From
Megan Mahan
Title
Five-Year Tenant Lease with Option to Renew for one Five-Year Term with Firehouse Gasto Park, LLC, for the Operation of a Restaurant at 321 Main Street for 10% of Gross Sales capped at $81,375 annually
Presenter
Bill Crolley
Recommended Action
Approve
Analysis
Grand Prairie has made significant investments to revitalize our downtown area in the past few years with restoration of the Uptown Theater, development of a new Market Square, additional parking, working with building owners to create new facades, rebuilding sidewalks, and improving drainage. Adding to this focus on the downtown area, the City constructed a new Fire Station on the north side of Main Street. It provided a modern facility that serves the fire and EMS needs of the area. Grand Prairie Fire Department occupied the new Fire Station in the Fall of 2014, and the previously occupied 1950's era Fire Station has remained vacant.
To continue revitalization efforts in our downtown and attract more people into the area, the City desires to repurpose the old Fire Station as a restaurant. Staff prepared a Request for Qualifications (RFQ) and invited potential restaurant owners/operators to consider partnering with the City and promoting the viability of the downtown area as a destination. The RFQ was issued in April 2017, the City received four formal proposals, and three were selected for further investigation, negotiation, and interviews. Based on this process, staff recommended Firehouse Gasto Park, LLC (Formerly ALCHEMY EVENTS LLC) as the tenant/restaurant operator who best fit the City's requirements.
Firehouse Gasto Park, LLC owners are experienced restaurateurs currently operating several venues in Los Angeles, CA. Firehouse Gasto Park, LLC president is Jason Alan Smith and vice-president Carlee Smith. Together, the two owners have a combined 10 years of experience in the food and event industry.
City staff negotiated an Economic Development Agreement with Firehouse Gasto Park, LLC to renovate the old Fire Station as a restaurant and to outline the process that the building may be purchased from the City, and City Council approved this agreement in January 2018.
Firehouse Gasto Park, LLC would be required to directly oversee the management of the restaurant operation for the duration of the lease period. The Lease would require Firehouse Gasto Park, LLC , to operate a restaurant with bar service open for lunch and dinner, six days a week. Rent would be calculated at 10% of food, mixed beverage, and catering capped at $81,375 annually. The City would give the tenant a 180-day grace period from the date the Full Certificate of Occupancy (CO) is issued before rent would commence in order to firmly establish the restaurant. The tenant may not sublet the space and has no right to assign the lease without City approval. The Lease would expire upon purchase of the building by the tenant or could be renewed for one additional five-year term. Firehouse Gasto Park, LLC would have the right to purchase the building and associated property for the appraised market value as determined prior to the date of issuance for the Full Certificate of Occupancy.
Financial Consideration
Funding for the City’s participation in the amount of $2,000,000 is available in Municipal Facilities Capital Projects Fund (405090) WO #01713903 (Old FS #1 Revitalization).