SR-10-12-1976-5Ev
Santa Monica, California, September 30, 1976
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Assignment of Leases - -Santa Monica Pier
Background
A. Clara's Cafe /New Porthole Cafe
The leases for Clara's Cafe and the New Porthole Cafe,approved by Council
on June 22, 1976, anticipated a change in ownership and were consequently
written for a one -year term to enable the City to evaluate the capability
of the new operators. Specific performance standards and a list of required
improvements were included in these leases and agreed to by the proposed
assignees. In both of these instances the proposed assignee has been operat-
ing the respective premises for the past several months.
Hours of business have been extended, menus have been expanded, and gross
receipts have been increased during the first two months of the fiscal year
by over 60% in the case of the New Porthole Cafe and by 66% in the case of
Clara's Cafe, well above the average increase for pier businesses as a whole.
The proposed assignees have supplied requested information regarding their
prior experience and financial capabilities.
B. Skipper's
Although an assignment of the lease for Skipper's had not been envisioned
when the Council approved the five -year lease, a recently manifested medical
problem of the existing tenant has made it imperative that he not continue
this operation. The proposed assignee is familiar with the operation and
Mayor and City Council -2- September 30, 1976
has assisted the present owners for the past several months. He has demonstra-
ted the financial capability to expand the operation and to acquire new equip-
ment. The present owners have agreed to remain jointly on the lease for a
one -year period following the approval of the assignment.
Recommendation
It is recommended that the Council approve the assignments indicated below and
authorize the City Manager to execute the appropriate documents.
Name
New Porthole Cafe
Clara's Cafe
Skipper's
Prepared by: John Hemer
JH:lk
Assiqnee
Josef Galprin
Kim Lin
Danny Frink