26. Blue Pheasant Lease negotiation periodDEPARTMENT OE PARKS AND RECREATION
CUPERTINO
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: {408) 777-3110 • FAX: {408) 777-336fi
Agenda Item No. ~o MEETING DATE: August 5, 2008
SUBJECT
Extension of Negotiation Period for Blue Pheasant Property Lease Option Renewal.
BACKGROUND
The Blue Pheasant Property includes a building of approximately 6-800 square feet including the
kitchen, bar, banquet room, and the non-exclusive use of 92 parking spaces. In the current lease
agreement, the lessee is given the option to extend the term on all provisions contained in the lease,
except base rent for a five year period following the expiration of the current terms. The current
lessee has given the City an option notice, and the City has sixty days to agree on a base rent. The
agreement deadline for both parties is August 16, 2008.
DISCUSSION
In an effort to be able to negotiate in good faith with the present lessee, while having an opportunity
to confer with Council for direction, staff is concerned that the August 16 deadline may not be
conducive for all parties. A 30-day extension to the August 16 date would allow adequate time to
fully resolve the lease option renewal.
STAFF RECOMMENDATION
Staff recommends that City Council approve a 30-day extension of the August 16, 2008 deadline
for staff to negotiate with current tenant a lease option renewal.
SUBMIT"IBD BY:
uli A. Lamy
Recreation Supervisor
APPROVED FOR SUBMISSION
TO CITY COUNCIL:
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David W. Knapp, City Manager
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