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HomeMy WebLinkAbout15. Coffee Society ·..;,~I I'\~...::; .,,, F CUPEIQ1NO . PUBLIC WORKS DEPARTMENT Summary AGENDA ITEM I)' AGENDA DATE November 15. 2005 SUBJECT AND ISSUE Approval of an Assignment of the Lease with Coffee Society at the Cupertino Library LLC for the operation ofthe Coffee Society coffee shop in the Cupertino Library to Jackie and Bill Streeter, Dan St. Peter and Ralph Flynn with no change in the terms of the existing lease and at no cost to the City and authorizing the City Manager to negotiate and execute the lease assignment. BACKGROUND On March 15 2004, the Council approved a proposal for a five year lease with Coffee Society at the Cupertino Library to operate the Library café. A lease document was negotiated and executed by the City manager in accordance with the proposal approved by the Council. The Coffee Society opened the café on October 30, 2004 and it has been in continuous operation since. Recently Mr. Ralph Flynn, representing the Coffee Society at the Cupertino Library, LLC has approached the City with a proposal for the assignment ofthe lease to an independent party, Ms. Jackie Streeter, former Vice President of Engineering at Apple Computer in Cupertino and her family. Mr. Flynn's proposal letter is attached. The assignment of the lease will be subject to the same terms and conditions of the original lease and the new operator will operate the café under a licensing agreement with Coffee Society to ensure the following: 1. All terms of the existing lease agreement will remain In effect and the operation will be in full compliance with these lease terms. 2. The existing brand name, products and vendors will remain the same. 3. Ralph Flynn, as an individual, will be a party to the lease assignment to ensure continuity of the Coffee Society brand and quality of products and to support the training and management of the assigned operators of the coffee shop. Printed on Recycled Paper /)-{ City staff has met with Mr. Flynn and the proposed new operators, Jackie Streeter and her sons, William Streeter and Dan St. Peter to evaluate their capacity and interest in taking on the assignment of this lease. Pending the completion of a financial and credit check on the parties, staff is satisfied that the proposed operators have the interest and financial capacity to acquire the business and its trademark, Coffee Society at the Cupertino Library. Staff believes that the Streeter family with the continued involvement of Ralph Flynn will provide for an even greater success of the Library coffee shop. FISCAL IMPACT The terms of the existing lease will remain in full force and effect with the assignment so there is no fiscal impact to the City. STAFF RECOMMENDATION Approval of an Assignment of the Lease with Coffee Society at the Cupertino Library LLC for the operation of the Coffee Society coffee shop in the Cupertino Library to Jackie and Bill Streeter, Dan St. Peter and Ralph Flynn with no change in the terms of the existing lease and at no cost to the City and authorizing the City Manager to negotiate and execute the lease assignment. Submitted by: Approved for submission: ~~r.(AGI Us(/ Director of Public Works ~ David W. Knapp City Manager 1)-.2- ~ lcom snr.......·yr d ~J.1 JlL City of Cupertino To Whom It May Concern: Due to health and financial reasons I am requesting an assignment of my lease for Coffee Society @ the Cupertino Library, LLC. I feel that the location still has great potential for an active, on-site owner and because of that I have searched for someone who could purchase the café fÌ'om the LLC, keep the Coffee Society name and branding and still maintain and improve the community involvement and make it really work. I also wanted to find someone that I could personally work with that could embrace the philosophy and direction of our business. The assignment I am requesting is just a change in ownership. Coffee Society has a strict license agreement with Mrs. Streeter, the buyer and will stay involved in maintaining the image and philosophy of our cafes. (see attached) I also believe that there will be very little change in present personnel so that the transition will be seamless. Please keep in mind that this is not a new café but just a change in lease assignment. o The Café name will remain the same. o Coffee Society will continue to supply the coffee and coffee related products o Most of the current vendors will remain in place o I will be involved initially with training and also on an on going consulting basis o Adam Brioza, our executive barista, will be on site ITom time to time to continue training and maintain quality standards. o The Café will still be advertised on our Company Web Site www.coffeesociety.com I am requesting that the city expedite this assignment so that we can begin the training and transition as soon as possible. It is my desire to close escrow by November 1,2005 so that I can meet my financial obligations. Respectfully Submitted, ~~~~' ~ =~ø~, Coffee Society @ the Cupertino Library, LLC /';-3