HomeMy WebLinkAboutR06-Economic Development Agency
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DEWLOPMERT DEPARTM~T
OF TBB CITY OF Sa BEUARDlBO
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UOUEST FOR COIMISSIOR/COUIICIL ACTIOR
From:
KENNETH J. HENDERSON
Executive Director
Subj ec t : PROPOSED LEASE AGIl&&rmnr
201 BOIlTH "E" STIlJI:BT
Date:
March 10, 1992
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SvnoDsis of Previous Commission/Council/Committee Action(s):
On March 5, 1992 the Redevelopment Committee recommended that the
Community Development Commission approve a lese agreement with Mr. &
Mrs. Martin and Sheryl-Ann Felix for the vacant coffee shop space
located at 201 North "E" Street; the allocation of $50,000 for tenant
improvements; and payment of a brokerage leasing commission of $17 ,000.
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Recn"Pnded Motion(a):
(COBBUDitv Develooment C~iasion)
MOTIOR
That the Community Development Commissionn authorize (i)
the Executive Director to execute a lease agreement with
Mr. & Mrs. Martin and Sheryl-Ann Felix for the vacant
coffee shop space located at 201 North "E" Street; (11)
authorize the allocation of an amount not to exceed
$50,000.00, as a direct reimbursement for tenant and base
building improvements to said leased area; and (iii)
authorize the payment of a brokerage leasing commission
in the amount of $17,000.00.
~~OR
Executive Director
Adm nistrator
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Contact Person(s): Ken Henderson/James W. SharD
Phone:
5081
Project Area(s): Central Citv (CC)
Ward(s):
One ( 1)
Supporting Data Attached:
Staff ReDort
FUNDING REQUIREMENTS:
Amount: $ 67.000
Tax Increment
Source:
Budget Authority:
BeiIll! Souaht
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Commission/Council Rotes:
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KJH:JWS:SMM:lag:0617E
COIMISSIOR MEETII!lG AGDDA
Meeting Date: 3/16/1992
Agenda Itl!lll BuIlber: ~
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DEVELOPMEBT DEPARTMEBT
OF TIlE CITY OF SAN BERlWlDIBO
STAFF REPORT
ProDOsed Lease Aareement - 201 Borth "E" Street
As a result of the Development Department's marketing efforts, Schneider
Commercial Real Estate has submitted a "Proposal to Lease the Restaurant
Facility" known as the coffee shop, located on the first floor of the
201 North "E" Street building. The proposal will feature Italian food and is
an "Offer to Lease" by Mr. & Mrs. Martin and Sheryl-Ann Felix to construct
improvements and operate a restaurant enterprise in said vacant space.
Attached please find a copy of the original offer as Exhibit "A".
The following is an analysis of the components of the proposed lease agreement:
TERMS ABD COBDITIOBS
Term
Ten (10) years
Options
Two (2) five (5) year periods.
Interim Occupancy
Tenant shall be authorized to take possession of
and occupy said space for the purpose of
constructing tenant improvements, refurbishing
existing equipment and conducting business for a
period of six (6) months without rental
obligation.
Rent
$2,080.50 per month.
$2,410.00 per month.
$2,812.00 per month.
Year 3 rent, plus C.P.I. Index
increase adjusted annually,
not to exceed three percent
(3%) per year.
Year 10 rent, plus C.P.I.
Index increase adjusted
annually, not to exceed three
percent (3%) per year.
Year 1
Year 2
Year 3
Years 4-10
Option periods
Utilities
Tenant shall be responsible for the payment of
all metered utilities for the operation of their
facility.
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KJH:JWS:SMM:lag:06l7E
COMlUSSIOB MDTIl'IG AGElIDA
Meeting Date: 3/16/1992
Agenda Itl!ll Blaber: ~
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DEVELOPMBIT DBPAJm.own: STAFF REPORT
Proposed Lease Agreement
March 10, 1992
Page Number -2-
Staff has determined, upon research and review of the current market
environment, that the above terms and conditions are both competitive
and reasonable. Staff, therefore, recommends the approval of these
proposed lease conditions.
TEJIAlIIT Alm RASE BUILDIBG IIIPRmimuJIII AT.TJ\CATIOB
Pursuant to the "Proposal to Lease", dated January 27, 1992, the prospective
tenant has requested a total reimbursement in an amount not to exceed
$50,000.00. Said reimbursement shall be for the refurbishment of the existing
kitchen equipment and the construction of tenant improvements. Said
improvements shall consist of but shall not be limited to,
a) Repair and rebuilding of all existing kitchen equipment and
refrigerators necessary to operate a full service restaurant.
b) Repainting of the entire public areas within the restaurant.
c) Purchase and installation of new ceiling light fixtures and fans.
d) Reupholstering of the damaged dining area booths.
e) Demolition and removal of the front hard liquor bar area.
f) Refurbishment of the old bar area to match the existing dining decor.
During the course of negotiations, staff initiated a thorough review of the
existing tenant improvements and building conditions. It has been determined
that currently there are fire and building code deficiencies which would
impact the tenant's ability to receive a Certificate of Occupancy. In
addition, staff has defined certain mechanical and aesthetic building
components which need to be addressed and corrected.
In light of these discoveries, staff renegotiated the proposed tenant
improvement allowance. The current proposal provides for the mandatory
allocation of $10,000 of the total $50,000 tenant improvement allowance to
remedy these deficiencies. The following is a non-aIl-inclusive list of the
items which have been identified to date.
a) Installation of fire sprinklers within the kitchen and dining areas.
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KJH:JWS:SMM:lag:0617E
COIIIISSIOB DETIBG AGEBDA
Reetin& Date: 3/16/1992
Agenda It_ "'ber: ~
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DEVELOPMDT DEPARTMUT STAFF IlEPORT
Proposed Lease Agreement
March 10, 1992
Page Number -3-
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b) Repair of emergency lighting and exit signage.
c) Installation of electrical meters on load centers and HVAC
mechanical equipment.
d) Replacement of the dark tinted glazing with clear storefront glass
on the exterior and within the lobby area.
e) Installation of a fabric canopy and overhead lighting to the
existing metal canopy frame.
f) Refurbishment and start up of all HVAC mechanical equipment.
Staff is confident that the above measures represent the entire scope of work
which needs to be completed.
BROKERAGE T."RAlIIlIG COfBISSIOII
The initial "Proposal to Lease" included the stipulation that the lessor pay
to the brokerage representing the lessee a commission which was equivalent to
seven percent (7%) of the gross actual income. Staff has aggressively
renegotiated the commission and has reduced the proposed obligation to
$17,000.00, which is approximately five percent (5%) of the gross actual
income. This represents fair compensation within the brokerage community.
SUMMARY
In an effort to fully inform the Committee of the economics of the transaction
and the individuals involved, staff has created and attached the following
exhibits.
Exhibit "A"
Exhibit "B"
Exhibit "C"
Original Offer dated January 27, 1992.
Income analysis of lease obligation.
Resumes of lessee.
Staff recommends adoption of the form motion.
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KJH:JWS:SMM:lag:06l7E
CCMlISSION 1lBET1l'lG AGEllDA
Keeting Date: 3/16/1992
Agenda Item Bullber: ~
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Pap Two
Mr. James Sharp
January 'J:1, 1992
TENANT IMPROVEMENT
ALLOWANCE: Not to ewoeed Fifty Thousand DoDars ($50,000.00). to be paid upon
p1m ....tion of invoices.
COMMISSION: ~.hMder Q.11.1.-e-cia1 Real Estate to recem Twenty Five Thousand
DoDars ($25,000.00) upon execution of' eaR
Aa 1helIe OtTerors lie most anxious to proceed. we would appreciate an 8IISMI' as soon as
possible. Th-"~I you in advance, I fI'!II'l-"'.
S'
ESTATE'
ABSIalr
eucIs.
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SCHNEIDER
a:u~1L IlE4L ESTA~
1anuary 27, 1992
Mr. James Sharp
Economic DeveIo]llllellt Department
201 N. "E" St., 3rd FIr.
San Bernardino, CA 92401
Re: Proposal to Leue Restaurant Facility
1st floor, 201 N. "E- St., San BemardiDo, CA
Dear Mr. Sharp;
'Ibe roDowiDs is an Offer to Leue from Martin M. FeIh and ShayJ-Ama R. Felix for the
abovmnentioDed Rstaurant 8plUle. Enc10sed are IODIe wzy imJll*~ .-....... 'Ibe8e
people are first-time 0WDeI'B but I feel they wiD both diJirtty wort to make this Rstaurant
a"><< II
LOCATION:
1st floor, 201 N. -E- St, San Bemardino, CA
SQ. Fr.:
4,017
Tal (10) Years with Two (2) Five (5) Year Optious
TERM:
FREE RENT:
Six (6) Months from date of c:ompJetioD of pmndooI CompJetioD of
Remodel DOt to exceed Four (4) MODths from date of pomssion of
,...-:...111(1
RENI':
Year 1 - S.SO
Year 2 - S.60
Year 3 - $.70
Ye&l'II4 -10:f- OptioD periods, C.P.L not to exceed 1bnle Peroent (3%)
annuaDy.
Exhibit "A"
,., Wert,.. . ~llI) ~ ..... 2l/f
..., ........... CA _
T. (7'4) m-... IG(7f4}"'.HIf
'^
9ALU1 or WSI - 201 IOITB "I" s2.r
PIOPOSID USTAIIIA1Ir
0
SQUAD
I'OO'lACR lAD MOlITBS
tear 1 4,017 .50 6 . $ 12,051
tear 2 4,017 .60 12 . 28,922
tear 3 4,017 .70 12 . 33,742
tear 4 4,017 .72 12 . 34,706
tear 5 4,017 .74 12 . 35,671
tear 6 4,017 .76 12 . 36,635
tear 7 4,017 .79 12 . 38,081
tear 8 4,017 .81 12 . 39,045
tear 9 4,017 .84 12 . 40,491
tear 10 4,017 .86 12 . 41.455
c:aoss III9UL IlIC0111: t~.7..
(KlnUl) Tenant x.proy..enta ($9.96/af)
(Kinua) Landlord IlIprovementa ($2.491af)
-$ 40,000.00
- 10,000.00
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(Klnua) C~la.lone
(5S)
- 17.000.00
.et Ten (10) tear Incae
'2'7~a770aOO
Avera.e Inco.e per year
$ 23,379.90
$ 2,281.66
$.55/S.r.
Aver..e Incoaa Per IIoDth
.et .ffectlve lent
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Exhibit "B"
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MARTIN M. FBLIX
3095 N. Pershinq Ave.
San Bernardino, Ca.
92405
(714) 882,2787
Date of Birth:
Birthplace:
Citizenship:
Education:
March 4, 1964
Jerez, Zacateca., MEXICO
Permanent Resident Alien
Primary and Secondary level
qeneral education completed
at: BSCUBLA DB LOPBZ VILARDB
Rancho Lo. Juarez
Jerez, Zacatecas
MEXICO
Married, no children
Personal:
Work History:
9/1989 - 1/1992
PINO ITALIAN CUISINE
198? S. Diners Court
San Bernardino, Ca. 92408
('14) 38 -5150
Position: Chef
Duties: Assisted Owner in establishinCJ this Restaura/:t.
Planned menu, controlled all aspe~ts of kitc"en
service. Ririnq, traininq and supervision of all
kitchen employees. Orderinq, recievinq and s.ockinq
of meat, seafood, produce and qrocery items.
.
Preparation, cookinq and plate assembly of all
menu items. ReCJular inventory control, as well
as openinq and closinq duties.
Exhibit 'C'
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12/1987 - 9/U88 - MAGNONE'S A RESTAURAN'l'
1630 Spruce Street
Riversid. , Ca. 92501 (714) 781-8840
Position: SCtUS Ch.f
.
Duties: A~.isting Chef in preparation, cooking .nd
plate ....mbly of .11 ..nu items. Assist in
rr.cieving and stocking of meat, seafood, pro-
due. and groc.ry ite.s. As.i.t Chef in regular
inventory controls.
9/1986 - 6/1987 PITRUZZELLO'S RESTAURANT
287 La Cadena Driv.
Riverside , Ca. 92501 (714) 686-6787
Position:
Dutie.:
Ch.f
Re.ponsible for all a.pects of kitch.n service.
Hiring, training and supervision of all kitche~
employe... Ordering, recieving and stocking of
meat, ..afood, produce and grocery it....
Responsibl. for monthly inv.ntory control as
well a. all opening and clo.ing duties.
4/1986 - 9/1986 MARIO'S PLACE
6085 Magnolia Avenu. .
Riv.r.id. , Ca. 92504
Position: Sou. Chef
Duties: Re.pon.ible for all preperat1c.n, cooking and
plate a....bly of all menu it(,ms during the
luncheon .hift. A..i.t the OWller/Chef during
the dinner .hift including preparation, cook-
ing and plat. a....bly of all .enu it....
Conduct inv.ntory control as well .s reci.v-
ing and .tocking of meat, .eafood, produce and
grocery ite...
(714) 684-7755
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c:; 4/1985 - 4/1986 VESUVIO'S
27115 -A- Redlands Blvd.
Redland., Ca. 92373 (714) 792-9399
Po.ition: Sou. Chef
Dutie.: As.i.t Chef in all a.pect. of kitchen .ervice.
Re.onsible for trainin9 and supervi.ion of all
kitchen employee.. Conductedweekly inventory
controls as well as orderinq, recievinq and stock-
inq of meat, seafood, produce and qrocery items.
A.sist Chef in preparation, cookinq and plate
as.embly of all menu items.
2/1980 - 4/1985 PITRUZZELLO's RESTAURANT
287 La Cadena Drive
Riverside, Ca. 92501 (714) 686-6787
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Posi tion: Cook
Duties: Assist Chef in preparation, cookinq and plate
assembly of all menu it.... Preparation and
plate as.embly of all salad and sandwich items.
Responsible for recievinq and stockinq all
meat, seafood, produce and qrocery items.
Assi.t Chef in monthly inventory controls.
Responsible for liqht .aintenance and daily
cleaninq duties in kitchen.
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SHERYL-ANN R. FELIX
3095 If. Pershing Ave.
San Bernardino, Ca.
92405
(714) 882-2787
Date of Birth:
Birthplace:
Education:
Personal:
Work History:
January 8, 1957
Riverside, Ca.
Highschool Graduate
BRUNMATT SCHULHAUS
1m Sesselaker 48
Bas.l, SWITZERLAND
Married, no children
12/1989 - 1/1992
Position:
Duties:
.
PIKO ITALIAN CUISINE
1987 S. Diners Court
San Bernardino, Ca. 92408
(714) 381-5150
Manager
Assisted OWner in establishing this Restaurant. .
Planned menu, assisted in selecting beer, wine
and bar alcohol selections. Responsible for
control of entire dining-room floor including
hiring, training and supervision of dining-
rOOll staff. Ordering, recieving and stocking
of beer, wine, liquor and dry goods as necesary.
Conducted inventory control, as well as helping
Owner with scheduling, payroll, opening and
closing duties.
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'2/1989 - 12/1J89
FANGIPANI 's GOURMB'1' ROOMS
23580 Sunnymead Blvd.
Moreno Valley, Ca. 92388 (714) 242-8023
.
.
Gentral Manager
Res~nsible for all functions of entire bar
and restaurant. Responsible for bOOking, plan-
ning, billing and scheduling of banquets,
weddings and all other private functions.
Responsible for hiring, training and the
supervision of all employees. Maintained all
SCheduling of employees. Responsible for all
cash drops. Required to establish good
public relations within community. Responsible
for all ordering, recieving and stocking of
.beer, wine, liquor, grocery and dry good items.
Conducted weekly inventory controls. Responsible
for all opening and closing duties as well
as entire building securities.
Position:
Duties:
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10/1987 - 12/1988
NINA'S ITALIAN RESTAURANT
414 Tennessee Plaza
Redlands, Ca. 92374 (714) 798-4868
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Position: Manager
Duties: Assisted OWners in re-establishing faltering
business. Planned new menu, established a very
successful "Early-Bird" menu promotion. Also
established new beer and wine lists. Responsible
for hiring, training and supervision of a new
· staff. Assisted owner in SCheduling, payrOll,
general bisiness decisions as well as assistinq
with opening and closing duties. Determined
advertisinq promotions, also assisted in orderinq,
recievinq and stocking of meat, seafood, produce,
beer, wine, grocery and dry good supplies.
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6/1987 - 2/1988
Position:
Duties:
BON APPETITO
246 E. Ba.elin. Av..
San Bernardino, Ca. 92406 (714) 884-5054
A.sistant Manager
A..i.t.d Owner with inventory controls, as w.ll
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as .cheduling and traiding of .mploy.... A..i.t
in r.cieving and stocking of be.r, win., groc.ry
and dry good .uppli... S.rvic. cu.tom.rs in a
freindly and .fficient mann.r during both tha
luncheon and the dinn.r .hift, al.o helped in
s.rvic. of banquet., wedding r.ception. and
other privat.ly cater.d functions as .ch.duled.
9/1986 - 6/1987
Position
Duties:
.
PITRUZZELLO'S RESTAURANT
287 La C.d.na Drive
Riv.r.ide, Ca. 92501
: General Manag.r
Respon.ibl. for all functions of .ntir. bar
and re.taurant. R..ponsible for booking, plan-
ning and billing of banquet., w.ddings and
oth.r private function. a. well a. all on and
off pr..is. cat.ring.Re.ponsibl. for hiring,
trainin9 and sup.rvision of entire staff as well
as scheduling. R.sponsibl. for all ordering,
recieving and stocking of meat, seafood, produce,
beer, Wine, liquor, grocery and dry goods supplies.
Reestablished falt.ring wine-club, increased the
memb.rship 300' and succeeded in maintaining a
profit margin. Determined advertising promotions.
Maintained good cu.tomer r.lations. Maintained
payroll r.cords a. w.ll a. weekly inventory
records. Re.pon.ible for all opening and closing
duties and for building maint.nanc. and .ecurity.
(714) 686-6787
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4/1986 - 9/1986
MARIO'S PLACE
6085 Magnolia Avenue
Riverside, Ca. 92506
(714) 684-7755
Position: Manager
Duties: Assisted OWners with ipventory control as well as
ordering, recieving and stocking of produce, beer
wine, linen, grocery and dry goods Supplies. Also
assisted owners in scheduling of staff, hiring
training and supervision of employees as well as
maintaining payroll records and preparing bank
deposits. Service customers in a freindly and
efficient manner during both the luncheon and the
dinner shifts, also helped in service of banquets,
wedding receptions and other privately catered
functions. Responsible for assisting the OWner
in all opening and closing duties.
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6/1985 - 4/1986
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VESUVIO'S
27115 -A- Redlands Blvd.
Redlands, Ca. 92373 (714) 792-9399
Day Shift Assist. Manager
Assist Manager in hiring, training, scheduling
and supervisi~g staff. Assist in inventory control.
Assist in ordering of linen, pastry selections,
produce, dairy, grocery and dry goods supplies.
Assisted in maintaining payroll records .as well
as assisting in opening duties. Service customers
in a freindly and efficient manner during the
luncheon shift and assisted the evening Manager
with Host and Front Desk duties. Assisted in
servicing banquets, wedding receptions and other
privately catered functions as scheduled.
Position:
Duties:
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10/19S1 - 6/19S5 MARIO'S PLACE
fiOS5 Magnolia Avenue
Jtivenide, Ca. 92506 (714) 684-7755
Position: Assistant Manager
Duties: Assisted OWners in opening and es~ablishing this
.
Restaurant. Helped Mario plan menu as well as wine
list. Responsible for entire dining -room floor
during luncheon shift and assisted Co-owner in
supervisions during dinner shift. Assisted in
ordering, recieving and stOCking of meat,seafood,
linen, produce, beer , wine, grcery and dry goods
supplies. Maintained all payroll records also
assisted in cash-outs and preparation of bank
deposits. Serviced custoaers in a freindly and
efficient mannel during the luncheon and the
dinner shift. AIsisted in maintaining inventory
controls, also telped with hiring, training and
scheduling of staff. Assisted OWner with opening
and closing duties.
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