SR-04-24-2012-3DIdma City of
it Council Report
Santa Aionica
City Council Meeting: April 24, 2012
Agenda Item: 3 -17
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Karen Ginsberg, Director of Community and Cultural Services
Subject: Park - Oriented Restaurant Adjacent to Palisades Garden Walk
Recommended Action
Staff recommends that the City Council authorize the issuance of a Request for
Proposals (RFP) for a restaurant operator to lease and remodel or construct a
restaurant on the City -owned property located at 1657 Ocean Avenue, in accordance
with the criteria and recruitment approach outlined in this report.
Executive Summary
The City -owned property located at 1657 Ocean Avenue (the Site), is leased to Jay's
Tavern, and operated as Chez Jay restaurant at this time. Palisades Garden Walk,
currently under construction, will surround the Site and create an opportunity for the
existing restaurant to be upgraded to better serve patrons of the new park. This report
recommends that the Council authorize the issuance of an RFP for a restaurant
operator to lease and remodel or construct a restaurant on the Site. The RFP would
indicate a preference for a casual dining restaurant, with or without alcohol, since that
meets the objectives of the Civic Center Specific Plan (CCSP) and is designed and
oriented to serve Palisades Garden Walk (PGW).
Background '
In April 2000, the former Santa Monica Redevelopment Agency (Agency) purchased
11.3 acres of land from the RAND Corporation (RAND) to implement the Agency's Five -
Year Implementation Plan and the City's 1993 Civic Center Specific Plan (updated on
June 28, 2005). As part of the purchase, the Agency acquired the parcel that included
Chez Jay restaurant. Chez Jay is located on a 7,500- sq.ft. parcel located at 1657
Ocean Avenue (Attachment A). The City's original lease was authorized October 26,
1999, with Jay Fiondella, sole owner. Mr. Fiondella died in 2008. Jay's Tavern Inc.,
current lessee, is controlled by Anita Fiondella Eck, Mr. Fiondella's daughter, and
Michael Anderson. Chez Jay has been operating on a month -to -month lease since June
2003.
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Chez Jay has operated as a steak house since 1959 and has a storied history as a
gathering place of various celebrities. The existing restaurant is currently located on the
western edge of Palisades Garden Walk (PGW). The CCSP calls for a park- oriented
restaurant in this location (Attachment B). Extensive efforts to implement the CCSP
have been made since its adoption in 2005. On June 14, 2011, Council approved the
design development plans for PGW with the understanding that staff would return with
recommendations to address the park- oriented restaurant at a future date. On March 9,
2011, the Agency transferred ownership of the property to the City.
Discussion
The proposed leasehold includes the 7,500 - sq.ft. parcel located. at 1657 Ocean Avenue,
a portion of the vacated alley to the north, and the southern 20 feet of the parcel located
adjacent to and south of 1657 Ocean Avenue, for a total square footage of
approximately 12,500, as shown in Attachment C.
The CCSP specifies design parameters for the restaurant and park- oriented building(s)
to include "pavilion -like structures that allow for the generous flow of activities from
interior to exterior spaces ", a maximum floor area of 15,000 sq. ft., a maximum footprint
of 10,000- sq.ft., and a height limit of two floors and 25 feet. The CCSP encourages the
use of verandas, terraces, patios, and other intermediary space in the design of the
restaurant. In addition, the CCSP conceived of the "park- related" restaurant and
buildings as "complementary with the design and activity program for the park."
The existing restaurant is oriented toward Ocean Avenue, with no outdoor seating areas
or take -out food windows and nominal landscaping, and provides lunch, dinner and
alcohol service.
Through extensive community input, PGW's dynamic design will feature topography that
includes creative water elements and public gathering spaces, ADA- accessible
amenities, and a major work of public art, "Weather Field ", viewable from many vantage
points in the park (Attachment D).
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To achieve the goals of the CCSP and complement the PGW project, staff recommends
that the City issue an RFP for a restaurant operator to lease the Site and upgrade the
restaurant, either through remodeling or reconstruction, in accordance with the following
preferred criteria:
• The operator must demonstrate the ability to upgrade the improvements, either
through remodeling or new construction, in a manner that offers excellent
architectural merit in keeping with the CCSP design parameters.
• The operator will be required to provide all construction and operational
financing, with a rent credit to be negotiated. While real estate commissions are
usually the landlord's obligation, a rent credit may be negotiated should the
restaurant be selected through efforts of the tenant's restaurant broker.
• The operator must be financially and operationally capable of providing quality
food and beverage offerings.
• The restaurant should offer casual dining, preferably with food service to be
available throughout the day, in a facility which provides a unique aesthetic and
ambiance that relates to the PGW experience by providing outdoor dining and
visitor - serving amenities, catering to patrons of PGW and adjacent uses. Alcohol
may be served on the premises.
• The restaurant should incorporate sustainable materials and practices into its
building and operations.
In addition, the RFP will advise respondents of the City's other municipal code and
propriety requirements specific to restaurants and City leases including the Healthy
Foods Initiative, ban on smoking and plastic bags, labor peace and local hiring
preferences.
Recruitment Process
Staff intends to advertise the availability of this restaurant opportunity on the City's web -
site, in local newspapers, in the Los Angeles Business Journal and on the California
Restaurant Association electronic newsletter. In addition, staff will advise the incumbent
restaurant operator of this upcoming opportunity.
Next Steps
Following authorization from Council, staff will issue the RFP. Depending on the
number and quality of submissions received, staff will either return to Council to seek
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negotiating instructions for a lease with the recommended operator, or return to council
for authorization to seek additional information from a short list of finalists. If the latter
approach is taken, .staff will return to Council to seek authorization to negotiate and
execute a lease with the finalist from the short -list process. The goal is to select a
lessee and negotiate a lease by the end of 2012 so that the planning and construction
of the restaurant can be completed as close to the opening of PGW as possible, which
is scheduled for December 2013.
Financial Impacts & Budget Actions
There are no budget impacts as a result of the issuance of this RFP. The City would
receive revenue from the new lessee in accordance with lease terms to be negotiated.
Prepared by: Elsa Trujillo, Senior Development Analyst
AndyAgle, Director
Housing and Economic Development
Approved:
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Karen Ginsberg,
Community and
Attachments:
Forwarded to Council:
Rod Gould, City Manager
Attachment A — Existing Site Plan
Attachment B — CCSP Site Plan
Attachment C — Premises
Attachment D — PGW Site Plan (Rendering)
1657 OCEAN AVENUE
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