HomeMy WebLinkAboutR30ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM: Ronald E. Winkler SUBJECT: DON'S DRUGS -
Development Director 1222 WEST 5TH STREET
DATE: October 5, 1998
Synopsis of Previous Commission /Council /Committee Action(s):
Recommended Motion(s):
ORIGINAL
(Community Development Commission)
MOTION: That the Community Development Commission authorize the execution of a lease as prepared
by the City Attorney with Zayco Corporation containing the recommended business terms for
the property at 1222 West 5t' Street.
Contact Person(s): Ronald E. Winkler/
Phone: 5081
Project Area(s) Central City West (CCW) Ward(s): One (1)
Supporting Data Attached: El Staff Report ❑ Resolution(s) ❑ Agreement(s) /Contract(s) ❑ Map(s) ❑ Letter/Memo
FUNDING REQUIREMENTS Amount: $ N/A Source: N/A
SIGNATURE:
ithority:
N/A
onald E. W ler, Director
Developme t Department
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Commission /Council Notes:
REW:lag:10- 19- 08.cdc COMMISSION MEETING AGENDA
Meeting Date: 10/19;/j1999�8
/1
Agenda Item Number: /'� ✓y
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
Don's Drug - 1222 West 5th Street
Since 1993, the Community Development Commission has leased the property at 1222 West 5th Street to
D. Goldcorp, Inc. The tenant has operated a neighborhood drugs store since that time as Don's Drugs.
Staff was recently advised that the pharmacy operator intends to relocate outside the Inland Empire.
Further, Zayco Corporation has approached the Agency regarding assumption of the lease for continued
operation of the pharmacy. Mr. Hemantkumar Sheth, a San Bernardino resident, is president of Zayco
Corporation. He also indicated the intent to file an application for an SBA loan to finance purchase of the
business opportunity. The application however must include a lease or intent to lease commitment to
demonstrate the business has space available. Further, the rent terms and conditions must be outlined in
the loan application. It should be noted that Mr. Sheth intends to retain the existing five employees as
new owner /operator.
Considering the above, staff proposes a letter of intent to lease be issued containing the following
provisions:
1. Term: Five (5) years with an option to review for another five years.
2. Rent: $1000 /mo. for the first two years increasing to $1500 /mo. for the remaining three years. Rent
to be re- evaluated against market at execution of option.
3. Licenses & Permits: Lessee shall obtain and maintain all necessary licenses and /or permits.
4. Taxes and Insurance: Lessee shall pay for real property, possessory interest or related taxes and
insurance.
5. Alteration: Lessee shall remodel, alter, remove or construct improvements without prior written
consent of the Executive Director.
6. Repair: Lessee shall be responsible for building maintenance or repair except for the air conditioning.
Regarding the air conditioning unit the tenant expresses concerns regarding its age and condition. For
that reason, the request the Agency assume responsibility the first two years then it be share equally
thereafter.
It should be noted that execution of a lease should be made contingent upon SBA's approval of a loan to
the business. Considering the above, it is recommended that the Community Development Commission
authorize the execution of a lease as prepared by the City Attorney containing the above business terms
subject to the aforementioned contingency.
C2 �; I
Ronald E. Winkler, Director
Development Department
REW:lag:10- 19- 08.cdc COMMISSION MEETING AGENDA
Meeting Date: 10/19/1998
Agenda Item Number: