Cathedral City Downtown Foundation
MEETING DATE: 4/13/2016
TITLE:
Title
Amendments to Commercial Lease Agreements with Bonta Restaurant and Taqueria Los Arcos
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FROM:
Curt Watts, Economic Development Director
RECOMMENDATION:
Recommendation
Staff recommends that the City Council acting as the Cathedral City Downtown Foundation authorize the Executive Director to execute proposed amendments to existing Commercial Lease Agreements with Bonta Restaurant located at 68-510 East Palm Canyon Drive, Space 140; and with Taqueria Los Arcos located at 68-510 East Palm Canyon Drive, Space 120.
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BACKGROUND:
Two commercial spaces located at 68-510 East Palm Canyon, managed by the Cathedral City Downtown Foundation (the "Foundation"), have been occupied by existing operating restaurants since December 1, 2014. Under the terms of a Commercial Lease Agreement dated September 19, 2014 with Hector & Petra Salvatierra, doing business as Bonta Restaurant (the "Bonta Lease"), Space 140 covers 4,853 sq. feet of space as shown on Attachment 1 to this Report. Under the terms of a Commercial Lease Agreement dated September 25, 2014 with Octavio & Jesus Almaraz, doing business as Taqueria Los Arcos, (the "Los Arcos Lease"), Space 120 covers 1,313 sq. feet of space as shown on Attachment 2 to this Report.
Both businesses have been challenged in achieving stable financial operations during the initial "establishment phase" of their new restaurants (i.e. since the December 2014 openings) which has resulted in conversations with City staff regarding the possibility of restructuring the financial terms of both Leases effective April 1, 2016. A temporary reduction in Base Rent and pro rata shares of Common Area Maintenance ("CAM") charges would help these businesses continue in operation and also allow additional funds for their marketing purposes and physical improvements to improve interior spaces and/or their exterior appearances.
DISCUSSION:
The annual lease y...
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