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<br />CITY COUNCIL MEETING DATE: <br /> <br />~ <br />~ <br /> <br />REQUEST FOR <br />COUNCIL ACTION <br /> <br />CLERK OF COUNCIL USE ONLY: <br /> <br />APRIL 17, 2006 <br />TITLE: <br /> <br />APPROVED <br /> <br />FIRST RENEWAL OPTION TO <br />LICENSE AGREEMENT WITH <br />K. LEE GIFTS AT THE DEPOT <br /> <br />o As Recommended <br />o As Amended <br />o Ordinance on 1 st Reading <br />o Ordinance on 2nd Reading <br />o Implementing Resolution <br />o Set Public Hearing For <br /> <br />~ <br /> <br />~2. <br /> <br />CITY MANAGER <br /> <br />CONTINUED TO <br /> <br />FILE NUMBER <br /> <br />RECOMMENDED ACTION <br /> <br />Direct the City Attorney to prepare and authorize the City Manager and <br />the Clerk of the Council to execute a First Amendment to the License <br />Agreement with K. Lee Gifts for a gift shop at The Depot at Santa Ana. <br /> <br />DISCUSSION <br /> <br />K. Lee Gift Shop has been located in the alcove on the southwest side of <br />The Depot since July 1, 1998. In this location, K. Lee Gifts has <br />provided a limited mix of merchandise for the travelers , visitors and <br />tenants of The Depot. On November 15, 2004, the City Council approved a <br />License Agreement with K. Lee Gifts for a two-year period beginning July <br />1, 2004, and ending July 30, 2006, with two 12-month renewal options. <br /> <br />Staff is recommending exercising the first 12-month renewal option <br />beginning July 1, 2006, and ending June 30, 2007. Under the first <br />renewal option, the monthly compensation to the City will be $743.10 per <br />month. This renewal option continues to contain provisions to ensure <br />that the gift shop operation portrays a positive image for The Depot at <br />Santa Ana. <br /> <br />The only alternative is not to execute this amendment and terminate the <br />license agreement with K. Lee Gifts for operations at The Depot. This <br />alternative is not viable as it would result in the loss of revenues of <br />$8,918.28 for FY 06-07, and create a void in services for our travelers, <br />visitors and tenants. <br /> <br />25A-1 <br />