Patio Space Lease Agreement at Naftzger Park

(District I)

Department of Park and Recreation

September 10, 2019

Background

• Business will occupy commercial space on the east side of Naftzger Park

• Outdoor dining has been identified as a desired amenity in the redevelopment

• Lease agreement with Douglas Development, LLC

• Real property in the Naftzger Park Walk Area

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Analysis

• Leased premises used solely for outdoor dining

• Including service of food, alcoholic and non-alcoholic beverages

• Serving alcohol will require proper permitting and follow state laws

• Approximately 10 feet from the building and 175-225 feet running parallel to the building

• Construction or improvements on the leased premises will require written approval of the City

• Maintenance will be the responsibility of lessee with the exception of sidewalks, floors and pavers

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Leased Premises4

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Financial and Legal Considerations

• 10-year term

• First year rate of $2.50 per square foot

• Annual rate increase of 1.25%

• Anticipated annual revenue of $5,000 directed into park OCA for maintenance, repairs and operations

• Lease agreement written and approved as to form by Law Department

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Recommendation

• It is recommended that City Council approve the contract and authorize the necessary signatures

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Department of Park and Recreation

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Patio Space Lease Agreement at Naftzger

Park (District I)