SR-6-J (57)
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City Council Meeting 12/13/94 Santa Monica, California
DEe 1 3 1994
To: Mayor and City Council
From: City Staff
Subject: Recommendation to Authorize City Manager to
Negotiate and Execute a Lease Amendment with Brian
Vidor for the Typhoon Restaurant space.
Introduction
This report requests the City Council to authorize the City
Manager to negotiate and execute a Lease amendment with Brian
Vidor for the restaurant space at the Santa Monica Airport
Administration Building.
Back<1round
The City entered into an agreement with Brian victor on May
14, 1990 for lease of space in the Airport Administration
Building to operate the Typhoon Restaurant. The restaurant
provides lunch and dinner service for the Airport tenants and
surrounding community.
Mr.victor made tenant improvements to the space in excess of
$1,000,000 to create the restaurant. The tenant improvements
made to the space were required because the restaurant needed
to create a theme and ambiance to attract customers from
outside the Airport. The restaurant is, in fact, drawing in
patrons from outside the Airport area.
DEt 1 3 1994
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In addition to the need to create a destination restaurant
the improvements were mOre costly because of problems that
arose during construction and lack of as-built drawings. Mr.
Vidor received a total rental credit of $115,000 for the
tenant improvements which was based on an estimated build-out
cost of $500,000. This rent credit has been applied to Mr.
Vidorls $3,200 monthly rental obligations.
Discussion
The recession in Southern California over the past three
years has significantly affected the revenue of the
restaurant. The substantial capital investment to create the
restaurant build-out and the ongoing operating expenses has
made it difficult for the business to grow. The initial
projections for revenue growth to cover the tenant
improvement costs have not been achieved to date. Mr.Vidor
has requested the City extend the tenant improvement credit
from $115,000 to $194,100 because of the $1,000,000 capital
improvement made to the restaurant. In partial consideration
for the rental credit extension, the City would obtain
exclusive control of the Skydeck space leased to the Typhoon
restaurant. This would allow complete public access to the
Skydeck and viewing area at the Administration Building.
Airoort Commission Review
At the November 15, 1994 City Council meeting it was
requested that the Airport Commission review the issue of
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public access to the skydeck proposed in the lease amendment.
The Airport Commission reviewed the public access issue at
its meeting on November 28, 1994. The Commission approved a
motion concurring with staff that having the City control the
public skydeck was more beneficial to the community than the
ability to provide food service on the skydeck. The
Commission further requested staff to make improvements in
signage and access to ensure the public is welcome to use the
skydeck.
Budoetarv/Fiscal Imoacr
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No revenue was projected for the Typhoon Restaurant in the
FY1994-95 budget. In view of this increased tenant credit,
revenue flow is projected to begin in November 1995, and will
be included in calculations for the FY1995-96 budget.
Recommendation
Authorize the City Manager to negotiate and execute a lease
amendment with Brian Vidor for the restaurant space at the
Santa Monica Airport Administration Building.
Prepared by: Jeffrey P. Mathieu, Director of Resource
Management
Timothy A. Walsh, Airport Manager