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SR-6-F .... b-r- C/ED:MT :Jl-1:nq JU' 1 ) Counc~l Meet~ng July 12, 1983 Santa Non~ca, Cal~forn~a l 2 ~3 TO: Nayor and C~ty Counc~l FROM: C~ty Staff SUBJECT: Letter of Intent to Pier Tenants Whose Bus~nesses Were Destroyed During W~nter Storms Introductl.on In response to a d~rectlve by Cl.ty Counc~l at the May 10 Meetlng, thl.s report presents the Letter of Intent which will accompany the lease term~natl.on notl.ce and recommends approval of the letter by Councll. Background Staff had recorunended l.n the ~'lay 10 Report that month-to- month tenancies of any lessee whose prem~ses were destroyed be termlnated. Th~s would reflect the real~ty of the storm-related destructlon as well as the recognltlon that sowe of the tenants would occupy new prer.lses pursuant to new lease agree~ents and not pursuant to the current form of thelr ~onth-to-month tenancies. Upon approvlng this reco~~endatlon, Caunell lndlcated that the Clty should demonstrate ltS l.ntentlon to negotlate ~n good faith wlth these former tenants lf slmllar faCllltl.eS are reconstructed by sendlng a Letter of Intent alonq w~th the Notl.ce of Terml.natl.on. Discussion Staff presents to Council the attached Letter of Intent (Attachment I) whlch essentlally offers the former tenants flrst refusal Tlghts to negotlate a lease wlth the Clty upon the recon- struct~on of a faclll.ty of sl.m11ar use as the one whl.ch was destroyed. b,. P- - 1 - JUL 1 2 1983 .. : CjED:HT:JM:ng Council Meetlng July 12, 1983 Santa Monica, Californla The letter lS not a legally binding commltment to lease space to the former tenant or to rebUlld premises, nor does it permlt the transfer of any rlghts to a thlrd party. The recommendatlons presented In this report do not have a budgetjflnancial impact. Recomrnendatlon Staff respectfully recommends that the Council approve the attached Letter of Intent. Prepared by: Mark Tlgan, Director of Community & EconomlC Development Judith Meister, Pler Development Manager Attachment: Letter of Intent . , ATTACHHENT I LETTER OF INTEKT Because of the destructlon of your leasehold prewlses by recent storm damage, the Clty has elected to terminate your month-to-month tenancy. ThlS actlon reflects the reallty of the storm-related destruction and the recognltlon that tenants wlll only occupy new premlses pursuant to new lease agreements. As you knmv, the Clty has commenced the process necessary for the reconstruction of the pier. ThlS process wlll hopefully result 1n reconstructlon of facillt1es for uses slmilar to those destroyed by the storms. Upon reconstruction of such facilltles, the Clty will dis- cuss leaslng to you faclllties com9arable to those destroyed by the storms Before leas1nq the facllltles to anyone else the C1ty wlll enter lnto dlScusslons with you concernlnq the lease of the premises upon such terms as the Clty deems approprlate. Although the Clty desires to accommodate ltS eXlstlng lessees, thlS letter should not be construed as a legally blndlng commlt- ment to lease space to you or a cowmltrnent that the City wlll re- bUlld premlses sUltable to your needs. Llke\v1Se, thlS letter should not be construed as conferring upon you any rlghts that you can transfer to thlrd partles.