Introduction of Ordinance Authorizing the Interim City Manager to Execute a Lease for a Restaurant Suite Portion of the Historic Alameda Theatre Complex, with Play House, LLC, Doing Business as Director's Cut (Project Burger), Located at 2319 Central Avenue, Alameda, California, for a Term of Thirty-Six (36) Months with One (1) Extension Option for Thirty-Six (36) Months. [Requires 4 affirmative votes] This action is categorically exempt from further environmental review pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and 15061(b)(3) (Common Sense). (Base Reuse and Economic Development 24361815)

This ordinance authorizes the Interim City Manager to execute a 36-month lease with Play House, LLC, doing business as Director's Cut (Project Burger), for an approximately 1,850 square foot restaurant suite within the Historic Alameda Theatre Complex at 2319 Central Avenue. The lease includes one 36-month renewal option.

Financial terms include a monthly base rent starting at $5,865 for the first 12 months, increasing by 3% annually thereafter. The total projected revenue over the initial 36-month term is $211,673, with a $5,865 rent credit. The tenant is responsible for a $13,061 security deposit and a 5.31% share of operating expenses and taxes, along with all utilities. The tenant must maintain various insurance coverages, including $2 million in commercial general liability and $1 million in liquor liability.

Any alterations to the premises paid for by the City (even partially, such as through rent reductions) will be subject to prevailing wage requirements. This action is categorically exempt from CEQA environmental review. This lease supports the continued operation of a family-friendly restaurant, contributing to the vitality of the Downtown Alameda Business District.