City of Alexandria, Virginia
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MEMORANDUM
DATE: DECEMBER 4, 2024
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: JEREMY MCPIKE, DIRECTOR, GENERAL SERVICES
DOCKET TITLE:
TITLE
Consideration of a License Agreement between the City of Alexandria and Mai Thai Restaurant for Use of a Portion of City-owned Property Located at 2 King Street for Outdoor Dining
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ISSUE: Consideration of a one-year license agreement between the City of Alexandria and Mai Thai Restaurant to use a portion of City-owned property located at 2 King Street for outdoor dining.
RECOMMENDATION: That City Council:
(1) Receive this report and set the License Agreement between the City and Mai Thai Restaurant to use a portion of City-owned property located at 2 King Street for public hearing on December 14, 2024, and after the public hearing approve the one (1) year License Agreement; and
(2) Authorize the City Manager to execute the one-year License Agreement with Mai Thai Restaurant.
BACKGROUND: At its Legislative Meeting on February 28, 2023, City Council authorized the City Manager to issue an RFP for the sale and redevelopment of an 1,825 square foot portion of City-owned property located at 2 King Street. The RFP was issued for a period of 90 days and at the submission deadline, two responses were received. Following the evaluation process, subsequent discussions were had with both the City Manager’s Office and members of the multi-agency Real Estate Committee regarding the disposition and redevelopment of this property. These discussions included the planned waterfront flood mitigation project, the desire to possibly retain ownership of the property, and possible other uses of the property. Based on the results of those discussions, the Real Estate Committee recommended that the City cancel the solicitation and retain ownership of the property until the conclusion of the planned waterfront flood mitigation project when the status of the property will be revisited.
With the cancellation of the RFP for the sale and redevelopment of 2 King Street and the construction related to the waterfront mitigation project scheduled to begin in fall 2025, staff determined and recommended that the best interim use of the site is for outdoor dining. This interim use would allow for the activation of the space; will provide the City with additional revenue; will reduce the City’s cost to maintain the space; and will provide flexibility on use of the site during the flood mitigation project.
DISCUSSION: The 1,825 square foot City-owned portion of 2 King Street was originally leased and served as eight (8) parking spaces for the businesses located in the Fitzgerald Warehouse complex prior to the closure of the unit block of King Street and the northern portion of Strand Street to vehicular traffic in May 2022. The month-to-month parking agreements, including an agreement with Mai Thai Restaurant for four (4) parking spaces, or 912 square feet, were terminated as of May 2022 to correspond with the closure of Strand Street to vehicular traffic.
Mai Thai Restaurant, located at 6 King Street, is the only restaurant at the Fitzgerald Warehouse that is directly adjacent to the City-owned portion of 2 King Street and has indicated interest in utilizing the previously leased parking spaces, or 912 square feet for outdoor dining. If approved, the License Agreement would provide Mai Thai with use of the space for a term of one-year to align with the scheduled start of the planned waterfront flood mitigation project in Fall 2025. In the event that the flood mitigation project does not start as planned, the license agreement would continue month-to-month until commencement of the flood mitigation project or the agreement is terminated. The annual license fee would be $9,940 for use of the space.
Due to the change in use from parking spaces to outdoor dining, this license agreement required approval from the Planning Commission to confirm consistency with the City’s Master Plan pursuant to Section 9.06 of the City’s charter. The Planning Commission will determine consistency with the City’s Master Plan at its meeting on December 3, 2024. Following City Council’s approval of the license agreement, Planning and Zoning will consider an administrative Special Use Permit for outdoor dining within 35 days after the applicant’s submission of a complete SUP application.
FISCAL IMPACT: The license fee for use of 912 square feet of City-owned property at 2 King Street for outdoor dining will be $9,940 per year.
ATTACHMENT: License Agreement Between the City of Alexandria and Mai Thai Restaurant.
STAFF:
Emily Baker, Deputy City Manager
Julian Gonsalves, Assistant Deputy City Manager
Bryan MacAvoy, Assistant City Attorney
Alfred Coleman, Deputy Director, General Services
Daniela Licata, Real Estate Specialist, General Services