REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
August 6, 2019
FROM
BEAHTA R. DAVIS, Director, Regional Parks Department
SUBJECT
Title
Revenue Lease Agreement with Rebecca Daugherty and Tonya Edwards at Calico Ghost Town Regional Park to lease building #1 and operate Odessa Red’s Parlour Crafts and Curiosities concession
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RECOMMENDATION(S)
Recommendation
Approve Revenue Lease Agreement with Rebecca Daugherty and Tonya Edwards to operate Odessa Red’s Parlour Crafts and Curiosities at Calico Ghost Town Regional Park from August 6, 2019 until August 5, 2024, with one five-year option to extend the contract, in which the County will receive lease fees of no less than $24,000 over the Agreement’s initial five-year term.
(Presenter: Beahta R. Davis, Director, 387-2340)
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COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of this Revenue Lease Agreement (Agreement) will not result in the use of additional Discretionary General Funding (Net County Cost). Under this Agreement, Rebecca Daugherty and Tonya Edwards (Concessionaires) will pay the Regional Parks Department (Department) a minimum monthly fee of four hundred dollars ($400) or eight percent (8%) of gross income, whichever is greater for the term of this Agreement to lease building #1, previously known as Granny’s Calico Crafts, herein after to be known as Odessa Red’s Parlour Crafts and Curiosities (Concession) at Calico Ghost Town Regional Park (Park) from August 6, 2019 through August 5, 2024. Concessionaires will also pay 3.5% of their monthly gross income as an advertising fee for promotion of the Park. The Department will match their payment equal to a minimum of one and a half times the 3.5% collected.
The Concessionaires will also submit a $500 security deposit prior to the commencement of the Agreement to secure compliance with lease terms. Adequate appropriation and revenue has been included in the Department’s 2019-20 budget and will be included in subsequent recommended budgets throughout the life of the agreement.
BACKGROUND INFORMATION
The Department operates and maintains nine regional parks including Calico Ghost Town Regional Park, located in the City of Yermo, and provides for the rental of Park property through Board approved fees. The recommended Agreement between the Department and Concessionaires allows for a five year initial term commencing August 6, 2019.
Approval of this Agreement aligns with the County and Chief Executive Officer Goal and Objective to Operate in a Fiscally-Responsible and Business-Like Manner by allowing the Department to leverage its amenities and land to raise revenue to support park maintenance and development.
PROCUREMENT
The previous Lease Agreement for this building ended May 31, 2019. The Department ran an advertisement from March 9, 2019 through March 31, 2019 in the Desert Dispatch, Daily Press, Hesperia Star, and The Review newspapers notifying the public of the available concession opportunity in this building. Only one proposal was received from Rebecca Daugherty requesting the addition of Tonya Edwards to the Agreement as an equal partner. Since taking over the Concession in March, the Concessionaires have transformed the building into a Victorian inspired boutique. The Department has received nothing but positive feedback from Park guests and staff. The Department recommends approval of this Revenue Lease Agreement with Rebecca Daugherty and Tonya Edwards for the continued operation of this Concession under a new agreement.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Dawn Martin, Deputy County Counsel, 387-4322) on July 3, 2019; Finance (Elias Duenas, Administrative Analyst, 387-4052) on July 18, 2019; County Finance and Administration (Robert Saldana, Deputy Executive Officer, 387-5423) on July 22, 2019.