City of Culver City, California
Agenda Item Report
Meeting Date: 07/14/2014 Item Number: A-1
SUCCESSOR AGENCY AGENDA ITEM: Approval of a Sublease with Lamill
Coffee, Inc. for Use of a Portion of Media Park to Operate a Coffee Concession
Business.
Contact Person / Department:
Joe Susca/CDD
Todd Tipton/ CDD
Phone Number:
(310) 253-5763
(310) 253-5783
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification (E-Mail) Meetings and Agendas – Successor Agency (07/09/14); The
Culver City Chamber of Commerce (07/08/14); Akasha (07/08/14); Café Demitasse
(07/08/14) The Downtown Business Association (07/08/14); Lamill Coffee Inc. (06/30/14)
Department Approval:
Sol Blumenfeld (07/02/14)
Successor Agency General Counsel
Approval:
Carol Schwab (by H. Baker) (07/07/14)
Chief Financial Officer Approval:
Jeff Muir (by M. Noller) (07/08/14)
Executive Director Approval:
John M. Nachbar (07/08/14)
RECOMMENDATION:
Staff recommends the Successor Agency Board approve a sublease with Lamill
Coffee, Inc. to operate a coffee concession business in Media Park.
BACKGROUND:
The former Culver City Redevelopment Agency (former CCRA) and the City of Los
Angeles (Los Angeles) entered into a 50-year lease on June 12, 1987 that provides for
certain public improvements, and operational and maintenance obligations associated
with Media Park, which is located at 9254 Venice Boulevard within the City of Los
Angeles (Park Lease).|1010|
By operation of law and the dissolution of redevelopment agencies in California, the
former CCRA’s interests in the Park Lease were transferred to the Successor Agency
to the Culver City Redevelopment Agency (Successor Agency).
Staff believes utilization of Media Park would be improved if a small commercial
(coffee) concession was introduced in order to activate the park and attract downtown
users.
Staff contacted several coffee concessions operators to better understand whether the
project was viable. Nearly all those contacted said they would be interested in
submitting a proposal. Staff prepared and issued a Request for Proposals and
Akasha, Lamill Coffee|1010|, and Café Demitasse responded. City of Culver City, California
Agenda Item Report
Staff recommends Lamill as the coffee concession operator as they have experience
operating a successful coffee and restaurant business in Silverlake, California, and
their proposal offers the best design, has an appropriate lease term, and generates
the most revenue (please see Attachment No. 1 - Site Plan and Building Conceptual
Plan).
DISCUSSION:
Following are the proposed Lamill sublease terms and conditions:
1. The term will be 5 years with a 5-year option. The park improvements include
the 500-800 square feet café building with restroom, secured amphitheater
seating, and outdoor seating area with tables. After completion of the initial
improvements, a second phase may include tree lighting, a playground for young
children, bicycle racks, Wi-Fi equipment, public art, signage and security system
(collectively the “Improvements”).
2. Upon opening for business and for six months thereafter, Lamill agrees to hire a
private security guard to patrol Media Park and the surrounding area. The
security guard will be funded by the Successor Agency for an initial six months in
the form of deferred rent.
3. Lamill will construct the Improvements and obtain all permits to do so from the
City of Los Angeles at Lamill’s expense. The Successor Agency will reimburse
Lamill for 100% of the cost of the Improvements in the form of deferred rent.
4. Once the cost of the Improvements and security guard are reimbursed to Lamill,
a rental rate amounting to 5% of gross sales will become effective.
5. If necessary, Lamill may share use of the Successor Agency’s trash enclosure
located across the street on the Canfield Avenue parking lot.
6. Lamill agrees to maintain the Improvements and the Successor Agency agrees
to continue to maintain Media Park. If the frequency of maintenance activities
performed by the Successor Agency at Media Park must be increased as a result
of Lamill’s operation, Lamill agrees to fund the net increase in cost.
7. If Lamill is desirous of enhanced Media Park maintenance activities, the
Successor Agency may approve them, provided they are performed at Lamill’s
expense.
8. Lamill agrees to pay for the installation and use of all utilities.
City of Culver City, California
Agenda Item Report
9. Lamill’s menu will be comprised of coffee, tea (and related products and
supplies), other non-alcoholic beverages, and baked goods.
10. The Successor Agency will provide up to five parking spaces in the Ince Parking
Structure for Lamill’s employees at standard rates.
11. If property or possessory interest taxes are levied, Lamill will pay them.
If the proposed sublease is approved by the Successor Agency Board, staff will
present the sublease to the City of Los Angeles’ Director of Recreation and Parks for
review and present the use and the improvements to the Los Angeles Recreation and
Parks Department Board of Commissioners for consideration at a future meeting of
the Board of Commissioners.
After City of Los Angeles’ approvals are secured and the sublease is executed, it will
take approximately 16 months for Lamill to prepare construction plans, obtain building
permits, and complete the initial Improvements.
FISCAL ANALYSIS:
For approximately the first 17 months, Lamill’s rent will be $0 to offset the estimated
$419,000 in Improvement and temporary security guard costs. At approximately
month 18, the rent will be 5% of gross sales, and is currently anticipated to be
approximately $25,000/month. If more or less rent is received than anticipated, then
the Improvement payback period will adjust accordingly. Per the Park Lease, rent
proceeds will offset Media Park’s ongoing maintenance, security costs, and fund the
establishment of a capital improvement fund for recreational improvements.|1010|
The Successor Agency currently pays approximately $1,100 per month for
landscaping maintenance, refuse collection, and utility fees to maintain Media Park,
excluding in-house staff time to manage the space. As the rental income received
from the sublease is anticipated to exceed Media Park’s maintenance costs, staff is
working with the City of Los Angeles to obtain their approval to use a portion of the net
income to also maintain and improve the adjacent Ivy Substation now occupied by the
Actors’ Gang.
ATTACHMENTS:
1. Site Plan and Building Conceptual Plan
City of Culver City, California
Agenda Item Report
MOTIONS:
That the City Council:
1. Approve a Sublease with Lamill Coffee Inc. to operate a coffee concession
business out of Media Park which incorporates the terms and conditions set forth
in this staff report; and,
2. Authorize the Successor Agency General Counsel to review/prepare the
necessary documents; and,
3. Authorize the Executive Director to execute such documents on behalf of the
Successor Agency.
NOTES:
|1010|Also in June 1987, the former CCRA entered into a separate 40-year lease with the City of Los Angeles for
the no cost use of the Ivy Substation with an option to extend the term for an additional 10 years.
|1010|For more information on Lamill Coffee, visit: https://lamillcoffee.com/
|1010|The Lease allows the former CCRA (now the Successor Agency) to sublease a portion of Media Park,
subject to the reasonable approval of the General Manager of the Department of Recreation and Parks of
the City of Los Angeles of the lease terms and conditions. Any improvements made to Media Park as a
result of the sublease are subject to approval by the City of Los Angeles -- Board of Recreation and Parks
Commissions. Staff has met with the City of Los Angeles – Building Safety and Planning Divisions and is
currently working with the Department of Recreation and Parks to obtain these approvals.
MEETING DATE: 07/14/2014
AGENDA ITEM: SUCCESSOR AGENCY BOARD AGENDA ITEM:
Consideration of Sublease with Lamill Coffee to operate
a coffee concession business in Media Park
ATTACHMENTS
No. Item Pages
1
Site Plan and Building Conceptual Plan
1-8
AUX ARCHITECTURE
20140414_LAMILL COFFEE MEDIA PARK - CULVER CITY
ATTACHMENT NO. 1
Page 1AUX ARCHITECTURE
20140414_LAMILL COFFEE MEDIA PARK - CULVER CITY
SCHEME A OVERALL
SCHEME A:
- SEATING FOR 100-150
- AMPHITHEATER SEATING
- CASUAL COFFEE SHOP SEATING
- MULTI MEDIA PERFORMANCES AND EVENT SEATING
- PREFABRICATED SECTIONS ASSEMBLED ON SITE
- TRANSLUCENT POLYCARBONATE VEIL
- COMPOSITE/RECYCLED DECKING AND SIDING MATERIALS
- MAINTAINS CURRENT PARK CIRCULATION
ATTACHMENT NO. 1
Page 2AUX ARCHITECTURE
20140414_LAMILL COFFEE MEDIA PARK - CULVER CITY
SCHEME A AERIAL VIEW
ATTACHMENT NO. 1
Page 3AUX ARCHITECTURE
20140414_LAMILL COFFEE MEDIA PARK - CULVER CITY
SCHEME A STREET VIEW
ATTACHMENT NO. 1
Page 4AUX ARCHITECTURE
20140414_LAMILL COFFEE MEDIA PARK - CULVER CITY
SCHEME A STREET VIEW
ATTACHMENT NO. 1
Page 520140414_LAMILL COFFEE MEDIA PARK - CULVER CITY 20140414_LAMILL COFFEE MEDIA PARK - CULVER CITY
AUX ARCHITECTURE
STORAGE
20’
RESTROOM
CAFE
41’
ATTACHMENT NO. 1
Page 6AUX ARCHITECTURE
20140414_LAMILL COFFEE MEDIA PARK - CULVER CITY
REFERENCE IMAGES
ATTACHMENT NO. 1
Page 7AUX ARCHITECTURE
20140414_LAMILL COFFEE MEDIA PARK - CULVER CITY
REFERENCE IMAGES
ATTACHMENT NO. 1
Page 8