DATE: May 6, 2026
TO: President and Directors of the Harbor District Board
FROM: Public Works Department
TITLE: AMENDMENT 6 TO PERCENTAGE LEASE AGREEMENT WITH CHARLES W. BRAMMER, DBA CHIC’S CUSTOM CANVAS
RECOMMENDATION
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Staff recommends that the Harbor District Board of Directors approve Amendment 6 to the Percentage Lease Agreement with Charles Brammer, dba Chic’s Custom Canvas, for the leased premises at 1400 Harbor Drive North, Suite’s “A”, “B” & "C”, for a one-year minimum total revenue of $20,400; and authorize the Administrative Officer to execute the amendment.
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BACKGROUND AND ANALYSIS
On May 17, 2017, Chic’s Custom Canvas (“Lessee”), entered into a Percentage Lease Agreement with the Oceanside Small Craft Harbor District (“District”), for the 564 square foot office spaces located at 1400 Harbor Drive North, Suites “A”, “B” & “C”. Lessee provides onsite boat canvas repairs for boaters at the Oceanside Harbor. Amendment 1 to the Lease Agreement, dated February 7, 2018, Amendment 2, dated June 5, 2019, Amendment 3, dated May 5, 2021, Amendment 4, dated May 3, 2023, and Amendment 5, dated April 23, 2025, were approved by the Harbor District Board of Directors (collectively “the Agreement”). Amendment 5 expires on May 16, 2026.
The existing Agreement provides for one additional one-year extension. At this time, Lessee has requested a one-year extension of the Agreement to continue operations at the leased premises. The proposed amendment extends the term by one year to expire on May 31, 2027, and adds one additional one-year extension option.
Lessee will pay annual minimum rent of $20,400 for the Premises, payable monthly in the amount of $1,700. Lessee shall pay the greater of the minimum rent or percentage rent in an amount equal to six percent of gross income.
FISCAL IMPACT
|
Description |
Minimum Monthly Amount |
1-Year Minimum Revenue Amount |
Revenue Account |
|
Chic’s Custom Canvas Minimum Rent Revenue |
$1,700 |
$20,400 |
Harbor Leases 1751.4496 |
The amendment will result in minimum total revenue over the one-year term in the amount of $20,400 and will be deposited to account 1751.4496. Additional revenue in the form of percentage rents may be realized if the percentage of rent is in excess of the minimum rent from the gross sales. Minimum total revenue was collected for prior one year in the amount of $19,305. No sales overage was collected from Lessee.
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 6