Title
Resolution Authorizing the Execution of a Lease Between the City of Hampton and Mutzy, Inc. for Approximately 1,513 sq. ft. of Space in the Woodlands Clubhouse at the Woodlands Golf Course, 9 Woodland Road
Purpose
Purpose/Background:
The City of Hampton is the owner of the Woodlands Golf Course. The restaurant at the Woodlands has experienced high turnover in vendors providing restaurant services and concessions to the Woodlands. In an effort to have an experienced and successful vendor to service the Woodlands, Parks Recreation, and Leisure Services issued Request for Proposal (“RFP”) 17-30/E through Consolidated Procurement, to find a tenant to provide restaurant services and concessions at the Woodlands Golf Course. Mutzy, Inc. (“Mutzy”) was the successful respondent.
Mutzy also owns and operates Crabtown Bar and Grill in Hampton. Mutzy will provide breakfast, lunch, and snack services, including on-course and off-course concessions as well as catering to support the needs of the Woodlands Golf Course. Mutzy differs from prior vendors that have served the Woodlands Golf Course as it has an already established restaurant and experience in providing restaurant services to the citizens of the City of Hampton.
The attached Lease has a one year term with four, one-year renewals. Rent under the Lease for the renewal terms will be $6,000.00 annually payable in equal monthly installments of $500.00. The Tenant is not required to pay rent to the City for the Initial Term under the Lease to allow the Tenant to establish a successful operation at the Woodlands, especially in light of the recent departure of the prior vendor and lack of services for the past few months. Additionally, a Commission on gross sales will be remitted to the City during all terms of the Lease based upon the following schedule:
•$0-$49,999 = 0% gross revenue
•$50,000-$99,999 = 1% gross revenue
•$100,000-$199,999 = 2% gross revenue
•$200,000-$299,999 = 3% gross revenue
•$300,000 + = 4% gross revenue
Discussion:
See Purpose/Background above.
Impact:
See Purpose/Background above.
Recommendation:
Rec
Conduct a public hearing and approve the Resolution.
Body
WHEREAS, the City issued a Request for Proposal RFP 17-30/E (the “RFP”) seeking bids for tenants to provide food services in the restaurant and concession areas at the Woodlands Golf Course Clubhouse (the “Woodlands Clubhouse”);
WHEREAS, Mutzy, Inc. was the successful respondent to the City’s RFP, and has proposed to lease approximately 1,513 square feet of space in the Woodlands Clubhouse for a restaurant and concession area for an initial term of one year with four additional one year renewal terms; and
WHEREAS, the Council has determined that the terms and conditions of the proposed lease agreement, and any revisions thereto subject to approval of the City Attorney, is acceptable.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Hampton, Virginia, as follows:
1. That it approves the leasing of approximately 1,513 sq. ft. of space in the Woodlands Clubhouse at the Woodlands Golf Course, 9 Woodland Road to Mutzy, Inc.; and
2. That the City Manager or her authorized designee is hereby authorized to execute and deliver to Mutzy, Inc. a lease in substantially the same form as hereto, subject to the approval of the City Attorney.