ACTION REQUESTED:
Title
Communication from the City Manager with a Request to Amend the POWELL PRESS BUILDING LEASE CONTRACT with EMACK AND BOLIO'S. (Council District 1)
Body
BACKGROUND: Emack and Bolio's is a premium ice cream shop parlor. On May 6, 2013 the City entered into a 3 year lease contract with Emack and Bolio's to occupy the first floor of the City-owned Powell Press Building located at 110 NE Water St. Emack and Bolio's monthly rent is based on 5% of gross sales. Since 2013, Emack and Bolio's gross sales have increased every year. The owners attribute the increase in sales in large part due to tourism and the growth of Riverfront businesses and events.
Emack and Bolio's lease is set to expire on May 15, 2016. City staff is requesting an extension of their lease agreement until December 31, 2016. Within this time, the City and tenant will assess the future of the business at the current location. Also, tenants of City owned buildings are responsible for any property taxes levied due to the lease. This provision was not included in the original lease agreement. Emack and Bolio's has agreed to pay the annual property taxes, estimated at approximately $1,300 a year.
Attached is the amendment to the lease contract that extends Emack and Bolio's occupancy to December 31, 2016 and includes their payment of annual property taxes.
FINANCIAL IMPACT: Emack and Bolio's will pay HRA taxes associated with sales at this location, monthly rent based on 5% of gross sales, and property taxes on the Powell Press Building until December 31, 2016.
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: If approved, Emack and Bolio's will continue to operate in the Powell Press building through 2016 and pay the associated taxes and fees as outlined.
IMPACT IF DENIED: The lease will end on May 15, 2016 and operations of the business will need to cease at this location.
ALTERNATIVES: None recommended.
EEO CERTIFICATION NUMBER: N/A
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