First Amendment to Lease for
2319 Central Avenue – Play House,
dba Project Burger
October 17, 2023
2319 Central Avenue: Background
• Approximately 1,850 square ft of space in Historic
Alameda Theatre complex
• May 1, 2018 – City Council approved a 10-year
lease with Project Burger, with one 5-year
extension option.
• Between 2019 and 2023, business experienced
financial difficulty due to business partner’s
departure and COVID-19 pandemic
Current
2319 Central Avenue: Lease Status
• Business in distress
• A one person operation with no additional staff
• Limited hours of operation (see diagram)
• Rent payments are intermittent
• Existing lease is well above current market rate
• Pays $4.09/sq ft vs. current market rate of $2.98/sq ft • Market demand for restaurant spaces is currently very limited • Currently $238,000 in past due rent
Current Hours of Operation
• F
Staff Recommendation: Amend Lease for 2 Years
Amend Lease with new two-year term
New lease rate of $2.98/sq. ft. consistent with
current market rate
Relieve outstanding rent of $238,000
Include provisions regarding hours of operation to
support vitality of surrounding commercial areas
Include provisions for immediate termination for
failure to pay rent on time or failure to maintain
operating hours
Introduce an ordinance authorizing the City Manager to
approve the terms of a First amendment to the Lease with Project Burger to modify monthly rent and lease term,
establish operating provisions, and relieve prior outstanding rent.
Staff Recommendation