SR 05-09-2017 3K
Ci ty Council
Report
City Council Meeting : June 13, 2017
Agenda Item: 3.K
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To: Mayor and City Council
From: Andy Agle, Director , Housing and Economic Development, Economic
Development Division
Subject: Amended and Restated Lease Agreement for 1657 Ocean Avenue
Recommended Action
Staff recommends that the City Council a uthorize the City Manager to negotiate and
execute an Amended and Restated Lease Agreement with Jay’s Tavern, Inc., a
California -based corporation, doing business as Chez Jay, to amend the existing lease
agreement #7640 (RAS) to reflect additional leased premises at 1657 Ocean Avenue to
include an outdoor dining area , as well as to increase to the base monthly rent to
$2,125 and to establish a five -year lease term .
Executive Summary
This report outlines the proposed terms of an amended and restated lease agreement
for 1657 Ocean Avenue , the site of Chez Jay restaurant . The amended agreement is
recommended to reflect changes to the leased premises and increased base rent
associated with an outdoor dining area to the east of the existing restaurant .
Background
The City, through its former Redevelopment Agency, purchased 11.3 acres of property
from the RAND Corporation to support the implementation of the Civic Center Specific
Plan. The restaurant property, Chez Jay, located at 1657 Ocean Avenue, was included
in th e acquisition. The City took assignment of the lease agreement for Chez Jay by
Council authorization of the lease agreement #7640 (RAS) on October 26, 1999
(Attachment A). The restaurant has been in operation in Santa Monica since 1959 ; the
lease term wit h the City is currently on a month -to -month basis.
Discussion
The concept of an outdoor café use adjacent to and complementary to the proposed
public park that would become Tongva Park was originally envisioned in the Civic
Center Specific Plan (CCSP .) With the design and construction of Tongva Park, the
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adjacent restaurant, Chez Jay, has pursued the creation of an outdoor dining area to
help serve the function envisioned in the CCSP. Chez Jay was designated a City
Landmark on October 8, 2012. With aut horization by a letter agreement with the City on
November 6, 2013, the o wners of Chez Jay invested in the construct ion of a 600 -foot
outdoor patio that can seat up to 54 people , with perimeter fencing and an access gate
to connect to Tongva Park , as illus trated in Attachment B. The owners of Chez Jay also
completed improvements including renovations to the rear interior of the existing
building to accommodate a take -out kitchen, a walk -up order window , an access door to
the take -out counter service area, a ccessible ramps , and the remodel of one existing
bathroom to comply with ADA.
Staff seeks Council authori zation to enter into an Amended and Restated Lease
Agreement with Chez Jay to incorporate the outdoor patio improvements in the
description of the lea sed premises. In consideration of the increase in square footage of
the leased premises, staff recommends that the monthly base rent be increased from
$1,700 to $2,125 , with annual CPI increases . S ales ge nerated from the outdoor patio
would be subject to t he same percentage sales provisions as the interior dining area .
The Amended and Restated Lease Agreement would also clarify assignment and
sublease rights. The current month -to -month tenancy would be updated to a five -year
term to be consistent with leas e terms of similar City leaseholds. Finally, the lease
agreement would reflect the City of Santa Monica as the Lessor, rather than the defunct
Redevelopment Agency of the City of Santa Monica.
Financial Impacts and Budget Actions
The base rent revenues generated from the amended and restated lease agreement
with Chez Jay w ould increase by $5,100 annually with annual CPI increases of not less
than three (3) percent. All revenues including percentage sales from this lease w ould
continue to be de posited in account number 01263.400770 – Lease Rental Revenues.
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Prepared By: Nia Tang, Senior Development Analyst
Approved
Forwarded to Council
Attachments:
A. Octob er 26, 1999 Council Report
B. Site Plan Exhibit
C. Oaks Initiative
7'-8"2'
25
'
A
L
L
E
Y
Interior Landmarked Portion
26'-4"
16
'
-
4
"
16'-4"15'-8 1/2"
7'
-
1
1/
2
"
4'
-
1
1
"
20'
CHEZ JAY PARKING 1 SPACE 93'-2"
6"CHEZ JAY PARKING: 11 SPACES
±4
'
±9'-9 1/2"
±2
2
'
-
4
1/
8
"
±1'-8 7/8"
4'
3'
-
8
"
3'4'
3'
3'
-
8
"
3'-8"
1'-10"22'3'-11 1/2"
11
'
-
9
1/
2
"
13
'
-
3
"
3'
-
5
"
10'
10
'
10
'
-
1
1/
4
"
3'3"
5'
5'
-
1
1
1/
2
"
5'3"
48' diam drip line
6" wall
t.o.w. = +19"
+23' flagpole (from t.o.c.)
20' diam drip line
gravel planter
approx +19" painted conc bench
painted conc pad
19" diam
light
conc embeded rock (31" x 19" x +11")giant clamshell
LINE OF EXISTING BUILDING
yucca
water main shutoff
Existing walkway unchanged existing conc 4' sidewalk - unchanged
typ 2' x 2' conc pavers
spaced 1/2" apart Existing 4' concrete walkway at grade
trash/ recycling bins
CofSM Parking Pay Station
standard parking space
(8'-6" x 18') Typical construction staging area
gravel planter
4'x6'x 100" existing retention trough under
permeable precast concrete paving stones
typical flow line
4 space bicycle rack
existing transformers:
location approximate
typical parking stop
36" x +48" gate
redirect sprinkler typ
36"- 48" high, painted 1x6 fence
48" wide x +42" gate
10' post
10' post 10' post 8' post
+4' fence @ trash area
conc ramp
10' post
4x4 fence post approx 6'oc
1/4" tempered glass
Existing Washington palms
4" CI drain (3" if curb 6" or less) installed per
APWA standard drawing 150-3 Sheets 1 & 2 typ 6"x80" Z886 series PermaTrench (HDPE)
#8607 w/ 2 40" RPS grates (ADA rated)
set 3/8" below exist walk (max slope 1/4") typ
4" CI drain (3" if curb 6" or less)
installed per APWA standard
drawing 150-3 Sheets 1 & 2 typ
6"x4' drain flush w/ walk
Typical Accessible seating +30" table
with 27" clear underneath 3 places
Mike and Anita's Patio where
beer and wine will be served
CLAM
4' front to back, 12' long, 5'3" high
1657 OCEAN AVENUE
EXISTING CHEZ JAY RESTAURANT
OC
E
A
N
A
V
E
N
U
E
10
0
R
.
O
.
W
.
VACATED FORMER 20' ALLEY
exi
s
t
i
n
g
r
a
m
p
t
o
l
o
o
k
o
u
t
FORMER 20' ALLEY LINE
existing landscaped slope
existing palms
TONGVA PARK
LOT #3
LOT #4 (1665 OCEAN AVENUE)
1:12 ramp
wood ramp and deck
GM
planter
1 2 3 4 5 6 7 8
EXIST
PLANTER
9
EXIST. PLANTER
existing grasses
existing grasses
existing
landscaping
existing concrete walk
SETBACK
SE
T
B
A
C
K
SE
T
B
A
C
K
SETBACK
VA
C
A
T
E
D
F
O
R
M
E
R
2
5
'
A
L
L
E
Y
S S S S S S S S S S
S
PL
PL
PL
wood ramp
1:12 ramp
EXIST
PLANTER
EXIST
PLANTER
Vine Covered
LOT #4 AND PARKING OF LOT # 3 IS UNCHANGED
8
4 4
4
6
4
4 4 4 2
600 sf dining area
54 seats
6
4
pl
a
n
t
e
r
pl
a
n
t
e
r
Built by CofSM as part of
Palisades Garden Walk
10
PUBLIC PARKING 10 SPACES
conc
ramp
32"x42"
32"x60"32"x82"
PATIO AND MIKE AND ANITA"S PATIO AND
MIKE AND ANITA"S PATIO AND
4'
AREA of Kitchen &
Take-out counter
EXISTING TRASH
ENCLOSURE
397 s.f.