SR-6-I (116)
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JAN 8 J,;j~
C/ED:EDD:PC:DJG:RS:pc:ccwillie
council Meeting: January 8, 1991 Santa Monica, California
TO: The Mayor and City Council
FROM: City staff
SUBJECT: Recommendation To Authorize City Manager To Negotiate
And Execute A Lease with Willie And Gloria's Beauty
Salon In Parking Structure No. 6 Located in the Bayside
District Area
INTRODUCTION
This report recommends that City Council authorize the City
Manager to negotiate and execute a five-year lease with willie
and Gloria's Beauty Salon for 885 square feet of space in Parking
structure No. 6 located at 1431 Second street. Willie and
Gloria's has been in this location five years~ their previous
five-year lease has expired.
BACKGROUND
Willie and Gloria's is owned by Guillermo Gonzalez and operated
together with his sister Gloria. They moved to this location
five years ago after vacating a shop down the street at l402 at
Second Street which they ran for 13 years. Willie and Gloria's
caters primarily to senior citizens offering hair services at low
rates.
This lease provides for a five-year term for 885 square feet of
space at $1. 25 per square foot, up from $1. 06 per square foot.
The new rate is comparable to other parking structure retail
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space tenant rates. The lease is subject to annual Consumer
Price Index (CPI) increases. There are no additional
construction or tenant improvement costs. All other terms and
conditions of the lease remain the same.
BUDGETARY/FISCAL IMPACT
Monthly rental income from this Lease Agreement will be
$1,106.25; annual income, once the lease is approved, is expected
to be $13,275.00. Five months at the new rental rate represents
an increase of $840.75 over FY '90-91 budget projections. Rental
income is deposited in revenue account
#01-200-263-00000-0087-1000. A security deposit of $1,600.00 is
still being held in the General Fund balance sheet.
RECOMMENDATION
staff recommends that the City council authorize the city Manager
to negotiate and execute the lease with WILLIE AND GLORIA'S
Beauty Salon for space in Parking structure #6 on Second street.
Prepared by: Ruta Skirius, Senior Administrative Analyst
Economic Development Division
ccwillie
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