Title
Approval of Lease Agreement Renewal for Little DaNang Restaurant (301 4th Ave W)
Recommended Action
Committee Recommendation:
Not referred to a Committee.
City Manager Recommendation:
Move to approve an additional two-year Lease Agreement with Mr. Dung Nguyen, and authorize the City Manager to sign the attached Lease. Direct staff to continue to deposit the rental payment into the existing account dedicated to the maintenance of City-owned properties in the Fountain Block.
Report
Issue:
Determine whether to enter into another lease agreement with Mr. Nguyen for the building in which the Little Da Nang Restaurant is located.
Staff Contact:
Dave Okerlund, Parks, Arts & Recreation Department, Planning & Design Manager, 360.570.5855
Presenter(s):
None.
Background and Analysis:
The City purchased the Little DaNang Restaurant property at 301 W. 4th on November 14, 2007. At closing, the City assumed an existing lease agreement between the seller and Mr. Nguyen (Lessee) for operation of the Little DaNang Restaurant and also assumed Mr. Nguyen's security deposit of $3,000.00. In 2010 and again in 2012 the City approved new lease agreements with Mr. Nguyen, under the same terms. The current lease will expire on March 31, 2014. All rental receipts have been deposited into an account that is dedicated to the maintenance of this building and the adjacent GHB building that is already in City ownership.
Mr. Nguyen would like to renew the lease for an additional two years. Staff recommends that the City continue leasing the site to Mr. Nguyen. Should the City desire to terminate the lessee at some point during the lease term, this can be accomplished by providing a 120-day written notice to the lessee.
Since purchasing the property, the City has charged Mr. Nguyen a rental fee of $1,063.45 per month plus applicable state leasehold excise tax (currently 12.84% - $136.55). Staff proposes to continue charging this amount for the propose...
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