SR-112486-6IRMM:LAM:moxs89hpw
City Council Meeting of 11-24-87
STAFF REPORT
•
NOV ~ 4 1987
Santa Monica, California
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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
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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
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Reference Contract
No. 4671 (CCS).