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City Council Meeting' August 14, 1984 Santa Monica, California
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AUG 14 '984
TO: Mayor and City CouncIl
FROM: City Staff
SUBJECT' Recommendation to Approve an Increase in Recapture Allowance for
the Restroom Expansion of the Surf View Cafe
Introduction
This report recommends that Council approve an i nc rease In the recapture
allowance for the restroom expansion of the Surf View Cafe from $5,000 to a
~aximum of $10,000.
Background
At its March 27, 1984 meeting, Council approved the expansion of the
Surf View Cafe lease premises on the Santa Monica Pier. The March 27, 1984
staff report appears as Attachment A. As Indicated In that report, the
purpose of the 443 square foot expansion is to add handicap-accessible publ,c
restrooms and additional patio seating.
The estimate received by Mr. Suh, the leasehold owner, on the original
plans was 510,000. Based upon this estImate, Council approved a recapture
allowance over two years for fifty percent of the investment, or 55,000
maximum At the time of this approval, Councl] members also indicated their
des ire for Mr. Suh to redeSign or replace the rear fence. Council members
also acknowledged that this mIght increase the cost and might result in
adjustment of the recapture allowance.
Revised Cost Estimate
Since the t ke of Counc i 1 's approva I, the CIty's Building and Safety 6J -/(
Department and the County Health Department have required design, plumbing, AUU4.
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City Council Meeting: August 14, 1984 Santa MonIca, California
and equipment changes. I n add i t ion, Mr. Suh has proceeded with a design for
a new rear security fence. The revIsed cost estimate, incorporating all
required changes and the construction of a new fence is $20,000. Attachment B
is the design of the new fence which was approved by the Architectural Revie'"
Board on July 18, 1984.
Budget Analysis
As indicated in the March 27, 1984 staff report, the minimum monthly
rent w,ll increase from $574 to $720 and the minimum annual sales viill increase
from 568,880 to 586,440. This increase was determIned as a result of the
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additional square footage The staff report called for the rent increase to
begin on July I, 1984 Since construction has not yet begun and there is no
additional square footage this report recommends that the increase in rent
become effective upon conpletion of construction.
The recapture allowance is appl ,ed against the overage on sales. The
reco~mended action to increase the recapture allowance will increase the
amount of rent withheld from the City over the next two years by a total of
$5,000. No adjustment to Pier revenues is necessary at this time.
Recommendat ion
Staff respectfully recommends that Council:
(1) approve the increase in recapture allowance to a maximum of S10,000 to
be completed when the balance is zero or June 30, 1987, whichever comes first.
(2) Increase the minimum monthly rent to $720 and increase the minimum annual
sales to $84,400 upon completion of construction,
(3) direct the City Attorney to amend appropriate lease documents.
Prepared by' Jud. th Meister, Pier Development Manager
Susan Mullin, Pier Operations Manager
Attachments' A - /'Ia rch 27, 19B4 Staff ReDort
B - New Fence DeSign