Reso 2024-3761 - Laserfiche WebLink

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the initial lease term. At an estimated $1,619,179 for the initial term, the broker fees equate to $48,575.36 to our broker Colliers and $48,575.36 to their broker Avenue Real Estate Partners for a total of $97,150.73. ADDITIONAL INFORMATION: Lease details include: • Leased space: 1,440 square feet of interior space with 1,700 square feet of outdoor patio area. • Lease term: initial 10 year lease with two options to renew for 5 years each. • Lease payments: • Base rent: $85 / sq foot of interior space= $122,400 annually • Percentage rent: 8% on gross revenues in excess of $1.7 million. Similar locations earn over $2 million annually as an example. • Taxes and utilities • Shared maintenance of common areas at $15 / sq foot= $21,600 annually • Deposit: • Security deposit: $10,200 • Advance Rent: $20,400 • Total upon signing: $30,600 • Estimated dates: o City to deliver shell to operator between August 2025 and February 2026 o Operator to commence operations 180 days from delivery of shell. Full rent commences no later than this date regardless of delays to the opening date. • Insurance requirements have been reviewed and approved by our Risk Manager and insurance broker. • Several in-person site visits, including taste tests and customer reviews, were conducted and considered in this recommendation. • Operating hours: proposed 7 days per week between 7:00 a.m. and 9:00 p.m. • Menu: menu is standard across all of their locations and includes all day breakfast as well as lunch and dinner options. FUNDING SOURCE: This is a revenue generating agreement. Funding for the broker fees will be paid out of the Professional Services line item in the City Manager's budget, account# 001-2-5120-430000. ATTACHMENTS: Resolution (Revised on 11/20/24) Lease Agreement Design Concept Item Number: 9.R 548