Item #04
Date: May 2, 2023
To: Mayor and City Council
From: Dan Flores, Community Development Director
Jim Schaad, City Manager
Subject: Lease Agreement Renewal for Maiden Lane
Recommendation:
Pass a Motion to adopt Resolution No. 2023-XX, approving a lease agreement with Heather Thompson for partial use of a public walkway known as Maiden Lane located at 318 D Street, APN 010-233-024-000, and authorizing the City Manager to execute the same on behalf of the City.
Rationale for Recommendation:
318 D Street, a public walkway known as Maiden Lane was acquired by the City in July 2015 from the Oversight Board of the Successor Agency for the Marysville Community Development Agency (Former Redevelopment Agency). The former redevelopment agency acquired the walkway in order to clean up the blight that existed on the property. Approximately 1,640 sq ft of the property was previously leased to the former owners of the Brick Coffee House, Don and Levina Blaser, for the operation of outside dining facilities for their restaurant. The Brick was sold to Heather Thompson who assumed the lease agreement until its expiration in February 2023.
Discussion & Analysis
Heather Thompson operates the Brick Coffee House and utilizes approximately 1,640 square feet of the City’s property as outdoor dining facilities. Ms. Thompson has requested a formal lease agreement with the city for the continued use of the subject property as part of the restaurant operation. Ms. Thompson has agreed to maintain the property as outlined in the lease agreement.
Alignment with City Council Goal(s):
Goal #2: Expand Economic Development by adding local growth and dollars spent within the City.
Fiscal Analysis:
The term of the lease is five (5) years with rent payments starting at $200 monthly for the first year and increasing 3% annually in May for the term of the lease. The lease will generate approximately $12,700 in rental income to the General Fund over the next five years.
Attachment:
1) Lease Agreement