DATE: June 23, 2020
SUBJECT:
Title
ORDINANCE GRANTING AMENDMENT NO. 2 TO LEASE WITH SEAPORT ENTERTAINMENT, LLC TO MODIFY THE RENT PROVISIONS OF THE LEASE INCLUDING EXTENDING THE RENT COMMENCEMENT PERIOD FROM JULY 1, 2020 TO MAY 1, 2021 FOR A PROPOSED FULL-SERVICE RESTAURANT LOCATED AT SEAPORT VILLAGE AT 849 W. HARBOR DRIVE, SUITE E3, IN SAN DIEGO
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EXECUTIVE SUMMARY:
Background
At its January 2, 2019 meeting, the Board adopted an ordinance granting a 10-year lease with one 5-year option to extend for a total term of 15 years with Seaport Entertainment, LLC (Tenant), for a full-service restaurant and bar with a "Sam the Cooking Guy" branded concept in Seaport Village (Attachment A).
As a result of the impacts from COVID-19 related to the hospitality and tourism industry, and in response to a request by Tenant, staff is proposing an amendment to update some of the business terms of the existing lease. Staff has come to an agreement on reasonable modifications to the business terms of the lease that would support a later opening of the restaurant and minimize the risk of adding additional vacancy at Seaport Village and continue to meet its leasing goals. The proposed amendment would enable the District to retain an important new anchor tenant for Seaport Village which will activate the Lighthouse District, draw locals and visitors to the shopping center and catalyze leasing activity throughout Seaport Village.
Prior to the COVID-19 pandemic, the District made great strides in securing a quality tenant which would help attract more visitors and move one step closer to reinventing Seaport Village and repositioning it for the future. Supporting the financial stability of tenants during this time of economic uncertainty is critical to the continued stability of Seaport Village and the District itself. For these reasons staff recommends adopting an ordinance granting Amendment No. 2 to the lease with Seaport Entertainment, LLC.
RECOMMENDATION:
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