CITY OF SAN MATEO
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CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 8 Section Name: CONSENT CALENDAR Account Number: 14-1311 File ID: 25-10458 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: City Manager's Office
MEETING DATE: October 20, 2025
SUBJECT:
365 2nd Avenue — Lease Amendment
RECOMMENDATION:
Approve the Assignment and Fourth Amendment to the lease between the City and Genius Learning and Dennis Tong, dba Beard Papa’s, for the City-owned property at 365 2nd Avenue, to assign the lease to KIZUNA US, LLC and Thai Ho; authorize an increase in the security deposit to $3,000; and authorize the City Manager to execute the amendment in substantially the form presented.
BACKGROUND:
On April 22, 2023, the City Council approved a Third Amendment to the lease to Learning Genius and Dennis Tong dba Beard Papa’s, a puff pastry dessert shop located on 365 2nd Avenue on the ground floor of the Main Street Garage. Dennis Tong and Learning Genius has decided to sell their financial interests to Kizuna US, LLC and Thai Ho. The new owner will continue to operate the business as Beard Papa’s. The lease will terminate on November 30, 2026, with no lease extensions remaining. At that point, if the lessees wish to continue operating the business at that site, they will need to negotiate a new lease with the City.
The City’s commercial property manager has performed the due diligence of evaluating Kizuna US, LLC and Thai Ho’s credit history. The property manager concluded that the assignee meets the financial requirements to assume the lease. Under the terms of the lease, the City may not unreasonably withhold its consent to a lease assignment.
Staff propose a Fourth Amendment to the lease to assign it to the new lessee. Staff recommends that this Assignment and Fourth Amendment include an increase in the security deposit to $3,000, approximately one and a half months’ rent. All other terms of the lease will remain unchanged.
BUDGET IMPACT:
The lease amendment will have no budget impact. The lease will generate approximately $25,500 in revenue over the course of the remaining 12-month term. Commercial property revenue is deposited in the General Fund and has been used to offset the City’s expenses for operation, maintenance, and improvements to Downtown parking facilities and for Downtown street cleaning services.
ENVIRONMENTAL DETERMINATION:
This lease amendment is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use. (CEQA Guidelines Section 15301.)
CITY OF SAN MATEO
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NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 - Proposed Assignment and Fourth Amendment of the Lease
STAFF CONTACT
Jennifer Chen, Economic Development Manager
[email protected]
(650) 522-7009