wilson, Director
Parks & Recreation