CC Resolution No. 04-386
RESOLUTION NO. 04-386
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO DENYING
THE PETITION OF OLE AND BIRTHE RASMUSSEN SEEKING COUNCIL
RECONSIDERATION OF ITS DETERMINATION DENYING THE ASSIGNMENT OF
THEIR LEASE OF CITY OWNED BLUE PHEASANT RESTAURANT AND BAR TO
GITI MAJDY AND KIANOUSH KAKA V AND.
WHEREAS, the City of Cupertino owns certain property in Cupertino known as
Blackberry Farm Golf Course, including buildings and an adjacent parking lot; and
WHEREAS, the golf course pro-shop shares its city-owned facilities including the
building and parking lot with a restaurant-bar facility known as the Blue Pheasant; and
WHEREAS, the restaurant-bar facility is an integral feature of the city-run golf course,
where the two operate in symbiosis; and
WHEREAS, the success of the restaurant-bar is important to the City not only for the
revenue from the lease, but, more importantly, as an adjunct to the city-run golf course;
WHEREAS, the Blue Pheasant has been leased and operated for the past thirty years by
Ole and Birthe Rasmussen, who have now expressed a desire to retire; and
WHEREAS, the Rasmussens now wish to sell their business and assign their lease to Giti
Majdy and Kianoush Kakavand; and
WHEREAS, Giti Majdy and Kianoush Kakavand wish to buy the business, assume the
lease and run a full service restaurant-bar with expanded uses; and
WHEREAS, assignment of the lease requires the approval of the City Council; and
WHEREAS, pursuant to the terms of the lease, this proposed assignment of the lease
came before the City Council for review on June 21, 2004; and
WHEREAS, the City Council, based on their findings, denied the request by the
Rasmussens to assign the Blue Pheasant lease to Giti Majdy and Kianoush Kakavand; and
WHEREAS, the Rasmussens, by and through their attorney, Paul M. Hogan, have
requested the City Council reconsider their decision; and
WHEREAS, the City Council set a hearing date of August 16, 2004 to reconsider the
assignment of the Blue Pheasant lease; and
WHEREAS, the City Council has considered all relevant evidence presented by the
parties at all hearings, including evidence presented at the August 16, 2004 reconsideration
hearing:
Resolution No. 04-386
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NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:
1) The Rasmussen's request for approval of the assignment of the Blue Pheasant lease to
Giti Majdy and Kianoush Kakavand is denied.
2) In making its determination, the City Council adopts the following specific findings:
a. Based on the resumes of Giti Majdy and Kianoush Kakavand and the testimony of
Giti Majdy, the proposed lessees have no experience in operating and maintaining a bar.
This is a significant detriment, since the operation of the bar can have a substantially
negative impact on the adjacent city-run business and the surrounding properties.
b. The proposed lessees have no experience operating a full service restaurant. The
proposed lessee's only food service experience is in the fast food industry. The Council
finds this experience insufficient since the operation of a full service restaurant is vastly
different.
c. The proposed expanded uses of the facility will conflict with the City's use of the
shared parking for the golf course.
d. Even though the rent payment to the City is "guaranteed" by the retiring tenants,
the main source of income to pay rent is derived from the operation of the restaurant-bar.
The City Council finds that the proposed lessees lack of vital experience adversely affects
the likelihood that the restaurant will continue to be financially viable and, consequently,
the City's rent payment will be in substantial jeopardy.
e. The Blue Pheasant is a City asset owned by the taxpayers and operated in conjunction
with a city-owned golf course. It is the responsibility of the Council to protect City assets
and to encourage their best use. It is not sufficient that the restaurant-bar rent will be paid
and is guaranteed by the current tenant. It is more important that the operation be a vital,
successful, well-managed going concern that enhances the city-run part of the facility and
protects the surrounding neighborhood from any detrimental effects. In this regard, the
Council finds that the proposed lessees do not have the requisite experience necessary to
meet the City's needs.
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Resolution No. 04-386
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PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupet1ino this 16t11 day, of August 2004 by the following vote:
VOTE
MEMBERS OF THE CITY COUNCIL
AYES:
NOES:
ABSENT:
ABSTAIN:
ATIEST:
James, Kwok, Sandoval, Wang
Lowenthal
None
None
~2~
City Clerk
APPROVED:
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