Item #06
Date: February 20, 2024
To: Mayor and City Council
From: Dan Flores, Community Development Director
Jim Schaad, City Manager
Subject: Lease Assignment and Assumption for Maiden Lane Recommendation:
Pass a Motion to 1) adopt Resolution No. 2024-XX, approving a lease assignment and assumption from Heather Thompson dba The Brick Coffee House to Kymberly Matta for partial use of a public walkway known as Maiden Lane located at 318 D Street, APN 010-233-024-000, and 2) authorize the City Manager, or designee, 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 Coffee House was sold to Heather Thompson who assumed the lease agreement until it expired in February 2023. A new 5-year lease was approved by the City Council for Heather Thompson dba The Brick Coffee House. Heather Thompson sold the Brick Coffee House to Kymberly Matta in late 2023.
Discussion & Analysis
Kymberly Matta now operates the Brick Coffee House and utilizes approximately 1,640 square feet of the City’s property as outdoor dining facilities. Ms. Thompson requested an assignment of the existing lease to Ms. Matta, with the city, for the continued use of the subject property as part of the restaurant operation. Ms. Matta has agreed to the lease assignment and assumption terms and will 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.
Item #06
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.
Attachments:
1) Lease Assignment and Assumption
2) Lease Agreement