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HomeMy WebLinkAboutReso - CC - 035-2018RESOLUTTON NO. 035-201 8 WHEREAS, the City is the owner of the premises located at 1080 Howard Avenue, the former Greyhound Bus Depot, at the corner of Highland Avenue and Callfornia Drive in downtown Burlingame; and WHEREAS, Rino Betti has been leasing 1080 Howard Avenue since April 1,2004, and has been operating the premises as "Sam's Sandwich Shop"; and WHEREAS, in order to allow the tenant to deal with adverse financial conditions, the lease agreement was amended in March 2013 to provide for a base rent of $1,700 per month; and WHEREAS, the tenant has had time to stabilize his finances in the management and operation of his business on the Premises; and WHEREAS, the tenant has consistently made monthly lease payments but has not received a CPl-based increase in the lease payments since March of 2013; and WHEREAS, the value of the leased property has increased from 2013, and the landlord has an interest in receiving appropriate compensation for the lease of its property, including adjustment for inflation; and WHEREAS, the rent amount will be increased by CPI annually beginning on May 1, 2018. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BURLINGAME RESOLVES AND ORDERS: '1. The facts in the recitals above and in the staff report are true and correct. The City Council determines and finds that there is a public interest in adjusting the monthly rent by CPI annually in May. The City Council approves and authorizes the City Manager to execute Amendment No. 3 to the rental agreement with Rino Betti for the premises at '1080 Howard Avenue in the form attached hereto as Exhibit "A". A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 3 TO THE RENTAL AGRREMENT WITH RINO BETTI, DBA SAM'S SANDWICH SHOP, FOR THE PREMISES AT 1O8O HOWARD AVENUE, BURLINGAME, CALIFORNIA 2. 3. r Michael Brownri ayor l, Meaghan Hassel-Shearer, City Clerk of the City of Burlingame, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council held on the 1gth day of March, 2018, and was adopted thereafter by the following vote: AYES: COUNCILMEMBERS: BEACH, BROWNRIGG, COLSON, KEIGHRAN, ORTIZ NOES: COUNCILMEMBERS:NONE ABSENT: COUNCILMEMBERS: NONE han hearer, City Clerk AMENDMENT NO.3 TO COMMERICAL LEASE AGR.EEMENT BETWEEN THE CITY OF BURLINGAME AND RINO BETTI, DBA SAM'S SANDWICH SHOP, FOR THE PREMISES AT IOSO HOWARD AI'ENIJE, BI,]RLINGAME, CALIFORNIA This Amendment No. 3 made and entered this day of , 2018, by and between the City of Burlingame, a municipal corporation (herein "Landlord"), and funo Betti, dba Sam's Sandwich Shop (herein "Tenant"), amends the Commercial Lease Agreement, including Addendum A, dated February 26, 2004, as amended by Amendment No. l, dated March 24,2005, and as amended by Amendment No. 2, dated March 18, 2013, for the lease of the building at 1080 Howard Avenue (herein "Premises"). WHEREAS, Tenant has had time to stabilize his finances in the management and operation of his business on the Premises which he has leased from Landlord since 2004; and WHER-EAS, Tenant has consistently made monthly lease payments but has not received an increase in the lease payments since March of2013; and WHEREAS, the value of the lease property has increased from 2013 and the landlord has an interest in receiving appropriate compensation for the lease of its property, including adjustment for inflation; and NOW THEREFORE, THE PARTIES AGREE TO AMEND THEIR AGRf,EMENT AS FOLLOWS: 1. Section 3, "Base Rent", is deleted and a new Section 3, "Base Rent", is added to read as follows: Tenant agrees to pay Landlord as base rent for the Premises, $ 1,700.00 per month. Rent is payable in advance on the first (1"t) day of each month and is delinquent ifnot received by Landlord on or before the fifteenth (15ft) day ofeach month. Beginning on May 1,2018, the monthly rent shall be adjusted annually according to any increase in the U.S. Consumer Price lndex ofthe Bureau of Labor Statistics ofthe Department of Labor for All Urban Consumers ("CPI') for San Francisco Bay Area based on the following formula: Base Rent will be multiplied by the most current CPI preceding the fint calendar month during which the adjustment is to take effect, and divided by the most recent CPI preceding the Comrnencement Date. ln no event shall any adjusted Base Rent be less than the Base Rent for the month immediately preceding the adjustment. If the CPI is no longer published, then the adjustment to the Base Rent shall be based on an alternate index that most closely reflects CPI. 2. Except as expressly amended by this Amendment No. 3, all other terms and conditions contained in the Commercial Lease Agreement dated January 19,2004, including Addendum A, dated February 24, 2004 and as amended on March 24, 2005 and March 18, 2013, between the City of Burlingame and Rino Betti dba Sam's Sandwich Shop, as amended, shall remain in full force and effect. IN WITNEES WEEREOF, the parties have executed this Amendment No. 3 to the Commercial Lease Agreement dated January 19, 2004, as amended, on the day and year first above written. CITY OF BURLINGAME TENANT By:By: Lisa K. Goldman, City Manager Mr. Rino Betti Attest:Approved as to Form: Meaghan Hassel-Shearer, City Clerk Kathleen Kane, City Attomey