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Resolution approving a sublease agreement with Christopher Nguyen, d.b.a Six Bicycles, for the commercial space at 634 El Camino Real.
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WHEREAS, on February 12, 2025, City Council held a study session on the proposed Vacant Retail Activation Pilot Program (“Program”) designed to reduce vacant storefronts and support first-time brick-and-mortar small businesses; and
WHEREAS, the Program was subsequently named Launch Local! and, on March 26, 2025, Council approved Program Guidelines establishing terms for short-term, below-market commercial leases in City-controlled spaces to activate vacant storefronts and strengthen small business development; and
WHEREAS, key elements of the Launch Local! Program include offering $1.00 per square foot triple net (NNN) leases, a $2.00 per square foot security deposit, a Tenant Improvement (TI) allowance of up to $10,000 as a rent credit, and prioritization of first-time, for-profit brick-and-mortar businesses, with an emphasis on local entrepreneurs and clients of the Renaissance Entrepreneurship Center at the Economic Advancement Center (EAC); and
WHEREAS, following Council direction, staff issued a Request for Interest (RFI) on April 1, 2025, for the vacant City-owned commercial space located at 634 El Camino Real, with proposals due May 30, 2025; and
WHEREAS, the RFI was promoted through the City’s website, social media, and the Chamber of Commerce, and four informational sessions were hosted - two on-site at 634 El Camino Real and two virtually via Zoom - with materials provided in English and Spanish and other languages available upon request to ensure accessibility; and
WHEREAS, six applications were received and reviewed for eligibility and alignment with Launch Local! Program goals, with Six Bicycles and YSIPIX Photography identified as the strongest finalists based on concept strength, readiness, and activation potential; and
WHEREAS, following interviews and evaluation, staff determined that Six Bicycles, owned by Christopher Nguyen, best aligns with the Launch Local! Program objectives by filling a service gap in South San Francisco, supporting multimodal transportation goals, and providing community benefit through bicycle repair, education, and engagement programs; and
WHEREAS, the proposed lease terms for Six Bicycles include a 12-month sublease for 1,600 square feet at $1.00 per square foot per month ($1,600/month) under a triple net (NNN) lease, with a $3,200 security deposit, consistent with the Launch Local! Program Guidelines; and
WHEREAS, the sublease will include eligibility for a Tenant Improvement (TI) allowance of up to $10,000, to be provided as a rent credit, with staff authorized to determine the final TI credit amount based on verified bids and eligible improvements; and
WHEREAS, Six Bicycles is anticipated to receive keys by the end of calendar year 2025, commence tenant improvements immediately thereafter, and hold a grand opening in Spring 2026; and
WHEREAS, at the conclusion of the initial 12-month lease term, staff will evaluate the business’s performance and program outcomes and return to the City Council with recommendations regarding renewal, rent adjustments, or program expansion; and
WHEREAS, the sublease will generate approximately $19,200 in rental revenue over the 12-month term, with a Tenant Improvement (TI) allowance of up to $10,000 to be provided as a rent credit upon completion and verification of eligible improvements, and with minor maintenance costs funded through existing reserve funds collected from previous lease revenues for the property, resulting in no additional General Fund impact.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco does hereby authorize the City Manager to execute a 12-month sublease agreement with Christopher Nguyen, d.b.a. Six Bicycles, for the commercial space located at 634 El Camino Real, based on Launch Local! lease terms consistent with the previously approved Program Guidelines, and any extensions provided for in said sublease agreement, attached hereto and incorporated herein as Exhibit A.
BE IT FURTHER RESOLVED that the City Council authorizes the City Manager to take further action consistent with the intent of this Resolution, including, but not limited to, approval of any edits to the draft sublease which do not materially increase the City’s obligations, subject to approval as to form by the City Attorney, and authorizes staff to determine the final Tenant Improvement (TI) rent credit amount, not to exceed $10,000, in accordance with the Launch Local! Program Guidelines.
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