Agenda Date: 05/16/2017
Subject:
Title
A Lease Agreement for Romancing the Bean to operate a concession at the historic Denver & Rio Grande Depot
Body
Presented By:
Mark Relph, Acting City Manager
POLICY QUESTION:
Does city council support a lease agreement for a six month term for Romancing the Bean to continue leasing the historic Denver & Rio Grande Depot from the city?
BACKGROUND:
Romancing the Bean's lease, initially signed in 2011, expires on June 28, 2017.
STAFF ANALYSIS:
The current lease rate of $400 per month equals $1 per square foot. This is well below the market rate for a commercial property in Downtown Littleton. Additionally, the city is responsible for preventative maintenance and pays for all of the utilities used in the operation of this private business. Considering these factors, staff would like to further evaluate this lease prior to locking the city into a long-term lease.
Due to existing work load and staff vacancies, additional time is needed to complete this evaluation. As a result, staff recommends council approve a six-month lease to allow further time for this study and permit Romancing the Bean to operate through the remainder of 2017.
Terry McElhaney, owner of Romancing the Bean, is aware of this recommendation.
OPTIONS/ALTERNATIVES:
1) Do nothing: The lease expires.
2) Approve a six month lease: Romancing the Bean continues to operate and the city staff further evaluate the lease.
3) Approve a long- term lease for a longer term at the same or different rental rate locking the city into another long term commitment without a thorough evaluation of options for the city.
FISCAL IMPACTS:
The current lease rate has not been evaluated in at least seven years and the rate is well below the going market rate for space in Downtown Littleton or space located similarly along any of RTD's light rail lines.
STAFF RECOMMENDATION:
Approve a new six month lease, allowing Romancing the Bean to continue operations through 2017, durin...
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