07-26-2011 CC RPT 23 - Laserfiche WebLink

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COO OF 1V!I §IDI. ��, ,- !Arta Inn ;-aXion City Council Memorandum TO: HONORABLE MAYOR AND CITY COUNCIL FROM: AIRPORT DEPARTMENT DATE: July 26, 2011 ITEM NO: 23 WARD: 3 SUBJECT: LEASE AGREEMENT BETWEEN D &D AIRPORT CAFE AND THE RIVERSIDE AIRPORT ISSUE: The issue for City Council consideration is approval to enter into a lease agreement with D &D Airport Cafe. RECOMMENDATIONS That the City Council: 1. Approve the Riverside Airport Lease between the City of Riverside and D &D Airport Cafe; and 2. Authorize the City Manager, or his designee, to execute the Lease Agreement. COMMISSION RECOMMENDATION On July 13, 2011, the Airport Commission unanimously approved this item. BACKGROUND In July 1995, the City Council approved a Lease Agreement with David and Delmy Pennington, relocating D &D Coffee Shop from 6140 Van Buren Boulevard to the Airport Terminal building. D &D Airport Cafe has been successfully operating at Riverside Airport for nearly 14 years. In addition to the quality 7 days -a -week service that D &D Airport Cafe offers, catering services are also provided for various events on the Airport and corporate aircraft operating in and out of Riverside Airport. The current lease with D &D Airport Cafe expired on September 30, 2010 and the Cafe has been operating on a month -to -month basis since then. Staff recommends entering into a new lease agreement, commencing August 1, 2011 through July 31, 2016, with a renewal option for two additional five (5) year terms. The minimum monthly rent would be $1,672 or 6'/2% of gross receipts, whichever is higher. Beginning in year two of the agreement, beginning August 1, 2012, the minimum monthly rent is increased annually based on the Consumer Price Index (CPI). Also, if both parties agree to renew the contract when it ends on July 31, 2016 for an additional five (5) 23 -1