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SR-112486-6IRMM:LAM:moxs89hpw City Council Meeting of 11-24-87 STAFF REPORT • NOV ~ 4 1987 Santa Monica, California . ~ t.: To: Mayor and City Council FROM: City Staff SUBJECT: Recommendation to Approve Modification to Lease Agreement Between City of Santa Monica and Supermarine of Santa Monica and the Sublease of a Portion of the Leased Premises to 28th Street Restaurant Corporation Introduction On May 1, 1986, the City entered into a Lease Agreement with Supermarine of Santa Monica ("Lessee") pertaining to certain real property located at the Santa Monica Airport for purposes of construction, operation and maintenance of a full service aviation fixed based operation ("FBO"). Sublease Lessee now desires to sublease a portion of the leased Premises to the 28th Street Restaurant Corporation for the purpose of operating a restaurant containing an ancillary bar or cocktail lounge open to the general public for lunch and dinner. The restaurant would utilize approximately 13,500 square feet and would be located in the upper level of Lessee's administration building, thereby allowing patrons to enjoy a meal while aircraft viewing. The Lease Agreement requires Lessee to obtain City's _,_ G -Z IVdV 2 4 1587 prior written consent to any assignment, sublease, or other transfer of the Lease or any interest therein. Additionally, in order to allow Lessee to use a portion of the Premises for a restaurant open to the general public, t e Lease Agreement requires a Modification to expressly permit such use. Fiscal/Budget Impacts The Lease Agreement with Lessee provides for payment of percentage rental equal to the difference between the Minimum Annual Base Ground Rental and the total of various percentages of business activities, provided such total exceeds the minimum Annual Base Ground Rental. The City therefore has the potential to receive a share of gross receipts from the proposed restaurant operation. Recommendation Accordingly, staff recommends that the City Council take the following actions: 1. Authorize the City Manager to execute a Consent to Sublease pertaining to the proposed Sublease between Supermarine of Santa Monica and 28th Street Restaurant Corporation. 2. Authorize the City Manager to execute a Modification to the Lease Agreement for the purposes stated herein. Prepared by: Hank Dittmar, Airport Director Robert M. Myers, City Attorney Linda A. Moxon, Deputy City Attorney - 2 - a z N Q :a ~ H z Q N W z 4 W a N ~, 1 J~ A H CYi C7 1~ + i~ "~jv lj ~ . r{. r. ~ . ~• ~: ~'' ' i r % RH'. 0 ', H,, .x.tt+~/~I ~ .~ r 1t ~ H 2 ,r%~1,,,.. ~ ~,~i ~ .. (~. z •, . , ~ t ~~ ~ H 1.. ~/ r. ,: r ~~ i' ~a v O i et Z Q W Z .a W a cn i w U H W W ! ~i ~ ~o s ~ ! W (~ ! C4 ~C i _~ ~ _. 4. ~a E ~ z :~ Hz x ~~ a z w~ 0 H Reference Contract No. 4671 (CCS).