City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: FEBRUARY 15, 2022 FROM: GENERAL SERVICES DEPARTMENT WARD: 3 SUBJECT: APPROVE A FIRST AMENDMENT TO RIVERSIDE MUNICIPAL AIRPORT LEASE AGREEMENT WITH THE RIVERSIDE AIRPORT CAFE FOR ADDITIONAL RESTAURANT SEATING AREA AND INCREASE MONTHLY RENT BY $250.00 ISSUE:
Approve a First Amendment to the Riverside Municipal Airport Lease Agreement with the Riverside Airport Cafe for additional restaurant seating area and increase monthly rent by $250.00.
RECOMMENDATIONS:
That the City Council:
Approve a First Amendment to the Riverside Municipal Airport Lease Agreement with Riverside Airport Café for additional restaurant seating area and increase monthly rent by $250.00; and Authorize the City Manager or designee to execute the First Amendment to Riverside Airport Lease Agreement with the Riverside Airport Cafe, including making minor and non-substantive changes.
BACKGROUND:
On June 15, 2021, the City Council approved a 10-year term Riverside Municipal Airport Lease Agreement, with one five-year option to extend with Leimamo Taylor to operate the Riverside Airport Cafe at the Riverside Municipal Airport. Estimated revenue during the initial term of the Lease was projected to be approximately $305,458.
DISCUSSION:
Since the execution of the long-term lease for the Riverside Airport Cafe, Ms. Taylor has made significant improvements to the Cafe. With these improvements, Ms. Taylor has seen a tremendous growth in business. Additionally, Ms. Taylor was successful in weathering the negative impacts caused by the COVID-19 pandemic and the growth in Cafe business has created the need for additional space.
Approval of the First Amendment to the Riverside Municipal Airport Lease Agreement will allow the Cafe to expand seating capacity to include the area directly beneath the Airport Terminal patio deck, an area measuring approximately 60’ X 19’.
Staff have negotiated a proposed rental rate of $250 per month for the additional 1,140 square feet. This proposed additional rent of $250 per month will increase the rent of the initial term of the Lease by approximately $28,500 for a total estimated rent of $305,458.
STRATEGIC PLAN ALIGNMENT:
The First Amendment to the Riverside Municipal Airport Lease Agreement contributes to the City’s Strategic Priority No. 3 Economic Opportunity and Goal No. 3.3 – cultivate a business climate that welcomes innovation, entrepreneurship and investment.
This Amendment aligns with the Cross-Cutting Threads as described below:
1. Community Trust - Approval of this lease Amendment will demonstrate the Airport’s commitment to the community by providing greater access to services and increasing job opportunities.
2. Equity - The Airport serves the entire community of the City of Riverside. The Airport’s multiple businesses, and more specifically the Riverside Airport Cafe, provide equal access and opportunities for the City’s diverse community.
3. Fiscal Responsibility – Approval of the Lease Amendment demonstrates the importance placed on the Airport’s fiscal responsibility and ensuring Airport businesses are allowed, and encouraged, to expand when opportunities present themselves.
4. Innovation – Approval of this Lease Amendment will allow the Riverside Airport Cafe to expand into underutilized space and offer additional opportunities for job growth.
5. Sustainability and Resiliency – Approval of this request will allow the Riverside Airport Cafe to further increase their business opportunity and ensure their financial stability and success.
FISCAL IMPACT:
The total fiscal impact of this action is $304,458 for the initial term of this amendment. This action will increase estimated revenue by approximately $28,500, for total estimated revenue of $305,458 during the initial term of the Lease. This estimated rent does not include the monthly gross sales percentage of 6.75%. All revenue will be deposited into the Airport Fund, Terminal Building Rental revenue account number 0000530-346110.
Prepared by: Carl Carey, General Services Director Certified as to
Availability of funds: Edward Enriquez, Chief Financial Officer/Treasurer Approved by: Kris Martinez, Assistant City Manager Approved as to form: Phaedra A. Norton, City Attorney Attachment:
First Amendment, Riverside Airport Cafe
Airport Leasing Program Page 2