DATE: October 6, 2020
TO: Mayor and City Council
FROM: Deputy City Manager
SUBJECT
Title
Adopt a Resolution Authorizing the City Manager to Negotiate and Execute a Letter Agreement with 1069 B Street, LLC to Defer Rent and Parking Maintenance Payments for Cinema Place
RECOMMENDATION
Recommendation
That Council, in its capacity as governing board of the Hayward Successor Agency, adopts a resolution (Attachment II) authorizing the City Manager to negotiate and execute a Letter Agreement with 1069 B Street, LLC that defers rent and parking maintenance payments for the Cinema Place parcels.
End
SUMMARY
The Hayward Successor Agency receives ground lease rent and parking maintenance fees from the tenant of Cinema Place, 1069 B Street. Due to the COVID-19 pandemic and shelter in place orders, the ten subtenants at Cinema Place, including the movie theater and several restaurants, have experienced a significant loss in revenue. 1069 B Street, LLC has requested rent deferral for the months of April through October 2020. They will pass along rent forgiveness or deferral benefits to their subtenants in an equal or greater amount than they are receiving from the Successor Agency. The rent will be paid back in 24 installments with no interest or late fees beginning January 2021. Staff is recommending that the Successor Agency accepts the proposal and adopts the attached resolution.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution