CC MEETING: April 5, 2016
DATE: March 29, 2016
TO: Leonard Martin, City Manager
FROM: Krystle Nelinson, Development Program Manager
Title
Consider A Resolution Authorizing The City Manager To Amend The Lease Agreement With MKNC III, LLC For City-Owned Property At 1309 South Broadway And Providing A Tenant Allowance In An Amount Not To Exceed $310,000.00.
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BACKGROUND:
On January 6, 2015, the City Council authorized the purchase of 1309 South Broadway. Located at the northeast corner of Broadway and Vandergriff, the parcel was used as an automobile repair facility and was considerably blighted. After receiving ownership in March 2015, the City undertook selective demolition and environmental remediation of the property. In June 2015, the City placed the property up for sale. The terms of the sale included a letter of intent to lease the site to Monkey King Noodle Company (MKNC III, LLC) - a highly regarded Deep Ellum-based Chinese food restaurant (D Magazine Best and Observer's best Chinese and Most Interesting 2015).
After two unsuccessful attempts to sell the property, the City completed the lease agreement with MKNC for the property on October 13, 2015. The City intended to work with MKNC to construct and open the restaurant and, shortly thereafter, place the property with its fully operational restaurant on the market for sale.
The very preliminary construction estimates indicated that the restoration of the building structure would cost approximately $193,000. As such, the original lease agreement between the City and MKNC included $150,000 in tenant improvement funds to help cover these basic construction costs. Additionally, $15,000 was provided for the pavement of a shared access easement between Cane Rosso and MKNC.
MKNC solicited three construction bids for the project. Due to the rising costs of construction in the Metroplex and the extent of the work required to restore the existing structure, the actual construction co...
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