HomeMy WebLinkAbout2016-07-12; City Council; 22340; Authorizing city staff to negotiate lease agreement with Shorehouse Kitchen for property at 2833 State StCITY OF CARLSBAD-AGENDA BILL 2
AB# 22 340 AUTHORIZATION FOR CITY STAFF TO NEGOTIATE A LEASE DEPT. DIRECTOR ~
MTG. 07/12/16 AGREEMENT WITH SHOREHOUSE KITCHEN FOR THE CITY ATTY. ..-rfS
PROPERTY LOCATED AT 2833 STATE STREET
DEPT. CM CITYMGR. wr
RECOMMENDED ACTION:
Adopt a Resolution authorizing city staff to negotiate a lease agreement with ShoreHouse Kitchen for
the property located at 2833 State Street.
ITEM EXPLANATION:
The property located at 2833 State Street, formerly known as the Village Grille (11Subject Property"),
was acquired by the Carlsbad Redevelopment Agency in 1977. Since that time, the .subject Property
has been utilized by numerous tenants as a restaurant, with the rear half of the building utilized for
storage by various city departments. The Subject Property has been vacant for the previous two years.
On March 22, 2016, City Council authorized re-issuance of an RFP for the lease of the property to a
restaurant user by Resolution No. 2016-052. The RFP was released on April 15, 2016 for 45 days. The
city received ten formal proposals which were evaluated by an internal selection committee using
criteria including: Respondent's vision and plan for the property; experience and ability to perform; and
financial benefit to the city. The selection committee ranked each respondent in accordance with the
criteria and subsequently invited the top four cumulative scored respondents for a selection interview.
The four top ranked respondents were:
BED Coastal Properties, LLC
GBOD, LLC dba Meze Greek Fusion
OMG Hospitality Group, LLC
ShoreHouse Kitchen, LLC
After selection interviews were conducted, the selection committee scored the final proposals using
the same criteria. Based on the interview cumulative scores, the selection committee is recommending
ShoreHouse Kitchen (11ShoreHouse") as the prospective tenant. ShoreHouse desires to occupy the
Subject Property to operate a breakfast, lunch, and dinner restaurant, with full menu & beverage
services seven day per week.
DEPARTMENT CONTACT: Curtis M. Jackson (760) 434-2836 curtis.jackson@carlsbadca.gov
FOR CLERK USE. J!( COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC D
DENIED D CONTINUED TO DATE UNKNOWN D
CONTINUED D RETURNED TO STAFF D
WITHDRAWN D OTHER-SEE MINUTES D
AMENDED D REPORT RECEIVED D
Item#2-AB#22,340 July 12, 2016 Page 1 of 6
City staff is requesting authority for the Real Estate Manager to begin exclusive negotiations of a lease
agreement with ShoreHouse for a ninety (90) day period. Staff will return to City Council for approval
of a lease once negotiations are completed.
FISCAL IMPACT:
Once an agreement is approved the lease will generate monthly revenue at market rate for the City of
Carlsbad's General Fund. The lease rate will be disclosed at the time of lease approval.
ENVIRONMENTAL IMPACTS:
This action is categorically exempt from the California Environmental Quality Act pursuant to CEQA
Guidelines section 15301 (leasing of existing public structures or facilities).
EXHIBITS:
1. Resolution authorizing city staff to negotiate a lease agreement with ShoreHouse for the property
located at 2833 State Street
2. List of the names of all ten respondents who submitted a proposal
3. Location map
2
Item#2-AB#22,340 July 12, 2016 Page 2 of 6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
RESOLUTION NO. 2016-141
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA AUTHORIZING CITY STAFF TO NEGOTIATE A LEASE
AGREEMENT WITH SHOREHOUSE KITCHEN FOR THE PROPERTY
LOCATED AT 2833 STATE STREET
WHEREAS, The City of Carlsbad issued a Request for Proposal on April 15, 2016, seeking
proposals to lease 2833 State Street; and
WHEREAS, on May 31, 2016, the city received ten formal proposals which were
evaluated and scored by an internal selection committee; and
WHEREAS, the selection committee scored each proposal using criteria including:
Respondent's vision and plan for the property, experience and ability to perform, and financial
benefit to city; and
WHEREAS, BED Coastal Properties, LLC, GBOD, LLC, OMG Hospitality Group, LLC, and
ShoreHouse Kitchen ranked as the top four proposals and were invited for a selection
interview; and
WHEREAS, based on the final cumulative scores, the selection committee is
recommending ShoreHouse Kitchen as the prospective tenant.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows:
1. That the above recitations are true and correct.
2. That City of Carlsbad Real Estate Manager is authorized to enter into exclusive
lease negotiations with ShoreHouse Kitchen for a ninety day period for the property located at
2833 State Street.
Item#2-AB#22,340 July 12, 2016 Page 3 of 6
1 3. That staff will return to the City Council for approval of the lease once
2 negotiations have been completed or return to City Council for further direction.
3 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
4
of Carlsbad on the 12th of July, 2016, by the following vote to wit:
5
6
7 AYES: Hall, Wood, Schumacher, Blackburn, Packard.
8 NOES: None.
9 ABSENT: None.
10
11
12
13
14
15
16 (SEAL)
17
18
19
20
21
22
23
24
25
26
27
28 Item#2-AB#22,340 July 12, 2016 Page 4 of 6
RESPONDENTS TO RFP FOR LEASE OF PROPERTY LOCATED AT 2833 STATE STREET
1 Fish Shop; BED Coastal Properties, LLC
2 Ki's
3 GDOD, LLC dba Meze Greek Fusion
4 Rai!side BBQ
5 Scugnizzi
6 Shorehouse Kitchen
7 Union Kitchen & Tap; OMGHospitality Group, LLC
8 Veck Investments
9 When Pigs Fly
10 Yolk & Swine
Item#2-AB#22,340 July 12, 2016 Page 5 of 6
Aerial Site Map
Subject Property
Eoch
Item#2-AB#22,340 July 12, 2016 Page 6 of 6