HomeMy WebLinkAbout06-09-2015 B1 NevoshACHIEVEMENT
HOUSE, INC.
RECEIVED
MAY 282015
S1.O CITY CLERK
May 26, 2015
Mayor Jan Howell Marx
City Council Members COUNCIL MEETING:
City of San Luis Obispo ITEM NO.:
990 Palm Street 21
San Luis Obispo, CA 93401
RE: Amendment to concessionaire agreement with Achievement House I/Inc
Dear Mayor Marx and City Council Members,
Achievement House, Incorporated (AHI) is requesting an amendment to the current
concessionaire agreement for food and beverage services it provides at the Laguna Lake
Golf Course.
The current agreement has the implementation of a $1,250 /month rent at year 5 of an
initial 7 year term, once building improvements and equipment necessary to operate a
concessionaire have been completed. This was based on the original investment estimate
to be $60,000 ($1,250 times 48 months equals $60,000) and, thus, rent credit given for 4
years.
However, the initial and continual costs to improving the building site (i.e., kitchen and club
house) and equipment has exceeded $60,000 and is closer to $85,000.
The agreement also has retail revenue sharing if Achievement House earns a net of
$50,000 per year in the first four years of the contract. This has not been the case in that
the first year the concessionaire operated in the red (- $5,300) and the last three years has
netted an average of $17,000 (based on program fees and retail revenue). Average retail
per month currently is $1912.50.
Based on these numbers (increased financial investment to operate, as well as limited
concessionaire sales) Achievement House, Inc. is requesting the City Council to amend
the current agreement to waive the rent of $1,250 /month and revenue sharing for the
remaining 3 years of the agreement. Achievement House, instead, is proposing to relook
this at the three year extension (year 7) and base rent on retail sales per month (i.e., if
retails hits $3,000 /month rent will be 10% of sales, $300).
The 11th Hole Grill at the Laguna Lake Golf Course is an important venue in AHI's
vocational training program for adults with developmental disabilities and appreciates the
City's support of our mission.
With the new programs and ideas the Parks and Recreation Department is looking to
implement at the Laguna Lake Golf Course, Achievement House is excited about the future
and hopes the City Council will consider this amendment.
Respectfully yours,
Crystal Nevosh, M.S.
Executive Director
Achievement House, Inc.
ACHIEVEMENT HOUSE INC.
3003 CUESTA COLLEGE ROAD I SAN LUIS OBISPO, CA 93405 1 PHONE: 805.543.9383 1 FAx: 805.543.9384 1 www,achievementhouse.org
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