City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 8, 2013
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Public Hearing, Second Reading and Final Passage of an Ordinance Authorizing the City Manager to Execute a Three-Year License Agreement to Authorize the Waterfront Market, LLC to Utilize a Portion of the City Marina Plaza Right-of-way and to Implement the Agreement. [ROLL-CALL VOTE]
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ISSUE: Consideration of a license agreement with The Waterfront Market, LLC for the use of a portion of the City Marina Plaza for outdoor dining associated with SUP # 2013-0009 for a restaurant at 101 North Union Street.
RECOMMENDATION: That City Council:
Hold the public hearing and pass the ordinance authorizing the City Manager to execute the attached three-year license agreement with The Waterfront Market, LLC and take any other actions necessary to implement the agreement.
BACKGROUND: On May 7, 2013, the Planning Commission approved Special Use Permit number 2013-0009 authorizing The Waterfront Market, LLC to operate a restaurant in the building located at 101 North Union Street. The restaurant proposal includes an area for outdoor dining that would utilize a portion of the public right of way known as Torpedo Plaza and City Marina (Plaza). The attached license agreement Virginia State Code Section 15.2-2100 authorizes the City to enter into agreements for the use of public property for terms of 5 years or less without receiving bids for the property. when executed permits use of the Plaza.
The license agreement is based upon the standard provisions found in license agreements used by the City for use of other public properties. Included in this license agreement are the following terms and conditions:
- Limitation on assignment of the License;
- Limitation of the term of the agreement to three (3) years with subsequent right to negotiate the agreement for up to four (4) additional individual three (3) year terms.
- Authorization of the City Manager to analyze and review use of the Outdoor Dining Area by Licensee under terms of the Agreement and to determine if additional or modified terms of the Agreement are warranted, including but not limited to a recalculation of the annual fee;
- Authorization of the City Manager to terminate this Agreement at the end of any term if the City Manager determines the license agreement is no longer in the best interest of the public.
- Requirement that the Licensee maintain the outdoor dining area; and
- Requirement to remove all facilities upon termination of the agreement and restore the outdoor dining area to its current status.
FISCAL IMPACT: In addition to the more standard conditions, the license agreement includes a calculation for the annual license fee using a fair market value approach. The calculation is as follows: $203 S.F (Fair Market Value (license rate) of the adjacent underlying land at 107 North Union Street) x 815 S.F. (size of Outdoor Dining Area) x 7% (a factor representing a reasonable rate of return for a like commercial use consistent with commercial real estate standards) = $11,581 (year 1). This amount will increase by 3% annually to $11,929 (year 2) and $12,286 (year 3). Yearly revenue will accrue to account number 141010, City Marina.
ATTACHMENTS:
Attachment 1: Waterfront Market LLC License Agreement
Attachment 2: Exhibit A
Attachment 3: Waterfront Market LLC Proposed Ordinance
Attachment 4: Waterfront Market LLC Information on Proposed Ordinance
STAFF:
Mark Jinks, Deputy City Manager
Debra Collins, Deputy City Manager
James Spengler, Director, Recreation, Parks and Cultural Activities
Jack Browand, Division Chief, Recreation, Parks and Cultural Activities
Faroll Hamer, Director, Planning and Zoning
Joanna Anderson, Acting Deputy Director, Planning and Zoning
Christopher Spera, Deputy City Attorney
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