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Ordinance 3358 CITY OF ALAMEDA ORDINANCE NO. 3357 New Series AUTHORIZING THE CITY MANAGER TO EXECUTE A SECOND AMENDMENT TO THE LEASE WITH PARK STREET WINE CELLARS, INC. FOR APPROXIMATELY 700 SQUARE FEET OF RETAIL SPACE IN THE HISTORIC ALAMEDA THEATRE LOCATED AT 2315 CENTRAL AVENUE, SUITE 122, ALAMEDA, TO MODIFY LEASE TERM AND ACCELERATE RENT DEFERRAL REPAYMENT SCHEDULE WHEREAS, Park Street Wine Cellars, Inc. (Park Street Wine) operates a retail wine shop in the Alameda Theatre complex located at 2315 Central Avenue, Suite 122, Alameda consisting of approximately 700 rentable square feet; and WHEREAS, on October 16, 2019, the City Council approved a 66-month lease with Park Street Wine that included a termination date of March 31, 2025, plus a 5-year extension option (Lease); and WHEREAS, on April 5, 2022, the City Council approved a First Amendment to the Lease that provided a 6-month rent deferral to Park Street Wine with a 3-year repayment period, commencing July 1, 2022 and ending June 30, 2025, with an opportunity to earn up to three months of rent credit for early repayment of the total deferred rent sum; and WHEREAS, the City and Park Street Wine have negotiated a Second Amendment to the Lease amending the Lease termination date to January 30, 2024, including an option to extend the Lease term by one (1) month extension to March 1, 2024, if needed to clear the premises of inventory which may be exercised in two (2)two-week extensions; accelerating a rent deferral repayment schedule to repay all deferred rent authorized by section 2(a)of the First Amendment to the Lease in the amount of$4,272.19; and allowing for City to immediately market the space for a new tenant during the remaining term of the Lease. NOW THEREFORE, BE IT ORDAINED by the City Council of the City of Alameda that by four affirmative votes that: Section 1. The City Manager of the City of Alameda or designee is hereby authorized to execute on behalf of the City of Alameda, a Second Amendment to the Lease with Park Street Wine Cellars for the premises at 2315 Central Avenue, Suite 122, Alameda, consistent with the Second Amendment approved by the City Council for first reading on October 17, 2023 as Item 7-C, subject to such technical or clarifying revisions as are reasonably determined necessary by the City Manager and approved by the City Attorney, and the City Clerk is hereby authorized and directed to attest to the same. Section 2. If any section, subsection, sentence, clause or phrase of this ordinance if, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council of the City of Alameda hereby declares that it would have passed this ordinance, and each section, subsections, clause, or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases are declared to be invalid and unconstitutional. Section 3. This ordinance shall be in full force and effect from and after the expiration of thirty (30) days from the date of its final passage. //,ritA___. <— —,. ./,,4%;76-eb61/7' . Presiding rOffiCer tithe City Council r -11 Attest: • As ley i ba Acting, City Clerk * * * * * I, the undersigned, hereby certify that the foregoing Ordinance was duly and regularly adopted and passed by the Council of the City of Alameda in a regular meeting assembled on the 7th day of November 2023, by the following vote to wit: AYES: Councilmembers Daysog, Herrera Spencer, Jensen, Vella and Mayor Ezzy Ashcraft— 5. NOES: None. ABSENT: None. ABSTENTIONS: None. IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said City this 8th day of November 2023. , ck As y ieba, Acing City Clerk City of Alameda APPROVED AS TO FORM: Yibin Shen, City Attorney City of Alameda CITY OF ALAMEDA ORDINANCE NO. 3358 New Series AUTHORIZING THE CITY MANAGER TO EXECUTE A FIRST AMENDMENT TO THE LEASE WITH PLAY HOUSE, LLC DBA DIRECTOR'S CUT, FOR APPROXIMATELY 1,850 SQUARE FEET OF RETAIL SPACE IN THE HISTORIC ALAMEDA THEATRE LOCATED AT 2319 CENTRAL AVENUE, ALAMEDA, TO MODIFY MONTHLY RENT AND LEASE TERM, ESTABLISH OPERATING PROVISIONS, AND RELIEVE OUTSTANDING RENT WHEREAS, Play House, LLC, a limited liability company doing business as Director's Cut (Project Burger) (Play House), operates a family-friendly, sit-down restaurant the Alameda Theatre complex located at 2315 Central Avenue, Suite 122, Alameda consisting of approximately 1,850 rentable square feet; and WHEREAS, a 120-month lease with Play House commenced on May 1, 2018 and terminates on May 31, 2028, and includes one 5-year extension option; and WHEREAS, the City and Play House have negotiated a first amendment to the lease amending the lease termination date to October 31, 2025, reducing the monthly base rent to a current market rate of $5,530 per month (or, approximately $2.98 per square foot), establishing operating requirements at six months and twelve months, and relieving Play House of prior outstanding rent. NOW THEREFORE, BE IT ORDAINED by the City Council of the City of Alameda that by four affirmative votes that: Section 1. The City Manager of the City of Alameda or designee is hereby authorized to execute on behalf of the City of Alameda, a first amendment to the lease with Play House, a California limited liability company, to amend the lease termination date to terminate on October 31, 2025, reduce the monthly rent to a current market rate of $5,530 per month (Months 1-12) and $5,690 per month (Months 13-24), establish operating milestone requirements at six months and twelve months, and relieve Play House of prior outstanding rent in the amount of $238,000 for the premises at 2319 Central Avenue, Alameda subject to such technical or clarifying revisions as are reasonably determined necessary by the City Manager and approved by the City Attorney, and the City Clerk is hereby authorized and directed to attest to the same. Section 2. If any section, subsection, sentence, clause or phrase of this ordinance if, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council of the City of Alameda hereby declares that it would have passed this ordinance, and each section, subsections, clause, or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases are declared to be invalid and unconstitutional. Section 3. This ordinance shall be in full force and effect from and after the expiration of thirty (30) days from the date of its final passage. / / Presiding icer 61fie City Couricif y a Attest: — A le ieba, Acting City Clerk * * * * * I, the undersigned, hereby certify that the foregoing Ordinance was duly and regularly adopted and passed by the Council of the City of Alameda in a regular meeting assembled on the 7th day of November 2023, by the following vote to wit: AYES: Councilmembers Daysog, Herrera Spencer, Jensen, Vella and Mayor Ezzy Ashcraft — 5. NOES: None. ABSENT: None. ABSTENTIONS: None. IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said City this 8th day of November 2023. As ey i a, Acting City Clerk City of Al eda APPROVED AS TO FORM: Yibin Shen, City Attorney City of Alameda