Consent 1.B.
Regular City Council Meeting
- Meeting Date:
- 01/11/2016
- TITLE
- Amendment to Lease Agreements for Big Sky Imaginarium and the 29th St. Cafe
- PRESENTED BY:
- Tracy Scott
- Department:
- City Hall Administration
Presentation:
PROBLEM/ISSUE STATEMENT
The Big Sky Imaginarium and the 29th St. Cafe are tenants at Park One Garage. Both businesses are delinquent with their lease payments.
The Big Sky Imaginarium is a drop-in child care business residing at Park 1 since 2012. Their lease agreement runs from 2012-2017. The only known reason for their delinquency is insufficient cash flow when the business operator changed in 2014.
The 29th St. Cafe is a new Latin restaurant that opened in the late spring of 2015. They currently serve lunch from 10:30am-2:00pm Monday - Friday. Their lease term runs from 2015-2018. Their reason for delinquency is insufficient cash flow and reserves for a start-up restaurant.
The Big Sky Imaginarium is a drop-in child care business residing at Park 1 since 2012. Their lease agreement runs from 2012-2017. The only known reason for their delinquency is insufficient cash flow when the business operator changed in 2014.
The 29th St. Cafe is a new Latin restaurant that opened in the late spring of 2015. They currently serve lunch from 10:30am-2:00pm Monday - Friday. Their lease term runs from 2015-2018. Their reason for delinquency is insufficient cash flow and reserves for a start-up restaurant.
ALTERNATIVES ANALYZED
City Council may:
- Approve the amendments to each lease, or;
- Disapprove the amendments. If the amendments are not approved, the tenants are delinquent in their payments and will be evicted. The City may not be able to collect the back-payments.
FINANCIAL IMPACT
The Amendment to the Lease will allow the Big Sky Imaginarium to eventually bring itself current in its lease payments under the original lease agreement. The monthly lease payment will be as follows:
$2,185.45 plus $1,000.00 for 9 months
$2,251.01 plus $1,000.00 for 9 months
$2,251.01 plus $938.07 for 1 month
PLEASE NOTE: Late or incomplete payments result in automatic and quick eviction.
The Amendment to the Lease will allow the 29th St. Cafe to eventually bring itself current in its lease payments under the original lease agreement. The month lease payment will be as follows:
$550.00 plus $0.00 for 1 month
$1,100.00 plus $0.00 for 1 month
$1,100 plus $660.00 for 1 month
$1,250.00 plus $660 for 9 months
PLEASE NOTE: Late or incomplete payments result in automatic and quick eviction.
$2,185.45 plus $1,000.00 for 9 months
$2,251.01 plus $1,000.00 for 9 months
$2,251.01 plus $938.07 for 1 month
PLEASE NOTE: Late or incomplete payments result in automatic and quick eviction.
The Amendment to the Lease will allow the 29th St. Cafe to eventually bring itself current in its lease payments under the original lease agreement. The month lease payment will be as follows:
$550.00 plus $0.00 for 1 month
$1,100.00 plus $0.00 for 1 month
$1,100 plus $660.00 for 1 month
$1,250.00 plus $660 for 9 months
PLEASE NOTE: Late or incomplete payments result in automatic and quick eviction.
RECOMMENDATION
Staff recommends approval of Amendment One, Park One Lease Agreement for the Big Sky Imaginarium and Amendment One, Park One Lease Agreement for The 29th St. Cafe.