ACTION REQUESTED:
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Communication from the City Manager and Assistant City Manager with a Request to APPROVE the LEASE AGREEMENT between the City of Peoria and CHILDERS BANQUET AND CATERING CENTER, INC., for the Use of the GATEWAY BUILDING Located at 200 NE WATER STREET. (Council District 2)
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BACKGROUND: Since 2019, the Gateway building space was closed to public space rental due to the pandemic and staffing. In August 2021, the city of Peoria released a Request for Interest for the leasing of the third-floor ballroom in the Gateway Building. The City received one responsive proposal. The proposal from Childers Banquet and Catering Center, Inc. to utilize the space for the purposes of extending its banquet and catering business. The term of the lease is for five (5) years with the option of two (2) five (5) year terms, with the rent amount being eight percent (8%) of monthly gross sales with a guaranteed minimum monthly payment of $2,500. Per the agreement, the lessee will be responsible for the expense of renovations of the third floor with design approval by the City.
If the Gateway building is selected as the train depot for Peoria-Chicago Passenger Rail Project, the language within the contract allows the City to revisit the terms of the lease.
The City will continue to have access to the second and can use the third floor for public gatherings upon request, while the Peoria Park District will continue to have access to the first floor and the second floor for storage and will have access to the third floor for major festival dates.
FINANCIAL IMPACT: Leasing the building will generate a minimum of $30,000 in revenue and an investment of a minimum of $100,000 in renovations of the third floor by the lessee.
NEIGHBORHOOD CONCERNS: NA
IMPACT IF APPROVED: Spurs activity and commercial use of city-owned property in the downtown area of the City.
IMPACT IF DENIED: The Gateway will continue to remain inactive for public usage.
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