07 - Laserfiche WebLink

THE CITY Of 7 _ CITY COUNCIL AGENDA REPORT PLEASANTON. October 19, 2021 Economic Development TITLE: APPROVE EXTENSION OF TEMPORARY DEFERRAL OF RENT PAYMENTS FOR PLEASANTON DOWNTOWN ASSOCIATION'S USE OF CITY PROPERTY AT 333 DIVISION STREET DUE TO FINANCIAL HARDSHIP FROM COVID-19 SUMMARY On October 20, 2020, the City Council approved a temporary deferral of rent payments for one year for the Pleasanton Downtown Association's use of the City -owned building at 333 Division Street in downtown Pleasanton. The temporary deferral was requested due to reduced revenue from temporary restrictions due to the COVID-19 pandemic. As restrictions extended through the first half of 2021 and concerns continued for COVID variants after the state reopened on June 15, the Pleasanton Downtown Association (PDA) cancelled most of its planned revenue -generating events for 2021. This reduced revenue has prolonged the financial hardship for the PDA and continues to severely limit PDA's ability to effectively promote the downtown per its agreement with the City. PDA has requested consideration for an extension of the temporary deferral of rent payments so that limited incoming revenues can be directed to marketing the downtown and supporting businesses. RECOMMENDATION Staff recommends the City Council approve an extension of the temporary deferral of rent payments for 14 months for the Pleasanton Downtown Association's use of the City -owned building at 333 Division Street in downtown Pleasanton. FINANCIAL STATEMENT As defined in the use agreement for 333 Division Street executed in November 2018, the PDA paid the City a monthly rent of $974 through December 31, 2019. In 2020, and each calendar year thereafter, the monthly rent is adjusted by the annual Consumer Price Index; as of March 2020, the monthly rent was $996. With an extension to the initially approved deferral, the City will not receive rent of $25,896 over the 26 months from November 2020 — December 2022; beginning in January 2023, the deferred rent will be repaid over a 72 -month amortization period at zero percent interest, in monthly payments of $359.67 in addition to the regular monthly rent payment.