DATE:
October 14, 2025
CATEGORY:
Consent
DEPT.:
Public Works
TITLE: Temporary Rent Waiver for Silicon
Shores, Inc.—Shoreline Boathouse
Kitchen Expansion
RECOMMENDATION
Acting in its capacity as the Board of Directors of the Shoreline Regional Park Community, authorize the Community Manager, or designee, to amend the lease agreement with Silicon Shores, Inc., a California corporation (Entity No. 2208024 ), to provide the following construction accommodations with a combined total value not-to-exceed $200,000:
1) A temporary waiver of percentage rent;
2) Provide six parking spaces for food preparation, storage, and food truck parking; 3) Provide 1,700 square feet of outdoor dining space.
BACKGROUND AND ANALYSIS
On January 1, 2019, the City entered into a lease with Silicon Shores, Inc. (SSI), to operate the Shoreline Sailing Lake boating facility, boathouse , and café (see Figure 1). Under the lease, SSI manages all aspects of the waterfront operation, including launch fees, sailing and boating - related classes, rental of boats and equipment, sales of boating equipment, supplies and clothing, and operation of the café. The term of the lease is 10 years, with two 5 -year renewal options.
The City’s lease with SSI is a percentage lease, with the tenant paying 8% of gross r eceipts collected on all food service and 10% on all other gross revenue. The lease includes a provision that the food service percentage will increase from 8% to 10% of gross receipts should the City complete an expansion of the existing kitchen.
Temporary Rent Waiver for Silicon Shores, Inc.—Shoreline Boathouse Kitchen Expansion October 14, 2025
Figure 1: Project Site
On February 23, 2021 and April 11, 2023, Council approved temporary rent reductions for SSI due to the pandemic and construction impacts from Shoreline Sailing Lake (Project 20 -36). SSI returned to paying full rent on June 1, 2023. The annual rent proceeds received since 2019 are shown in Table 1.
Table 1: Historical Rent Proceeds
Year Rent Received
2019 (full year standard rent) $310,000
2020 (reduced rent) $144,000
2021 (reduced rent) $231,000
2022 (reduced rent) $205,000
2023 (partial year reduced rent) $236,000
2024 (full year standard rent) $298,000
Temporary Rent Waiver for Silicon Shores, Inc.—Shoreline Boathouse Kitchen Expansion October 14, 2025
On September 9, 2025, the City Council and Board of Directors approved Shoreline Boathouse Expansion (Project 20 -39), including appropriations and contract actions necessary to advance the project into construction.
During construction of Shoreline Boathouse Expansion, SSI will continue to operate the boating facility and boathouse; however, the kitchen and café will not be able to function in their current location. SSI has indicated that its food service operations are year- round and that a full shutdown would create significant disruption, including the loss of trained staff and difficulty reestablishing its catering and event clientele.
To mitigate these impacts, staff has worked with SSI to identify temporary accommodations that will allow partial continuation of food service. These measures include allocation of parking spaces for a food truck and kitchen staging, designation of outdoor dining/tent space, provision of storage space, and installation of “Pardon Our Dust” signage for visitors. SSI will be responsible for operating the temporary food truck and will retain all associated revenues. The City’s contribution is limited to providing space and waiving rent during the construction period.
FISCAL IMPACT
Approval of this action will result in foregone lease revenue of up to $200,000 during the construction period.
A detailed breakdown of the estimated values is provided in Table 2, and all amounts are fully incorporated into the $200,000 waiver cap. SSI will operate the temporary food truck independently and retain all associated revenues.
Table 2: Estimated Value of Temporary Accommodations During Construction
Item Estimated Value Notes
Waive Percentage Rent Up to $200,000 (cap) Covers all construction -period rent impacts, including below items.
Provide four (4) parking
spaces—food truck $12,000 annually $250 per space per month for 12 months. SSI operates the food truck and retains the revenue.
Outdoor dining/tent area
(1,700 square feet) $17,850 annually Based on Outdoor Patio License rate of $10.50 per square foot per year ($1,413/month).
Provide one (1) parking
space—kitchen prep $3,000 annually $250 per month for 12 months (kitchen prep) Provide one (1) parking
space—storage container $3,000 annually $250 per month for 12 months (storage) _______________________
NOTE: These estimates reflect the fair-market value of public land uses that the City will not separately charge during construction. All amounts are included within the not-to-exceed $200,000 waiver cap.
Temporary Rent Waiver for Silicon Shores, Inc.—Shoreline Boathouse Kitchen Expansion October 14, 2025
LEVINE ACT
California Government Code Section 84308 (also known as the Levine Act) prohibits city officials from participating in any proceeding involving a “license, permit, or other entitlement for use” if the official has received a campaign contribution exceeding $500 from a party, participant, or agent of a party or participant within the last 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information, see the Fair Political Practices Commission website:
http://www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html.
Please see below for information about whether the recommended action for this agenda item is subject to or exempt from the Levine Act.
SUBJECT TO THE LEVINE ACT
☒ Contract or franchise agreement
ALTERNATIVES
1. Approve the waiver at a different not-to-exceed amount.
2. Do not approve the waiver and direct staff to negotiate alternative lease adjustments.
3. Provide other direction.
PUBLIC NOTICING—Agenda posting.
Prepared by:
Angela LaMonica
Real Property Program Administrator
Approved by:
Jennifer Ng
Public Works Director
Audrey Seymour Ramberg
Assistant City Manager
PWK/LL/ALM-10-14-25CR