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CITY Council REPORT Meeting Date: January 14, 2014 General Plan Element: Economic Vitality General Plan Goal: Encourage High Quality Retail and Entertainment

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CITY Council REPORT Meeting Date: January 14, 2014 General Plan Element: Economic Vitality General Plan Goal: Encourage High Quality Retail and Entertainment Item 14 CITY COUNCIl REPORT Meeting Date: January 14, 2014 General Plan Element: Economic Vitality General Plan Goal: Encourage high quality retail and entertainment ACTION Outdoor Dining License Agreement with Ricky's Restaurant located at 7325 E. Shoeman Lane. Adopt Resolution 9579 authorizing Outdoor Dining License Agreement 2013-183-COS with NYSBV Investment, LLC for an outdoor dining patio on City Right-of-Way. BACKGROUND The purpose of this action is to approve a new Outdoor Dining License with NYSBV, LLC and its tenant Ricky's Restaurant - Authentic Mexican Food, LLC, also known as Rick/s Restaurant, at the Southwest corner of Shoeman Lane and Welts Fargo Avenue. The licensed area is approximately 267 square feet. This outdoor dining license will not impact any on-street parking spaces or existing sidewalks. Historically, the City has supported outdoor dining activities to energize downtown areas. There are outdoor dining patios in operation in the surrounding area, including several located to the west at the Downtown Waterfront and a few blocks to the south. ANALYSIS & ASSESSMENT Recent Staff Action The existing patio location will not impact access to, or operation of, the sidewalk space. The terms of the License Agreement are similar to other outdoor dining license agreements within the downtown area, and include the following provisions: • A five-year license, with two optional five-year extensions, available upon approval by the City. • Either party may cancel the license with a 30-day notice. • The initial use fee is $1,602 a year or $6 per square foot, with escalation period beginning every July 1 based on the Consumer Price Index • In addition to the general liability insurance, the lessee must provide liquor liability insurance of $1,000,000 for each occurrence and $2,000,000 policy aggregate. AcBonlBlan ^ city Council Report | Outdoor Pining Ucense- 7325 E. Shoeman Lane • Cooking on the patio area is prohibited. • A cash security deposit of $1,000 is required. • This agreement has language included to specifically precludevideo, computers, video displays or other equipment for displaying video images or signals without specific approval for special events. Community Involvement The Development Review Board approved the design and location on October 17, 2013 with 66-DR- 191#2. This is a new license at an existing location subject to Council approval of the license agreement. RESOURCE IMPACTS Available funding No City funding is required as a result of this action. Staffing, Worldoad Impact The license agreement will be administered by existing Capital Project Management Real Estate staff. The licensee Is responsible for all construction, maintenance and operational costs of the outdoor dining area. Maintenance Requirements No significant maintenance requirements will result from this action. Minor upkeep of the adjacent landscape and patio areas is the responsibility of the property owner. OPTIONS & STAFF RECOMMENDATION " Recommended Approacli Adopt Resolution 9579 authorizing Outdoor Dining License Agreement 2013-183-COS with NYSBV Investment, LLC for an outdoor dining patio. Proposed Next Steps If Council adopts Resolution 9579, the licensee will pay the City a deposit and first installment of the required use fees. RESPONSIBLE DEPARTMENT(S) Public Works Division, Capital Project Management STAFF CONTACTS (S) Bob Hults, Real Estate Management Specialist, (480) 312-7066 [email protected] Page 2 of 3 city Council Report | Outdoor Dining License - 7325 E. Shoeman Lane APPROVED BY Daniel J. WortTiAExecutive Director, Public Works Date (480) 312-5555. [email protected] ATTACHMENTS 1. Resolution 9579 2. Location Map 3. Contract 2013-183-COS Page 3 of 3 RESOLUTION NO. 9579 A RESOLUTION OF THE COUNCIL OF THE CITY OF SCOTTSDALE. MARICOPA COUNTY. ARIZONA. AUTHORIZING A LICENSE AGREEIVIENT FOR A PROPOSED OUTDOOR DINING PATIO FOR A RESTAURANT ON THE SOUTH SIDE OF SHOEMAN LANE BETWEEN WELLS FARGO AVENUE AND BUCKBOARD TRAIL (Ricky's Restaurant outdoor dining) WHEREAS: A. Scottsdale's downtown is an important community asset providing significant economic, tourism and cultural amenities for Scottsdale's citizens, businesses and visitors. B. The City of Scottsdale ("City") is committed to maintaining and enhancing downtown to provide these important community benefits. C. Activating public spaces through outdoor dining patios and similar amenities increases the attractiveness of downtown to tourists and othenwise advances the prosperity of downtown and the broader corinmunity. D. Including such projects as part of dovmtown provides the potential for visitors to better experience the community and its amenities and heritage. E. City owns land interests or use rights on the south side of Shoeman Lane between Wells Fargo Avenue and Buckboard Trail that are suitable for an outdoor dining patio (the "City Parcel"). F. City desires to enter into a contract v\nth NYSBY Investment LLC, an Arizona limited liability company (the "Licensee"), which is the owner of an adjacent restaurant parcel (the "Restaurant Parcel") to operate the City Parcel as an outdoor dining patio integrated with the restaurant operation on the Restaurant Parcel. NOW, THEREFORE, BE IT RESOLVED that: Section 1. The Mayor is hereby authorized to execute on behalf of the City of Scottsdale the Outdoor Dining License Agreement No. 2013-183-COS. 11742025V4 Page 1 of 2 Resolution 9579 ATTACHMENT 1 PASSED AND ADOPTED by the Council of the City of Scottsdale this day of ,20 . CITY OF SCOTTSDALE. an Arizona municipal corporation W. J. "Jim" Lane, Mayor ATTEST: By: Carolyn Jagger, City Clerk APPROVED AS TO FORM OFFICE OF THE CITY ATT0F5NEY BY: ^ " 11742025V4 Page 2 of 2 Resolution No. 9579 : 3 k 1 ill i WHEN RECORDED, RETURN TO: | City of Scottsdale \ One Stop Shop/Records . j (Robert Hults) 7447 E. Indian School Road, Suite 1 CO Scottsdale, AZ. 85251 (Agreement No. 2013-183-COS) (Rick/s Restaurant outdoor dining) (resolution 9579) j OUTDOOR DINING PATIO REVOCABLE LICENSE AGREEMENT ! ; I THIS OUTDOOR DINING PATIO REVOCABLE LICENSE AGREEMENT (the "Agreement") Is made and entered into this day of 20 , by and t)etween the City of Scottsdale. an Arizona municipal corporation ("Ucensor"). and NYSBV Investment, LLC, an Arizona limited liability company ('Licensee"). RECITALS . A Ucensor owns fee title or other Interests in certain real property (the "Use Areas") comprising approxirrrately Two Hundred Sixty Seven (267) square feet of land described on ExhlUt "A** attadied hereto and labeled as "City Dining Area" on the drawing attached hereto as Exhibit "B" (the "Site Plan"). | B. Licensor also owns or holds rights to additional real property (the 'Adjacent Right- of-way") adjacent to the Use Areas as shown on the Site Plan. The Adjacent Right-of-way Is all ' public property and public property interests or use rights within fifty feet (50') of the Use Areas. Notwithstanding the preceding sentence. C. Licensee owns a certain existing restaurant building (the 'Restaurant Building") located upon a certain parcel of real property (the "Restaurant Parcel") described on Exhibit "C" attached hereto and labeled as "Restaurant" on the Site Plan. The Restaurant Parcel is located at 7325 E. Shoeman Lane, which Is located Immediately west of the Use Areas.. D. Licensee desires to use the Use Areas solely for outdoor, sit-down food and beverage service only for immediate consumption at the Use Areas of food and beverages (including alcohol) prepared inside the Restaurant Building (the Termitted Uses") subject to the requirements of this Agreement E. As of the date of this Agreement, the Use Areas are partially improved with paving, sidewalks, and other facilities for the public street known as Wells Fargo Avenue. F. In order to {X)nduct the Permitted Uses, Licensee desires to constnjct upon and about the Use Areas the certain improvements (the "Project") shown on the Site Plan. i 11624367v4 Page 1 of 41 ATTACHMENTS G. Licensee shall complete the entire Project and begin conducting the Permitted Uses no later than Febmary 1.2014 (the "Completion Deadline"). H. Licensor desires to resen^e rights to construct and use additional improvements upon the Use Areas subject to the requirements of this Agreement NOW, THEREFORE, for and In consideration of the foregoing, the amounts hereinafter to be paid by Licensee, and the covenants and agreements contained herein to be kept and peri'ormed by Licensee, and other good and valuable consideration. Licensor and Licensee agree as follows: I. USE AREAS 1. Use Areas. Licensee's rights to use the Use Areas are as follows: 1.1 Restrictions on Use Areas. The Use Areas includes and Is limited to the area shown on the Site Plan that is labeled as 'City Dining Area". 1.2 Condition of Use Areas. Licensee has examined, studied and inspected the Use Areas, and the Adjacent Right-of-way, and all other property associated with this Agreement and Its environs. All of such property is being made available in an "as is" condition without any express or Implied warranties of any kind. Including without [imitation any warranties or representations as to their condition or fitness for any use. Ucensee has obtained such infbmnation and professional advice as Ucensee has determined to be necessary related to this Agreement, the Use Areas, or this transaction. Licensee has had extensive prior experience with the Adjacent Right-of-way and the Use Areas and is familiar with their condition. 1.3 Licensor's Fixtures and Personally. Ucensor is not obligated to provide to Licensee any fixtures or personal property owned by Licensor At Ucensee's expense, Licensee shall thoroughly Inspect and malce safe before use any and all of Ucensor's property that may come into Ucensee's possession or tie used by Ucensee, shall return such property to Ucensor at termination of this Agreement shall maintain such property In good working condition from time to time, and shall replace such property when worn out Ucensor shall own such property at all .times with Licensee being solely responsible for Its condition.
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