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April 25, 2019 City Council Regular Meeting
34. Motion to Award Lease Agreement for the Forsyth Cafe Operations to Southern Cross Hospitality (Event No. 6859)
Strategic Priority
Good Government

Recommend approval to award an annual contract for the lease of Forsyth Park Cafe to Southern Cross Hospitality in the amount of $72,000.00 in revenue.

The proposed use is a full-service sit down café with an extensive menu of breakfast and lunch items that will feature a full espresso/coffee bar as well as homemade ice cream and gelato.   In addition to in-house and patio seating, the café will offer take out, grab and go, and picnic basket style foods for those wanting to eat out in the park.    The café plans to expand into weekend dinner service once initial operations mature.  The proposed lease rate is a base rate of $72,000 per year on a modified net basis whereby tenant is responsible for all operating costs.   However, the City will retain responsibility for the structure and HVAC equipment of the entire building, as well as maintenance, janitorial, and security of the public bathrooms.   The recommended proposer is a reputable and experienced restaurant team which operates three other restaurants in the region: Collins Quarter, The Fitzroy, and The Deck on Tybee. 

The Lease shall become effective upon full execution by both parties, and expire on December 31, 2024.

The method used for this procurement was the request for proposals (RFP) which evaluates criteria in addition to cost.  The criteria evaluated for this RFP were qualifications and experience; proposed restaurant concept/design, menu ideas, hours of operation, and other proposed operating information; proposed schedule to commence operations; and proposed base rent, percentage rent, and investment for furniture, fixtures, and equipment and renovations.



David Keating, Director of Real Estate Services
Financial Impact
$72,000.00 in Revenue into the General Fund
Review Comments
Exhibit 1: Forsyth Park Cafe Purchasing Summary
Exhibit 2: Forsyth Park Cafe Scope
Exhibit 3: Draft Lease for Forsyth Park Cafe.pdf
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