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:
The lease amendment will reimburse Rudy’s Steakhouse LLC (Lessee) for the replacement cost of a second cooler/freezer and additional reimbursement for installation of access panels to the kitchen hood system.
FACTS AND FINDINGS:
Rudy’s Steakhouse is in for City-owned retail space located at 350 Chemeketa Street NE in the Chemeketa Parkade.
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 $32,096 for the cooler/freezer unit and $10,000 for installation of access panels for kitchen hood system.
2. Lessee’s contractor to complete a pre-construction walk through with the City’s Facilities Services Division and attain all applicable permits
Funds for the improvements will come from the Chemeketa Parkade Leasehold Fund and have been previously budgeted over the last several years.
BACKGROUND:
On May 22, 2017, (and as amended), Council authorized the City Manager to enter into a lease (Lease) (Attachment 1) with Lessee. 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. The walk-in cooler/freezer units were among the items past their useful life and not replaceable prior to Lessee’s occupancy and opening. Staff and Lessee agreed the units would be replaced at a time of Lessee’s choosing via a reimbursement to Lessee.
On May 26, 2020, Council approved a lease amendment for the first of the two cooler/freezer replacements.
Clint Dameron
Real Property Services Manager
Attachments:
1. Lease
2. Proposed Amendment