Title
Charlotte-Mecklenburg Government Center Restaurant Lease Amendment
Action
Action:
Approve a lease amendment with Showmars Inc. in the Charlotte-Mecklenburg Government Center.
Body
Staff Resource(s):
Mike Davis, Engineering and Property Management
Tony Korolos, Engineering and Property Management
Explanation
* It is recommended the current lease with Showmars Inc. (Showmars), in Council District 1, be amended to reduce the rent from $3,000 per month to $500 per month for the remaining term of the agreement.
* Showmars management has requested a reduction in rent at the Charlotte-Mecklenburg Government Center (CMGC) location for the following reasons:
* Showmars endures flattened sales and very limited profitability,
* Showmars can only provide 10 services per week instead of the standard 21 services, and
* Showmars continues to experience lower revenue due to the installation of security check stations since 2012.
* Showmars will continue to offer a 10 percent discount to all employees who work in the CMGC.
* Showmars is committed to continue providing exceptional level of service by retaining customer-focused and experienced employees.
* Under General Statute 160A-272, the city is not legally required to advertise for a new food service provider.
Background
* On October 19, 1999, the city entered into a Food Service Facility Agreement with Showmars with an initial term through December 31, 2004. Subsequently, the city and Showmars entered into a Lease and Food Services Rights Agreement on February 1, 2005, with a term of 10 years and an additional five-year renewal term.
* On July 1, 2016, Showmars entered into a new lease agreement with the city for a term of five years with a five-year renewal term. The new lease addressed kitchen improvements and dining room renovations, as well as the addition of healthier menu items and more sustainable practices.
* Since 2016, Showmars has implemented sustainability practices and incorporated heal...
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