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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 ................................................. ............................... isC 1544 GItnENNE O€Srl ° '� . D ......................1...... ......... ^ ........................................................................... .......... I ................. ......I -_- ...... ............................... ., . F.Temp DDEEEDENCE FOR I GGA NDEDErtInCrtIT nnln rtlnnl Ell Dftfll 11 n RI ICInICCCE�`. u iii— IV. I EnCC TEDR6C llOTl(1nIC nnln DAI C v�o�rc-rnviv, v�rvrvm�rvu -r c r�co . ............................... ......... DIVcq CIT�oC'� Ertlnnirl �C -18 F:\EEetterra: -DCV c� 200&dee 2 4-0 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 _W r �,; n t �n 'a..�.r r_..:,i .r., . �n.....•A�, r � ,.:��de�i+t., n a, � � �� o �nn� -zz ?88$.dee 4 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.- 18 'c— cccoiic�i?ii2vc. .. t.,...,,. .,.y ,,... :...Singoirivci'iiicazvay,s� �ni'�• ^n�8e 6 !LAW p•: -• 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,�- �89$:clae 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 4-8 c.�r ............eD „i,....,.,,....ao.,.,.,•a � n.:ui�lu, r n,.:.i i• n...,...a..a -r� r. cnvvavrravn�. rcm�crCCrawcryo-�cc.. 3srb v i.. ... ^A^�n.rsnz&S�rnrcc- navtiry -z-c- �Q{}$:ftOE 8 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 r �t• r� i �zz • i,.�r e T r_,,:aa} iii "�ay�td ' � •a i• , ., n.,,��a .a K �� 2008-"c 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 • b 200e 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 x— cizonomxuvcdc icy } coo. -ox 888:d6E 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 ffJ rh t,.P ., ,.,.tom ..:rte- het• ,..an,,. .,:,t,, r „ ,. n,.: a,. u.,.. ,... a,.a c �� �'�i$livm�c'En..'vciv' ".-a xxrro3- �n;,cncrccro -zz- 2889406 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. - 18' ��..v�.aav�_.••1 y.�......�4�D n. ni.�..�T c.. rr.i �q. •.1 .. /i. ...� ^�viwaaT�Tivu .`..��v.i•,v� F• �� Z 13 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.- im ., p,.._..., ...�.,_ »_ •___.. __a . �, nicvsm..- v- 2Fr" aiii�vz4�ar� .......................... ..... 284",ee 14 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. W �>�`c- eaerl4i�,.. ,.�,.,....,.,.an •a,.�r .,iii,' �'i�iC,�.' -k zl:,:,:, erg'�vc'am, ^l =.'- ��. ^z,.:,,'rit: `'z, -crzi- 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. I —O. i A.1:.., n\ D.....:,] Lc•i}` f eV.,,,... A rt,,..., iA-1 K oo 16 Street, __ r G G Parking Structure No. 6 Second e lam. l� c ■�.• G � G r __ =23 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 G l- cccoi,,••xomn- n••r,,••,• rnry-ofcca$,,•:,,, r��- �izh'c�ioicys`�E*C -ids" vc. es- Afne-r'd`,4; 4-22 2009 -dae 17