From
Megan Mahan
Title
Resolution authorizing an Economic Development Agreement and Ten-Year Tenant Lease with Option to Renew for three Five-Year Terms with Milkshake, LLC (or related assignee), for the Operation of Three Restaurants at EpicCentral for $25 rent per square foot for years 1-5 and incrementally increasing up to $35 per square foot for years 21-25 and 20% of Net Operating Income
Presenter
Tom Hart, City Manager
Recommended Action
Approve
Analysis
A ten-year Lease Agreement would be executed with Milkshake, LLC, or related entity, as the tenant. The Lease would require Milkshake to operate three restaurants. Rent would be calculated as follows:
Base Rent. Years 1 through 5 $25.00 PSF annually plus CAM
Years 6 through 10 $27.00 PSF annually plus CAM
Years 11 through 15 $29.00 PSF annually plus CAM
Years 16 through 20 $32.00 PSF annually plus CAM
Years 21 through 25 $35.00 PSF annually plus CAM
Percentage Rent. City to share in 20% of all NOI for the duration of the term and all respective extensions.
The Tenant would pay all operating costs during the term of the Lease, such as equipment maintenance, insurance, and utilities, and the City would maintain the building structure. The Tenant may not sublet the space and has no right to assign the lease without City approval. The Lease could be renewed for three additional five-year terms.
The Lease provides for $100 per square foot for tenant finish out allowances. The 380 Agreement authorizes any payments required under the Lease to be paid as an economic development incentive.
Financial Consideration
Rent will be paid into the EpicCentral Revenue Account
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, TO ENTER INTO A CHAPTER 380 ECONOMIC DEVELOPMENT AGREEMENT WITH Milkshake, LLC (or related assignee) FOR THE operation threes restaurant at EpicCentral
WHEREAS, the City of Grand Prairie wishes to enter into this agreement for a...
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