TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Kristin Retherford, Urban Development Director
SUBJECT:
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Chemeketa Parkade Retail Lease - Rudy’s Steakhouse LLC
Ward(s): 1
Councilor(s): Kaser
Neighborhood(s): CANDO
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ISSUE:
Shall City Council authorize the City Manager to execute the attached lease with Rudy’s Steakhouse LLC for property located at 315 Chemeketa Street NE?
RECOMMENDATION:
recommendation
Authorize the City Manager to execute the attached lease with Rudy’s Steakhouse LLC for property located at 315 Chemeketa Street NE.
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SUMMARY AND BACKGROUND:
On May 22, 2017, the City Council authorized the City Manager to execute a lease with Rudy’s Steakhouse LLC (Lessee), whose principal is Robert Kunke, for property located at 350 Chemeketa Street NE (former McGrath’s/Urban Alley). Lessee desires to lease the former Olivia’s Boutique space at 315 Chemeketa St. NE for use as a banquet and meeting facility to complement the restaurant space.
FACTS AND FINDINGS:
Staff and Lessee have come to terms on a proposed lease (Attachment 1) (Lease). The key elements of the Lease are below.
Term: September 1, 2017 - July 31, 2019 (timed to coincide
with restaurant lease)
Square Feet: 1,774
Rate: Sept. 1, 2017 - Dec. 31, 2017 $0.00 ($0.00/SF)
Jan. 1, 2018 - Dec. 31, 2018 $1,685.30 ($0.95/SF)
Jan. 1, 2019 - July 31, 2019 $1,774.00 ($1.00/SF)
Aug. 1, 2019 - July 31, 2022 $1,862.70 ($1.05/SF)
Aug. 1, 2022 - July 31, 2025 $1,918.58 ($1.08/SF)
Aug. 1, 2025 - July 31, 2028 $1,976.14 ($1.11/SF)
Aug. 1, 2028 - July 31, 2031 $2,035.42 ($1.15/SF)
Aug. 1, 2031 - Oct. 31, 2034 $2,096.49 ($1.18/SF)
Renewal Options: Five three-year terms
Landlord Contributions: Four month free rent period, no cash toward tenant improvements
Clint Dameron
Real Property Services Manager
Attachments:
1. Proposed Lease