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Resolution approving a lease agreement with Aurelio Roman, doing business as, Angel Barber Shop, for the commercial space at 244 Grand Avenue.
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WHEREAS, in May 2024, the City of South San Francisco purchased three parcels of land: 226-230 Grand Avenue, 232-238 Grand Avenue, and 240-246 Grand Avenue, known as the Giffra properties, which added six (6) new commercial tenants to the City’s commercial portfolio; and
WHEREAS, following the City’s purchase, the commercial space located at 244 Grand Avenue became vacant after a neighboring tenant vacated the space previously used for storage, and has remained vacant since; and
WHEREAS, although the City did not formally market the space, staff received multiple unsolicited inquiries regarding available storefronts along Grand Avenue and provided access to prospective tenants, resulting in three viable proposals for the vacant commercial spaces at 244 and 246 Grand Avenue; and
WHEREAS, following evaluation of the proposals, staff identified Aurelio Roman, d.b.a. Angel Barber Shop (“Tenant”), as a qualified applicant interested in leasing the commercial space located at 244 Grand Avenue as part of an expansion of an existing locally owned business; and
WHEREAS, the Tenant proposes to lease the 340-square foot commercial space at 244 Grand Avenue for use as a barber shop for a term of six (6) years at a monthly base rent of $816.00, or $2.40 per square foot, consistent with current market-rate retail lease conditions along Grand Avenue; and
WHEREAS, the Tenant has requested a tenant improvement (“TI”) credit of approximately $48,600.00 for 244 Grand Avenue, representing a proportional allocation of a broader $124,000.00 TI credit associated with improvements across both 244 and 246 Grand Avenue, which will be provided as a rent credit following a three (3)-month rent abatement period upon submission of a building permit application; and
WHEREAS, staff utilized CoStar, a commercial real estate database, to confirm that the proposed rental rate is consistent with current market-rate retail lease conditions along Grand Avenue; and
WHEREAS, the proposed lease supports the continued activation of vacant storefronts, the expansion of a locally owned small business, and the City’s broader economic development objectives within the Giffra property acquisition area; and
WHEREAS, the proposed lease is expected to generate approximately $12,290.67 in net revenue over the six-year term for 244 Grand Avenue after accounting for the three-month rent abatement of $2,448.00, and the tenant improvement credit of approximately $48,600.00, while also providing long-term value through permanent improvements to the property.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco does hereby authorize the City Manager or their authorized designee to execute a lease agreement with Aurelio Roman, d.b.a. Angel Barber Shop, for the commercial space located at 244 Grand Avenue, consistent with the terms described herein, attached hereto and incorporated herein as Exhibit A.
BE IT FURTHER RESOLVED that the City Council authorizes the City Manager or their authorized designee to take further action consistent with the intent of this Resolution, including, but not limited to, approval of any edits to the draft lease which do not materially increase the City’s obligations, subject to approval as to form by the City Attorney.
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