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SR-09-23-2008-1L~~ ~;~YOf City Council Report Santa Monica City Council Meeting: September 23, 2008 Agenda Item: J=~-- To: Mayor and City Council From: Andy Agle, Director of Housing and Economic Development Subject: Cafe Space at the Civic Center Parking Structure. Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a Concession Agreement with High Rise Goodies Restaurant Group d.b.a. Trimana Grill for the operation of a cafe located in the Santa Monica Civic Center Parking Structure. Executive Summary Staff has concluded its evaluation of cafe proposals received in response to an ongoing public Request for Proposal (RFP) and recommends the City Council authorize the City Manager to negotiate and execute a Concession Agreement with High Rise Goodies Restaurant Group d.b.a. Trimana Grill, in accordance with the terms and conditions outlined in this report. Discussion Completed in 2007, the award-winning 882 space Santa Monica Civic Center Parking Structure designed by Moore Ruble Yudell incorporates ground floor and plaza level tenant space envisioned to provide an array of complementary uses to serve the Civic Center area and create an active and welcoming pedestrian environment. The 3,500 square foot commercial area along the plaza level on Olympic Drive was designed with a cafe use in mind, however due to the large size of the space, limited market area, and lack of tenant improvement contributions offered by the City, staff had difficulty attracting a food service operator after several releases of a Request for Proposal. 1 On July 8, 2008, City Council endorsed the strategy to address administrative space needs and directed staff to pursue the development of City office space in addition to a smaller cafe in the Civic Center Parking Structure. The City Transportation Management Division's permit sales counter will be integrated into this area and will share the space with a smaller cafe. This joint public-service function will enable the City to incorporate tenant improvement construction that benefits both the City offices and cafe. Cost for the tenant improvements are part of the design build agreement approved by Council on July 23, 2008. The City will build out the restrooms, City offices and common areas. Trimana Grill will pay for and build out the area internal to their operations. Staff has evaluated cafe proposals submitted in response to the ongoing RFP and recommends the City enter into a Concession Agreement with High Rise Goodies Restaurant Group d.b.a. Trimana Grill. Trimana Grill is a casual food service operation that specializes in office buildings and multi-building complexes in the Los Angeles area and understands the food- service dynamics of a daytime clientele. Trimana Grill provides an extensive breakfast and lunch menu emphasizing a variety of fresh, made- to-order and health oriented selections as well as `grab and go' pre-made sandwiches, salads, drinks, juices, snacks and sundries (Attachment I. Menu). Trimana Grill has an excellent reputation for food quality and customer service and has received very favorable landlord and industry references. The prospective operator has had significant experience in successful restaurant development and operation and has the financial capacity and experience to accomplish, and maintain all aspects of the operation. In addition the Trimana Grill concept and menu is compatible with the Civic Center demographics and the proposed rent is competitive. The operator does not propose alcohol service and agrees to comply with City's Healthy Foods Initiative. The operator is not requesting any tenant improvement allowance. Staff conducted visits to Trimana Grill locations in Santa Monica and Los Angeles and found the atmosphere at each location to be lively and casual, and the service to be 2 prompt. and courteous. The food variety was extensive and meals were pleasing and perceived to be an excellent value. Discussions with the restaurateur have resulted in agreement on the following major terms and conditions. Subject to Council approval. the proposed terms are: 1. A lease term of ten years with two five year options; 2. Monthly rent of $4,125 ($2.50/ square foot) in the first year, increasing annually by CPI with a .minimum increase of 3%, but not to exceed 7% annually; 3. Percentage rent of 10% of sales in excess of a monthly base rent break point; 4. Landlord to provide premises in a 'vanilla shell' condition with stubbed-out utility connections: In addition, Landlord will be responsible for. cost and construction of restrooms, HVAC systems, ductwork, fire systems, grease interceptor, electrical and plumbing connections (which will be shared with the City's office space uses); 5. Tenant to be responsible for the costs of all. equipment, fixtures, furnishings, and signage; 6. City to permit use of a validation machine or other City-approved method entitling cafe customers to 40 minutes of parking at no additional cost to the Tenant (patrons will be responsible for parking charges in excess of 40- minutes at the prevailing rate); and 7. Proposed cafe minimum hours of operation will be weekdays from 7 AM to 5 PM. Build-out of the cafe will be integrated with the City's tenant improvement work associated with the construction of the Parking and Building and Safety offices located within the Civic Center Parking Structure. Operator Selection In September 2006, the City released a Request for Proposals (RFP) seeking a 3 qualified restaurant operator who would at its own cost, design and build-out the 3,500 square .foot space including. all equipment, HVAC systems, restrooms, appliances, fixtures and furnishings necessary to its operation. The City would provide utility service to the building, fire sprinklers, and exhaust duct openings within the premises. All other improvements would be the responsibility of the Tenant. The- RFP specified that the City would not provide upfront monies to contribute to the build-out. of the space, however the City would consider rent credit/rent relief to off set initial costs and preparation of the shell for use as a restaurant. No responses to the RFP were received by the November 2, 2006 deadline. The RFP was reissued and by March 2, 2007, several proposals were submitted and evaluated however the top candidate withdrew its proposal citing the large size of the space and significant capital investment necessary for build out. The RFP was reissued again with an ongoing deadline. The reduction in the size of the cafe space and tenant improvement requirements yielded greater interest from prospective cafe operators. Publ[c Outreach Advertising included ads in local newspapers, postings on websites, a "For Lease" sign on the structure, and direct mailing to persons and organizations on the City's interested party list including local commercial real estate brokers and agents. Financial Imuacts & Budget Actions Rent will be $2.50 a square foot. At the current estimate of 1,654 square feet rent would be $4,125 per month to begin after the completion of tenant improvements. Revenues associated with this agreement will be credited to revenue account number 01263.400770. 4 Prepared by: Elana Buegoff, Sr. Administrative Analyst Approved: ~._f Andy Agle Director, Housing and Economic Development Attachments: Attachment A: Menu Forwarded to Council GfJ P. ont Ewell City Manager 5 • Breakfast Sandwiches Bagel or Toast or English Muffin 1.20 Bagel. with Cream Cheese 7.99 (Scrambled Eggs Sandwich 2.88 Eggs &Cheese 3.28 Eggs & Bacon or Sausage 3.47 Eggs 8 Turkey or Ham ':, 3,47 Eggs.&Cheese wRh Bacon or Sausage J3.98 Eggs'.&Cheese wish Turkey or Ham ' .''3.98 Grilled:Cheese "" 2.79 Grilled~Cheese with Turkey or Ham 3:79 Grilled Cheese With Bacon or sausage 3.79 Tomato&.Cheese Melt 3.09. e'eammmoamm Pancakes`° - - 3.99 French Toast 3.99 Oatmeal ar Cream of Wheet 2.25 • Breakfast Platters •' ;:Served with Potatoes or Tomatoes & Toast 3 Eggs -any style 4.50 Eggs;with Bacon or Ham 5.99 Eggswith Sausage or Turkey 5.99 >. Cucumber or Tomato on `~ "Breakfast Sandwiches add 0.30 d` Su(9siltute Egg whites for Eggs add 0. 50 "'"! r - 'We reserve;the nghf fo refuse service to anyone. _- ~'~_ 4P • Create Your Own Omelette 3 Eggs, Toast and Hash Browns or Tomato 4.50 ...choose your favorite ingrediei2~s Bacon, Sausage, Chodzo, Turkey, Ham, ! Avocado, Pastrami each 1.00 Monterey Jack, Cheddar, Swiss, Feta, Mozzarella, American, Bleu Cheese eadhi 0.65 Mushrooms, onion, Bell Peppers, Tomato, Kalamato Olives, Sprouts, Pepperocini each 0.30 • Create Your Own Wrap •' Flour Tortilla, 2 eggs, Salsa, Sour Cream. ' Hash Browns 325 ...and your favorite ingredients Bacon, Sausage, Chorizo, Turkey, ' Ham, Avocado each 1'.00 :. Cheddar, Monterey Jack; American, Swiss, kMozzarella each 0.65 Mushrooms, Onions, BeIF Peppers, Tomato, Extra Salsa, Extra Sour Cream each 0.30 ' Breakfast Served until 10:45 afn ' Prices Subject tG Change Without Nofice. • Coffee Bar House.Blend 1,65 1.95 a Catering Sandwich Platters Assorted Wraps Deli Platters Pasta Trays Fruit Platters Vegetable Tray Continental Breakfast Finger Sandwiches ' Caesar's Bowl Cheese Platters Fresh Baked Cookies Tray TRIMANAE%PRE65 (582)4353333 LOS ANGELES 1925CoNUry PaM EaY 500D E. SPdnO ": AIFPORT (910)6515945 (562)421.7}00 9849AIryoA blvd. t9CU Avenue o111,p 6Nrs 3CO CCean9olo (310f 91PWS] (310155L1091 (50R)2)9d002 5]Si CenbNOM. 2121 Avenue o11nu 5brs cLENOALE '(3103641-0099 191o12of-01]4 855 N. Cenhel 53000ENTURV BLUO. aen wosl Pke Bwa (010)s¢~so1o (9101 z1e-0on (x191531anz > CULVER CIry WOOOLANO HILLS 9EYERLYMLLB 20o Coryorete Pant 6301 ow<nsmouln Ave. 8303 WIISt4m Blvd (31m 891A255 (01819993C2B :13231656-0]90 3035 Wesl Slauson, NAt 21800 ovwd 5l " (329)282-0865 (918)981-1111 . EL SE6UNUG OOWN]OWN 300 NaM CanllnMtel . B oIATaYOe ? MlO W1LSHIRE (3f01922M09 3338oNM1HPoO 3550 WikM1Iro BNtl 21Y1 ftoearene Avenue (213)800.2261 121318028818 ": (81013390020 TRIMANAEXPRE6S 9PNaA5euAMa,&a.te 3305auN Hqw WESTLOS ANGELES (3101 T28~OB20 (213)820.1803 11444 WOSt Olympic TRIMANAEXPRE66 (810)231-fl8p / SgNip MGNIOA e33 wool nnn sL mso 10azowahire awe z4wcdT »AVO.mo99 (21314094606 2~g6 0 200~ 0 (9101949ffi94 683 Wwl FAM1 s. p150 1 ~ 1 08 (z13102z9523 1310)dTa9BB3 TRIMANA EXPRE66 1a6o1 wdsMre 91vd nlas u3s soma xnl sc. (]1019&8110 (213)]42m]d n]sswuanho Bme. 333 Souih fieau0ry &. 131014461044 (213)R41~8932 ENGNO Bn weaton avast ' 150x1 veNe,a arva (213f 8243611 )955pulh Fburooa' (818)3054230 (219)82288]9 BURBANK NO EesI Blh Slrem 3000M etla al (21318834995 . (818)525-0E00 5165ou1h Figuoma (2i3182d-0S/6 I WESTHOLLYWOOP.'' ' 5503oulh Htll 62003nnaol8lvd (219102)4950 -.;{31012)885]0 GRIL[ ~ :GOODIES ®COf FEE 2450 Colorado Ave. #1030 Sanfa Monica, CA 90404 '"Phone (310) 449 9244 Trlmanal, is proud to olfer a varioty of catering services with the best quality bosh fooU for al! your business occasions. Please select ficm the following caterng packages or for a customlzetl menu, p/ease Muffins Platter Eggs • Hash ' . -- _Pdce per Assorted Sotla '- ' Price per person #2 Assorted Deli Wraps !.' 'served with a choicerof Coleslaw, Fresh Fru dr a comhinallon of all Three. ',: ' Freshly Baked Cookies •Afist. Snapples &, Price per person $9.25 irf BO MEAL DE® B. ~, Largo Soda Largr & Pasta & Frll _... $2.99' chips ARBROILED DOUBLE BU Choice of Angus Beef or Turkey -:. Veggie Burger add $0.80 AIIAmerican ' DI Ltt r -with purchase of any Sandwich or Tossed Salad D. E. F, G. H. i Large Soda Large Soda & Large Soda Onion Rings Cudy Fries ` 8 Homemade Garden Salad & Fmit @. soup $3.69 $2.99 $2.99 $2.99 $2.99 4.45 n an, a uce, omalo, Pickles, Tho Sauce - #2 ~'.~ Cheesy ".4,gg '` Amedcen, Swiss Mazzomlla, Monterey Jack or Cheddar 8 The Seuca #3 ' B:B'.O: and Cheddar 5.39 Gnllod Onron $ Bell Pepper #4 Teriyaki and Swiss 5.39 Gritted Onldn 8 Bell Pepper #6 Avocado and Swiss 5.89 Onion ,Lettuce,-:somata, Pickles 8 Ranch Dressing '.. #7 Bacon anda¢merican - 5.89 Lettuce;~TOmatd„Onion, Pickles 8 fie Sauce #8 Mushrogmsand Jack 5.39 - Lettuce, Tomato, Pickles, Onion 8 The Sauce #9 Chili and Cheddar 5.99 Lettuce, Tomefo, Pickles 8 Onion #16, Cordon Bleu ' `: 5,g9 eaketl Ham, Swiss Cheese, Parmesan 8 Mayo #17 spotty Swiss Mell : 5:89 I:On Rye with Grilled Onion ' • Ex~ress Lunch Combo 9~ecial s '~ ~ erved wJth Medium Fountain rink ' Ltte,L^unch Express: 6.99 ' ~ y 1/,~,geli Sandwich with Soup, - iGie'en-Salad or Caesar Salad 'or Fruit Salad or Pasta Soup &'Salad Express: 6,gg ,,. Soupwil(Ii~Pesfa, Fruit or Caesar Seledor • GRILLED SANDWICHES • Choose Chicken or Steak '-. #21 A. Chicken Breas4 Sandwich ' 5.29 B. Steak Sandwich #22 Mile High Chicken 6.39 CWe S/aw, 1000 /slanrl Swisa Cheese #23 B.B.Q. Steak 6.39 Cheddar Cheese, Grilled Onkns, Bell Pepper #24 Teriyaki Chicken - 6.39 Swlas Cheese; Gdlled Onion, Bell Pepper #25 Chicken Bacon Club 6.39 Swiss Cheese, Ranch Dressing #26 Chicken Avocado 6.39 Swiss Cheeso, Ranch Dressing #27 Mushroom Chicken ~ 6.3g Monterey Jack Cheese #28 Caesar Chicken 8.39 Grllfetl Onion, &oll Peppers, Mozzarella, Parmesan #29 Philly Steak 6.39 Grilled Onion, Pep p e rs , Mushrooms, Mozzarella p q / f • IVlelts #51 ~ - Tuna Melt 6.39 #56 Grilled Cheese 3.99 #57 Grilled Ham & Cheese 6.39 #58 Grilled Turkey, Bacon & Swiss Melt 6.79 #59 Hot Pastrami on Rye 6.39 #60 Club Triple Decker 6.99 Turkey, Bacon, Swiss ` • Wraps & Sandwiches #31 Caesar Avocado Wrap: g,gg Turkey, Mozzarella, Lettuce, Tomato 8 Parmesan #33 B.L.A.T.T Wrap: 5.99 Bacon, Lettuce, Avocado, Turkey, Tomato 8 Ranch #35 Tuna Cucumber Wrap• 5.99 Spiss Cheese, Lettuce, Tomato 8 Ranch Dressing #41 Veggie & Avocado• 5.54 Sprouts, Jack, Latfuce, Cucumber, Tomato & Ranch #43 Genoa Salami 5.54 #44 Tuna Salad 5.54 #45 Turkey Breast 5.54 #46 Baked Ham 5.54 ih37 B.L.T. 5.54 #48 Chicken Salad - 5.54 #49 Egg Salad ~ 5.50. #50 Roast Beef 5.54 Extra Meaf 125 Cheese .65 Exrre Avocado 1.00 • Not Favorites i. Tossed Big Salads • ' #71 Big Salad: 4,99' Tdmelo, Pepperondni, Parmesan, Croutons; $Ilced Egg, Romaine 8 Choice of Dressing -'#72 Deli Salad Plate: 6.99 - 81g Salad,loppetl wi0i Tuna Salad or Chicken Salad #73 Chef Salad: - 7.25 Blg Soled;: Ham, Turkey, Jack 8 American Cheese I #75 Cobti'Salad: ' " 7,25 BIg SalatlYeacon, Turkey, Avocado, Bleu Cheese #76 Caesars -, 5.50 Romaine, Croutons, Pannosan (lossedJ.' - #77 Ghinese: 5.50 Romaine, Crispy Noodles, Almonds, Mandarin, Oranges 'Add Charbroiled Chicken:' td'your Tossed Sated add $1.99 #62. Chicken & Chips 6.99 i #63 Fish Sandwich 5,qg • Side Orders •~ French Fries '-1.99 3.29 (Natural Cul, Cholesterol Free) Chili & Cheddar Fries -, 3.69 .5.99 Homemade Coleslaw 1.85 2,25 Onion Rings 2,g7; Add Charbroiled Steak to your Tossed Salad add $1.99 • Homemade Soups & Chil i Chicken Noodle 2.96 - 3.89. Chicken Wild Rice ' 2.96 .3.69' Turkey_Chill wuh CheddarBONOn 2.96 3.69:' Chicken:Tortilla wun cheddar '~ 2.96: 3.69 ;. Soup Du Jour 2,96 3.69 ' (~,,_ Reference Contract No. 8982 (CCS)