Reso 2025-3823 - Laserfiche WebLink

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o The library confirmed that they will not pay rent. They only pay for utilities as they currently do now. To remove the cafe to give the library the space it needs would remove the income the city would earn. o The library would be more interested in a potential move if they could own the property. That is only if the city conveys the property to them at no cost. • Claim — the bid that was rejected included over $31VII investment to the space that we would own. o Fact — past restaurant lease agreements negotiated and approved by past Administration and Commissions provided the funding to the future restauranteur for those improvements. This was expected by the bidder. An example is the Approval of Resolution 2015-2370 (Attachment 12) with the Passion Restaurant Group. Their proposal included an estimated $3.4M in improvements in which the City agreed to pay an estimated $1.25M, or 36.765% of the actual cost. Based on this previous practice, the improvements by this recent bidder may have cost the City over $1M. Another example was the original buildout of Beach Bar. They were given $40K for window replacements as well as rent abatement for 180 days after opening, thus resulting in a financial contribution for those improvements and a loss of revenue for the city. Under this Administration and Commission, utilizing a professional broker, resulted in no outlay of funds for improvements nor rent abatement resulting in a loss of revenue. Rather, this use of a professional broker resulted in a higher rental rate per square foot, the additional rent for CAM and a better negotiated lease agreement. • Claim — this process has been manipulated from the beginning. o Fact: As described in detail above, the City Commission has been informed and involved in every step of this process. Throughout this entire process, the City Commission had the opportunity to redirect administrations actions. Finally, an important item to consider is the timing of the proposed change of course. There could be substantial financial consequences with another delay of this project. I want you to be fully aware of those consequences before you make a final decision. • Upon review of the current agreement with Crema, the following items must be considered or amended: o The lease will have to be amended: ■ To change composite exhibit B, including possibly Lessor's Work. ■ To change critical milestones. ■ To change signage • Sec. 1.3/Sec. 9 — exclusive right to use and must maintain outdoor area — Crema may have issue. • Sec. 3 / Sec. 10 -- City has to deliver the property and complete its work by February 1, 2026 — if not, default and termination of lease at Crema's option. • Sec. 4 — will delay the commencement of rent. • Sec. 6.1 — if terminated, pay back security deposit - $10,214.17 • Sec. 6.2 — if terminated, pay back advanced rent - $20,400.00 Page 5of6 393