La Finestra at the Hacienda. Lease Agreement. Moraga Town Council Meeting May 23, 2018

Size: px

Start display at page:

Download "La Finestra at the Hacienda. Lease Agreement. Moraga Town Council Meeting May 23, 2018"

Joseph Rogers
5 years ago
Views:

1 La Finestra at the Hacienda 1 Lease Agreement Moraga Town Council Meeting May 23, 2018

2 2 Town Council 2018 Goal Develop Economically Feasible Recommendation for Use of the Hacienda Property as a Quality Restaurant, and for Other Public Uses

3 3 Past Efforts to Activate the Hacienda Hacienda Foundation Events Cinco de Mayo, Oktoberfest HomeMade Kitchen Hacienda Nights food truck events

4 4 Hacienda de las Flores Conceptual Feasibility Study Developed by Gould Evans, completed in 2016 Included extensive community input Recommended a Public-Private partnership for a restaurant

5 5 Hacienda Subcommittee Consisting of two Councilmembers and individuals from the community While developing an RFP, identified a qualified restaurateur In April 2018, recommended a lease framework

6 6 Benefits of La Finestra at the Hacienda Activate the park and provide year-round access New upscale restaurant in Moraga La Finestra is a successful, established business with a proven track record Initial investment is modest and will be recovered in the first year. Improvements to remain with the property Reduces the Town s contribution to site operations by $86,300 annually

7 Benefits of La Finestra at the Hacienda continued Current events and activities can be relocated to the Casita and La Sala The Casita can be reactivated with minimal investment and the Hacienda

7 7 Benefits of La Finestra at the Hacienda continued Current events and activities can be relocated to the Casita and La Sala The Casita can be reactivated with minimal investment and the Hacienda Foundation interested in funding the improvements Parks and Recreation can continue to operate out of the Hacienda The Pavilion, Mosiac Room, Garden Conference room, La Sala, the Casita and the grounds remain available for public use

8 8

9 9 Premises Include the Following Shaded Areas: Indoor Area (2,243 sq ft) Outdoor Area (857 sq ft) Bathroom/Closet Storage 390 sq ft Kitchen 578 sq ft Fireside 589 sq ft ADA Restroom Hall 201 sq ft Dance Room 485 sq ft Entrance Patio 857 sq ft Garden Conference Room 272 sq ft

10 10 Primary Objectives Activate the space La Finestra would activate a portions of the ground floor of the Hacienda six days a week at a minimum Parks and Recreation Dept offices can remain Rental activities can be relocated Reduce annual contribution to Hacienda operations $86,300 Initial decrease in event rental revenue $(25,000) Increase in restaurant and catering revenue $103,500 Utility cost savings $7,800

11 11 Repositioning the Hacienda Shift all weddings to Pavilion (fireplace insert) $ 21,000 Refresh Garden Conference room 5,000 Shift classes to Casita (upgrade bathroom, flooring & lighting, remove interior wall, paint interior) 75,000 New wayfinding (on-site and off-site) 10,000 Parking lot improvements 70,000 Total $181,000 Notes: - Grant funding available for wayfinding - Hacienda Foundation has $150,000 to contribute to the above improvements

12 12 La Finestra Basic Lease Terms Lease date: May 24, 2018 Landlord: Town of Moraga Tenant: Java Jones, Inc. dba La Finestra Ristorante Property: 2100 Donald Dr. Premises: 2,250 square feet plus the patio area Use: Italian restaurant and associated catering operations Commencement date: December 1, 2018 Term: Initial 5 years with two 5 year options Hours: Minimum 6 days a week 11:30am 9 pm. No food or alcohol served on the patio after 10pm or in the dining room after 11pm Base Rent: $5,625 per month adjusted annually in year 6 based on CPI Guarantor: Jeff Assadi

13 13 Tenant Improvements Improvements include: new ADA-compliant unisex restroom and other necessary ADA work; renovation of the kitchen to meet Health Dept regulations; improvements to meet Fire regulations; installation of a bar and fireplace insert and other design improvements such as paint, window coverings, lighting etc. Tenant Improvement Allowance: up to $60,000 for new ADA restroom, other ADA and fire code upgrades.

14 14 Tenant Improvements continued Tenant shall submit Space Plan to Landlord for approval Landlord shall approve general contractor, subcontractors and ensure insurance requirements are met All work shall be in compliance with all applicable laws Landlord shall reimburse Tenant when all work is completed

15 15 Property Commons Area Tenant shall not interfere with year-round public access to the Property Tenant shall have non-exclusive use of bathroom near Garden Conference Room Tenant shall maintain the bathroom Use can be temporarily discontinued at any time Use can be permanently discontinued with 60-days notice Tenant shall have non-exclusive use of the Fountain Area Initially envision shared use Use can be temporarily discontinued at any time Use can be permanently discontinued with 60-days notice after

16 16 Rent Base rent of $5,625 ($2.50/sf) to be paid monthly Annual CPI adjustment starting in year 6 Percentage rent, to be paid quarterly 5% of net restaurant sales above $100,000 in any month 10% of net catering revenue for events on the property

17 17 Use Casual Fine Dining Landlord to book all events on the Property except those in Premises Tenant to pay the private hourly rate for rental of event space Tenant shall be allowed to install signage on exterior of Premises, at the entrance to the Property and on the iron fence on Moraga Road near Devin Drive

18 18 Repairs and Maintenance Tenant responsible for keeping Premises clean and maintained (including portion of Fountain Area that they are using, bathroom near Garden Conference room and walk way from parking lot) Tenant shall repair any damage to: floor and ceiling coverings; windows and doors; walls, utilities, equipment, landscaping, plumbing, HVAC Landlord shall maintain and repair: structural portions of the property; mechanical systems; and the roof

19 19 Other Miscellaneous Terms Landlord and Tenant shall be responsible for paying their fair share of utilities and other services Tenant shall not assign or sublet without the prior written consent of Landlord, which shall not be unreasonably withheld Tenant shall maintain property insurance, workers compensation insurance, employer s liability insurance and commercial general liability insurance Tenant shall indemnify Landlord from all claims, damages, liabilities, and expenses arising from Tenant s use of Property Landlord shall not be liable for damage to Tenant s property or injury resulting from fire, earthquake, accident or any acts or omissions Default events include: abandonment, failure to pay rent and bankruptcy

20 20 Zoning Property is zoned: N-OS (non-moso Open Space District) The Hacienda has been operating as a public park and recreational facility Ancillary uses include catering, food service, restaurant and rental for private events The proposed restaurant would not alter or expand this ancillary use in a manner that would be inconsistent with the primary use of the Hacienda as a public park and recreational facility No additional planning approvals are needed

21 21 Fiscal Impact General Fund contribution to Hacienda operations projected to decrease by $86,300 ($78,500 in new revenue less $7,800 in utility savings) One-time Tenant Improvement expense of $60,000 FY ($10,000) FY $86,300

22 22 Proposed Minor Revisions Section 12(d) clarifies that contractor should be licensed in the State of California Section 13(a) corrects reference to exhibit and clarifies that Tenant would be responsible for trash enclosure upgrades Section 13(c) clarifies that Tenant is responsible for cleaning and maintaining the path from the parking lot to Premises Section 15(c) clarifies interruption of service Section 16(b) defines promptly as within five business days Section 16(c)i adds requirement that transferee shall provide personal guaranty Section 18(b) adds requirement for Tenant to reimburse Landlord for deductibles and other costs in case of damage to Property

23 23 Proposed Minor Revisions continued Section 19(e) clarifies exception Section 19(f) clarifies that Tenant shall pay for increase in Landlord s property liability insurance resulting from Tenant s use of Property Section 27(a) clarifies that Tenant shall surrender Fountain Area and other Property Common Area upon expiration of the Lease Section 38(g) clarifies that Option to Extend not available to Tenant Affiliate and that assignment of Lease shall not be permitted within two years of Tenant exercising Option to Extend Exhibit B adds key to clarify that Premises is shared indoor and outdoor areas Exhibit D revises provision for Tenant move-in and move-out notification from non-business hours to advanced scheduling to Landlord

24 Recommendation Consider Resolution Executing the Restaurant Lease Agreement Between Town of Moraga, a California Municipal Corporation, as Landlord and Java Jones, Inc.

24 24 Recommendation Consider Resolution Executing the Restaurant Lease Agreement Between Town of Moraga, a California Municipal Corporation, as Landlord and Java Jones, Inc., a California Corporation dba La Finestra Ristorante, as Tenant for the 2,250 Square Foot Space at the Hacienda de las Flores at 2100 Donald Drive for an Initial Five Year Term for $5,625 Per Month with Two Five-Year Options

Lease Summary Chart Critical Deadlines

Lease Summary Chart Critical Deadlines Building Address: Unit: Documents Summarized: Date: [REDACTED] 1 st Floor of Building Lease Agreement between [REDACTED]. TBD Lease Provision Description Citations