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File #: 17-1988   
Type: Real Property Lease
In control: City Council A Session
On agenda: 3/9/2017
Posting Language: An Ordinance authorizing the negotiation and execution of a five-year license with Fratello's LLC for use of 2,509 square feet plus basement storage area in a portion of the City-owned building at 115 Plaza de Armas, Suite 107 for retail space with the license fee waived during the initial startup period. [Lori Houston, Assistant City Manager; John Jacks, Interim Director, Center City Development & Operations]
Attachments: 1. 115 Draft License Agreement, 2. Fratello License RFCA 17-1988 Draft, 3. Ordinance 2017-03-09-0158
DEPARTMENT: Center City Development & Operations




Lease Agreement for Fratello's, LLC for 2,509 square feet of retail space at Plaza de Armas Building


This ordinance authorizes the negotiation and execution of a five-year license with Fratello's LLC for use of 2,509 square feet of retail space within the City-owned building located at 115 Plaza de Armas in Council District 1.


The renovated Plaza de Armas building was purposely designed with City offices and a public art gallery that hosts events along with the creation of a retail establishment. When this retail space was recently vacated, City staff initiated a competitive process to identify an operator with a proven record of success operating restaurants. Four submissions were received and an evaluation committee comprised of City staff and individuals with knowledge of restaurant operations met to consider the proposals and unanimously endorsed Fratello's. Balancing the need to maximize the value of this real estate asset with the realities of the marketplace, the license has been structured with competitive terms that reduce obstacles that could be an impediment to Fratello's success.


Approval of this item will activate this City-owned retail space and provide Fratello's, LLC a license that is structured to provide time for the new restaurant to establish a customer base and grow upon that success.


The Council may elect not to approve this license and search for another vendor to rent the space. However, staff is confident that sufficient interest in the space was generated as evidenced by the multiple submissions received and it is unlikely that another campaign to identify other users will bear more favorable results.


Under the terms of the license over the course of the five-year term, a license fee will be charged as follows:

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