Cathedral City Downtown Foundation
MEETING DATE: 8/9/2017
TITLE:
Title
Amendment to Commercial Lease Agreement with Bonta Restaurant
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FROM:
Leisa Lukes, Business Development Manager
RECOMMENDATION:
Recommendation
Staff recommends that the City Council acting as the Cathedral City Downtown Foundation authorize the Executive Director to execute the proposed amendment to the existing Commercial Lease Agreement with Bonta Restaurant located at 68-510 East Palm Canyon Drive, Space 140.
Body
BACKGROUND:
The commercial space located at 68-510 East Palm Canyon, Suite 140, is managed by the Cathedral City Downtown Foundation and has been occupied by Bonta Restaurant since December 1, 2014. The Downtown Foundation approved an amendment to the Commercial Lease Agreement in April 2016, discounting the rent for a period of two years. The business continues to be challenged during the summer months when customer traffic lulls and electricity expenses increase. The tenant has requested that the payment schedule be adjusted primarily during the remaining term of the First Amendment to the Commercial Lease Agreement while maintaining the total amount of rent to be paid during that same time period.
DISCUSSION:
Bonta Restaurant is in the third year of its initial 5-year Commercial Lease Agreement with the Downtown Foundation, which began December 1, 2014. The 4,853 square-foot space is located at 68-510 East Palm Canyon Drive, Suite 140, in the Desert Cinema complex. The Downtown Foundation approved the First Amendment to the Commercial Lease Agreement on April 13, 2016. This Amendment discounts the Base Rent and Common Area Maintenance (CAM) charges by 50% from April 1, 2016 through March 31, 2017 and by 40% from April 1, 2017 through March 31, 2018. For the remainder of the initial lease term (post March 31, 2018 through November 2019), the Base Rent and CAM charges remain consistent with the terms of the original Commercial Lease Agreement. ...
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