Memorandum 19-009 Happy Face Lease Assignment

Memorandum 19-009

TO:                        MAYOR CASTNER & HOMER CITY COUNCIL

FROM:                PORT & HARBOR ADVISORY COMMISSION

THROUGH:        KATIE KOESTER, CITY MANAGER

DATE:                   JANUARY 4, 2019

SUBJECT:          THE HAPPY FACE LEASE RE-ASSIGNMENT TO  Y & C, LLC

At the special meeting held on January 3, 2019, the Port and Harbor Advisory Commission reviewed and discussed the lease re-assignment and new lease proposal from Y & C, LLC, who is assuming ownership of The Happy Face Restaurant beginning 2019.

The Commission reviewed the application, checklist, and the approval recommendation from the City Manager; below is the commission’s meeting minute excerpt:

PUBLIC COMMENT REGARDING ITEMS ON THE AGENDA

Chair Zimmerman acknowledged Grace Chon, partner in Y&C, LLC and Happy Face Restaurant lease applicant, who was participating telephonically.  Ms. Chon addressed the commission to introduce herself and shared that she is looking forward to working with the City.

NEW BUSINESS

A.            Lee & Kim, LLC dba “Happy Face Restaurant” Lease Re-assignment to Y&C, LLC

Memo from Port & Harbor Staff Re: Happy Face Restaurant Lease Re-Assignment Application                                                                  
Lease Application Checklist & City Manager’s Recommendation              

Y&C, LLC Lease Application                                                       

Chair Zimmerman opened the floor for discussion on the Happy Face Restaurant Lease Re-Assignment.  The commissioners did not object to allowing the applicant Grace Chon of Y&C, LLC to participate in the discussion to answer any questions.

There was brief discussion among the commissioners, Port Director/Harbormaster Hawkins, and Ms. Chon on items regarding the use of the property and nature of the business.

ULMER/ZEISET MOVED TO RECOMMEND TO CITY COUNCIL TO APPROVE A LEASE RE-ASSIGNMENT FROM LEE & KIM, LLC DBA “HAPPY FACE RESTAURANT” TO Y&C, LLC, AND TO AUTHORIZE THE CITY MANAGER TO EXECUTE THE APPROPRIATE DOCUMENTS FOR A NEW 20-YEAR LEASE WITH OPTIONS FOR 2 CONSECUTIVE 5-YEAR RENEWALS FOR LOT 32, HOMER SPIT AMENDED, AT AN INITIAL ANNUAL RENT OF $19,888.68.

There was no further discussion.

VOTE. NON-OBJECTION. UNANIMOUS CONSENT.

Motion carried.

RECOMMENDATION

The Port and Harbor Advisory Commission recommends that City Council approve a lease re-assignment from Lee & Kim, LLC DBA Happy Face Restaurant to Y & C, LLC, and to authorize the City Manager to execute the appropriate documents for a new 20-year lease with options for 2 consecutive 5-year renewals for lot 32, Homer Spit Amended, at an initial annual rent of $19,888.68.