Metro - File #: 2015-1628

• File #: 2015-1628
• Type: Agreement
• Status: Passed
• File created: 10/15/2015
• In control: Executive Management Committee
• On agenda: 11/19/2015
• Final action: 12/3/2015
• Title: AUTHORIZING: A. the Chief Executive Officer to execute a ten year (10-year) Lease Agreement, including an option to extend for an additional five (5) year term, with Groundwork Coffee and Tea Community ("Groundwork") for the operation of a retail business at the Historic North Hollywood Train Depot at a first year annual lease rate of $3.50/square foot or $40,740; and B. the new net revenues generated to be applied to the Risk Allocation Matrix savings.
• Indexes: Bicycle Access Improvements - Rail (Project), Construction, Heating, cooling and ventilation equipment, Hubs, Maintenance, Metro Bike Hub, North Hollywood, North Hollywood Station, Property Agreement, Request For Proposal, Tenants

Date	Action By	Action	Result
12/3/2015	Board of Directors - Regular Board Meeting
11/19/2015	Executive Management Committee

Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
NOVEMBER 19, 2015

Subject/Action
SUBJECT: HISTORIC NORTH HOLLYWOOD TRAIN DEPOT

ACTION: AUTHORIZE EXECUTION OF A LEASE AGREEMENT WITH GROUNDWORK COFFEE AND TEA COMMUNITY

Heading
RECOMMENDATION

Title
AUTHORIZING:

A. the Chief Executive Officer to execute a ten year (10-year) Lease Agreement, including an option to extend for an additional five (5) year term, with Groundwork Coffee and Tea Community ("Groundwork") for the operation of a retail business at the Historic North Hollywood Train Depot at a first year annual lease rate of $3.50/square foot or $40,740; and

B. the new net revenues generated to be applied to the Risk Allocation Matrix savings.

Issue
ISSUE

Metro staff released a Request for Proposals for a retail operator for the North Hollywood Train Depot ("Depot"). Three responses were received. Of those, Groundwork, the recommended vendor, offered the most advantageous revenue arrangements as well as the most relevant experience.

Approval of the Lease Agreement requires board approval.

Discussion
DISCUSSION

The Depot, historically known as the Toluca Southern Pacific Train Depot was originally built in 1896. It is one of the few remaining wood frame, 19th century railroad stations in Southern California. In the fall of 2014, Metro completed a $3.6 million restoration project, which rehabilitated approximately 70 percent of the original station. The Depot consists of approximately 1,635 square feet. Approximately, 970 square feet of the space is available for retail development, 300 square feet is designated for the Metro Bike Hub ("Bike Hub"), and the balance of the Depot interior space consists of 365 square feet of circulation space. The Depot also has a covered outdoor seating area consisting of approximately 3,410 square feet. The Depot is located at the terminus of the Orange Line transit way and across Lankershim Boulevard from the North Hollywood Red L...