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Home My WebLink About25C - AGMT - PLAZA DININGREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 5, 2019 TITLE: APPROVE A TWELVE MONTH EXTENSION OF LICENSE AGREEMENT WITH EAST END REALTY PARTNERSHIP, LP AND WURSTHAUS, INC. ALLOWING TEMPORARY OUTDOOR DINING ACTIVITIES TO OCCUR WITHIN PLAZA CALLE CUATRO FOR AN AMOUNT NOT TO EXCEED $1,272 (GENERAL FUND) {STRATEGIC PLAN NO. 3, 4E} CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on I" Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO is/ Kristine Ridge FILE NUMBER CITY MANAGER RECOMMENDED ACTION Authorize the City Manager to execute a twelve-month extension License Agreement beginning December 1, 2019 and terminating November 30, 2020, with East End Realty Partnership, LP, 129 W. Wilson Street, Suite 100, Costa Mesa, Ca 92627, and the Wursthaus Restaurant, located 305 E. 4th Street, Suite 106, (the "Parties"), allowing temporary outdoor dining activities within Plaza Calle Cuatro (the "Plaza"), located at 325 East 4th Street, Santa Ana in the amount of $1,272 subject to non -substantive changes approved by the City Manager and the City Attorney. DISCUSSION On May 7, 2019, the City Council approved a six-month license agreement allowing temporary outdoor dining activities to occur within the Plaza for dining services conducted in conjunction with the Wursthaus Restaurant. This agreement will terminate on November 30, 2019. Since the execution of the agreement, the Parties have not been able to implement the outdoor dining experience within the Plaza due to unanticipated delays and loitering concerns within the Plaza. The Parties are requesting for a twelve-month extension of the agreement (Exhibit 1). Under the proposal, an approximate 200 square foot area (10' x 20') located immediately adjacent to the southwest corner of Plaza Calle Cuatro and adjacent to the business entrance will be utilized for limited outdoor dining activities when not utilized by the City for publicly sponsored events (Exhibit 2 vicinity map and site layout). The use of the space will be limited to food and beverage services conducted by the Wursthaus located at 305 E. 4th Street, Suite 106. The proposed outdoor dining activities will coincide with 25C-1 Plaza Calle Cuatro Outdoor Dining Agreement Extension November 5, 2019 Page 2 the hours of operation from the restaurant. While these hours may change from time to time, the restaurant currently operates from 11 AM to 12 AM Sundays through Tuesdays, 11 AM to 1 AM Wednesdays through Thursdays, and 11 AM to 2 AM Fridays through Saturdays. Fixtures within this outdoor dining area will be limited to removable outdoor chairs, tables, umbrellas, and if desired, border barriers that will be put out during hours the business is open to the public and removed at closing. Outdoor service will be limited to food services and non- alcoholic drinks at this time. Currently, the business does not have the City's or the State's approval to conduct sales of alcohol outside of the restaurant. If the operator desires to serve alcohol in the outdoor dining area, the operator will have to apply for the appropriate approvals to the City Planning Commission and the California Department of Alcoholic Beverage Control. Photo illustrations of the proposed activities (Exhibit 3). Salient Terms of the Agreement: The license agreement will be limited to a twelve-month term. The term limit will allow both the City and the Parties to evaluate the feasibility of ongoing outdoor dining activities in this area. Should the Parties desire to move forward with an on -going request after the twelve-month period, such a request and proposed new terms will need to be considered in the future by the City Council.ln addition, when needed by the City for public events, no outdoor dining activities will be permitted. The City will also retain the right to conduct unplanned events upon 24-hour notice to the licensed party. The proposed license fee would be $106 per month. This fee amount is derived by converting the current daily rental fee of $150 for the entire plaza converted to a daily per square foot rental fee. Based on this recommended fee, the total twelve-month period will generate a one-time up- front payment of $1,272. In addition, the licensee will be responsible for maintenance of the dining area, providing insurance coverage, and compliance with all other City regulations. 25C-2 Plaza Calle Cuatro Outdoor Dining Agreement Extension November 5, 2019 Page 3 ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act (CEQA), the proposed licensing and leasing activity is exempt from further review in accordance with CEQA Guidelines Section 15301 (Existing Facilities). STRATEGIC PLAN ALIGNMENT Approval of this item assists the City in meeting Goal #3 — Economic Development, Objectives 3 (promote a solutions -based customer focus in all efforts to facilitate development and investment in the community) and 4 (continue to pursue objectives that shape downtown Santa Ana into a thriving, culturally diverse, shopping, dining, and entertainment destination). FISCAL IMPACT City of Santa Ana will be receiving revenue in the amount of $1,272 total from this twelve-month license. The funds received will be deposited in the Park, Recreation & Community Services - Recreation Facility Rental Revenue (Account # 01113002-57361). Fiscal Year Fund Description Accounting Unit, Account Amount Description FY19-20 Park, Recreation & Community General Fund Services - Recreation Facility $742 December — June Rental Revenue FY20-21 Park, Recreation & Community General Fund Services - Recreation Facility $530 July - November Rental Revenue Minh Thai Executive Director Planning and Building Agency Lisa Rudloff Executive Director Parks, Recreation and Community Services Agency Exhibits: 1. License Agreement Extension 2. Vicinity Map and Site Layout 3. Photo Examples /_1>>060:11DIU"rU211►I9J,y9►LLTKK.111►1�-1 Kathryn Downs, CPA Executive Director Finance and Management Services Agency 25C-3 EXHIBIT 1 FIRST AMENDMENT TO TEMPORARY OUTDOOR DINING LICENSE AGREEMENT This FIRST AMENDMENT TO TEMPORARY OUTDOOR DINING LICENSE AGREEMENT ("First Amendment to License Agreement') is entered into this _ day of 2019, by and between the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the Constitution and laws of the State of California ("City"), East End Realty Partnership, LP, and Wursthaus, Inc. (collectively "Licensee"). RECITALS A. On May 7, 2019, the City and Licensee entered into the Temporary Outdoor Dining License Agreement ("License Agreement') to allow temporary outdoor dining activities within a portion of Plaza Calle Cuatro ("Plaza"), adjacent to real property located at 301-305 East Fourth Street, Suite 106, Santa Ana. B. The City hereby approves an extension of the License Agreement for an additional one year, subject to the payment of an additional License Fee by Licensee, pursuant to the terms and conditions of said License Agreement. C. In accordance with the terms and conditions of said License Agreement, the parties desire to amend said License Agreement to extend the term of said License Agreement, increase the amount of the License Fee to cover the extended term, and clarify the type of fencing that may be installed on the Licensed Premises. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said License Agreement, except as herein modified, the parties agree as follows: Section 1, Term and Purpose of License, shall be amended to extend the term of the License Agreement from November 30, 2019, until November 30, 2020. 2. Section 3, License Fee, shall be amended to reflect that, upon execution of this First Amendment to License Agreement, Licensee shall pay to the City a one-time non-refundable fee of One -Thousand, Two -Hundred and Seventy -Two dollars ($1,272) to cover the extended term of the License. 3. Section 4, Equipment, subsection (a), shall be amended to allow Licensee to drill into the Licensed Premises, as necessary, to install temporary fencing, as approved by the City, which can be easily removed by Licensee when the Plaza is reserved for other events. 4. Except as hereinabove modified, the terms and conditions of said License Agreement remain unchanged and in full force and effect. 25C-4 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to License Agreement the date and year first above written. ATTEST: DAISY GOMEZ Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney RyAdO. HWgc Assistant City Attorney RECOMMENDED FOR APPROVAL: MINH THAI Executive Director Planning and Building Agency CITY OF SANTA ANA KRISTINE RIDGE City Manager I0/1-4tm E0.5+- WEST END REALTY PARTNERSHIP, LP Ryan Chase WURSTHAUS, INC. Ga Ruiz 25C-5 *A:11-3Yi'a ATTACHMENT 2 VICINITY MAP AND SITE LAYOUT 25C-6 'Ijim_I. Vicinity Map 25C-7 Site Layout 25C-8 *:1:11-3YMCI ATTACHMENT 3 PHOTO EXAMPLES 25C-9 AII¢y Plaza Calle Cuatro Performing - wursthaus Stage - 6 O OO Wke Rxk & a• %met L� 25C-10