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4 <br /> THE CITY OF <br /> °--' CITY COUNCIL AGENDA REPORT <br /> PLEASANTON. <br /> October 20, 2020 <br /> Economic Development <br /> TITLE: APPROVE TEMPORARY DEFERRAL OF RENT PAYMENTS FOR ONE <br /> YEAR FOR PLEASANTON DOWNTOWN ASSOCIATION'S USE OF <br /> CITY PROPERTY AT 333 DIVISION STREET <br /> SUMMARY <br /> As a result of COVID-19 restrictions, particularly the Alameda County Public Health <br /> Officer's Shelter in Place Order, the Pleasanton Downtown Association (PDA) cancelled <br /> most of its planned revenue-generating events for 2020. This severely reduced revenue <br /> has created financial hardship for the PDA, particularly as it has decreased PDA's ability <br /> to effectively promote the downtown per an agreement with the City. PDA has <br /> requested consideration of a temporary deferral of rent payments so that limited <br /> incoming revenues can be directed to marketing the downtown and supporting <br /> businesses. <br /> RECOMMENDATION <br /> Staff recommends the City Council approve a temporary deferral of rent payments for <br /> one year for the Pleasanton Downton Association's use of the City-owned building at <br /> 333 Division Street in downtown Pleasanton. <br /> FINANCIAL STATEMENT <br /> As defined in the use agreement for 333 Division Street executed in November 2018, <br /> the PDA paid the City a monthly rent of $974 through December 31, 2019. In 2020, and <br /> each calendar year thereafter, the monthly rent is adjusted by the annual Consumer <br /> Price Index; as of March 2020, the current monthly rent is $996. With this deferral, the <br /> City will not receive rent of$11,952 over the twelve months from November 2020 — <br /> October 2021; beginning in November 2021 the deferred rent will be repaid over a 36- <br /> month amortization period at 0% interest, in monthly payments of $332 in addition to the <br /> regular monthly rent payment. <br />