SR-012886-6QC/ED:EDD:ERF:mb
Council Meeting 1/28/86
T0: Mayor and City Council
FROM: City Staff
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JAN 2 g 1986
Santa Monica, California
SUBJECT: Recommendation to Grant an Outdoor Dining License Agree-
ment on the Third Street Mall to Teasers Restaurant
INTRODUCTION
This report recommends that the City Council grant an outdoor
dining license agreement to Anthony Palermo and Daniel Ringwood,
doing business as Teasers Restaurant on the Third Street -Mall,
pursuant to the terms proposed herein.
BACKGROUND
On December. 26, 1985 Teasers Restaurant opened for. business at
1351 Third Street, Santa Monica Mall. The owners of the res-
taurant, Daniel Ringwood and Anthony Palermo, have made a major
economic commitment to the revitalization of the Mall as evi-
denced by the level of investment in the restaurant.
Pursuant to the Outdoor Dining Guidelines approved by Council on
May 14, 1985, the restaurant owners have submitted architectural
plans and have requested a license agreement to operate outdoor
dining on the Third Street Mall. The architectural plans have
been reviewed by City staff and approved by the Architectural
Review Board. In addition, City staff has reviewed their
request for a license agreement, pursuant to the Outdoor Dining
SAN 281 6
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Guidelines and the standard license agreement previously approved
by Council.
DISCUSSION
The City's standard license agreement calls for a two-year term
with an option to ex tend for an additional three years. Under
the guidelines approved by the City Council in May, 1985, the
anticipated lease rates for the City were to be within the range
of $1.00 to $1.25 per month per square foot of leased outdoor
dining area. However., a recent review of market rates suggests
that these rents are not realistic for. the Mall outdoor area at
this time; especially in light of the Council's stated intent to
utilize the granting of license agreements in the common area as
an incentive to attract and promote the establishment of quality
restaurants and outdoor dining on the Third Street Mall. There-
fore, under the proposed license agreement, the City will receive
monthly per square foot rents of $0.50 in year 1, $0.65 in year 2
and increasing thereafter to $1.00 in the final year of the op-
tion period. It is suggested that these rates be used as admin-
istrative guidelines by staff in the granting of future outdoor
dining license agreements until the Mall Specific Plan is imple-
mented. It is anticipated that once new public improvements which
are recommended in the Preliminary Mall Specific Plan are made to
the Mall common area, a higher lease rate may be achieved.
BUDGET/FISCAL IMPACT
For the remaining portion of Fiscal Year 1985-86, a total revenue
of $1050 will be received. This increased revenue will require
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that budgeted revenues in General Fund account number 01-904-077-
000-000 be increased by $1050 in Fiscal Year 1985-86.
RECOMMENDATIONS
It is staff's recommendation that the City Council:
1, authorize the City Manager to negotiate and execute
license agreements for outdoor dining on the Third
Street Mall pursuant to the terms and guidelines pro-
posed in this report;
2, authorize the City Manager to negotiate and execute an
outdoor dining license agreement with Mr. Anthony Paler-
mo and Mr. Daniel Ringwood pursuant to these guidelines;
and
2, increase budgeted revenue in account number 01-904-077-
000-000 by $1050.
Prepared by: Ernesto R. Flores, Manager
Economic Development Division
Community & Economic Development Department
Jones
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Pedesira/n
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Reference Contract
No. 4630 (CCS).