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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ACTION: APPROVED CONTINUED TO DATE SPECIFIC D DENIED D CONTINUED TO DATE UNKNOWN D CONTINUED D RETURNED TO STAFF D WITHDRAWN D OTHER-SEE MINUTES D AMENDED D REPORT RECEIVED D Item#2-AB#22,340 July 12, 2016 Page 1 of 6 City staff is requesting authority for the Real Estate Manager to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