sr-062465-8dCITY OF SANTA MONICA ,5_ ._ g
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DATE: June 17, 1965 ~ ~_ ~, $
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TO: The Honorable City Council #~ ~ "' ~' '~ ~ ~ '' '` ~ i ~3§
FROM: Perry Scott, City Manager ~a7 , ~° ~FY 1 ~ Y
SUBJECT; idlinimum Leasehold Terms for Potential '~io`5~i ~Sit~'~,1;~~2~ i}~ia`[a,!a
Third Street Mall ~ ~` ~ 9 ~" ~'
Recommendation
It is recommended that the Citjr, Council establish the following basic terms a.s the
minimum terms for the lease of such sites:
A. Maximum lease term--10 years.
B, ivlinimum annual leasehold rent per square foot--b0~.`..
C. ~~ercentage leasehold rent of 5% of gross receipts r•gainst which t?-~e lessee
will be permitted an offset of the minimum reni:al of 6J¢ per square foot.
Discussion
an the final approval of the Third Street Mall plans, all kiosks were deleted.
However, t?:,e basic glans did include one major area in each block iapproxiY-ate
dimensions 2a ft. ~ 32 ft. } to which utilities would be pr. o:;ides: to permit future
erection of. kiosks in the event an architecturaliy acceptable structure. as well as
an acceptable operation could be produced in terms of both merchant and Cit-v
Council approval.
Curren~~ly the Y~4a11 Committee has bee .z endeavoring to obtain acceptable iz:o
merchants) commercial opex^ations for the cansideratian of the City Gouncil. 3r.
order to pursue productive discussions, it is essential that the Committee be
advised of the minimum financial terms acceptable to the City. The terms
proposed are quite reasonable and are based upon a type 1 structure which would
xever to the City upon the expiration of the original leasehold,
It is gengrally conceded that the financing of permanent structures would a~equir.e
a Ionger term than that herein proposed. However, much of the expense associ-
ated with building development <uill have been completed upon the cnmp;._:ion of
To; The Honorable City Council
Subject: ivlinmum Leasehold Terms £or Potential Kiosk Sites on the
Third Street Mall
Date: June 17, 1465
the Mall and that, coupled with the maximum site area of '768 square feet , st.~.ou'.:?
make the terms quite reasonable and acceptable to a desirable user.
The Mall Committee understands and appreciates that the structure and tine
operation must receive the approval of the City Council; that is to say, that the
architectural treatment of the structure must be approved by both the Council
and architectural consultants selected by the Council as well as the type of
business operation the City Council would consent to be conducted in the Dial]
proper.
City .1Vlanage
PS/cc
c. c. City Clerl;
Birector of Planning
Director of Public Works