City of Lafayette Staff Report For: By: City Council Meeting Date: January 13, 2014 Subject: Lindy Chan, Sarah Allen, Niroop K. Srivatsa, Steven Falk Approval of the Plaza Park Shops Tenant List pursuant section 5.3 of the Poy Overlay Agreement. Project is located at 3535-3541 Plaza Way & 996-998 Moraga Rd. APN 243-222-020 PURPOSE OF THE MEETING To review and approve the Tenant List for the Plaza Park Shops pursuant to section 5.3 of the Poy Overlay Agreement. BACKGROUND In October 2012, the City Council adopted Ordinance 612 approving the Plaza Way Overlay, Consolidated Parking Plan, Vision Maps and Design Guidelines. In June 2013, the City Council approved the Poy Overlay Agreement and Parking Agreement between Bill L. Poy and Sheu G. Poy ( Owner ) and the City of Lafayette. Section 5.3 of the Poy Overlay Agreement states: The City maintains discretion over the specific tenants in both the ground and upper floors as set forth in this Section 5.3 and the Plaza Way Overlay District and Owner shall obtain the City Council s written approval of a list of all potential tenants (not to exceed thirty (30) tenants for the Property) ( Tenant List ) prior to final inspection or certificate of occupancy for the first tenant space. Notwithstanding the foregoing, the Council shall review and take action on the Tenant List within thirty (30) days of submittal thereof. The Poy Overlay Agreement also limits the number of eating and drinking establishments to a maximum of 65% (section 5.4 of the Overlay Agreement). The Owner has provided the following list of potential eating and drinking establishment tenants. Once the Owner has leased these spaces, it will develop a list of complementary retail uses for the remaining spaces for the City Council s review and approval. TENANT LIST The tenant use and mix of the Project is of significant importance to the City in order to: (1) ensure the correct balance of unique spaces and amenities so that the Plaza Way Overlay District retains its history, charm and character; (2) enliven the street, increase pedestrian activity and create an area in which the community will gather for civic and cultural events; and (3) encourage tenants who will take advantage of the visible location in the downtown and adjacency to the Lafayette Plaza. In reviewing the Tenant List, the City Council may disapprove a potential tenant. Notwithstanding the foregoing, the City Council may not: Page 1 of 3
(1) disapprove any potential tenant in order to protect the competitive advantage of other business(es), however, this shall not preclude the City Council from disapproving a tenant based upon tenant mix of the Property; or (2) condition its approval of the Tenant List based on the inclusion of other specific tenant(s). Eating and Drinking Establishments - Proposed Tenant List (names are website links): Name Description Locations 1. Sideboard American - A casual coffee house and kitchen with (1) Danville quality hand crafted food and beverage. 2. Lyfe Kitchen American A new kind of franchise that serves healthy, affordable, fast-ish food. (5) Palo Alto, Culver City, Tarzana, West Hollywood, & Chicago (IL) 3. The Crepe House French - A creperie that serves breakfast, lunch and (2) San Francisco dinner. 4. Rudy s Can t Fail American A diner with comfort food and a hip (2) Emeryville, Oakland Café aesthetic. 5. Summer Kitchen + American A casual restaurant with foods made with (1) Berkeley Bake Shop local ingredients from sustainable fisheries, ranchers, cheese makers, and farmers. 6. Chevalier French A gourmet restaurant serving classic French cuisine inspired by the flavors of Provence. (1) Lafayette 7. Barney s Gourmet Burgers American A burger joint serving gourmet hamburgers. (10) San Francisco, Berkeley, Oakland, San Rafael, Sherman Oaks, & Brentwood 8. Mochica Peruvian A restaurant serving fusion Peruvian cuisine. (1) San Francisco 9. Katy s Kreek American A casual restaurant with a comfort food theme that serves breakfast, lunch, and dinner. 10. Kakui Sushi Japanese A contemporary cuisine that combines Japanese traditions with local seasonal ingredients. 11. Saul s Restaurant American - A Jewish diner serving deli classics and & Deli contemporary comfort foods reflecting season, time and place. 12. District Wine bar and lounge A wine bar and lounge that serves small plates. 13. Sift Cupcake & Desserts - A cupcake specialist that also offers other Dessert Bar sweets like ice cream sandwiches, whoopie cookies, etc. 14. Almare Gelato Desserts - A family owned artisan gelato shop using Italiano natural ingredients. 15. Ici Ice Cream Desserts A one of a kind ice cream shop where all of the treats are handmade in the store. 16. Nekter Juice Bar Juice shop - A vegan juice bar concept that offers allnatural, raw and vegan cold-pressed juices, smoothies, acai bowls, salads and skinny cocktail mixers along with organic premium cleanses. 17. Philz Coffee Coffee shop A family-owned coffee shop serving its own twenty handcrafted coffee blends. 2 of 3 (1) Walnut Creek (1) Oakland (1) Berkeley (2) San Francisco and Oakland (4) San Francisco, Santa Rosa, Cotati, & Napa (1) Berkeley (1) Berkeley (26) Costa Mesa, Corona Del Mar, Long Beach, Newport Beach, Dana Point, Anaheim Hills, Santa Monica, Laguna Beach, West Hollywood, Brea, Manhattan Beach, Rancho Santa Margarita, La Jolla, Westwood, Dallas (TX), Ladera Ranch, Quail Hill, UC Irvine, Encinitas, Huntington Beach, Scottsdale (AZ), Mission Viejo & Aliso Viejo (14) San Francisco, South SF, Palo Alto, San Jose, Menlo Park, Cupertino, Berkeley, & Sausalito
ANALYSIS The proposed tenant list provides a range of eating and drinking establishments that would enliven the street, increase pedestrian activity, and take advantage of the visible location in the downtown and adjacency to the Lafayette Plaza. Generally, the City would like to differentiate itself from other communities east of the Caldecott Tunnel. Additionally, the City would like Plaza Way to be a special place that is sought out for one-of-a-kind establishments that can tailor their aesthetics to the historical character of the area. To that end, staff researched the web sites and restaurant reviews of all proposed tenants and supports the following tenants: 1) Summer Kitchen + Bake Shop 2) Mochica 3) District 4) Sift Cupcake & Dessert Bar 5) Philz Coffee 6) Saul s Restaurant & Deli 7) The Crepe House 8) Kakui Sushi 9) Chevalier 10) Almare Gelato Italiano 11) Ici Ice Cream 12) Rudy s Can t Fail Café The other tenants would also be acceptable but perhaps to a lesser degree. None of the tenants listed are inconsistent with the City s goals for the area and therefore staff recommends that the City Council accept the 17 listed tenants as approved, but indicate a more focused interest and support for the 12 tenants listed above. RECOMMENDATION The Poys are the first property owners to opt into the overlay district, have signed agreements, and construction underway to renovate the existing buildings. Completion of their renovations and occupancy of the spaces with the approved tenant list will kick start the long-awaited improvements on Plaza Way. Staff recommends that the City Council approve the tenant list as proposed, accepting the 17 listed options but indicating greater support and interest for the 12 tenants singled out above. ATTACHMENTS 1. Plaza Way Overlay Agreement 2. Letter from Main Street Property Services, Inc. 3 of 3