HomeMy WebLinkAboutR-11466 finding a public purpose for temporarily reducing the rent for the Commercial Lease Space located at 837 Marsh StreetR 11466
RESOLUTION NO. 11466 (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, FINDING A PUBLIC PURPOSE FOR
TEMPORARILY REDUCING THE RENT FORTHE COMMERCIAL LEASE
SPACE LOCATED AT 837 MARSH STREET
WHEREAS, the Parking Fund manages commercial lease spaces located 837
Marsh Street; and
WHEREAS, the Parking Program has a role in the fiscal health and customer
satisfaction of the downtown area; and
WHEREAS, there are economic uncertainties for businesses including lease
spaces managed by the City’s Parking Fund; and
WHEREAS, the original lease was executed on May 15, 1989 between the City of
San Luis Obispo and Charles Ford Company, Inc; and
WHEREAS, on March 2, 1993, Charles Ford Company, Inc. and Copelands
Investment Partnership entered into an agreement of Assignment and Assumption of
Lease in which the Assignment of the Lease was assigned to Copelands Investment
Partnership; and
WHEREAS, in 1993 Copelands Investment Partnership subleased the space to
Copelands Sports; and
WHEREAS, on November 5, 2013, the City of San Luis Obispo and Jamestown
Premier SLO Retail, L.P., as a successor to Copelands, executed Amendment 1 to the
Lease for 837 Marsh Street; and
WHEREAS, the basic terms of Amendment 1 to the Lease included a rental rate
beginning February 1, 2014 at $11,330 per month, with 3% increase each year after until
January 31, 2024 and improvement repairs to be completed by the tenant; and
WHEREAS, Jamestown Premier SLO Retail, L.P. currently subleases the space
to Shoe Palace, and has since 2014; and
WHEREAS, Jamestown Premier SLO Retail, L.P. will agree upon an extension of
the existing lease only with a reduced rent from the original agreement, as proposed in
Amendment 2 to the Lease; and
WHEREAS, Shoe Palace intends to remain the tenant in the space for another 5
years if the lease is amended as proposed in Amendment 2; and
Resolution No. 11466 (2024 Series) Page 2
R 11466
WHEREAS, the basic terms of Amendment 2 to the Lease included a rental rate
beginning February 1, 2024 at $11,000 per month, with 3% increase each year after until
January 31, 2029, and a term length of 5 years; and
WHEREAS, retail spaces similar in size to 837 Marsh Street have been difficult to
fill, post-pandemic; and
WHEREAS, maintaining an occupied space benefits the public through increased
activation of the downtown and foot traffic as well as stimulus of the local economy; and
WHEREAS, maintaining an occupied space benefits the City by providing revenue
in monthly rent, as well as revenue from the sales tax generated by having the space
occupied; and
WHEREAS, the Parking Fund’s 2023-25 Financial Plan incorporated work
programs intended to support the local economy and, specifically, downtown economic
vitality.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
Resolution No. 11466 (2024 Series) Page 3
R 11466
SECTION 1. Accepting a reduced rent from Jamestown Premier SLO Retail, L.P.
for the commercial lease space located at 837 Marsh Street for the five-year term is of
public benefit.
Upon motion of Vice Mayor Pease, seconded by Council Member Shoresman, and
on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted on this 9th day of January 2024.
___________________________
Mayor Erica A. Stewart
ATTEST:
________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ________________________.
___________________________
Teresa Purrington
City Clerk
Council Member Francis, Marx, Shoresman, Vice Mayor Pease, and
Mayor Stewart
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