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File #: 2017-0412   
Type: Informational Report Status: Passed
File created: 6/2/2017 In control: Finance, Budget and Audit Committee
On agenda: 7/19/2017 Final action: 7/27/2017
Title: AUTHORIZE the Chief Executive Officer (CEO) to execute a five-year exclusive lease agreement and a five-year extension option with Bike and Park Santa Monica, LLC (Bike and Park) for the Kiosk S-4 space location at Union Station in the amount of $1,970.72 monthly base rent plus an annual increase of three percent, common area maintenance (CAM) fees, and a percentage rent of ten percent of gross sales above the base rent, for a total income in excess of $500,000 over the 10-year lease. Lease will start on the earlier of 60 days from completion of the Metro Bike Hub currently under construction or the day the Bike and Park actually commences conducting business.
Sponsors: Planning and Programming Committee
Indexes: Bicycling, Construction, Hubs, Informational Report, Los Angeles Union Station, Metro Bike Hub, Property Agreement, Santa Monica, Tenants, Westside/Central Service Sector
Attachments: 1. Attachment A - Bike and Park Premises and Patio Area, 2. Attachment B - Bike and Park Project Area, 3. Attachment C - Bike and Park Lease Agreement Key Terms
Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JULY 19, 2017

Subject
SUBJECT: LEASE OF RETAIL SPACE TO BIKE AND PARK
SANTA MONICA, LLC

Action
ACTION: AUTHORIZE EXECUTION OF LEASE AGREEMENT

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer (CEO) to execute a five-year exclusive lease agreement and a five-year extension option with Bike and Park Santa Monica, LLC (Bike and Park) for the Kiosk S-4 space location at Union Station in the amount of $1,970.72 monthly base rent plus an annual increase of three percent, common area maintenance (CAM) fees, and a percentage rent of ten percent of gross sales above the base rent, for a total income in excess of $500,000 over the 10-year lease. Lease will start on the earlier of 60 days from completion of the Metro Bike Hub currently under construction or the day the Bike and Park actually commences conducting business.

Issue
ISSUE

Following a competitive selection process, six vendors submitted proposals in August 2015. Three proposers were found to best meet the experience requirements including having implemented similar projects at transit hubs. The bidders' proposals were evaluated on the basis of thoroughness of their responses, historical retail experience, profitability, resourcefulness of their business plans, previous work with other public agencies, proposed organization and staff, and commitment to a quality store and program.

Staff, with assistance of County Counsel, have recently concluded negotiations with Bike and Park, a successful retail and services trade name shop that thoroughly complements the adjacent Metro Bike Hub at the Union Station. The lease retail area is 904 square feet within the Bike Hub Park facility currently under construction, and includes non-exclusive use of the common area (see Attachments A and B). Metro will be providing a shell and heating capacity when complete. The proposed tenant is expected to invest approximately $75,000 in tenant improvement...

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