Title
Lease Agreement for 1757 Washington Street (Tax Lot 2-2E-29-1403) - Train Depot
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RECOMMENDED ACTION (Motion):
Staff recommends that the Urban Renewal Commission approve the lease agreement for L & B Station, LLC, dba Coasters Crossing at the train depot located at 1757 Washington Street
BACKGROUND:
The City of Oregon City Urban Renewal Agency (URA) is the owner of real property located at 1757 Washington Street (Tax Lot 2-2E-29-1403). The train depot is located at this property and offers 2,000 square feet of commercial leasable space. The URA and L & B Station, LLC, dba Coasters Crossing (tenant), desire to enter into a new Commercial Lease Agreement for a restaurant and Lottery use.
The new Commercial Lease Agreement being proposed contains an initial lease period of three (3) years beginning June 1, 2018 and expiring May 31, 2021 (Attachment). The base monthly lease rate structure for the initial lease term is as follows:
* Months 1-3 $700
* Months 4-12 $1,200
* Months 13-24 $1,700
* Months 25-35 $2,200
* Month 36 $2,000
There will be one (1) five (5) year extension option at the discretion of the tenant. A second extension option can be negotiated at the request of the tenant, if the request is made prior to the expiration of the first five-year extension. The tenant will pay first month's rent ($700) plus a security deposit of $1,800 at the time of Lease execution. Lease payments shall be made to the URA on the first day of each month until the Lease term has expired.
Approval by the URA must be obtained in order for the Lease Agreement to take effect.