DATE: October 6, 2020
SUBJECT:
Title
A) ORDINANCE GRANTING LEASE AMENDMENT NO. 2 TO OLD TOWN TROLLEY TOURS OF SAN DIEGO LOCATED AT 996-B NORTH HARBOR DRIVE, IN THE CITY OF SAN DIEGO, AMENDING THE RENT AND OPTION TERM PROVISIONS, AND OTHER PROVISIONS
B) ORDINANCE GRANTING LEASE AMENDMENT NO. 1 TO OLD TOWN TROLLEY TOURS OF SAN DIEGO LOCATED AT 1004-A NORTH HARBOR DRIVE, IN THE CITY OF SAN DIEGO, AMENDING THE RENT AND OPTION TERM PROVISIONS, AND OTHER PROVISIONS
Body
EXECUTIVE SUMMARY:
Old Town Trolley Tours of San Diego (OTT) has two long term leases with the District for the Visitor Information Center (VIC) and a ticket kiosk (Kiosk) (collectively, the OTT Leases) both located on the Embarcadero (Attachment A - Location Map). Both of the OTT Leases have an initial ten-year term with a five-year option to extend and both commenced on December 1, 2014. OTT provides a valuable service to the public and the San Diego region through its operation of the VIC and Kiosk on the Embarcadero. OTT directs visitors to attractions and businesses both on and off of tidelands, provides important information on District tenants, and sells tickets for attractions around San Diego including the Old Town Trolley and SEAL Tours.
OTT has requested modifications to the rent structure in the OTT Leases due to the impacts of the COVID-19 pandemic on its businesses on the Embarcadero. Based on input from OTT, and staff's review of OTT's unique circumstances, staff has determined that the District's rent deferral program would not provide the right type of economic relief for OTT to remain operational through the year. If not for the proposed amendments, staff believes OTT may not be capable of continuing to operate on tidelands. Staff has reviewed OTT's financials and has determined that a structural reset of the rent in the OTT Leases, rather than rent deferral, is necessary for OTT to continue operating their visitor serving businesses. Staff recommends amending both OTT ...
Click here for full text