Yarra, LLC was the highest responsive bidder and is the current tenant of 621 Drayton Street, the Forsyth Park Café. Yarra, LLC is currently in process of renovating and equipping the leased premises and plans to open in February 2020. Staff is seeking a lease modification to add the adjacent and contiguous “Green Room” meeting space located within the same building. The Green Room measures approximately +/- 714 square feet (SF). Though not utilized by the City very often, the City will reserve the right to use the Green Room for meetings and/or park events up 10 hours per month at no charge. The tenant will clean and maintain the space. The lease currently encompasses approximately 3,000 square feet at a rental rate of $72,000 per year; or approximately $24 per square foot. Applying this same unit rate to the additional 714 square feet of the Green Room yields additional rent of $17,136. Therefore, updated leased space will be approximately 3,714 square feet and will increase the base rental rate to $89,136. As per the lease, an escalation rate of 2.5% shall apply to this amount each anniversary on the Effective Date. Additionally, this Amendment addresses a scrivener’s error to the Exhibit A – Lease Premises.

Approval.