DATE: March 26, 2025
TO: President and Directors of the Harbor District Board
FROM: Public Works Department
TITLE: AMENDMENT 4 TO THE PERCENTAGE PROPERTY LEASE AGREEMENT WITH NAUTICAL BEAN COFFEE COMPANY, INC.
RECOMMENDATION
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Staff recommends that the City Council approve Amendment 4 to the Percentage Property Lease Agreement with Nautical Bean Coffee Company, Inc., for the premises located at 240 Harbor Drive South, two adjacent covered concrete slabs and a storage area, extending the term of the agreement from June 1, 2025, through May 31, 2030, for a minimum five-year total revenue of $146,667; and authorize the Administrative Officer to execute the amendment.
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BACKGROUND AND ANALYSIS
The Nautical Bean Coffee Company, Inc. (Lessee) has been operating at the Oceanside Harbor since 1994. The Oceanside Small Craft Harbor District (District) entered into a Percentage Property Lease Agreement (Agreement) dated May 4, 2005, Amendment 1 dated April 6, 2011, Amendment 2 dated May 13, 2015 and Amendment 3 dated November 6, 2019 with Lessee for the premises located at 240 Harbor Drive South, two adjacent covered concrete slabs and a storage area (Premises). The Amendment provides that Lessee may request an extension of the term for an additional five years at the District's calculated property lease payment rate. Lessee has requested an extension.
The Amendment extends the term of the Agreement for five years. The current annual minimum rent is $24,130. The minimum rent is adjusted annually based on the semi-annual Consumer Price Index, and in no event shall the adjusted rent increase be less than 5 percent or more than 10 percent. Effective June 1, 2025, Lessee will pay annual minimum rent of $26,543. Lessee will continue to pay the minimum rent or a percentage of gross revenue, whichever is greater.
FISCAL IMPACT
Description
1st Year Annual Minimum Amount
5-Year Minimum Revenue Amount
Revenue Account
Nautical Bean Coffee
Minimum Rent Revenue
$...
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