TO: Mayor and City Council
THROUGH: Steve Powers, City Manager
FROM: Kristin Retherford, Urban Development Department Director
SUBJECT:
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Amendment to lease with Rudy’s Steakhouse LLC
Ward(s): 1
Councilor(s): Kaser
Neighborhood(s): CANDO
Result Area(s): Strong and Diverse Economy; Welcoming and Livable Community
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ISSUE:
Shall the City Council authorize the City Manager to execute the attached lease amendment with Rudy’s Steakhouse LLC?
RECOMMENDATION:
recommendation
Authorize the City Manager to execute the attached lease amendment with Rudy’s Steakhouse LLC.
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SUMMARY:
On May 22, 2017, (and as amended), Council authorized the City Manager to enter into a lease (Lease) (Attachment 1) with Rudy’s Steakhouse LLC (Lessee) for City-owned retail space located at 350 Chemeketa Street NE in the Chemeketa Parkade. As part of the Lease negotiations staff agreed to have all restaurant-related personal property left by the previous tenant serviced, brought to working order, or replaced. One of those items was the walk-in cooler/freezer past its useful life and not replaceable prior to Lessee’s occupancy and opening. Staff and Lessee agreed the unit would be replaced at a time of Lessee’s choosing via a reimbursement to Lessee. Due to closure/reduced operation as a result of the Covid-19 crisis, Lessee desires to install the new unit while its on-site operations are closed. In order to process the reimbursement, it is necessary to amend the Lease.
FACTS AND FINDINGS:
Staff and Lessee have come to terms on an amendment (Amendment) (Attachment 2) to the Lease. Key terms of the Amendment are below.
1. Maximum reimbursement $50,000 (Lessee has solicited multiple quotes)
2. Lessee’s contractor to complete a pre-construction walk through with the City’s Facilities Services Division and attain all applicable permits.
BACKGROUND:
Funds for the improvements will come from the Chemeketa Leasehold Fund and have been previously budgeted over the last several years.
Clint Dameron
Real Property Services Manager
Attachments:
1. Lease
2. Amendment