SR-6-F
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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.
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JUL 1 2 1983
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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
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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.