DATE: August 5, 2026
TO: President and Directors of the Harbor District Board
FROM: Public Works Department
TITLE: AMENDMENT 3 TO THE PERCENTAGE LEASE AGREEMENT WITH KENTON CORWIN, DBA KEN’S CUSTOM REEL SERVICE & REPAIR
RECOMMENDATION
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Staff recommends that the Harbor District Board of Directors approve Amendment 3 to the Percentage Lease Agreement with Kenton Corwin, dba Ken’s Custom Reel Service & Repair, for the premises located at 1351 Harbor Drive North, Suite A, extending the term of the agreement from August 5, 2026, through August 31, 2029, for a three-year minimum total revenue of $83,226; and authorize the Administrative Officer to execute the amendment upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
Ken’s Custom Reel Service and Repair (“Lessee”), entered into a Percentage Lease Agreement dated August 5, 2015, Amendment 1 dated August 5, 2020 and Amendment 2, dated June 7, 2023 (collectively “the Agreement”), with the Oceanside Small Craft Harbor District (“District”), for the office space located at 1351 Harbor Drive North, Suite A. At this time, Lessee has requested to exercise the three-year extension option of the Agreement to continue ongoing operations at the leased premises.
Amendment 3 to the Percentage Lease Agreement (“Amendment”) extends the term of the Agreement for three years, commencing August 5, 2026, and terminating August 31, 2029. The minimum rent is adjusted annually based on the semi-annual Consumer Price Index or five percent, whichever is greater.
FISCAL IMPACT
|
Description |
First Year Annual Amount |
Three-Year Minimum Revenue Amount |
Revenue Account |
|
Ken’s Custom Reel Service & Repair Minimum Rent Revenue |
$26,400 |
$83,226 |
Harbor Leases 1751.4496 |
The Amendment will result in minimum total revenue over three-year term in the amount of $83,226 and will be deposited to account 1751.4496. Tenant pays the greater of minimum rent or percentage rent equivalent to six percent (6%) of gross receipts. At this time due to the revenue received Lessee has only been required to pay minimum rent and no percentage rent has been due. This will vary based on the total revenue received each month and year. The District received $65,465 of minimum rent over the prior three year term.
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
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Prepared by: Julie Cook, Property Agent II
Reviewed by: Hamid Bahadori, Public Works Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Amendment 3