25. Five-year lease Coffee SocietyCUPERTINO
DEPARTMENT OF PUBLIC WORKS
SUM"ARY
AGENDA ITEM
AGENDA DATE May 4, 2410
SUBJECT AND ISSUE
Authorize the City Manager to execute a new Five Year Lease with Jackie Streeter, the owner of
the Coffee Society at the Civic Center, with the terms approved by the City Council during
negotiation.
BACKGROUND
On March 15, 2004, Council adopted Resohlion 04 -283 approving the selection of Coffee
Society, owned by Ralph Flynn, as the designated operator of the Cupertino Library Cafe and
authorized the City Manger to negotiate and execute a five year lease with an optional five year
extended term. The provision for the extended term required the owner /operator to notify the
City six months in advance of lease expiration cf their desire to extend.
On October 30, 2004, the Coffee Society under management by Ralph Flynn began operations
and initiated a five year lease.
On November 15, 2005, Council authorized the City Manager to negotiate and execute the
assignment of the lease from Ralph Flynn to Jackie Streeter, Bill Streeter, and Dan St. Peter with
no change in the terms of the lease executed with Ralph Flynn.
On October 19, 2009, Jackie Streeter informed the City that she wished to extend the lease but
with modified terms that reflected the economic downturn.
On October 30, 2009, the five year lease expired along with the option to extend the lease for an
additional five year term.
ANALYSIS
Following the expiration of the lease, City staff began working with the Coffee Society to
develop terms for a new five year lease. Those new terms and conditions have been incorporated
into a new lease and formally agreed to by the Coffee Society.
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Additionally, the Tenant has agreed to personally operate the business as the Coffee Society for
one full year from the date of executing the lease before selling or closing the business.
FISCAL IMPACT
To be determined at the conclusion of the negotiation.
STAFF RECONIlIENDATION
Staff recommends that Council authorize the City Manager to execute a new Five Year Lease
with Jackie Streeter, owner of the Coffee Society at the Civic Center.
Submitted by:
Ralph A. Qualls, Jr.
Director of Public Works
Approved for submission to
the City Council:
;"
David W. Knapp
City Manager
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