TITLE
Recommendation to authorize City Manager, or designee, to execute an agreement and all documents necessary to enter into a Beach Concession Agreement with The Gondola Getaway, Inc., of Long Beach, CA, to operate a gondola concession in Alamitos Bay, for a term of five years, from May 1, 2023, to April 30, 2028, with three five-year renewal options, at the discretion of the City Manager. (District 3)
DISCUSSION
The Gondola Getaway, Inc. (Concessionaire), has operated its unique business in Alamitos Bay since 1982, offering Venetian gondola cruises through the canals of Naples Island. On May 14, 2002, City Council approved Lease No. 27959 with Concessionaire, for the operation of a gondola concession at the Leeway Sailing Center dock located at 5437 East Ocean Boulevard (Attachment - Premises Depiction/Description). On May 17, 2022, City Council authorized the Fourth Amendment to the Lease, to extend the term through April 30, 2023.
To allow the Concessionaire to continue to operate and maintain the concession, and to bring the terms of the agreement in line with the City’s standard terms, approval of a new Beach Concession Agreement with Concessionaire is requested.
The proposed Beach Concession Agreement has been negotiated with the following major terms and provisions:
· Premises: Existing improvements (the “Building” and adjacent storage) and 85 feet of dock space located at 5437 East Ocean Blvd., commonly known as the Leeway Sailing Center pier and dock.
· Use: Operation of a gondola service within Alamitos Bay.
· Initial Term: Five years, commencing on May 1, 2023.
· Renewal Options: Concessionaire will have three additional five-year options to extend, with 90 days’ notice before expiration of the previous term, subject to approval of the City Manager.
· Rent: Five percent of gross receipts, or an annual minimum of $14,400, whichever is greater. The annual minimum amount is based on Concessionaire’s history and business plan, and the impositio...
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