DEPARTMENT: Center City Development Office
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
Amendment to Lease Agreement for Mercado O'liva, LLC
SUMMARY:
This ordinance amends the Lease Agreement with Mercado O'liva LLC. The Amendment will change the structure of monthly lease payment from a fixed amount to a percentage payment based on gross monthly sales.
BACKGROUND INFORMATION:
As part of the renovation of Plaza de Armas Building, located at 115 Plaza de Armas, the City, through a competitive process, selected Mercado O'liva, LLC to operate a restaurant in this 2,509 square foot first floor space. City Council approved a lease on March 20, 2014 and the restaurant opened in July 2015. Serving lunch, dinner and weekend brunch the restaurant's focus is on a menu with healthy concepts, locally provisioned food choices, along with ready to serve products that are produced in Texas.
In business for less than a year, the operator has experienced many of the issues associated with a startup restaurant, including developing a customer base, minimizing staff turnover, having enough capital and leveraging marketing opportunities. The O'liva team has produced well received restaurant reviews in several publications and it is expected that the restaurant will continue to build upon its efforts and develop a loyal clientele. As a champion of development in the civic core, it is incumbent for the City to promote not only brick and mortar activity but also to develop destination establishments that encourage visitors and residents alike to explore what downtown has to offer. The Plaza de Armas building houses City offices, and it also features a public art gallery that hosts events and receptions. The development of San Pedro Creek adjacent to the Plaza de Armas will serve as a catalyst that will invigorate and revitalize the western edge of downtown. O'liva is also an integral part of economic development in t...
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