SR-6-L (28)
Contrexcf- no 0014 (ccs)
{,L
JUN , 7 1997
JPM RDT:HR
Council Meeting June 17, 1997
Santa Moruca, California
To
Mayor and City Council
From
City Staff
Subject
Recommendation to authonze the City Manger to negotiate and execute a Lease
Modification with Typhoon Restaurant to allow for the enclosure of the upper
Skydeck space and the construction of new public Skydeck improvements located
at 3221 Donald Douglas Loop South
Introduction
This report requests that City Council authorize the City Manager to negotiate and execute a
lease modification with Typhoon Restaurant to allow for the enclosure of the upper Skydeck
space and reconstruction of the public Skydeck improvements located at 3221 Donald Douglas
Loop South at the Santa Monica Airport
Backl!rOund
The City entered into a lease agreement with Bnan Vldor on May 14, 1990 for a fifteen-year teoo
endmg m the year 2005, plus an option to extend the lease for an addItIOnal ten-year penod, to
construct and operate the Typhoon Restaurant located WIthin the Airport Admirustration
Buildmg. The restaurant provides lunch and dinner service to the public. Mr Vidor requested
landlord approval to enclose the rooftop patio space located directly above his restaurant and
construct an enlarged public Skydeck on the perimeter of the newly enclosed space Staff
presented the proposed Skydeck improvements to the AIrport CommIssIon for conSIderation on
January 22, ]996 The AIrport CommissIOn unanimously approved the proposal on January 22,
1996
foL
JUN 1 7 1997
Discussion
Typhoon Restaurant requests pennission to enclose approximately 1,570 square feet of the
extsting Skydeck for restaurant purposes and concurrently construct a new adjoining public
Skydeck of approximately 1,270 square feet Working drawmgs for the proposed improvements
conform with existing tenant improvements and have been reviewed and approved by the
appropriate City Departments and by the Architectural Review Board The tenant is required to
procure all necessary City permits prior 10 commencement of conslruction
Mr. Vidor took a personal and financial risk in 1990 by expending in excess of $1,600,000 in
developing a first class restaurant facility al a location considered remote and "off the beaten
track" Through his efforts, the Typhoon Restaurant is now sound financially The proposed
tenant improvements will benefit the Airport by providing an enlarged public Skydeck with
unobstructed views of the Airport, an Improved restaurant facility (which will provide additional
flexibility for the lessee) and increased revenues to the City The estimated cost of the proposed
tenant improvements is $275,000
Budl!etIFinancial Impact
Currently the rental income to the City from the Typhoon Restaurant IS approximately $5,300 per
month which consists of base rent of $3,692 and a percentage rent which IS calculated on gross
food and beverage sales The tenant estimates that the new leasehold Improvements will generate
$35,000 in additional monthly gross sales The lease modification will reqUIre the Typhoon
Restaurant to pay a flat 6% on all food and beverage sales above the current average monthly
gross sales thereby generating approximately $2,100 m additional monthly rent to City This
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increased revenue will be recogmzed in the Airport Fund in account number 33-620-631-00000-
0212-1??oo No tenant improvement rent credit is contemplated and the term of lease will
remain unchanged.
Recommendation
Staff recommends that the City Council authorize the City Manager to negotIate and execute a
lease modification with Typhoon Restaurant to permit the enclosure of the upper Skydeck space
and construction of public Skydeck improvements located at 3221 Donald Douglas Loop South
at the Santa Monica Airport
Prepared by Jeff Mathieu, Director of Resource Management
Robert Trimborn, AIrport Manager
Howard Robinson, Economic Development Manager
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