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<br />., . <br /> <br />-,' <br /> <br />~~I-'" <br /> <br />1, ...i'r"lí." ;:-.:.líJ\.: <br />.~{; <br /> <br />REQü[Sl FOR AGENCY ACTION <br /> <br />. <br /> <br />Richard E. Goblirsch <br />filEr ¡,en> 1\V Executive Director <br /> <br />¡IAT!:' OF AGENCY ACTION <br /> <br />D/,TE <br />SUBJECT <br /> <br />11-14-78 <br /> <br />PilON!: .-ill!- <br /> <br />APPROVED <br /> <br />ACQUISITION OF PROPIIR'l'Y AT <br />THE SOU'l'IIWEST CORNER OP <br />¡!IGIITILAND BUSH STREETS <br />lAP NO. 009-011-05) Fõi- <br />SOMBRERO STREE'l' RESTAURANT <br />niüãÑG <br />, -"'" <br /> <br />~~ <br /> <br />/ci~GER <br /> <br />RECOMMENDED ACTION <br /> <br />Authorize staff to acquire property and negotiate lease and purchase option <br />agreement with Sombrero Street Restaurant. <br /> <br />COMMISSION RECOMMENDATION: <br /> <br />. <br /> <br />Acquire the property and ther~after present details of lease and option to <br />buy agreement with the Sombrero Street Restaurant to the commission for recom- <br />mendation. <br /> <br />BACKGROUND: <br /> <br />The property proposed to be acquired has a depth of 125 feet along Eighth Street <br />and a frontage of 75 feet along Bush Street. It is current~x vacanr and avap- <br />able for rchase. The Sombrero Street Restaurant is in nee of th s proPI!¡;:ty <br />for ar es. Mr. Peter De Rocher, owner of the Sombrero street Res- <br />aurant, had originally attempted to negotiate for the purchase of this pro- <br />perty, but a form of agreement with the owner of the vacant lot could never <br />be reached. n excess of in S an <br />architecture n an <br />oys full time an part time employees. !he surv va <br />~ dir"ctlv related +n hi. need of catron park~. <br /> <br /> <br />. <br /> <br />The owner of the Sombrero Street Restaurant property was contacted to determine <br />his interest in acquiring the vacant parcel. lie indicated that he did not <br />have the financial capacity ,to do so at this time. He further stated that <br />if he were to acquire the property, he would expect a financial return upon <br />his investment, which would be substantiallY in excess of what Sombrero Street <br />Restaurant could afford at this time. <br /> <br />Staff is now requesting authority to acquire the subject property for the sum <br />of somewhere between $70-$80,000 which amount will be verified through an ap- <br />propriate appraisal. The Agency would enter into a lease with Mr. De Rocher <br />for a period of five years with monthly rental as follOWS: $175 Per month <br />during the first year, $225 per month during the second year, $300 per month <br />thereafter. The purpose of the reduced rental is to provide Mr. De Roeher <br />time to amortize his investment covering the improvement of the vacant lot <br />to parking lot standards, which cost we presently estimate to be in the area <br />of $10,000. The present lease that Mr. De Rocher has covering the restaurant <br />operation provides him with an option to buy the building and a right of first <br />refusal. Mr. De Rocher has indicated that he intends to exercise this option <br />within the next five years. <br /> <br />Staf is also recommendi a . D cher b vided" option wi -n he <br />ease to purchase the parkina ìot. The opt on to purc ase ,,'ould e structured <br />~ J.t coula onJ.Y De exercued qn the event that Mr. De Rocher exercised his <br />option to acquire the present restaurant lease-hold property. The consideration <br />for the parking lot property at the time of exercise of option would be based <br />on tho then market value for the use intended. If the Agency "ets favorably <br />UpOIl this request to purchase, we will ultimately be bringing before you for <br />approval the lease and the option agreement referred to above. <br /> <br />/1 <br /> <br />-53 <br /> <br />613 <br />