Title
Sublease of City-Leased Property at 5625 Hollyfield Drive, Suite 123
Action
Action:
A. Adopt a resolution approving a sublease of city-leased property located at 5625 Hollyfield Drive, Suite 123 with HG Eastland, LLC dba Higher Grounds by Manolo, and
B. Authorize the City Manager, or his designee, to negotiate and execute all documents necessary to complete the lease of the property.
Body
Staff Resource(s):
Shahid Rana, Economic Development
Todd DeLong, Economic Development
Explanation
* HG Eastland, LLC (dba Higher Grounds by Manolo) desires to lease 1,024 rentable square feet in Suite 123 of the mixed-use development located at 5625 Hollyfield Drive for the purposes of operating a coffee shop offering coffee, tea, beverages, and light food items typically associated with a caf?, and for no other purpose.
* The city has authority to enter into this lease agreement under its Charter and NC General Statute Section 160A-272.
* The lease terms include:
* A five-year initial term;
* One, four-year renewal option; and
* An annual lease rate of $22 per square foot to be increased annually at a rate of three percent per year and six percent of gross sales exceeding a natural breakpoint of $375,467 in any year.
Background
* While updating City Council and the Jobs and Economic Development Committee over the past several years, staff highlighted the city's commitment to building an equitable economy in East Charlotte. To advance this goal, the city executed a master lease of approximately 16,175 square feet of ground floor commercial space in the two mixed use buildings development by Crosland Southeast (CSE).
* Small business support as part of the Eastland Yards redevelopment has been an integral component of the small business support strategy since November 2020.
* Recognizing that access to affordable commercial space is a major barrier for small business growth, the city has partnered with CSE over the past year to ensure a diverse tenant mix that:...
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