Title
Charlotte-Mecklenburg Government Center Restaurant Lease
Action
Action:
A. Adopt a resolution approving the lease of approximately 4,730 square feet of city-owned property at 600 East Fourth Street (parcel identification number 125-026-01) to Govt. Restaurant, LLC for the operation of a restaurant, 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):
Phil Reiger, General Services
Gregory Crawford, General Services
Sheila Anderson, General Services
Explanation
* Within the Charlotte-Mecklenburg Government Center (CMGC), there is approximately 4,380 square feet in the lobby reserved for restaurant operations and another 350 square feet in the basement for restaurant storage and a walk-in freezer (together, Restaurant Space).
* Since 1999, this Restaurant Space has been leased and operated by Showmars, offering breakfast and lunch options Monday through Friday to occupants of CMGC and the general public.
* The city issued a Request for Proposals (RFP) for the Restaurant Space on November 2, 2023; four responses were received.
* Pita Boy, Inc. (d.b.a. Kostas Kitchen) best meets the city's needs in terms of qualifications, experience, cost, and responsiveness to RFP requirements.
* After selection, the owner of Pita Boy, Inc. established a new LLC, Govt. Restaurant, LLC, for the purpose of leasing the Restaurant Space and assigned the RFP rights to the newly established LLC.
* Kostas Kitchen has decades of restaurant management experience and will provide continuity of operations during the transition, as well as continued employment of existing CMGC Showmars staff.
* Lease terms include:
* Five-year term, with one option to renew for an additional five years;
* Rent in the amount of $2,502.96 per month in the first lease year, increasing at a rate of three percent per year;
* Kostas Kitchen will assume the remaining balance of the Promissory No...
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