SR-11-E (3)
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Santa Monlca, Cal~fornia
May 20, 1980
TO: Mayor and C~ty Councll
FROM: Clty Staff
SUBJECT: Request for the assignment of the lease of Mr.
Joseph Morr~s, dba Fish 'N Chips, to Admiral
Ben Bow, Inc. and the lease of Mr. Robert MorrlS,
dba SeaVlew Seafood, to Mr. and Mrs. Yang Klm.
Introduction
This report concerns a request for the ass~gnment
of the lease for the Santa Monica P~er restaurant known as
"Fish 'N Chips", and for the assignment of the lease for
the Santa Monica pier fish market known as "seaview Seafood",
dlscusses the background and plans of the new asslgnees,
and recommends approval of the asslgnments by the Clty
Cauncll.
Background
On December 12, 1978, the Clty Council approved the
asslgnment of the lease for the Fish 'N ChlpS restaurant and
the fish market known as "Seaview Seafood" to Joseph and
Robert Morrls. The Morrlses subsequently concluded that
seasonal operation was not sUltable for the larger Slze
cperatlon they had enVlsioned for the two propertles. An
apparent loss of $60,000 was reported by the current lessee.
The advantages of an owner-operated restaurant and flSh
market for the Pler became evident over the w~nter months
when pald help could not be sustalned by the low level of
of actlvlty. An owner-operator has the fleXlblllty of add~ng
help as needed and cutting back as requ~red. These Pler
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facilitles were not profltable withln the overall operation.
Mr. Morrls, therefore, has opened escrow wlth Robert
and Alexandra Sutherland, John Sneddon, and Sandra Relgner to
assign the lease to them subJect to approval by Council. They
plan on extensive remodeling to create the atmosphere of an
old English pub.
Both the Landmarks COIUITIlssion and the Architectural
ReVlew Board have glven the project thelr approval ln concept
but have reserved flnal approval pendlng review of final
worklng drawlngs of the remodeling.
Concurrently Mr. Robert MorrlS has opened escrow
with Mr. Yang Kim and hlS wlfe to asslgn the lease of the
flSh market, known as "Seavlew Seafood", to them subJect to
approval by Councll. Mr. Klm plans to operate the fish market
wlth hlS wife and lnitially plans to lnvest over $50,000 ln
improvements. Mr. Klm has four years' experience as the
manager of the sea food department of Los Angeles General
Foods Co. selling sea food natlon-wide.
Recommendatlon
It is the recommendatlon of the Clty Staff the Clty
Council approve the asslgnment of the lease of Mr. Joseph
Morris dba F1Sh 'N ChlpS to Robert Sutherland, Alexandra
Sutherland, John Sneddon and Sandra Reigner; and the Clty
Council approve the asslgnment of the lease of Mr. Robert
MorrlS dha Seaview Seafood to Mr. Yang Kim and Mrs. Hae Ju Klffi
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concurrently with the payment by Robert and Joseph MorrlS
of $7,325 to compensate the Clty for loss of good wll~
the increase of publlc liability lnsurance under Artlcle 12.5
from $300,000 to one million dollars. and dlrect Clty Manager
to execute the approprlate documents.
Exhlblt A Statement of Introduction and Information/Sutherland
B Santa Monica Bank Letter of Reference
C Bookkeeper's Business Service, Letter of Reference
D Assignment of Lease
E Statement of Introduction and Informatlon/Kim
F Letter of Reference, Mr. Kelth
G Letter of Reference, K & L Buslness & Tax Consultlng Co.
H Assignment of Lease
Prepared by: Gary Ferguson
Peter Kipp
Shane Stark
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EXHIBIT "A"
Statement of Introductlon and Informatlon
Buyers/Lessees
Robert Sutherland, age 35, and Alexandra Sutherland,
age 35, husband and w1fe, are resldents of Santa ~onlca,
and have been so Slnce May, 1973.
In add1t1on they have been Sanra Mon1ca merchanrs,
operatlng the George and Dragon restaurant and bar Slnce
Apr1l, 1977, at 623 Santa Mon1ca Blvd., Santa Monlca. Prlor
to operatlng thlS restaurant, Mr. Sutherland was a master
chef and Mrs. Sutherland a cook wlth varlOUS restaurants for
16 years.
Sandra hlegner, age 35, 1S marrled and resldes ln
Santa Monlca. She has nlne years of restaurant management.
John Sneddon, age 41, a slngle man, resldes 1n Santa
~onlca. He has 17 years of buslness and professlonal exper-
lence. Currently he lS employed as an englneer wlth Yattel
Toys.
Thelr lntentlon lS to purchase that buslness opportunlty
known as "F1Sh K' ChlpS" located at 256 Santa Monlca Pler
wlth the lntentlon of ownlng and personally operatlng sald
buslness.
In VleW of the fact that the lnterlor as well as the
exterlor of the shop lS 1n conslderable dlsrepa1r, they 1ntend
to upgrade, rehab111tate, replace, and redecorace sald shop
subject to any and all governmental agenCles' approval.
Further, they 1ntend to 1TIstall new trade f1xtures and
restaurant equlpment to produce an efflC1ent, clean ar.d modern
restaurant.
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Already, durlng escrow, prel1m1nary blueprlnts for
redecoratlng and betterment have been drawn by the proposed les-
sees.
Thelr 1n~entlon 15 to beg1TI bet~erlng, rectecorat1ng and
lnstall1ng new equ1pment lmmedlately subJect only to Clty and
other governmental agency approval.
Moreover, the1r 1ntentlon 15 to open and operate th1S
restaurant as soon as posslble.
Flnally, accompanY1ng ~h1S statement of lntroductlon
are two letters of recommendatlon, 1) Bookkeepers' BUslness
Ser~lce Company, and 2) Santa ~onlca Bank, a~ well as sta~e-
ments of flnanClal worth.
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EXHIBIT liB"
Santa Monica Bank_~
1251 Founh Street. Santa Monica. Ca',fornra 90401 Telephone (213) 394-9611
,
January 3, 1980
To Whom it may Concern:
This is to certify that Roben and Alexandra Sutherland have
dealt with this bank for several years, and have maintained
several business accounts with us.
Our dealing with them have been satisfactory, and we know them
to be respectable and trustwortby customers.
If we can be of any further assistance to you in this matter,
please don't hesitate to call on us.
Si""L
~an An:^;.Y~
Assistant Operations Officer
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EXHIBIT "C"
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1550 Palmetto Aven'ue. ..h / '
ariD. California 91762
bW
BOOt{t{~~P~~S
BUSINESS
SERVICE CO
Telephone: (714) 986.45~!- .
;
BRANCH OFFICE ADDRESS:
5000 Overland Avenue, Suite 5
Culver City, CA 90230
,
January 4, 1980
To ~Ihom it ~ay Concern:
This to verify thil t Robert a,.,d Ale:mr.dra Sutherhnd h3.ve been our clients for
several years.
They are excellent clients, as we as respectable and exem~lar'J me~bers of the
Santa Honica busiress corrXiuni ty.
If our office ~ay be of further assistance to you, please do not hesitqte to
call on fie. Our local number is 559-8600.
Yours truly,
~'~F~
Branch Cff~ce ~gr.
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Far va~ue rece~ved, ~he under5~gned
Lessee ~n ~h~t cer~a~n 1~a5e dat~d 1st day of :~ly, 1976, e~ec~t~d
bv and bet~een Seav~ew Sea:ood, Inc., dba F~sn .~ Ch1pS, as L€sse~
and the C1~Y of San~a ~on1ca as Lessor, cover~ng the pren~~e3 lo-
cated a~ Parcel 28 as shown on Santa ~on1ca P~er Lease ~ap
~o. 5239 Sheet 1 on f~le 1n the off1ce of The C1ty Eng1neer,do
hereby a58~gn all of their r~gh~. t1~le and An~er~s~, ~n and ~o
the sa~d Lease, 1nclud~ng any opt1ons or Lease secur1tv, and ~n_
corporat1ng ~nto sa~d le~5e the attached adde~dum. aB Le~see
Da~ed~
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Seav1ew Seafood, Inc~
by Robert R. pg~erson, Secretary
ASSL~fPTI0' QE ~
For value rece1ved, and 1n cons~dera~~on of t~e a~Qve aS5~g~~en~
bv the Lessee, and 1n cons~derat~on of ~he ~rl~~en ~c~sen~ 0:
t:he Lessor, ~he Ur'dE":r5~..;nE!d doe::5 hG-raby .3.GrE>€, -:::) a~$Ur1{'> ar=.d or,a\...e
all :la~l"1er..t:s and "to perfo:-PT'\ all :::o.....en::.nts _:11':5. -:Crd2;:L0n~. -:.r:ci.'..l-
d~ng the aG~ndum he~eLn, wh~ch ~~e Le$3ee has ~sr~ec ~o n~ke a~d
perforn.
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Far ~a_ue rece~ved, and ~n ~~r.5~~era~~c~ of _ __ ~S5~~pclon ce~=L~-
abo~e, ~he under5~~ped Lessor cors~~~s C~ the abo~e a5~1g~'e~L'
0:: that ce:t'':"a::..r:. :easa 1n,:2.c.:.dl.ng -:::,.~ ~-:::':l.er!a::,T a.~:ac:led r:e-:-~::..n. '~a::..~-
1~S ~o~e ~f ~ts r~5~t~ t~ereur.d~r as ~o :~e :essee or a~~ ~S5~~~€e.
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EXHIBIT "G"
K &L BUSIN:2:SS t:. TAX CONSULTING CO.
(21317310750 i21.l1731-0759
955 S WESTER'll "'VeNUE SUITE 708 LOS .<tNGELES. C/\L1FORr~IA 90006
C~ty of Santa ~onica,
Enterta~~~ent Fac~lities
Attention: Peter Kip~
Letter of Introduct~on and StateMent of Intent
For ~x.Yo-ng Kim & Rae Ju Kin,H~s Nife
Itr. Yo-ng Kim has been a resident In Santa Monica for flve years.
He lS 43 years of aqe,and is a deligent man. From 1973 to 1977, he
worked as manager of the Sea Food Dept.,Los An~eles General Food Co.,Ltd.,
located at 943 Western Avenue,Los P~geles, Cal~fornia. (9Q006)
In the early part of 1977,He became Llcensed as a"Speciallst & Gen-
eral Contractor,by the Callfornia Licenslng Board.He then began his own
bus~ness concern in the construction ~ndustry, and to this date he st~ll
o~ms & controls the contruction business. ~r. Young Kim has successfully
demonstrated his entrepreneurial capabilit~es, and has thus built hlS
business into a very stable and lucrative operatlon. Financlal 8tate~ents
regard~ng the Contruction concern wlll be forthcoMlng.
Hae Ju K~~,his wife ~s 37 years of age and is presently managlng a
beauty salon they purchased in 1976, and is located in Santa ~1onlca. Rae
Ju Klm has seven years of restaurant & market operations experience.
The present spat~al use of the space concerned lS a Food r'arket/Servlce
use, known as the "Sea Food ~~a-rket". }hster and !>lisses Kim have succes-
sfully completed negot~ations for the acquis~tion of the Sea Food ~larket
business concern .
The K~ms lntend to upgrade the property In two broad categories. Flrst
they w~ll select an archltect and \lith the approval of t~e C~t~ of Santa
~1on~ca, develop a more appeallng and functional deslgn. E'econd, they lnll
install new f~xtures and equlptMent. Since ~r. Kim ~s a highly competent
bu~ld~ng contractor he ~ill personally see that every detail lS completed
in d~rect accordance with all regulatory agencles lnvolved.
They wlsh to open and operate the bus~ness concern as soon as possible.
Your cooperat~on and help will be very ~uch appreciated, and if any other
data is needed by you, I wlll be glad to ava~l you of it upon your request.
DJH
5/12
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For ,alue rece1" ed. -he un~ers~E~ed 5~~' ~e'. 3earood~ !nc.~ by
, ~e~s~~ 1~ :~&L c=r~a1n lea~e
dated ~5t of Julv, 1076, orlg~nallv ~xe~~:ed by ~nd b~tbe~r
~nlS 5ai:ocm, dba Sea V~ew Seafood Cc~nan}. ns Lesste, ~nd
L~e Cl.~y of Sa"lr'a 'fcn~ca, a5 Le!'~orf ;;c\-er~"l.=s ["he :Jre'11.i.SE"S
J..,=,cat:ed at ?a:!.-r:el 2C -a::: sao....r:. ,-n :;-l.~C.<i .0.-1':3,. Pl':2'r ':'-e~5~ Pao
~o. 5~~? (~~eet l~ ~n ~~le L~ rhe afflCe ~~ T~e ~~~~ ~~g~r~~r,
~c ~erebv asslgn all 01 thelr ~lghL, t~~l~ d~C 1~~~re5-, ~n
a~d ~o ~he sald lease, 1~clud1~g an) ~ot~ons or Lease 5ecur1:Y.
and J.ncorpQ-:'at:l.:lg the- add,;nd'..lm :0 sald lE-a.;:;-e. herE and 2..t-::ach.:;-d.
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