DATE: October 10, 2017
SUBJECT:
Title
ORDINANCE GRANTING A 40-YEAR LEASE WITH THE BRIGANTINE, INC., DBA PORTSIDE PIER LOCATED AT 1360 NORTH HARBOR DRIVE
Body
EXECUTIVE SUMMARY:
At the November 17, 2015 Board of Port Commissioners meeting, the Board authorized staff to enter into exclusive negotiations with the Brigantine Inc., dba Portside Pier (Brigantine) for the redevelopment and operation of the Iconic Waterfront Restaurant Site (Location) at 1360 North Harbor Drive (Attachment A) as a result of a Request for Proposals (RFP) process.
Staff negotiated a 40-year lease for the $13 million Portside Pier restaurant project (Portside Pier), which was issued a Board-authorized Coastal Development Permit on August 1, 20171. The Portside Pier project will be for the construction of a two-story restaurant structure, pilings and platform, and dock and dine to accommodate up to 12 vessels. The Brigantine proposes four restaurant concepts at the Location, collectively known as Portside Pier. There will be three features open to the public during their business hours including: 1) a second level viewing deck; 2) a second level perimeter walkway; and 3) an expanded dock and dine. All three public features will be maintained solely by Brigantine at no cost to the District. The proposed rent structure (Attachment B) will be Minimum Annual Rent (MAR) of $1.1 million at stabilization and 5% of gross sales of both food and beverage. In addition, Brigantine has agreed to revenue sharing above 110% and 120% of the natural breakpoint at 5.5% and 6% of gross sales, respectively. The natural breakpoint is the stabilized MAR of $1,100,000 over the percentage rental rate of 5% beginning with $22,000,000 as the natural breakpoint at commencement of the lease. The lease is subject to MAR adjustments which would increase the natural breakpoint.
As a successful local family restaurant developer and operator, Brigantine demonstrates the best balance of activating th...
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