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HomeMy WebLinkAboutSurf City Partners - 2021-09-07 (2) . 1l / s �v a:�VV'— ~leUVeD 6-1 I PE_n1 ZIA/ N0) /S City of Huntington Beach 'A'EN,)ODTVNET,,on4-rZ�_ A-AJ" 0J1SWr-C171 PAPt7l(� t7D/FLLO VV L,ETS �/ I S117Aa TD P_Ep4 l e4IEW WMLZ GWi)' NEZpTYY 6k)� File #: 21-653 MEETING DATE: 9/7/2021 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Oliver Chi, City Manager PREPARED BY: Ursula Luna-Reynosa, Director of Community Development Subject: Authorize and direct the City Manager to execute an Exclusive Negotiating Agreement (ENA) with Ruby's Hospitality Group. LLC for 21 Main Street at the Huntington Beach Pier Statement of Issue: The City Council is requested to authorize and direct the City Manager to execute an Exclusive Negotiating Agreement (ENA) with Ruby's Hospitality Group, LLC (Ruby's), in a form approved by the City Attorney, for a concession building located at 21 Main Street on the Huntington Beach Pier. The purpose of the ENA is to establish duties and obligations related to the negotiation of a lease agreement for the site. Financial Impact: There is no financial impact associated with this request. If a new lease is executed with Ruby's, staff will return to City Council for approval, which will include the rental rate and the projected lease revenues that would be deposited into the General Fund (1000100.43095) Beach Concessions. Recommended Action: Authorize and direct the City Manager to execute an Exclusive Negotiating Agreement (ENA) with Ruby's Hospitality Group, LLC, in a form approved by the City Attorney, to negotiate the terms of a lease agreement for 21 Main Street. Alternative Action(s): Do not approve the recommended action and direct staff to enter into an ENA with either Let's Go Fishing & Surf City Snack Bar LLC (current lessee) or Surf City Partners, LLC, which are the remaining two responsive and qualified concessionaires that have submitted a proposal to lease 21 Main Street. Analysis: Background City of Huntington Beach Page 1 of 5 Pnnted on 9/12021 Dowere41154 Leg-sfa"' File #: 21-653 MEETING DATE: 9/7/2021 The Huntington Beach Pier is one of the most recognizable landmarks on the west coast and serves as an attractive destination for visitors and locals. The Pier also features an estimated 800 square foot concession building located at 21 Main Street and has been in operation since 2009. The site is also in the Downtown Specific Plan (DTSP) and Coastal Zone. Currently, the concession is operated by Let's Go Fishing & Surf City Snack Bar LLC (dba Let's Go Fishing), which offers fishing supplies, snacks, and souvenirs. Let's Go Fishing initially entered into a five-year lease agreement with the City on November 16, 2009. The lease also included a five-year extension ending on November 2019, which has been exercised by the tenant. In anticipation of the lease expiring at that time, the City released a Request for Proposals (RFP) to identify a qualified and responsive operator in April 2019. The City Council authorized a 6-month lease agreement with Let's Go Fishing in November 2019, followed by a month-to-month term. Due to the stressors caused by the COVID-19 pandemic, the City also granted a 90-day extension in June 2020. Under this extended lease agreement, Let's Go Fishing's current base rent is 5950/month or 10.5% of gross receipts, whichever is higher. Lease payments are currently in excess of $50,000 per year. RFQ Results On May 26, 2021 , the City released a Request for Qualifications (RFQ) to solicit qualifications from potential concessionaires with a proven track record of operating a successful business of similar nature and scale. Additionally, respondents were asked to demonstrate their financial capacity and articulate a vision to enhance the pier experience for visitors. Submittal requirements included a cover letter, tax returns, income statement and balance sheet, audited financial statements, a description of the proposed use of the property, and biographical information of the principals. The City received submittals from the following four entities: • Let's Go Fishing & Surf City Snack Bar LLC (current lessee) • Ruby's Hospitality Group, LLC • Surf City Partners, LLC • Armijo Enterprises Staff and the National Development Council (NDC), the City's independent economic advisor, conducted a preliminary review of the proposals. Armijo Enterprises was disqualified due to lack of financial capacity and failure to submit current and historical financial information. The remaining three entities moved onto the second round of review and submitted additional information, which included a pro forma, a description of any proposed improvements to the property, and a construction timeline and costs. Below is a summary of the proposals received. • Let's Go Fishing & Surf City Snack Bar LLC - Marian Johnson is the sole member of this LLC, which has been operating at the concessionaire site since 2009. Current offerings include pre- packaged foods, ice cream, chips and other beach related merchandise, in addition to bait and tackle items. Ms. Johnson expressed interest in growing her business by creating additional revenue streams through the sale of hot foods (pizza, nachos, tacos and hot dogs), ice cream and Icee drinks; the provision of a coffee bar with pastries, bagels and muffins; and expanded City of Huntington Beach Page 2 of 5 Printed on 9/1/2021 oowerAOq Lea,star° Fife #: 21-653 MEETING DATE: 9/7/2021 offerings of pole rentals, pier fishing classes and fishing-themed birthday parties/events. A budget of $28,500 was proposed for upgrading and remodeling the inside and outside of the building with an approximate timeline of 12-17 weeks to complete the improvements. Projected sales for the first three years are estimated at $435,000-$635,000 based on 100-110 sales per day at an average of $12-16 per sale and assumes 15% growth per year with a net profit margin of 13-20% (not inclusive of the owner's salary). • Ruby's Hospitality Group, LLC - In 2018, Ruby's Diner entered into a Chapter 11 bankruptcy process to reorganize its obligations and ownership. In November 2020, Casbure Management, LLC acquired the master franchise rights and formed Ruby's Hospitality Group, LLC. The principal owners include: Casbure Management, LLC (affiliate of West 5in Street Partners); Todd Spector, an individual; Eric Kurtzman, an individual; and Joe Micatrotto, an individual. The proposed concept from the new owners of the Ruby's brand includes constructing an adapted version of the classic Ruby's Diner that utilizes a walk-up window for guest service and a modified menu to streamline operations and conform to existing space limitations. The projected budget for improvements is approximately 5520,000 with plans to open within 12-14 weeks of receiving permits. Projected sales for the first three years range from $1.1 - $1.4 million with a 4-9% net profit margin. Proposed rent includes a base rent figure of $90,000 annually with percentage rent to be determined but preference would be for a long-term, flat rent structure. The owners would pay the cost of all improvements and guarantee the lease. • Surf_CityPartners, LLC - This local team with hospitality and franchise experience includes Jeff Bergsma (Design/Construction/Maintenance), Keith Bohr (Government Approvals), Paul Motenko (Restaurant Food and Beverage/Operational Systems), and Sharon and Adam Go (Restaurant Systems/Recruitment/Training). The concept is a "locals" eatery named Huntington's which would offer high quality comfort food and beverages (fine wines, locally crafted beers and libations), outdoor dining, surf line views, and occasional live music. The eatery would be open for breakfast, lunch and dinner with an estimated check average of $22.62, 90-minute table turns, a 130 person occupancy (49 inside & 81 patio), and 340 days of operation. Additionally, there would be two mobile retail carts for fishing pole rentals, the sale of bait and tackle, and the sale of coffee, hot chocolate and bottled water. The projected budget for improvements is $532,000 with a project timeline of approximately seven months (four months for permit approval process and three months for construction) with the goal of opening by May 2022. Projected sales for year one are $1.5 million with an increase of 66% in year two (52.5 million) and another increase of 10% in year three (S2.75 million) with a 5-8% net profit margin. Proposed annual base rent is $180,000 which is 7% of sales based on the year two revenue assumption. Preliminarily, the cost of improvements is proposed to be financed using a one million dollar loan commitment with a 10- year term at 5% interest. Assessment of Qualifications Staff and NDC performed an analysis (Exhibit 1 ) of the submitted proposals and on August 11 , 2021 , a summary of the top three finalists was presented to the City's Economic Development Committee (EDC). While all three respondents offered compelling visions and demonstrated experience City of Huntington Beach Page 3 of S Printed on 9/1/2021 aonen407,Leaistar'• File #: 21-653 MEETING DATE: 9/7/2021 operating successful businesses, the feasibility and viability of the concepts varied greatly with respect to their degrees of risk for failure. After careful consideration of each proposal, including a review against industry standards and entitlement requirements, the EDC recommended Ruby's for the concession space. Ruby's desire to revitalize the brand and relaunch this iconic burger chain with a fresh take offers the return of a beloved, community and family-oriented amenity that has strong brand recognition at the Huntington Beach pier. Although the new ownership entity was recently formed, the principals have extensive experience and strong financial assets, which depict a high-level of competency to implement a successful business operation. Additionally, the lease revenue proposed is almost double the existing rent, and the site will be enhanced without triggering major entitlements. Ruby's was a favorite for its location, prices and retro-style, and its reopening in close proximity to its original location will provide locals and visitors with a memorable and nostalgic pier experience. Let's Go Fishing offers the lowest risk to the City and is a profitable, established and successful business with a proven record. The proposal is similar to the products and services currently offered with comparable annual revenues and minor improvements to the building. If there is desire to maintain the status quo with a concessionaire that sells fishing supplies and convenience store items, the City Council could alternatively select Let's Go Fishing. Surf City Partners offers the highest proposed revenue potential by completely reimagining the site. This proposal is also the most ambitious with required entitlement approvals (i.e., coastal commission, parking, outdoor dining for 81 seats, ABC license for alcohol sales) given the intensification of the use and scope of improvements to the property. Upon review, the construction timeline and revenue projections appear aggressive with revenue highly dependent on sales during the summer months and 40% of sales derived from alcohol (typical restaurant 20-30%). Additionally, because improvements are anticipated to be funded using debt, this proposal is riskier than the other two finalists should actual revenue be lower than anticipated. However, if there is a desire to create a unique dining establishment on the Pier, the City Council could alternatively select Surf City Partners. Exclusive Negotiating Agreement Given the EDC's consideration of each proposal and its recommendation of Ruby's, staff is seeking Council authorization and direction for the City Manager to execute an ENA with Ruby's for 180 days to negotiate the terms of a lease agreement, establish duties and obligations between the parties, and conduct due diligence. Approval of an ENA does not obligate the City to enter into a lease agreement. A lease of the site will require separate City Council approval. An ENA will provide an opportunity to analyze the feasibility of pursuing the project while addressing various issues related to the change of use and proposed remodel. Such lease terms and obligations include the following: • Use, Term, Rent, Minimum Days/Hours of Operation, Maintenance, etc. • Design of Building Plans • Approvals including a Conditional Use Permit from the Zoning Administrator, Review by the Design Review Board for the building's design, colors, signage and materials, a Coastal Development Permit processed and approved by the Coastal Commission, and any applicable requirements related to outdoor dining, parking, and outdoor sales City of Huntington Beach Page 4 of 5 Printed on 9/1/2021 aowerc4U8 Lepsiar" File #: 21-653 MEETING DATE: 9/7/2021 Establishment of a Schedule of Performance and Entitlement Milestones Additionally, this ENA period will allow the current tenant, Let's Go Fishing, to continue its lease and operations while Ruby's obtains all necessary permits rather than leaving the concession vacant during this period. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), organizational or administrative activities of governments that will not result in direct or indirect physical changes to the environment, do not constitute a project. If negotiations are successful, a lease agreement will be brought forward for City Council consideration and an environmental assessment will be conducted at that time. Strategic Plan Goal: Economic Development & Housing Attachment(sl: 1. Request for Qualifications 2. Memorandum by NDC City of Huntington Beach Page 5 of 5 Printed on 9/112021 oo.ert4QQ Legis:ar'- City Council/ Public Financing Authority ACTION AGENDA September 7, 2021 30. 21-653 Authorized and directed the City Manager to execute an Exclusive Negotiating Agreement (ENA) with Ruby's Hospitality Group. LLC for 21 Main Street at the Huntington Beach Pier Recommended Action: Authorize and direct the City Manager to execute an Exclusive Negotiating Agreement (ENA) with Ruby 6 Haspktality Group, LLG, in a form approved by the City Attorney. to negotiate the terms of a lease agreement for 21 Main Street Approved as amended to negotiate an ENA with Surf City Partners and allow Let's Go Fishing to remain open while under negotiations. Approved 6-1 (Peterson-No) PUBLIC HEARING 31. 21-633 Cancelled Advertised Public Hearing Item 21-633 authorizing City staff to apply for the Orange County Enhanced Mobility for Seniors and Disable Grant Program (EMSD) ADMINISTRATIVE ITEMS 32. 21-588 Approved American Rescue Plan Act (ARPA) Spending Plan Review and Allocation Recommended Action: Approve the proposed ARPA funds spending plan for Huntington Beach. and direct staff to prepare the necessary budget appropriate documents to facilitate the adopted program. Approved 7-0 33. 21-625 Provided Direction to Staff Regarding the Pier Plaza Art A-Faire Events at Pier Plaza Recommended Action: Al B) Direct staff to issue an RFQ to identify the most qualified arts and craft fair operators and return to City Council with a proposed operator and promotional agreement for consideration Approved 5-1-1 (Peterson— No; Delgleize— Abstain) 34. 21-656 Approved formation of a 2021 Charter Revision Committee to conduct a review of the Huntington Beach City Charter S its• • • CONCESSIONOPPORTUNITY HuntingtonHB 21 Main Street, . ` : V' REQUEST FOR QUALIFICATIONS A t SURF CITY HIGHLIGHTS he Huntington Beach Pier is one of the most recognizable land- ©93,658 MEDIAN HH INCOME 200,748 TOTAL POPULATION narks on the west coast. As the most photographed pier in the O O • 59'a more than the County yorld, the Huntington Beach Pier is an attractive destination for • 25%more than the State Cultists, residents, film shoots, and special events. The Pier serves . 47%more than the Nation 50.41%Female 49.59%Male s a central point to several major annual events including the US )pen of Surfing and the Great Pacific Air Show. Additionally, as the $736.4 MILLION HOTEL OCCUPANCY ••* 2018 2017 2016 2015 ingest pier on the west coast, the Huntington Beach Pier sees a Total economic impact 74.3% 74.1% 74.4% 76.2% onstant flow of tourists, fishermen, diners, shoppers, and surfers DAILY AVERAGE RATE generated by tourism 2018 20172018 201720162015 •ager to enjoy the authentic experience that is Huntington Beach- $233 $22255 5215 $207 xt Liability: The proposed tenant shall bear all costs associated with submits ng qualification statements. The City of Huntington Beach does not peynnder's fees or ,mmissions for opportunities arising under this RFQ. Any such compensation must be negotiated between the proposer and his or her agent or broker,if any. �_ 'mil •.+- - �V r 21 Main Street "\ i Approximately 900 SF \ Located directly across from \ public restrooms s Building in operation since �r+ 2009 n Sv \- Building is currently occupied by Let's Go Fishing on a month -to-month lease A TI's have been made by cur- rent and past tenants Current plans are available upon request REQUEST FOR QUALIFICATIONS The City of Huntington Beach is requesting qualification state- ments from entities interested in operating a City-owned conces- SUBMITTAL sion building located on the Huntington Beach Pier at 21 Main Street. The desired entity will-have a proven track record of oper- ating a business of similar nature and scale to the one proposed to 0 Cover letter; be operated at 21 Main Street. The selected tenant will demon- strate the experience to operate a successful business, exhibit the • 3 years of tax returns; financial capacity to support a viable business, and articulate a vi- sion to enhance the pier experience by enticing visitors to the busi- • 2021 year-to-date income statement and balance sheet; ness by offering a quality and memorable experience. . 3 years of audited financial statements(or reviews or con- pilations if audited financial statements are not available) • Proposed use of the lease and the property; and SCHEDULE • Biographical information,together with information re- garding the officers/directors/major owners/managers/ members/partners, and credit report of the major owner elease of RFQ 5/26/21 on-Mandatory Walkthrough 6/9/21 eadline for written Questions 6/14/21 21 Main Street is located in the Downtown Specific Plan (DTSP) - District 6 which includes the Pier and esponse to Written Questions Posted on City Website 6/18/21 Pier Plaza. Permitted uses and development stand- tualification Statements Due 6/25/21 ards for District 6 can be found on page 3-92 at the following link: valuation of Statements Completed 7/9/21 https://huntingtonbeachca.gov/files/users/planning/ ,terview Qualified Candidates 7/12/21-7/16/21 Downtown-Specific-Plan-No-S.pdf Kriss Casanova, Economic Development Manager The existing entitlement permits are4ayailable upon request. a Headquarters 1111 Superior avenue East Suite 1114 Cleveland,OH 44114 MEMORANDUM To: Ursula Luna-Reynosa, Director of Community Development, Huntington Beach Kriss Casanova, Economic Development Manager, Huntington Beach From: Andria Martinez, Director, National Development Council Re: Analysis of 21 Main Street RFQ (Pier Concession) Proposals Date: August 9, 2021 The City of Huntington Beach ("City') has asked National Development Council ("NDC") to conduct a preliminary evaluation of the 21 Main Street RFQ responses. On 5/26/21, the City released a request for qualification statements, with due date of 6/25/21, from entities interested in operating a City-owned concession building located on the Huntington Beach Pier at 21 Main Street. The desired entity will have a proven track record of operating a business of similar nature and scale to the one proposed to be operated at 21 Main Street. The selected tenant will demonstrate the experience to operate a successful business, exhibit the financial capacity to support a viable business, and articulate a vision to enhance the pier experience by enticing visitors to the business by offering a quality and memorable experience. Submittal requirements were as follows: • Cover letter: • 3 years of tax returns; 2021 year-to-date income statement and balance sheet, • 3 years of audited financial statements (or reviews or compilations if audited financial statements are not available); • Proposed use of the lease and the property; and • Biographical information, together with information regarding the officers/directors/major owners/managers/members/partners, and credit report of the major owners There were 4 entities who submitted proposals and NDC has conducted a preliminary review of the following respondents, with comments noted. Ruby's Hospitality Group, LLC Ruby's Hospitality Group, LLC and its affiliate, RD Franchise Systems, LLC, are the master franchisor for Ruby's Diner, a restaurant chain aesthetically designed after the American diner of the 1950's serving a menu that includes classic American hamburgers, French fries and milkshakes. The first Ruby's Diner opened on December 7, 1982, in a converted bait shop at the end of the Balboa Pier in Newport Beach, California. At its peak, the restaurant chain included 41 locations of company-owned and franchise units mostly focused in Southern California. Since its founding, Ruby's Diner has been a staple of locals and visitors alike synonymous with California surf city lifestyle with iconic pier locations throughout Southern California including the former location at the iconic Huntington Beach Pier. Today there are 19 Ruby's Diners located predominantly in Southern California. In 2018, the company-owned stores and franchise system of Ruby's Diner entered into a Chapter 11 bankruptcy process to reorganize its obligations and, ultimately, its ownership. Casbure Management, LLC successfully acquired the master franchise rights of Ruby's Diner in November of 2020 and formed Ruby's Hospitality Group, LLC to actively revitalize the iconic brand and relaunch the California hallmark across the nation with a fresh take on the timeless brand. The principal owners of Ruby's Hospitality Group, LLC are listed below. n n i?n l i ne.org Casbure Management, LLC Todd Spector, an individual Eric Kurtzman, an individual Joe Micatrotto, an individual It is the intention of Ruby's Hospitality Group to construct a modified version of the classic Ruby's Diner at the City-owned concession building, utilizing a walk-up window for guest service and a modified menu to streamline operations and conform to the existing space requirements. A conceptual rendering of the proposed development and a sample menu for illustration and discussion purposes was included in the proposal. Their proposal would not require a modification to the existing footprint although enhancements to the current mechanical systems may be necessary. Additionally, the proposal was flexible in design & scope with either re-constructing the existing structure or beautifying and improving upon the existing structure without a full reconstruction. In addition to the projected budget for proposed improvements, Ruby's Hospitality Group remains interested in discussing and contributing further towards pier improvement plans that would enhance seating or beautification of the surrounding areas. Budget to be determined based on the City's needs and vision. Projected Improvement Budget, Timeline and Proforma • $520,000 projected budget for improvements based on a review of the building, mechanical and architectural documents & knowledge of the modifications that would be necessary for the intended use. This includes $275,000 in construction costs, S200,000 for equipment and $45,000 in soft costs. • If approved by the City, the group is committed to move quickly to complete full architectural & mechanical drawings of the building in order to submit a tenant improvement permit. • Construction will commence immediately upon receiving proper permits and construction is expected to be complete within 12-14 weeks, barring any unforeseen issues. • $1.1 MM - $1.4MM in sales projected for the first 3 years. • 30% COGS expenses • 28-29% Payroll related expenses • 33-37% other SGA expenses 4-9% net profit margin • Their analysis accounted for a base rent figure of$90,000 annually with percentage rent to be determined and expressed a preference for a fair, long-term flat rent and a minimum lease term of a 15 - 20 years, with extensions. Strengths • Extensive hospitality & franchise experience of the principles • Strong brand recognition of Ruby's Diner and community support for its reopening. • Todd Spector, principle of Casbure & ASNY, has substantial personal assets to contribute to the project as evidenced by a letter from JPMorgan indicating balances well in excess of the total project costs of the proposal as of 6/24/21, • Guarantee of lease agreement by West 511 Street Partners, an affiliate hospitality holding and investment company with revenue in excess of many millions in 2020 and liquid assets well in excess of the total project costs of the proposal as of 12/30/20. • Sophistication, experience & transparency of the submittal indicates a high of level competency for a project of this type and the principles' ability to successfully execute. • While each project is unique, Ruby's Hospitality Group principals have extensive experience in the design, build-out, and construction management of similar projects and commercial restaurant units having completed more than thirty full service and fast casual franchise units nationwide. 413 Weaknesses: • Recent bankruptcy of franchise and new company ownership as a result of reorganization • Start-up/re-start nature of business operations • Ruby's Hospitality Group, LLC was formed in 2020 upon the acquisition of the master franchise rights of Ruby's Diner and therefore does not have three years of audited financial information, nor does it have filed tax returns as requested. However, in order to demonstrate the financial wherewithal of Ruby's Hospitality Group, they submitted proof of funds, audited financial statements and tax returns for West 5th Street Partners who will guarantee any lease agreement executed on behalf of Ruby's Hospitality Group, LLC. • Lack of operations during the construction/redevelopment phase of the proposal due to the assumed entitlement requirements of a Coastal Development Permit from the Coastal Commission. Let's Go Fishing and Surf City Snack Bar LLC Let's Go Fishing and Surf City Snack Bar LLC is a sole member LLC owned by Marian Johnson. This entity is the existing & original operator of the site since 2009. With humble beginnings in 1992, this small business began selling bait and tackle out of a small portable trailer on the pier and operated out of many temporary structures for the first 17 years until working with the City to secure its current concession location on the pier. Let's Go Fishing currently offers pre-packages foods, ice cream, chips and other beach related merchandise in addition to bait & tackle. The proposal submitted includes a desire to upgrade and remodel the inside and outside of the building. They would like to opportunity to sell hot foods like pizza, nachos, tacos and hot dogs. They would like to install soft serve ice cream and Icee dispensers as well as a coffee bar with pastries, bagels and muffins. The business also has plans to build upon its 30 years of pier fishing experience by expanding its pole rentals, develop & offer pier fishing classes and provide fishing-themed birthday parties and events as additional revenues streams. Proiected Improvement Budget. Timeline and Proforma • $28,500 total budget for improvements which includes $20,000 for remodeling inside & outside of building, $3,000 for ready-to-eat food station and $5,500 for coffee & baked goods station. • 12-17 week estimated timeline to complete the project including design & city approval, contractor/vendor selection & purchasing and remodeling & installation. • $435,000-$635,000 in annual sales projected for the first 3 years based on 100-110 sales per day at an average of S12-16/sale and assuming 15% growth per year. Proforma expenses/costs were not provided. • The proposed project and improvements presented do not appear to substantially change the products & services currently offered by the business and its existing annual revenues. Strengths • 29 years of operating history & experience of the principle • Profitable operating history with pre-pandemic gross sales of more than half a million dollars annually in 2018 & 2019 and net profit margins of 13-20%. During the pandemic, sales were down 29% but the business remained profitable with a 27% net profit margin. Net profit margins of the business adjusted for the owner's salary draw range from 4-7% based on 2018-2020 tax returns and an assumed annual salary ranging from S50,000-$80,000. • Track record of on-time lease payments for the past 12 years. 2018 & 2019 tax returns reflect lease payments in excess of $50,000 annually. 414 • Sales through June 2411, 2021, confirmed per sales reports submitted, demonstrate that the business has rebounded to pre-pandemic levels for April thru June. • Bank statements submitted as of 6/25/21 indicate balances in the business checking & savings accounts well in excess of the total project costs in the proposal as well as zero balance due on the business credit cards indicating low existing leverage. • A personal financial statement was not submitted but the owner indicates her personal net worth is above $1 million. Weaknesses: • Lack of current financial information: 2021 year-to-date income statement and balance sheet were not submitted. Although sales reports for January to June 24, 2021 were submitted. • Lack of sophistication in the financial reporting & accounting systems in the submittal indicate a lower of level competency for substantially scaling up the business beyond current levels and the principle's ability to successfully execute a project of a larger size. • Lack of details around the extent of the upgrades & remodeling proposed make it unclear whether operations would remain continuous during the process or if the business would need to close for a period of time. Armijo Enterprises Armijo Enterprises operates specialty retail locations as a sole proprietorship owned by husband & wife Tony and Candy Armijo. Surf City Henna, Toe Rings and Caricatures is a retail cart business on Main Street, Huntington Beach (near the Pier and PCH). The current location is near the recently closed Subway sandwich shop on PCH next to Main Street. They currently offer caricatures, temporary body art, toe rings and some tourist-oriented clothing. At various times in the past (during the off-season), they have also sold surf art, licensed Lifeguard apparel, candles, and cell phone cases. Shade Shack Sunglasses located in Balboa Fun Zone in Newport Beach is a small retail store space at this local tourist destination next to the waters of Newport Harbor. Other than sunglasses, they also carry Beach/Resort Fashion Jewelry, hats, reader glasses, and offer temporary body art services. "The concept for our proposal is very similar to the current use. The main difference is that we can do it in a way which will be very pleasing to the City as well as to the public. We would like to operate a convenience or "general" store, bait & tackle, as well as other miscellaneous. We can provide a copy of the proposal which includes the concept details from the RFP that we participated in 2019 for the same property." Strengths • More than 10 years of operating history & experience of the principles • Existing operating history with pre-pandemic gross sales of less than 5100,000 annually in 2018 & 2019 and marginal net profits of 2%. • Track record of on-time lease payments. 2018 & 2019 tax returns reflect lease payments in range of 524,000-$31,000 annually. • Sales of less than $30,000 for Jan to Dec 2020 per a credit card sales report submitted. This may not be inclusive of all sales generated in 2020. • The owners submitted credit reports from Experian evidencing credit scores of 701-770 and personal debts at reasonable levels. 415 Weaknesses: • Lack of historical financial information: 2020 tax return has not yet been filed and verification of extension was submitted. However, the owner was not able to produce the 2020 income statement or balance sheet. Although a credit card sales report for 2020 was submitted. • Lack of current financial information: 2021 year-to-date income statement and balance sheet were not submitted. • Breakeven/marginal profitability of existing business operations. • The proposed project and improvements presented do not appear to substantially change the products & services currently offered by the existing tenant who has demonstrated a more successful operating history than this respondent. • Lack of sophistication of financial reporting & accounting systems apparent in the submittal indicates a lower of level competency for a project of this type and questions the principal's capacity to successfully execute. Surf City Partners LLC Surf City Partners LLC consists of five members (bios submitted), all "OC/HB locals" that have lived and/or worked their entire adult lives in Orange County, mostly in Huntington Beach (133 years combined). Each partner brings a unique set of skills, who if selected, will collectively ensure this project receives the required approvals for permits and licensing, is reconstructed and opened in a timely manner and successfully operated for generations to come. - Design/Construction/Maintenance — Jeff Bergsma - Government Approvals — Keith Bohr - Restaurant Food & Beverage/Operational Systems — Paul Motenko - Restaurant Systems/Recruitment/Training - Sharon and Adam Go Proposed New Use — Huntington's Restaurant It is with the vision of reimagining this world-famous, historic-landmark pier location once again recapturing the feel of an instant classic "locals" venue (i.e. Neptune's Locker) to be enjoyed year-round by HB locals and visitors alike in mind that locally based Surf City Partners, LLC (SCP), developed a "visitor-serving commercial" restaurant proposal for the city's consideration. SCP's proposal outlines a comprehensive plan to process all of the required approvals to remodel, manage and operate Huntington's as a "locals" eatery that would provide high quality comfort food, tasty beverages (fine wines, locally craft beers and libations), outdoor dining, outstanding views and occasional live unplugged music. In addition to providing all of that in a great ambiance, the major focus of Huntington's will be to create the best, friendly and FUN customer service in So Cal Huntington's as envisioned will quickly become an "iconic" HB hotspot and the preferred place to celebrate special occasions. Huntington's "brand" will be both retro and authentically HB. Proposal also includes two mobile retail carts, one of which will open early to service fishing enthusiasts with fishing pole rentals and the sale of bait & tackle, coffee, hot chocolate and bottled water. Project Funding The budget to cover all expenses; permits/licenses, design/construction, furnishings/fixtures & equipment and one year of operational expenses is conservatively estimated at $750,000. SCP has secured a $1 million loan commitment from longtime HB property owner Gary Daichendt, as evidenced by a letter of financial commitment and term sheet from Theory R Properties LLC as the private lender. The term sheet outlines a preliminary approval of a line of credit up to $1 million with a 10-year term at 416 5% interest rate with no pre-payment penalty and an estimated monthly repayment of $8,4000. The proposed security for the line of credit is a first lien on business assets funded by the proceeds (FF&E) and a right to assume the leasehold position. Projected Improvement Budget, Timeline and Proforma • 5532,000 projected budget for improvements which includes $387,000 in construction costs, S100,000 for furniture, fixtures & equipment and $45,000 in general conditions/contingency. Total project timeline is estimated at 7 months with a grand opening in month 8, this includes 4 months for the permit approval process and about 3 months for construction. Their biggest goal is to be open in time to catch most or all of summer 2022. • Sales projection for year one is $1.5 million, with an increase of 66% in year 2 to $2.5MM and another increase of 10% in year 3 for a total of $2.75 million. • S2.5MM in sales projected for year 2, with an average check of $22.62, 90-minute table turns, open for breakfast, lunch and dinner, with a total occupancy of 130 patrons (49 inside seats & 81 patio seats) based on 340 days per year. • 28% COGS expenses • 32% Payroll related expenses • 32% other SGA expenses • 5-8% net profit margin • Their analysis accounted for a base rent figure of S180,000 annually which calculates to 7% of sales based on the S2.5MM year 2 revenue assumption. Strengths • Extensive hospitality & franchise experience of the principles • Company principal Paul Motenko, co-founder of both Stacked Restaurants LLC and BJ's Restaurants, Inc., has substantial personal assets to contribute to the project as evidenced by a personal financial statement as of 7/16/21 submitted indicating balances well in excess of the total project costs in the proposal. • Business tax returns submitted for Team Design and Construction Inc. by company principal Jeff Bergsma indicate the financial capacity and experience needed to complete the proposed construction. Additionally, Mr. Bergsma and his team have designed & built more than 15 restaurants in downtown Huntington Beach alone. • Formal written commitment & term sheet from Theory R Properties Inc. to finance up to a $1 million line of credit to Surf City Partners LLC. • Sophistication of the submittal indicates a high of level competency for a project of this type & size and the principals' ability to successfully execute. Weaknesses: • Start-up nature of business operations • Lack of historical & current financial information due to the fact that Surf City Partners LLC was formed in 2019 specifically for this project and therefore does not have three years of audited financial information, nor does it have filed tax returns as requested. • Lack of operations during the construction/redevelopment phase of the proposal due to the assumed entitlement requirements of a Coastal Development Permit from the Coastal Commission. • Proposed debt service on project financing is relatively high. However, the terms are yet to be finalized & subject to further negotiation. 417 • Based on the proposal schematic submitted, entitlement eligibility for the designed use is unclear and may need to be significantly revised & scaled back in order to meet code requirements and attain permit approvals. • Proforma sales revenues & growth assumptions submitted are aggressive and may not be attainable depending on final design and the allowable occupancy level. References - MM = millions - FF&E = Furniture, fixtures & equipment - COGS = Cost of Goods Sold - SGA = Sales, General Operating and Administrative (expenses) Topics for Consideration NDC's review, while preliminary, has raised the following topics which the City may want to discuss with the Economic Development Committee to inform their decision-making. 1. Next steps and process: Presentation to EDC at August 111h meeting, interview applicants, City Council recommendation and presentation, lease negotiation, discussion of entitlement process including intensification of use code requirements, Coastal Commission approval and/or city permit process & timeline. 2. Lease Terms: Long term vs. short term, renewal/extension options, guarantee requirement, base or fixed lease rate and/or percentage rent, annual increases, assignment, etc. 418 Moore, Tania From: Frakes, Sandie Sent: Thursday, September 2, 2021 2:14 PM To: Agenda Alerts Cc: Fikes, Cathy Subject: FW: Pier businesses From:Janet Bean<janetbeandesigns@gmail.com> Sent:Thursday, September 2, 2021 1:32 PM To: CITY COUNCIL<city.council@surfcity-hb.org>; Chi,Oliver<oliver.chi@surfcity-hb.org> Subject: Pier businesses It is a sad day in our city when the leaders choose a big corporation that serves lousy food, that walked away from HB over a Mom and Pop business that has stuck it out with the city thru thick and thin. Oliver and the council, this is how you repay a longtime Mom and Pop. This furthers the proof that you have no concern about small businesses. 1 want a response as to why you are choosing a large corporation and pushing Mom and Pop to the curb. Small business owners need to know! Another disgusting act from a failed city council and city manager. This recall cannot happen soon enough. If Robin did not intentionally interfere with the process, we would be further along. The corruption between the manager and council is astounding. A citizen who is sick and tired of you not serving those you were elected to. Janet Bean SUPPLEMENTAL COMMUNICATION Welling Dft:_ Afl.rnt.bm tom.• Moore, Tania From: Frakes, Sandie Sent: Friday, September 3, 2021 8:48 AM To: Agenda Alerts Cc: Fikes, Cathy Subject FW: Ruby's! Importance: High From: Gary Tarkington <garytarkington@msn.com> Sent: Friday, September 3,2021 8:31 AM To: CITY COUNCIL<city.council@surfcity-hb.org>; Chi, Oliver<oliver.chi@surfcity-hb.org> Subject: Ruby's! Importance: High This just sucks! Chi you need to go! This is so wrong, and wasn't choosing the correct business supposed to happen on September 7, 2021??What about the mom-and-pop shop "Bait and Convenience Shop", there has been there since 1992? Ruby's left in February, and we don't need them back. They didn't get the business they needed and they won't now! No one, except for maybe tourists during the summer, is going to eat there. Leave the deserving business alone. They have EARNED the right to be there! Ann Tarkington Huntington Beach SUPPLEMENTAL COMMUNICATION Mselkg Deb:_ Agen is bm Nw-� • I IUI IUI Ili. LUI IUU . . . r-.a Agreement between the City of Huntington Beach and Huntington Gateway Industrial, LLC to Provide Installation and Maintenance of Landscaping and Landscaping Improvements in the Public Right-of-Way" for the Huntington Gateway Phase I industrial project (Attachment 11 21-645 Approve and authorize execution of Amendment No. 1 to e Professional Services Contract with Go Live Technology nc., in the amount of $85,000, for project management and techni I staffing services for the City of Huntington Beach's Enterpri and Management (ELM) Project Recommended Action: Approve t Clerk l xecute "Am ment No 1 to Pro tonal Services Contract ve chnology, Inc for Technical Staffing Services t City of nbn ch's Land Management IELM) Project 21-653 Authorize and direct the City Manager to execute an Exclusive Negotiating Agreement (ENA) with Ruby's Hospitality Group, LLC for 21 Main Street at the Huntington Beach Pier Recommended Action: Authorize and direct the City Manager to execute an Exclusive Negotiating Agreement (ENA) with Ruby s Hospitality Group. LLC, in a form approved by the City Attorney to 1111%egotiate the terms of a lease agreement for 21 Main Street ILIC H 21 -633 Memo cancelling advertised Public Hearing Item 21-633 authorizing City staff to apply for the Orange County Enhanced Mobility for Seniors and Disable Grant Program (EMSD) AINISTRATIVE ITEMS 21 -588 American Rescue Plan Act (ARPA) Spending Plan Review and Moore, Tania From: Dan s <danuc1eus02@gmai1.com> Sent: Friday, September 3, 2021 11:34 AM To: supplementalcomm@surfcity-hb.org Subject: HB Pier fishing baitshop NO RUBY's takeout! Hello. I am a long time resident and I speak for many and all the residents I have spoken to about this. We do not want Ruby's takeout with no seating; which will generate so much trash. Not to mention adding to the trash going over the side of the pier into the surf that is so important to us and to the pride of being called a surf city. Our beach lifestyle is about connecting with the ocean, including seeing all types of marine life we experience through fishing. These intrinsic things are valuable to those of us who live here and love the land and water. We live here and love the community that supports a 75 year old entrepreneur who is a part of those who live here. You would have to be a sociopath to take her business away in the name of more cold soulless cash. We support keeping the long time bait shop. Fishing is also one of the last connections we have to nature in HB as we have lost so much coastal sage brush open space and only have like two natural ecosystem habitats left. Go HB, Dan SUPPLEMENTAL COMMUNICATION Dom: Agwn Ibm No.- / 53 Moore, Tania From: Fikes, Cathy Sent: Monday, September 6, 2021 8:28 PM To: Agenda Alerts Cc: Frakes, Sandie Subject: FW: a30 on the Agenda From: David Lewis<IewO6@aol.com> Sent: Saturday, September 4, 2021 4:15 PM To: CITY COUNCIL<city.council@surfcity-hb.org> Subject: #30 on the Agenda Mayor and City Council. I have reviewed your Agenda Item No. 30 staff report for the pier concession, and sorry staff, but we do not need another version of the now Nevada-based Ruby s chain on our pier! Who's going to want to walk all of the way out there for 'take out' only? Where do you sit and eat your food? Who picks up all of the Ruby's litter that will be blowing around? I envision dried spilt milkshakes all over that part of the pier, how does that get cleaned up without washing it directly into the ocean? Bad choice. . as is the poorly run bait shop that's been around for too long. That leaves the cool-looking place to watch the surfers and the sunsets, proposed to be called Huntington s. Count me in to be a regular. And it going to be run by locals. what are you council folks always saying about maintaining 'local control"? I hope you agree. Thank you. Lew 6672 Sun Drive Huntington Beach SUPPLEMENTAL COMMUNICATION Mesdrq Dab:_ AgwWo bm Ni O 53 Moore, Tania From: Fikes, Cathy Sent: Monday, September 6, 2021 8:43 PM To: Agenda Alerts Cc: FrdkeS, Sandie Subject: 121 Main Street From: Kendelyn Michaels<kendelyn@gmail.com> Sent: Sunday, September 5, 2021 9:30 AM To: CITY COUNCIL<city.council@surfcity-hb.org> Subject: 21 Main Street Mayor Carr, Mayor Pro-Tem Delgle¢e, and Council Members. I read the staff report regarding 21 Main Street and I respectfully disagree with staff on its recommended action As one of the "most recognized landmarks on the west coast". it seems that a location on the Huntington Beach Pier deserves something new and distinctive It should also accentuate everything positive and unique about the location Huntington's. being described as a new "locals" eatery, would allow people a place surrounded by all of the natural beauty associated with being out over the water on the pier. as well as optimizing amazing views of both the surfers and the gorgeous sunsets Ruby's Diner was a charming restaurant at the end of the pier but it seems a smaller"adapted" version of it with just a walk-up window, would lose the original appeal associated with the brand It may simply look like a reduced version of a failed venture And then, with burgers and shakes"to go". what happens to all of those wrappers and disposable cups as people try to discard them outside on the windy pier? Personally. I would rather walk the pier to go to Huntington's It sounds like a great destination to meet friends. and to take family from out-of-town to show off everything I love about living in HB Respectfully, Kendelyn Michaels (11-year resident) SUPPLEMENTAL COMMUNICATION Medklp Deli: _ J ? Agenda f m No.: 3D t Moore, Tania From: Fikes, Cathy Sent: Monday, September 6, 2021 8:43 PM To: Agenda Alerts Cc: Frakes, Sandie Subject: FW: Regarding agenda Item 30 - 21 Main St. on the HB pier From: Mike Markette <mike@markette.com> Sent: Sunday, September 5, 2021 10:54 AM To: CITY COUNCIL <city.council@surfcity-hb.org> Subject: Regarding agenda Item 30 - 21 Main St. on the HB pier Dear Mayor Carr& City Council, Regarding agenda Item 30- 21 Main St. on the HB pier I moved to Huntington Beach in 1994 and serve today as an concessionaire consultant to great US airports like SFO. I encourage you to adopt strong guidelines to make the heart of our city and our neighbors successful. Regarding the Main Street pier, I suggest Local Huntington Beach ownership, preferably owners with a long HB history who are great at engaging all guests,young old, or canine. Lively and eye pleasing environment, pleasing visitors even if they do not enter the store. Healthy choices and options for everyone, be it retail or food and beverage Huntington's must be the leader for all of the above plus Huntington's will crush a criteria not mentioned- maximized revenue for the city. The bait shop is tired and dated. Lets have the money our neighbors and visitors spend stay in HB Thank you. Michael Markette 714-844-5467 SUPPLEMENTAL COMMUNICATION Meetlrtq De1e:� Aga ds twn No; D CaI t Moore, Tania From: Fikes, Cathy Sent: Monday, September 6, 2021 8:44 PM To: Agenda Alerts Cc: Frakes, Sandie Subject: FW: City agenda Item #30 From: RICK REZA<rickreza@yahoo.com> Sent: Sunday, September 5, 2021 11:04 AM To: CITY COUNCIL<city.council@surfcity-hb.org> Subject: City agenda Item #30 Mayor and City Council. I have reviewed your Agenda Item No 30 staff report for the pier concession and am surprised at the staff recommendation for a Take Out only concept that far out on the pier And its another version of the bankrupted Ruby no less It seems the new owners based in Las Vegas bought the brand for franchising purposes Our landmark HB Pier deserves better than another chain franchise Who's going to want to walk all of the way out there for"take out only? Where do you sit and eat? I can envision lots of Ruby s wrappers blowing into our ocean Such a poor choice' The Lets Go Fishing bait shop that has been there forever. operated by a family out of Los Angeles has terrible product offerings not even a cup of coffee When I walk the pier around 9 30am. they are still not even open Fishing begins when the pier opens at 5amf That leaves Huntington a very cool looking place to watch the surfers and the sunsets' Oh and its going to be run by HB locals now were talking' Oh and Huntington s will generate twice the rent of Ruby and quadruple that of bait shop. this seems like an obvious choice I hope you all agree' Thank you for your consideration Longtime HB Resident and Longtime HB Business Owner Rick Reza Huntington Beach Capital Partners, Inc. Rick Reza / President SUPPLEMENTAL 5048 Edinger Ave COMMUNICATION Huntington Beach, CA 92649 Phone (714) 713-8618 Fax (714) 707-4750 meetlrq Data rickreza,d�yahoo.com 7 DRE. 00970335 NMLS. 273226 CO. NM 1375930 3o This message may contain PRIVILEGED AND CONFIDENTIAL INFORMATI a 4V$h a addressee named above only The information contained in this transmission is confidential This e-mail is covered by the 1 Electronic Communications Privacy Act 18 U S C 2510-2521 and is only intended for the use of the intended recipient Any use, review, retransmission dissemination, copying or other use of, or taking of any action in reliance upon this information by persons or entities other than the intended recipient is prohibited If you have received this communication in error, please do not read copy or disseminate it in any manner If you have received this transmission in error please immediately notify us by return e-mail by fax to (714) 707-4750 or by phone to (714) 841-8218 2 Moore, Tania From: Fikes, Cathy Sent: Monday, September 6, 2021 8:45 PM To: Agenda Alerts Cc: Frakes, Sandie Subject: FW: Support for Let's Go Fishing From: Brian Olson <williambrianolson@yahoo.com> Sent: Sunday,September 5, 20214:36 PM To:CITY COUNCIL<city.council@surfcity-hb.org> Subject:Support for Let's Go Fishing Dear Mayor Carr & City Councilmembers, I am expressing strong support for the Let's Go Fishing project (agenda item 30). As a longtime resident of Huntington Beach. I have many fond memories of going to Neptune's Locker on the pier and having lunch. To this day I remember drinking beers in mason jars. I am hoping you will select the Huntington's proposal which would bring back the feel of a -locals-joint over that of another chain/franchise takeout only concept. Sincerely, William Olson SUPPLEMENTAL COMMUNICATION IAeetirq oats:_ Agende%M t Moore, Tania From: Frakes, Sandie Sent: Tuesday, September 7, 2021 7:48 AM To: Agenda Alerts Cc: Fikes, Cathy Subject: FW:Agenda Tuesday Sept 7th From: Eric Stein<ericstein425@gmail.com> Sent: Monday,September 6, 2021 6:19 AM To: CITY COUNCIL<city.council@surfcity-hb.org> Subject: Agenda Tuesday Sept 7th First, thank you City Council for the work you do. 1 am sure you don't hear that enough. Comment on: 21-637 21 Main Street RFQ - Pier Concession Opportunity I'd love to see any products sold come from our local community (meaning made here), and/or any food be health-promoting, meaning absent of preservatives or unnatural ingredients(species-specific foods). THANK YOU! Eric Stein SUPPLEMENTAL COMMUNICATION Mm*V Dells: Agenda ram No• .� l t Moore, Tania From: Frakes, Sandie Sent: Tuesday, September 7, 2021 7:48 AM To: Agenda Alerts Cc: Fikes, Cathy Subject: FW: HB Pier Concession From:Justin Case<casejustin589@yahoo.com> SUPPLEMENTAL Sent: Monday,September 6, 20218:03 AM COMMUNICATION To:CITY COUNCIL<city.council@surfcity-hb.org> Subject: HB Pier Concession McWV Deft:__ Dear Mayor Carr, Mayor Pro Tern Delgleize& City Council-members, AGWAS Ntim ND- I was surprised to read the staff recommendation in its report for Agenda Item 30. Choice 1 - Let's Go Fishing& Surf City Snack Bar, LLC Current El Monte based Bait Shop operator that proposes to do a $28k remodel and pay annual rent of approximately S50k-S60k. No mention of adding indoor or outdoor seating. Choice 2 - Ruby's Hospitality Group, LLC consisting of 3 individuals that live in Las Vegas, NV. They acquired the master franchise rights to the Ruby's brand. $520k remodel and pay approximately $90k in annual rent. Reports says the concept will be "take out" only with a streamlined menu. No indoor dining and no mention of outdoor dining. Choice 3 - Surf City Partners, LLC Consists of 5 locally HB based partners, seemingly with lots of restaurant experience. $532k remodel, projected annual rent of$180k Concept includes "...high quality comfort food& beverages breakfast, lunch and dinner,outdoor dining, surf line views, occasional live music..." "Additionally there would be two mobile retail carts for fishing pole rentals, the sale of bait and tackle and the sale of coffee, hot chocolate and bottled water." So staff is recommending the new Las Vegas owners of Ruby's brand to put in a"take out" only franchise with no seating in or out with city rent revenue of only $90k annually? Rather than the locally based Surf City Partners that are proposing to provide 3 meals a day, seating indoors and out, live entertainment, still service the fishing enthusiasts via a cart and double the rent at SI80k? Unless I'm truly missing something here, the best choice for HB seems to clearly be Surf City Partners, LLC. I hope you all as the ultimate decision makers agree! Thank you! Longtime HB Resident t Joshua Case This message may contain PRIVILEGED AND CONFIDENTIAL INFORMATION and is intended only for use by the addressee named above only. The information contained in this transmission is confidential. This e-mail is covered by the Electronic Communications Privacy Act, 18 U.S.C. 2510- 2521 and is only intended for the use of the intended recipient. Any use, review, retransmission, dissemination, copying or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you have received this communication in error, please do not read, copy or disseminate it in any manner. If you have received this transmission in error, please return immediately notify us by return e-mail. 2 Switzer, Donna From: Frakes, Sandie Sent: Monday, September 13, 2021 7:38 AM To: Agenda Alerts Cc: Fikes, Cathy Subject: FW: Bar on pier From: pcbaird@verizon.net <pcbaird@verizon.net> Sent:Saturday, September 11, 2021 9:57 PM To:CITY COUNCIL<city.council@surfcity-hb.org> Subject: Bar on pier Yeah, another bar downtown,just what we need! You folks just keep pushing families out of our own downtown and off to family friendly areas like Seal Beach. Our town just keeps getting less family friendh, and now the pier will be pretty much adult oriented with the loss of Ruby's and the addition of a bar. Thanks for nothing. Paula Baird Sent from the all new AOL apt) for Android t Moore, Tania From: Frakes, Sandie Sent: Tuesday, September 7, 2021 3:50 PM To: supplementalcomm@surfcity-hb.org Cc: Fikes, Cathy Subject: FW: Agenda Item 30 From: Dianne Thompson <dianne.thompson.jxe2@statefarm.com> Sent:Tuesday, September 7, 2021 3:39 PM To: CITY COUNCIL<city.council@surfcity-hb.org> Subject: Agenda Item 30 Mayor Carr and fellow Council Members, I respectfully request you to vote to postpone this item until such time as a review of all the opportunities for this location have been considered. I know that there will be some information shared during the Study Session today but I don't feel that is sufficient time to allow all questions to be considered and answered. I am uncertain as to why we are considering a restaurant that already had to close its doors without looking at other options. It's my understanding that there is an alternative that would provide a unique option that harkens back to earlier days of Neptune's Locker. This is the kind of outside of the box thinking that many residents are looking for. An option that marries a nostalgic location with a modern twist. The sunsets, marriage proposals and other meaningful events will be captured and shared more times over than a take-out ice cream or burger. Please vote no or vote to postpone a decision on Item 30 until Huntington's On The Pier has an opportunity to share their complete vision and you can make a decision with ALL the options before you. Thank you, Dianne Thompson 7402 Yellowtail Dr#102 Huntington Beach, CA 92648 1