SR-03-19-2013-3GCity Council Meeting: March 19, 2013
Agenda Item: 3°
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Bayside Leasing Guidelines
Recommended Action
Staff recommends that the City Council approve amendments to the Bayside Leasing
Guidelines.
Executive Summary
The Board of Directors of Downtown Santa Monica Inc. ( "DTSM ") has reviewed the
Bayside Leasing Guidelines, which were last updated on June 24, 2008, and
recommends that they be amended to reflect several changes. Changes include the
following: modifying the title of the document, area boundaries, and property
descriptions, clarifying the procurement process and lease and license terms, and
updating the list of preferred uses and evaluation criteria for lessees or licensees.
Background
The Bayside District Corporation (BDC) was renamed Downtown Santa Monica Inc.
(DTSM) following the formation of the Downtown Property -Based Assessment District
(PBAD) which expanded district boundaries to 7th Street to the east, Wilshire to the
north, Ocean Avenue to the west, and the Santa Monica freeway to the south.
The revised boundaries and additional DTSM responsibilities were formalized in
Services Agreement Number 8406 (CCS), later amended and restated as Services
Agreement Number 9063 (CCS). The Services Agreement specifies that DTSM is to
advise the City regarding uses and operations of City -owned lease and license
opportunities in keeping with Leasing Guidelines developed by DTSM and approved by
the City..
The Leasing Guidelines set forth the objectives and procedures for the leasing and
licensing of City -owned properties and public rights -of -way located within the Downtown
District. Leasing Guidelines allow the City Manager to execute lease and license
agreements that are in conformance with the Leasing Guidelines and that have been
recommended by the DTSM Board.
Discussion
The DTSM Board approved the proposed Downtown Leasing and Licensing Guidelines
(Guidelines) on February 28, 2013. The recommended changes include updates to the
document title and boundaries; specification of properties excluded from the leasing
guidelines; replacement of reference to the Bayside District Corporation with its
successor organization, DTSM; descriptions of 'Preferred Uses "; clarification of lease
and license terms and conditions; and identification of new leasing and licensing
opportunities. The most notable new opportunity is the leasing of nearly 7,000 square
feet of ground floor space fronting Second Street, in the newly developed Parking
Structure No. 6, which will be completed in late 2013.
The substantive modifications to the proposed Guidelines are summarized as follows
with reference to applicable document sections:
Naming Changes
® The document title was changed to reflect its actual scope, by adding the words
"and Licensing" to the name.
® The name "Bayside District" was changed to "Downtown District" and `Bayside
District Corporation" was changed to "Downtown Santa Monica Inc." or "DTSM"
throughout the document.
Guideline Objectives
® The district boundaries are updated and defined as 7th Street to the east, Wilshire
to the north, Ocean Avenue to the west, and the Santa Monica Freeway to the
south.
® Exclusions are made for the Main Library, the 4th and Arizona development site,
Samoshel, Shwashlock, the forthcoming Expo Light Rail station at 4th and
Colorado, the Big Blue Bus campus, Ken Edwards Center, and any City -owned
property requiring a Development Agreement, such as the proposed cinema site
2
on Fourth Street. Leasing activity on these sites is not subject to the Guidelines,
as the City Council approves leases and licenses for these sites.
Section I. Preferred Uses
• Reaffirms that Preferred Uses "support purposes that serve broader
neighborhood community interests and provide for the needs of downtown
residents and business owners."
• Removes from the Guidelines outdoor dining licenses on the public right -of -way.
Outdoor dining licenses are administered by City staff pursuant to Municipal
Code Section 9.04.12.120 and are not approved by the DTSM Board of
Directors.
• Updates leasing information for the Pavilions (formerly known as kiosks) on the
median of the Third Street Promenade.
• Describes the demolition and rebuilding of Parking Structure No. 6, which will
result in approximately 7,000 square feet of additional retail and storage space.
The storage space will be occupied by DTSM and the City's Farmers Market
program. The rest of the space will be leased for retail purposes.
• Eliminates reference to the portable shoe shine stand formerly located on the
Third Street Promenade; the owner abandoned the stand, and it was sold at
auction. There are no current plans to replace it.
• Updates the description of the Third Street Promenade vending cart program.
• Provides that any new space added to the City's real estate inventory in the
downtown area in the future, if ground -level and public - serving, may also be
included within the review process of DTSM.
Section III. Lease Terms Options, and Renewals
• Allows for the consideration of minor leasehold expansions for all tenancies on a
case -by -case basis.
Section IV. Diversity of Tenancies
• Acknowledges the potential for a business entity to operate more than one
unique location under the same operational umbrella.
Section VII. Periodic Review of Rental Rates
• Affirms a policy of considering proposed rental rates secondary to meeting
Preferred Use guidelines, while also leaving the City the option to negotiate
higher than proposed rates with a Preferred User.
191
Section IX. Facility Condition
• Revised to reflect that all City -owned properties are leased in "as -is" condition,
and it is the tenant's responsibility to provide improvements to leased space.
Section XI. Tenant Recruitment
• The methods of advertising property have been updated to include "E- blasts,
text- blasts, or other electronic or social media, as deemed appropriate by the
City."
• Authorizes the City to "retain a qualified commercial real estate firm or listing
agent to market property, negotiate lease or license terms, provide consultation,
and coordinate with prospective tenants and other realtors." The City does not
currently pay nor receive commissions for the leasing of City -owned property.
However, staff will continue to cooperate with commercial real estate brokers.
This also allows for future consideration of the use of brokers to assist in the
leasing of City -owned property in the DTSM area.
The proposed Guidelines (Attachment A) will supersede the previous Leasing
Guidelines (Attachment B) and become effective upon the date of approval by Council,
and will be subject to periodic review and modification by the DTSM Board and Council.
Financial Impacts & Budget Actions
There is no immediate financial impact or budget action necessary as a result of
amending the Guidelines.
Prepared by: Gretchen Kubacky, Senior Administrative Analyst
Approved:
Andy Agle, Director (�
Housing and Economic Development
ATTACHMENTS:
Forwarded to Council:
Rod Gould
City Manager
Attachment A: Proposed Downtown Leasing and Licensing Guidelines
Attachment B: Bayside District Leasing Guidelines - Redlined
4
Attachment A
DOWNTOWN LEASING
AND LICENSING GUIDELINES
Adopted July 8, 2003
Amended April10, 2007
Amended June 24, 2008
Proposed Revisions /Comments 2.19.13
TABLE OF CONTENTS
GUIDELINEOBJECTIVES ............................................................................. ..............................3
I.
PREFERRED USES ................................................................................. ..............................3
A.
Center Court ......................................................................................................... ..............................3
B.
Pavilions ................................................................................................................ ..............................4
C.
Parking Structure Leased Premises ................................................................. ..............................4
D.
Vending Cart License ........................................................................................ ..............................5
E.
Temporary Licenses/ Other ................................................................................. ..............................6
II.
PREFERENCE FOR LOCAL, INDEPENDENT, AND NON - FORMULA BUSINESSES ...........
6
III.
LEASE TERMS, OPTIONS AND RENEWALS ......................................... ...............................
6
IV.
DIVERSITY OF TENANCIES .................................................................... ..............................7
V.
LABOR PEACE ........................................................................................ ...............................
7
VI.
SUSTAINABLE BUSINESS PRACTICES ....:............................................ ..............................7
VII.
PERIODIC REVIEW OF RENTAL RATES ............................................... ...............................
7
VIII.
FACILITY CONDITION ........................................................................... ...............................
8
IX.
TENANCY RELATIONSHIPS ........................:.......................................... ..............................8
X.
EVALUATION CRITERIA ........................................................................ ..............................9
XI.
DELEGATION OF AUTHORITY ........................................................... ...............................
10
LICENSEES
AS OF DECEMBER 4, 2012 ..................................................... ...............................
11
Ili
GUIDELINE OBJECTIVES
The purpose of the Downtown Leasing and Licensing Guidelines is to establish
the type and nature of private uses that the City of Santa Monica ( "City ") and
Downtown Santa Monica, Inc. ( "DTSM ") seek for the leasing and licensing
opportunities that are available within the City's public facilities within the downtown
district. Given that the leasing and licensing opportunities are limited, the City and
DTSM seek to encourage and support the success of independent, non - formula
entrepreneurs who will offer the public quality service and value. The designated uses
and processes for selecting lessees and licensees are intended to maintain the
compatibility of use of City -owned properties and public right -of -ways located within the
downtown district for purposes which contribute to pedestrian orientation, outdoor
dining, and neighborhood residential services; establish and implement procedures for
managing and preserving the Preferred Uses of City -owned properties and
rights -of -way; and assure access and use of these public properties by the general public
for the Preferred Uses through a leasing and licensing program that promotes orderly
and periodic changes in tenancy at fair market rates.
The DTSM boundaries are 7th Street to the east, Wilshire to the north, Ocean Avenue to
the west, and the Santa Monica freeway to the south. The following locations are
exempt from the oversight of DTSM: City of Santa Monica's Big Blue Bus ( "BBB "), Ken
Edwards Center, Expo Light Rail station ( "Expo ") at 4th and Colorado, Santa Monica
Main Library, the 4th and Arizona development site, and Samoshel and Shwashlock at
503 and 505 Olympic. Any City -owned properties requiring a Development Agreement
are also exempt from the requirements of these Guidelines. From time to time, this list
may be amended by the parties.
PREFERRED USES
Current uses of City -owned structures and right -of -ways in the downtown district are
diverse, and have been intended to enhance the downtown district experience, support
purposes that serve broader neighborhood community interests, and provide for the
needs of downtown district residents and business owners as well as tourists. Diversity is
maintained through commercial activities providing services that are otherwise
unavailable to visitors and neighborhood residents in the downtown district, and
educational and recreational opportunities for otherwise underserved segments of the
community. In addition to the following list of currently available leasing and licensing
opportunities, these guidelines are intended to address and include future ground floor
retail and community serving spaces that may be developed in the downtown district in
the future, but are as yet not conceived, proposed, or built.
City -owned structures and public right -of -ways in the downtown district that are and will
become available for lease or license, and associated Preferred Uses, are as follows:
A. Center Court
There are three (3) Center Courts, one court located mid -block on each block of
the Third Street Promenade, totaling 1,875 square feet (625 square feet each).
3
Current Use: Programmed special event space (e.g., holiday decorations), a
concierge cart, or other services /facilities for visitors. Street performers are
allowed in the Center Court of the 1300 Block only.
Preferred Use: Programmed special event space (e.g., holiday decorations), a
concierge cart or other services /facilities for visitors, visitor amenities including
security stations, and street performers (in the Center court of the 1300 Block
only). Ancillary outdoor dining with table service, if feasible, for existing
Promenade restaurants, is encouraged, subject to regulations set forth in the
Santa Monica Municipal Code.
B. Pavilions
There are two (2) Pavilions located in the center median of the Third Street
Promenade, totaling 1,512.5 square feet. The North Pavilion contains 762.5
leasable square feet, and the South Pavilion contains 750 leasable square feet.
Current Use: Visitor - serving commercial /retail and food service uses.
South Pavilion
1400 -A Third Street Promenade, 250 sq. ft.
1400 -B Third Street Promenade, 500 sq. ft.
North Pavilion
1257 Third Street Promenade, 212.5 sq. ft.
1260 Third Street Promenade, 550 sq. ft.
Preferred Use: Restaurant /cafe use with outdoor dining, with or without alcohol
service, to appeal to and serve both the residential community and area visitors
and cumulatively provide for diverse food and beverage offerings, price points,
hours of operation, aesthetic ambiance and any other factor deemed to enhance
the character and pedestrian orientation of the Promenade and the downtown
district. Informal seating is encouraged in any common area described as part of
the leasehold, provided the seating area is not required to be enclosed by a
barrier in accordance with the City's Municipal Code or the Alcohol and
Beverage Commission. Alternately, retail lease space for specialty items may
be considered when vacancies occur and as market demand warrants.
C. Parking Structure Leased Premises
Current Use: Neighborhood and community - oriented commercial, educational,
and recreational services.
Parking Structure No. 5
1454 Fourth Street, 841 sq. ft.
1450 Fourth Street, 675 sq. ft.
4
1448 Fourth Street, 276 sq. ft.
1444 Fourth Street, 412 sq. ft.
1440 Fourth Street, 3,078 sq. ft.
Parking Structure No. 6
1431 Second Street, 7,000 sq. ft.
Preferred Use: Neighborhood and community oriented commercial, visitor-
serving, educational and recreational services; retail or restaurant uses with
outdoor dining that operate in a manner that animates the pedestrian
experience.
Parking Structure No. 5
Parking Structure No. 5 contains a total of approximately 5,282 square feet
of retail space, currently divided into five leaseholds, all of which are either
on month -to -month holdover status, or have leases that expire within the
next five years. A master tenancy option will be considered for a master
tenant desiring to make a substantial investment in property improvements.
Parking Structure No. 6
Parking Structure No. 6 has been demolished and is being rebuilt. It will
contain approximately 7,000 square feet of retail and storage space. A
portion of the storage space will be occupied by DTSM and the City's
Farmers' Market program. The remaining square footage is divisible, and
will be minimally built out, including utility stub -ins. It will be the responsibility
of the tenant to build -out the space. A master tenancy option will be
considered for a master tenant desiring to make a substantial investment in
property improvements.
D. Vending Cart License
Operation of a retail and food vending cart program from designated public
right -of -way locations on the Third Street Promenade.
Current Operation: Master Cart Licensee Program, which provides a minimum
of 22 and a maximum of 32 individual carts to operators, subject to
sublicense agreements. Vending carts operate solely along Third Street
Promenade, and are predominately general merchandise carts. In addition,
Master Cart Operator offers three carts for artists and one concierge cart for
DTSM.
Preferred Use: Expansion of Vending Cart Program by individual vendors to
include designated Transit Mall locations, where feasible, and other locations
allowed by the Santa Monica Municipal Code. Vending cart operators are
encouraged to offer products and services that enhance the special qualities of
the Promenade and /or Santa Monica, and create an experience that is uniquely
"Santa Monica."
F
E. Temporary Licenses /Other
From time to time, temporary licenses or other agreements may be granted for use
of the Third Street Promenade or other downtown district locations that are
consistent with the Guideline Objectives.
II. PREFERENCE FOR LOCAL, INDEPENDENT, AND NON - FORMULA
BUSINESSES
The leasing and licensing of all City -owned properties and rights -of -way within the
downtown district will be subject to a preference for local, independent, non - formula
businesses and community services that are financially and operationally capable of
providing the Preferred Uses. Such preference will be reflected in bonus ratings for
responses received from independent businesses as part of a public Tenant
Recruitment process. A formula business is defined as a business having three or more
sites outside the City of Santa Monica that requires, by contractual or other
arrangement, the maintenance of standardized service, decor, uniforms, facility design
and format substantially identical to another operation.
III. LEASE TERMS, OPTIONS AND RENEWALS
As vacancies arise, either by lease expiration or earlier termination, available space will
be offered for Preferred Uses for non - renewable lease terms up to five years if
substantial new capital investment in structures, structural improvements or equipment
is not warranted. If a tenant is required to make substantial new capital investment in
structures, structural improvements or equipment to implement the Preferred Use
consistent with intended purposes of the premises, one to three five -year lease options
may be offered varying with amortization and financial requirements of the new capital
investment.
Lease renewals or options to extend the terms of occupancy will not be automatically
offered to existing tenants upon expiration of agreements. As vacancies arise, either by
natural expiration or earlier termination, recruitment for each opportunity site will be
conducted in accordance with these Leasing Guidelines. It is recognized, that
reliability and continuity of quality commercial services are valuable assets to
the public experience of the Promenade and the downtown district. In order to
support and encourage businesses in the downtown district to operate and maintain
their premises in an exemplary manner, such businesses will be subject to a renewal
preference reflected in bonus ratings for responses received as part of a public
Tenant Recruitment process. The term "exemplary manner" refers to those tenants who
meet all of the following criteria: (i) consistently provide a high quality product within
the business category, with excellent customer service; (ii) maintain their premises in a
first class and attractive manner; and (iii) comply with all lease or license provisions,
as well as all applicable local, state and federal laws and regulations, and as further
described in Section XII.
Consideration of minor physical expansion of existing leasehold occupancies may be
approved for tenants who seek to enhance, improve or modify their business operations
6
consistent with the Preferred Uses through the investment of additional capital in
structures, structural improvements or equipment in a manner that does not limit or
diminish tenant diversity in the downtown district. Such expansion must advance the
Preferred Uses for the benefit of the public, the downtown district, and the City. In order
to provide access to diverse tenants capable of providing Preferred Use on City -
owned properties, the physical expansion of existing and new leasehold occupancies,
other than for restaurants, will be considered on a case -by -case basis, subject to existing
Zoning and usage guidelines.
IV. DIVERSITY OF TENANCIES
In order to promote operator diversity in the development and use of leasehold
opportunity sites, the prospective grant of multiple leasehold areas to an individual
tenant, operator, or business entity will be considered on a case -by -case basis.
V. LABOR PEACE
Because the City has a financial or proprietary interest in the businesses operating from
its leaseholds, some of which are in industries that have a history of labor /management
conflict, the risk of interruption of rental revenue received by the City would be minimized
if such businesses were assured of labor peace. An appropriate labor peace provision
for businesses engaged in visitor - serving commercial activities minimizes the City's
exposure to revenue interruption and disruption of public enjoyment of the Promenade
and Downtown District. New or substantially amended agreements for leasehold
operation shall provide that the tenant will not engage in practices that impede
employees' ability to organize and contract with a labor organization for the purpose of
collective bargaining. Such prohibited practices include harassment, intimidation,
,,captive audience" anti -union meetings or illegal terminations of workers in retaliation for
organizing. A substantial amendment is defined as a change of use of the property, an
increase in seating or square footage of more than 25 %, or an extension of lease
duration. Tenant engagement in prohibited practices shall constitute an event of default
under the terms of lease. Affected leases are those businesses having five or more
full or part -time employees and engaged in restaurant or visitor - serving activities.
VI. SUSTAINABLE BUSINESS PRACTICES
These Guidelines encourage lessees and licensees to adhere to sustainable business
practices in all aspects of their operation, in accordance with City, State and Federal
regulations and consistent with best practices that seek to "reduce, reuse and recycle"
non - renewable resources.
VII. PERIODIC REVIEW OF RENTAL RATES
Lease rental rates will be established at independently appraised fair market rates or in
accordance with responses received to a public Request for Proposal process.
Responses received for lease and license opportunities are encouraged to exceed the
7
minimum and percentage rents set forth in the Requests. The City reserves the right to
negotiate lease rates that further the establishment or retention of a Preferred Use,
consistent with these guidelines. Annual CPI adjustments based on the Consumer Price
Index for Los Angeles — Anaheim — Riverside — Orange County, published by the
Bureau of Labor Statistics of the United States Department of Labor, will be made for
the term of any new property lease or license.
VIII. FACILITY CONDITION
All City -owned structures are leased "as -is" and each tenant will be required to bring the
space to a decent, safe and sanitary condition appropriate for the Preferred Use. If
tenants must make improvements to the structure to implement the Preferred Uses as a
mutually agreed condition of a lease, the City will first review and approve the proposed
scope of work and design of the tenant improvements. All necessary building permits
must be obtained at tenant or licensee cost, and the work inspected for compliance with
applicable codes. Appropriate rental credits for the approved work performed may be
negotiated as part of the lease or license agreement. Tenant improvement credits will
not be offered for outdoor dining areas.
IX. TENANCY RELATIONSHIPS
All City -owned property within the downtown district appropriate and suitable for leasing or
licensing by the City to individual occupants for the Preferred Uses will be in accordance
with agreements prepared by the City. Each tenant or licensee is responsible at its
expense for interior maintenance and repair and utility consumption, and the City retains
responsibility for maintenance and repair of roofs and building exteriors. Subletting of
space is explicitly prohibited, with the exception of vending cart agreements, to individual
cart operators issued by the licensee.
All City -owned property within DTSM that is appropriate and suitable for leasing or
licensing will be subject to a public marketing and solicitation process. This process will
identify prospective tenants and licensees with financial and experience qualifications
for the Preferred Use of the available space. Vacancies will be the subject of public
Requests for Qualifications and /or Requests for Proposals publicized utilizing:
• Media advertising, including general circulation newspapers or local /limited
circulation publications;
• Direct mail to a waiting list and /or other targeted individuals having expressed
previous interest in leasehold occupancy or license operation for the available
Preferred Use;
• Posting notices on DTSM's, and the City's web sites. As appropriate, vacancies may
also be publicized utilizing:
1. Direct contact or outreach to prospective tenants;
2. Dissemination by fax, e-mail or telephone to local commercial real estate
brokers;
3. Press releases and other direct marketing performed by Downtown Santa
Monica, Inc.
4. E- blasts, text - blasts, or other electronic or social media, as deemed
appropriate by the City.
The Downtown Santa Monica, Inc. Board of Directors will review and approve Requests
for Proposals prior to public dissemination by the City. The Request for Qualifications
and /or Request for Proposals will set forth the Preferred Uses of the available space,
proposed terms and conditions for the leasehold or license opportunity, and criteria
for reviewing and rating responses. All respondents and prospective tenants will file a
Lease or License Application. Information contained in the Lease Application will be
utilized for evaluation and confirmation that the proposed tenancy is a Preferred Use
for the available space, and verification of experience, references and financial
capability to perform leasehold obligations. Responses will also state preliminary terms
and conditions for the proposed lease or license.
Responses to Request for Qualifications and /or Request for Proposals will be analyzed
and rated by a Review Team comprised of City staff and the CEO of DTSM, Inc. or
his /her designee. The Review Team will provide its analysis and recommended
preferred respondent, inclusive of appropriate bonus ratings for independent,
non - formula business respondents and complying tenant renewal proposals to the
DTSM District Issues Committee, who will make a recommendation to the DTSM Board
of Directors. The recommendation of the District Issues Committee to the DTSM
Board of Directors may be to reject all responses, solicit additional information from
one or more respondents, or for the City to enter exclusive lease or license
negotiations with a preferred respondent. As part of its deliberations prior to making a
recommendation, the District Issues Committee and DTSM Board of Directors may
request specific information to supplement the Review Team's oral or written
presentation, including copies of all proposals received.
In addition, the City may retain a qualified commercial real estate firm or listing agent to
market property, negotiate lease or license terms, provide consultation, and coordinate
with prospective tenants and other realtors. The City does not currently pay nor
receive commissions for leasing of City -owned property, but will consider utilizing such
services on a case -by -case basis. Staff will continue to cooperate with commercial real.
estate brokers who are authorized to negotiate leases and licenses on behalf of
prospective tenants.
X. EVALUATION CRITERIA
The Review Team will rank the candidates and make its recommendation based on the
strength of the prospective lessee or licensee. Criteria, as defined by the City and /or
DTSM. Selection criteria may include any of the following: (i) character, integrity,
reputation, judgment, training, and experience of the prospective tenant or licensee; (ii)
ability, capacity, and skill of the prospective tenant or licensee; (iii) capacity to perform;
(iv) quality of the services or goods to be provided; (v) price of the goods or services; and
(vi) financial resources. The selection process shall grant additional points to those
existing downtown district tenants and licensees that are deemed to have operated in an
G
Exemplary Manner. The term "Exemplary Manner" shall mean and refer to those tenants
or licensees who meet all of the following criteria: (i) provide on a consistent basis a high
quality product with excellent customer service; (ii) maintains their premises or cart in a
first class and attractive manner; and (iii) complies with all lease or license provisions, as
well as all applicable local, state and federal laws and regulations.
All respondents and prospective tenants will file a Lease or License Application.
Information contained in the Lease or License Application will be utilized for confirmation
that the proposed tenancy is a Preferred Use for the available space, and for verification
of experience, references and financial capability to perform leasehold obligations.
Responses will also state preliminary terms and conditions for the proposed lease or
license.
XI. DELEGATION OF AUTHORITY
The Review Team will provide an oral or written report of its deliberations to the
DTSM District Issues Committee. The District Issues Committee will present its
recommendation to the DTSM Board of Directors. The Board of Directors may accept
the District Issues Committee's recommendation, request additional information, or
reject all proposals and request modifications to the RFP and direct that the City
conduct another public solicitation process.
Upon recommendation of the DTSM Board of Directors and approval by City Council,
City staff will negotiate a Lease or License and report to the Board the terms
contained in the Lease or License prior to its submittal to the City Manager for
execution. The City Manager will execute leases and licenses of City -owned property
recommended by the Board of Directors, t at a re prepared in accordance with these
Leasing Guidelines, the objectives set forth in the Request for Proposal, terms and
conditions negotiated by the City, and on the basis of written agreements prepared and
approved as to form by the City Attorney. Staff will consider the suggestions and /or
recommendations of the Board in its negotiations and preparation of documents.
10
APPENDIX A:
LICENSEES AS OF DECEMBER 4, 2012
South Pavilion
1400 -A Third Street Promenade, 250 sq. ft., occupied by
Mudra, Inc. a women's apparel store, whose license expires
August 31, 2014.
1400 -B Third Street Promenade, 500 sq. ft., occupied by
Bussola, Inc., dba Locanda del Lago, a restaurant, whose
license expires April 1, 2016.
North Pavilion
1257 Third Street Promenade, 212.5 sq. ft., occupied by Above
the Fold, a newsstand, which has exercised its first and second
option that extends until July 31, 2010, and that has one
additional option that extends it through July 31, 2015.
1260 Third Street Promenade, 550 sq. ft., occupied by Strouk
Group, doing business as Messr. Marcel Pain, Vin et Fromage,
a restaurant with outdoor dining surrounded by railing, whose
lease expires July 31, 2017.
Parking Structure No. 5
1454 Fourth Street, 841 sq. ft. occupied by Western Union,
whose lease expires June 30, 2014.
1450 Fourth Street, 675 sq. ft., occupied by Garbo Shoe
Repair, whose lease expires June 30, 2014:
1448 Fourth Street, 276 sq. ft., occupied by Peter's Barber
Shop, whose lease expired May 1999, and who is on a month -to-
month holdover.
1444 Fourth Street, 412 sq. ft., occupied by Central Parking,
which is the City's parking operator. By contract, the parking
operator is not obliged to pay rent to the City for this office.
1440 Fourth Street, 3,078 sq. ft., occupied by The Dance
Doctor, whose lease expired September 30, 2012, without
tenant having exercised the remaining five -year option. Tenant
is on a month -to -month holdover.
Parking Structure No. 6
Parking Structure No. 6 has been demolished and is being rebuilt.
The new structure will include space for DTSM storage, Farmers'
Market storage, and approximately 7,000 of retail space for lease,
which is divisible, and will be built out only minimally, including
utility stub -ins.
Other
Current Use: Provenzano Resources Inc., operator of the Master
Cart Licensee Program, provides a minimum of 22 and a
maximum of 32 individual carts to operators, subject to
sublicense agreements. Vending carts operate solely along Third
Street Promenade, and are predominately general merchandise
carts. In addition, Master Cart Operator offers three carts for
artists and one concierge cart for Downtown Santa Monica, Inc.
The original ten -year license agreement expires June 30, 2015,
with one five -year option.
12
Attachment B
Adopted July 8, 2003
Amended Ap, —1 April10, 2007
Amended June 224, 2008
Proposed Revisions /Comments 2.19.13
TABLE OF CONTENTS
GUIDELINEOBJECTIVES ............................................................................ .............................43
I.
PREFERRED USES .............................................................................. ...............I...I...........
43
A.
Center Court ........................................................................................................ .............................54
B.
Pavilions ............................................................................................................... .............................54
C.
Parking Structure Leased Premises ................................................................ .............................65
D.
Vending Cart License ....................................................................................... .............................75
E.
Temporary Licenses/ Other ................................................................................ .............................86
II.
PREFERENCE FOR LOCAL, INDEPENDENT, AND NON - FORMULA BUSINESSES.........
86
III.
LEASE TERMS, OPTIONS AND RENEWALS ....................................... ...............................
86
IV.
DIVERSITY OF TENANCIES ................................................................. ...............................
97-
V.
LABOR PEACE .................................................................................... ...............................
107
VI.
SUSTAINABLE BUSINESS PRACTICES ............................................ ...............................
106
VII.
PERIODIC REVIEW OF RENTAL RATES ........................................... ...............................
108
VIII.
FACILITY CONDITION ....................................................................... ...............................
118
IX.
TENANCY RELATIONSHIPS ........... __ ............................................... ...............................
118
X.
EVALUATION CRITERIA ....... .........................................................................................
134 -0
XI.
DELEGATION OF AUTHORITY ....................................................... ...............................
1348
LICENSEES AS OF DECEMBER 4, 2012 ................................................. ...............................
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GUIDELINE OBJECTIVES
The purpose of the BaysideDowntown Leasing and Licensing Guidelines is to
establish the type and nature of private uses that the City of Santa Monica C( "City
ands : n,GtriG+-Gapperation-C DG') and Downtown Santa Monica, Inc. ( "DTSM ") seek
for the leasing and licensing opportunities that are available within the Gty'sCity's
public facilities within the Bayside ^:str:r °.downtown district. Given that the leasing and
licensing opportunities are limited, the City and BDSDTSM seek to encourage and
support the success of independent, non - formula entrepreneurs who will offer the public
quality service and value. The designated uses and preeessprocesses for selecting
lessees and licensees are intended to maintain the compatibility of use of City -owned
properties and public right -of- -ways located within the aayd:dc D:°::;stdowntown district
for purposes which contribute to pedestrian orientation, outdoor dining, and
neighborhood residential services; establish and implement procedures for managing
and preserving the Preferred Uses of City -owned properties and rights -of -way; and
assure access and use of these public properties by the general public for the Preferred
Uses through a leasing and licensing program that promotes orderly and periodic
changes in tenancy at fair market rates. -
The DTSM boundaries are 7th Street to the east, Wilshire to the north, Ocean Avenue to
the west, and the Santa Monica freeway to the south. The following locations are
exempt from the oversight of DTSM: City of Santa Monica's Big Blue Bus ( "BBB "), Ken
Edwards Center, Expo Light Rail station ( "Expo ") at 4th and Colorado, Santa Monica
Main Library, the 4th and Arizona development site, and Samoshel and Shwashlock at
503 and 505 Olympic. Any City -owned properties requiring a Development Agreement
are also exempt from the requirements of these Guidelines. From time to time, this list
may be amended by the parties.
I. 1. PREFERRED USES
Current uses of City -owned structures and right -of -ways in the Bayside-DstriGtdowntown
district are diverse, and have been intended to enhance the „p..pair—oaswc!
die downtown district experience , support these
purposes that serve broader neighborhood community interests, and provide for the
needs ;r *4 . ?oysM'° Dis rictof downtown district residents and business owners as well
as tourists. Diversity is maintained through
commercial activities providing services that n4ayare otherwise „ t-bbe-e eredunavailable
to-the visitors and neighborhood residents in the downtown district, and
educational and recreational opportunities for otherwise underserved segments of the
community. In addition to the following list of currently available leasing and licensing
opportunities, these guidelines are intended to address and include future ground floor
retail and community serving spaces that may be developed in the downtown district in
the future, but are as yet not conceived, proposed, or built.
City -owned structures and public right -of -ways in the Rays de n: tdowntown district
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that are and will become available for lease or license, and associated Preferred Uses,
are as follows:
A. Center Court
0 ThreeThere are three (3) Center Courts, one court located mid -block on
each block of the Third Street Promenade, totaling 1,875 square feet (625 square
feet each)).
Current Use: Programmed special event space (i.e.g., holiday decorations), a
concierge cart, or other services /facilities for visitors; street. Street performers are
allowed in the Center Court of the 1300 Block only.
Preferred Use: Programmed special event space (+.e.g., holiday decorations), a
concierge cart or other services /facilities for visitors;, visitor amenities including
security stations;, and street performers (in the Center court of the 1300 Block
only). Ancillary outdoor dining with table service, if feasible, for existing
Promenade restaurants, is encouraged, subject to regulations set forth in the
Santa Monica Municipal Code.-
B. Pavilions
TwoThere are two (2) Pavilions located in the center median of the Third Street
SO
5
Promenade —, totaling 1,512.5 square feet -. The North Pavilion contains 762.5
leasable square feet, and the South Pavilion contains 750 leasable square feet.
Current 9peratianUse: Visitor - serving commercial /retail and food service uses.
South Pavilion
1400 -A Third Street Promenade, 250 sq. ft.
1400 -B Third Street Promenade, 500 sq. ft.
North Pavilion
1257 Third Street Promenade, 212.5 sq. ft -.
1260 Third Street Promenade, 550 sq. ft.
Preferred Use: Restaurant/cafe use with outdoor dining, with or without alcohol
service, to- appeal to and serve both the residential community and area visitors
and cumulatively provide for diverse food and beverage offerings, price points,
hours of operation, aesthetic ambiance and any other factor deemed to enhance
the character and pedestrian orientation of the Promenade and Bayside
District.the downtown district. Informal seating is encouraged in any common area
described as part of the leasehold, provided the seating area is not required to be
enclosed by a barrier in accordance with the Gity'sCity's Municipal Code or the
Alcohol and Beverage Commission. Alternately, retail lease space for specialty
items may be considered when vacancies occur and as market demand
warrants.-
C. - Parking Structure Leased Premises-
Current Use: Neighborhood and
educational, and recreational services.
Parking Structure No. 5
1454 Fourth Street, 841 sq. ft.
1450 Fourth Street, 675 sq. ft.
1448 Fourth Street, 276 sq. ft.
1444 Fourth Street, 412 sq. ft.
1440 Fourth Street, 3,078 sq. ft -.
community -- oriented commercial,
Parking Structure No. 6
44- 331431 Second Street, 1 1347,000 sq. ft.-
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Preferred Use: Neighborhood and community oriented commercial, visitor -
serving, educational and recreational services; retail or restaurant uses with
outdoor dining that operate in a manner that animates the pedestrian
experience.
ee :
Parking Structure No. 5
Parking Structure No. 5 contains a total of approximately 5,282 square feet
of retail space, currently divided into five leaseholds, all of which are either
on month -to -month holdover status, or have leases that expire within the
next five years. A master tenancy option will be considered for a master
tenant desiring to make a substantial investment in property improvements.
Parking Structure No. 6
Parking Structure No. 6 has been demolished and is being rebuilt. It will
contain approximately 7,000 square feet of retail and storage space. A
portion of the storage space will be occupied by DTSM and the City's
Farmers' Market program. The remaining square footage is divisible, and
will be minimally built out, including utility stub -ins. It will be the responsibility
of the tenant to build -out the space. A master tenancy option will be
considered for a master tenant desiring to make a substantial investment in
property improvements.
E—D. Vending Cart License—
Operation of a retail and food vending cart program from designated public right -
of -way locations- on the Third Street Promenade.
Current Operation: Master Cart Licensee Program, which provides a minimum
of 22 and a maximum of 32 individual carts to operators, subject to
fixes- A3i;:�n,�-
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sublicense agreements. Vending carts operate solely along Third Street
Promenade, and are predominately general merchandise carts. In addition,
Master Cart Operator offers three carts for artists and one concierge cart for the
RasW„- Di-Anom +rte DTSM.
Preferred Use: Expansion of Vending Cart Program by individual vendors to
include designated Transit Mall locations, where feasible, and other locations
allowed by —the Santa Monica Municipal Code. Vending cart operators are
encouraged to offer products and services that enhance the special qualities of
the Promenade and /or Santa Monica, and create an experience that is uniquely
" "Santa Monica '' =."
E. - Temporary Licenses /Other
From time to time, temporary licenses or other agreements may be granted for use
of the Third Street Promenade or other downtown district locations that are
consistent with the Guideline Objectives.
11 IL PREFERENCE FOR LOCAL, INDEPENDENT, AND NON- FORMULA
BUSINESSES
The leasing and licensing of all City -owned properties and rights -of -way within Baayside
B}strictthe downtown district will be subject to a preference for local, independent, non -
formula businesses and community services that are financially and operationally
capable of providing the Preferred Uses. Such preference will be reflected in bonus
ratings for responses received from independent businesses as part of a public Tenant
Recruitment process. -A formula business is defined as a business having three or more
sites outside the City of Santa Monica that requires, by contractual or other
arrangement, the maintenance of standardized service, decor, uniforms, facility design
and format substantially identical to another operation.
111 Ill. LEASE TERMS, OPTIONS AND RENEWALS
As vacancies arise, either by lease expiration or earlier termination, available space will
be offered for Preferred Uses for non - renewable lease terms up to five years if
substantial new capital investment in structures, structural improvements or equipment
is not warranted. -If a tenant is required to make substantial new capital investment in
structures, structural improvements or equipment to implement the Preferred Use
consistent with intended purposes of the premises, one to three five -year lease options
may be offered varying with amortization and financial requirements of the new capital
investment.
Lease renewals or options to extend the terms of occupancy will not be automatically
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offered to existing tenants upon expiration of agreements. -As vacancies arise, either by
natural expiration or earlier termination, recruitment for each opportunity site will be
conducted in accordance with these Leasing Guidelines. Current -ap =Who-are
f n as e of —pred t" or�r °.,° o i�� �snt� -te the is
reGogn__d,- however It is recognized, that reliability and continuity of quality
commercial services are valuable assets to the public experience of the Promenade
and .the downtown district. In order to support and encourage
businesses w+thinin the gay��downtown district to operate and maintain their
premises in an exemplary manner, such businesses will be subject to a renewal
preference reflected in bonus ratings for responses received as part of a public
Tenant Recruitment process. -The term "'exemplary manner" refers to those tenants
who meet all of the following criteria: (i) consistently provide -GRa-GaR ' * ¢ b a high
quality product within the business category, with excellent customer service; (ii)
maintain their premises in a first class and attractive manner; and (iii) comply with all
lease or license provisions, as well as all applicable local, state and federal laws and
regulations —, and as further described in Section XII.
r:M
Consideration of minor physical expansion of existing leasehold occupancies (fm
zaR[n�; may be approved for tenants who seek to enhance, improve or modify
their business operations consistent with the Preferred Uses through the investment of
additional capital in structures, structural improvements or equipment in a manner that
does not limit or diminish tenant diversity in the downtown district. Such expansion must
advance the Preferred Uses for the benefit of the public, the downtown district, and the
City. In order to provide access to diverse tenants capable of providing Preferred Use
on City -owned properties, the physical expansion of existing and new leasehold
occupancies, other than for restaurants, will net -l&-a dat be considered on a
case -by -case basis, subject to existing Zoning and usage guidelines.
IV. DIVERSITY OF TENANCIES
In order to promote operator diversity in the development and use of leasehold
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9
opportunity sites, the prospective grant of multiple leasehold areas to an individual
tenant-or, operator, or business entity will not-be Nern4ttedconsidered on a case -by -case
basis.
�
Because the City has a financial or proprietary interest in the businesses operating from
its leaseholds, some of which are in industries that have a history of labor /management
conflict, the risk of interruption of rental revenue received by the City would be minimized
if such businesses were assured of labor peace. -An appropriate labor peace provision
for businesses engaged in visitor - serving commercial activities Gut - n4R4*zeminimizes
the S+ty'aCity's exposure to revenue interruption and disruption of public enjoyment of
the Promenade and BaysideDowntown District. New or substantially amended
agreements for leasehold operation shall provide that the tenant will not engage in
practices that impede employees employees' ability to organize and contract with a labor
organization for the purpose of collective bargaining. Such prohibited practices include
harassment, intimidation, " "captive audience"" anti -union meetings or illegal terminations
of workers in retaliation for organizing. A substantial amendment is defined as a change
of use of the property, an increase in seating or square footage of more than 25 %, or an
extension of lease duration. Tenant engagement in prohibited practices shall constitute
an event of default under the terms of lease. Affected leases would - -beare those
businesses having five or more full or part -time employees and engageengaged in
restaurant or visitor - serving activities.
V4-17 VI. SUSTAINABLE BUSINESS PRACTICES
These Guidelines encourage lessees and licensees to adhere to sustainable business
practices in all aspects of their operation, in accordance with City, State and Federal
regulations and consistent with best practices that seek to " "reduce, reuse and recycle"
non - renewable resources.
Vttl: VII. PERIODIC REVIEW OF RENTAL RATES
Lease rental rates will be established at independently appraised fair market rates or in
accordance with responses received to a public Request for Proposal process.
Responses received for lease and license opportunities may - exoee-d -thy, a
ntage &nt ,et fGrtH :n ±fie pin o�+ are encouraged to exceed the minimum and
�� yam. � � ---•-
percentage rents set forth in the Requests. The City reserves the right to negotiate lease
rates that further the establishment or retention of a Preferred Use, consistent with these
guidelines. Annual CPI adjustments based on the Consumer Price Index for Los
Angeles — Anaheim — Riverside — Orange County, published by the Bureau of Labor
FBI
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10
Statistics of the United States Department of Labor, will be made for the term of any
new property lease or license.
+X-. Vlll. FACILITY CONDITION °G`, �o E-
All City-owned structures
t n Gfty —o mare leased "as -is" and each tenant will be required to bring the space to a
decent, safe and sanitary condition appropriate for the Preferred Use. If tenants must
make improvements to the structure to implement the Preferred Uses as a mutually
agreed condition of a lease, the City will first review and approve the proposed scope of
work and ;,nrrovemenA-design- of the tenant improvements. All necessary building
permits must be obtained at tenant or licensee cost, and the work inspected for
compliance with applicable codes. Appropriate rental credits for the approved work
performed may be negotiated as part of the lease or license agreement. Tenant
improvement credits will not be offered for outdoor dining areas.
IX. TENANCY RELATIONSHIPS
All City -owned property within the ;?ays;R�tdowntown district appropriate and
suitable for leasing or licensing by the City to individual occupants for the Preferred Uses
will be in accordance with agreements prepared by the City. Each tenant or licensee
woukk -beis responsible at its expense for interior maintenance and repair and utility
consumption, and the City ws�retains responsibility for maintenance and repair of
roofs and building exteriors. Subletting of space is explicitly prohibited, with the exception
of vending cart agreements, to individual cart operators issued by the licensee.
All City -owned property within th, Ru,c: c n: °!r:vtDTSM that is appropriate and suitable
for leasing or licensing will be subject to a public marketing and solicitation process-49.
This process will identify prospective tenants and licensees with financial and
experience qualifications for the Preferred Use of the available space. Vacancies will be
the subject of public Requests for Qualifications and /or Requests for Proposals
publicized utilizing:
® Media advertising, including general circulation newspapers or local /limited
circulation publications;
® Direct mail to a waiting list and /or other targeted individuals having expressed
4-8
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11
previous interest in leasehold occupancy or license operation for the available
Preferred Use; -and
® Posting netieenotices on the Bays - _, &WG oWsDTSM's, and Goys
+nternetthe City's web s1te:
® sites. As appropriate, vacancies may also be publicized utilizing:
-1. Direct contact or outreach to prospective tenants;
*2. Dissemination by fax, e-mail or telephone to local commercial real estate
brokers; -and
3. Press releases and other direct marketing performed by Downtown Santa
Monica, Inc.
gi4. E- blasts, text - blasts, or other electronic or social media, as deemed
appropriate by the Bayside District GorpGrat_[GnCity.
The Downtown Santa Monica, Inc. Board of Directors will review and
approve Requests for Proposals prior to public dissemination by the City. The Request
for Qualifications and /or Request for Proposals will set forth the Preferred Uses of the
available space, proposed terms and conditions for the leasehold or license
opportunity, and criteria for reviewing and rating responses. -All respondents and
prospective tenants will file a Lease or License Application.— Information contained in
the Lease Application will be utilized for evaluation and confirmation that the proposed
tenancy is a Preferred Use for the available space, and verification of experience,
references and financial capability to perform leasehold obligations. Responses will
also state preliminary terms and conditions for the proposed lease or license.
Responses to Request for Qualifications and /or Request for Proposals will be analyzed
and rated by a Review Team comprised of City staff and the Etivz fCEO of
DTSM, Inc. or his /her designee. The Review Team will
provide its analysis and reGer mendat:cn act arecommended preferred respondent,
inclusive of appropriate bonus ratings for independent, non -- formula business
respondents and complying tenant renewal proposals to the jeers
L and-a d- ^ssetsDTSM District Issues Committee, who will make a recommendation to
the BaysideDTSM Board of Directors. The recommendation of the Land —and
AsseteDistrict Issues Committee to the 6ay&We4XstriGtDTSM Board of Directors may be
to reject all responses, solicit additional information from one or more
reapendentrespondents, or for the City to enter exclusive lease or license negotiations
with a preferred respondent. As part of its deliberations prior to making a
recommendation, the Land - and- AssetsDistrict Issues Committee and DTSM Board of
Directors may request specific information to supplement the Review Tean'sTeam's
oral or written presentation, including copies of all proposals received.
In addition, the City may retain a qualified commercial real estate firm or listing agent to
market property, negotiate lease or license terms, provide consultation, and coordinate
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12
with prospective tenants and other realtors. The City w4kneitherdoes not currently pay
nor receive commissions for leasing of City -owned property -, but will consider utilizing
such services on a case -by -case basis. Staff will continue to cooperate with commercial
real estate brokers who are authorized to negotiate leases and licenses on behalf of
prospective tenants.
The Review Team will rank the candidates and make its recommendation based on the
strength of the prospective lessee or licensee; i ding— -may. Criteria, as defined
by the City and /or DTSM. Selection criteria may include any of the b u .; ,_.rc '�^ �^�-+" + "�
following: "(i)
character, integrity, reputation, judgment, training, and experience a, d4kelheed -of &uGGess
- •�er- atle�,�,_., .,_. _. ., f,:`_.._ -.�i : +,- ^..,. + "—an
under&ta;,dingthe prospective tenant or licensee; (ii) ability, capacity, and skill of the
°° +h9 prospective tenant or licensee; (iii)
capacity to perform; (iv) quality of the services or goods to be provided; (v) price of the
goods or services; and (vi) financial resources. The selection process shall grant
additional points to those existing downtown district tenants and licensees that are
deemed to have operated in an Exemplary Manner. The term "Exemplary Manner" shall
mean and refer to those tenants or licensees who meet all of the following criteria: (i)
provide on a consistent basis a high quality product and/er -with excellent customer
service,-apA Gthe=-j-c^dcrd " —> ' ^^s; (ii) maintains their premises or cart in a
first class and attractive manner; and (iii) complies with all lease or license provisions, as
well as all applicable local, state and federal laws and regulations.
All respondents and prospective tenants will file a Lease or License Application.
Information contained in the Lease or License Application will be utilized for confirmation
that the proposed tenancy is a Preferred Use for the available space, and for verification
of experience, references and financial capability. to perform leasehold obligations.
Responses will also state preliminary terms and conditions for the proposed lease or
license.
XI. DELEGATION OF AUTHORITY
The Review Team will provide an oral or written report of its deliberations to the
BaysideDTSM District Land - a-nd- Assetslssues Committee. The Land- a^"d-_AssetsDistrict
Issues Committee will present its recommendation to the DTSM Board of Directors.
The Board of Directors may accept the La„d- a�#eesDistrict Issues
Committee's recommendation, request additional information, or reject all proposals
and request modifications to the RFP and direct that the City conduct another public
solicitation process. -
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Upon recommendation of the DTSM Board of. Directors and approval by City Council,
City staff will negotiate a Lease or License and report to the Board the terms
contained in the Lease or License prior to its submittal to the City Manager for
execution. The City Manager will - execute leases and licenses of City -owned property
recommended by the Board of Directors, t h at a r e prepared in accordance with these
Leasing Guidelines, the objectives set forth in the Request for Proposal, terms and
conditions negotiated by the City, and on the basis of written agreements prepared and
approved as to form by the City Attorney.
eeil -few Staff
will consider the suggestions and /or recommendations of the Board in its negotiations
and preparation of documents.-
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APPENDIX A:
0 MITMAZ419HE ;Ili 1111 z, I
South Pavilion
1400 -A Third Street Promenade, 250 sq. ft., occupied by
Mudra, Inc. a wome;'swomen's apparel store, whose license
expires February 29, 2009August 31, 2014.
1400 -B Third Street Promenade, 500 sq. ft., occupied by
Bussola, Inc., dba Locanda del Lago, a restaurant, whose
license expires April 1, 2-044-,--w* ^^'�'�¢' ^ ^ °' F'�
eptisn2016.
North Pavilion
1257 Third Street Promenade, 212.5 sq. ft., occupied by Above
the Fold, a newsstand, w4 sewhich has exercised its first and
second option that extends until July 31, 20082010, and w4iothat
has twoone additional o0onsoption that extendextends it through
July 31, 2015.
1260 Third Street Promenade, 550 sq. ft., occupied by Strouk
Group, doing business as Ni Marcel Pain, Vin et
Fromage, a restaurant with outdoor dining surrounded by
railing, whose lease expires July 31, 2 ^gi n- Gne— fiv<;-year
ep4l 2017.
Parking Structure No. 5
1454 Fourth Street, 841 sq. ft. occupied by Western Union,
whose lease expired F_ ",uc,, ?R Anna n r _110 ;r „ n m^n+"
u ..
hold e^ve;.expires June 30, 2014.
1450 Fourth Street, 675 sq. ft., occupied by Garbo Shoe
Repair, whose lease ..xp;Fed-AT
merIth ^ expires June 30, 2014.
1448 Fourth Street, 276 sq. ft., occupied by Reter�sPeter's
Barber Shop, whose lease expired May 1999, and who is on a
month -to -month hold- overholdover.
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15
1444 Fourth Street, 412 sq. ft., occupied by Central Parking
Geneepts_—.InG—who, which is the Sity-!sCity's parking operator.
By contract, the parking operator is not obliged to pay rent to the
City for this office.
1440 Fourth Street, 3,078 sq. ft., occupied by The Dance
Doctor, whose lease eAe„ ,Yti!- expired September 30, 2012,
its tl ewithout tenant having exercised the remaining five -year
option ending en Septembe,-3oz01?. Tenant is on a month -
to -month holdover.
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Street, __ r G G
Parking Structure No. 6
Second
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Parking Structure No. 6 has been demolished and is being rebuilt.
The new structure will include space for DTSM storage, Farmers'
Market storage, and approximately 7,000 of retail space for lease,
which is divisible, and will be built out only minimally, including
utility stub -ins.
Other
Current Use: Provenzano Resources Inc., operator of the Master
Cart Licensee Program, provides a minimum of 22 and a
maximum of 32 individual carts to operators, subject to
sublicense agreements. Vending carts operate solely along Third
Street Promenade, and are predominately general merchandise
carts. In addition, Master Cart Operator offers three carts for
artists and one concierge cart for the Baysdv1 oerperation -.
TheDowntown Santa Monica, Inc. The original ten -year license
agreement expires June 30, 2015, with one five- -year option.
IE
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