CITY OF ALAMEDA ORDINANCE NO.
New Series
AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE A
FIRST AMENDMENT TO THE LEASE WITH PLAY HOUSE, LLC , A
CALIFORNIA LIMITED LIABILITY COMPANY, DOING BUSINESS AS PROJECT BURGER, FOR APPROXIMATELY 1,850 SQUARE FEET OF
RETAIL SPACE IN THE HISTORIC ALAMEDA THEATRE COMPLEX
LOCATED AT 2319 CENTRAL AVENUE, ALAMEDA, TO PROVIDE A
SIX-MONTH RENT CREDIT AND RENT REDUCTION
WHEREAS, Play House, LLC (Play House) operates “Project Burger,” a family- friendly, sit-down restaurant; and
WHEREAS, Play House occupies a portion of the Alameda Historic Theatre complex consisting of approximately 1,850 square feet; and
WHEREAS, the lease with Play House dated May 8, 2018, has a 10-year term, expires May 31, 2028, includes one five-year extension option and initially provided Play House with rent abatement of $19,591.50; and
WHEREAS, although at the time the lease was executed, the City of Alameda (City) and Play House anticipated that the premises was in a turn-key condition for use as a restaurant, Play House was unexpectedly required to make an initial investment in the premises of $60,000 to bring the premises into compliance with Alameda County Department of Environmental Health regulations and
WHEREAS, Play House is currently in year 4 of the lease term and has requested the City reevaluate the monthly rental rate for the premises; and
WHEREAS, upon analysis of comparable leases (i.e., similar tenants and uses), the City seeks to retroactively reduce the monthly rental rate in the Play House lease, so it reflects a market rate rent by retroactively reducing the base monthly rental rate of $3.64 per square foot to a base monthly rental rate of $2.75 per square foot for a new monthly rent of $5,397.33 for months 27-36, $5,559.25 for months 37-48, $5,726.03 for months 49-60, $5,897.81 for months 61-72, $6,256.98 for months 73-84, $6,444.69 for months 85-96, $6,638.03 for months 97-108, and $6,837.17 for months 109-120; and
WHEREAS, the City also seeks to provide Play House six months of rent abatement totaling in $40,762.08.
NOW THEREFORE, BE IT ORDAINED by the City Council of the City of Alameda that by four affirmative votes that:
Section 1. The City Manager of the City of Alameda or designee is hereby authorized to execute on behalf of the City of Alameda, a first amendment to the lease with Play House, LLC, a California limited liability company doing business as Project Burger, to provide six-months of rent abatement and a rent reduction to a market rate rent for 2319 Central Avenue, Alameda, subject to such technical or clarifying revisions as are reasonably determined necessary by the City Manager and approved by the City Attorney, and the City Clerk is hereby authorized and directed to attest to the same.
Section 2. If any section, subsection, sentence, clause or phrase of this ordinance if, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance.
The City Council of the City of Alameda hereby declares that it would have passed this ordinance, and each section, subsections, clause, or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases are declared to be invalid and unconstitutional.
Section 3. This ordinance shall be in full force and effect from and after the expiration of thirty (30) days from the date of its final passage.
Presiding Officer of the City Council
Attest:
Lara Weisiger, City Clerk
* * * * * *
I, the undersigned, hereby certify that the foregoing Ordinance was duly and regularly adopted and passed by the Council of the City of Alameda at a regular meeting assembled on this _____ day of _________ 2022 by the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said City this ____ day of ___________ 2022.
_____________________________
Lara Weisiger, City Clerk
City of Alameda
APPROVED AS TO FORM:
________________________
Yibin Shen, City Attorney
City of Alameda