To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT & ECONOMIC DEVELOPMENT DIRECTOR
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APPROVE A LEASE WITH HDOS (HOT DOG ON A STICK) ACQUISITION, LLC FOR THE PREMISES AT 206 FISHERMAN'S WHARF FOR THE TERM DECEMBER 3, 2024 TO DECEMBER 2, 2029
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2412-109, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, LEASING CERTAIN PROPERTY TO HDOS ACQUISITION, LLC
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EXECUTIVE SUMMARY
In 1995, the City of Redondo Beach (City) purchased the Fisherman's Wharf Leasehold which includes the 200 block of Fisherman's Wharf. The leasehold is comprised of several buildings that total approximately 13,000 square feet of leasable space. The space at 206 Fisherman's Wharf (Premises) is approximately 240 square feet in size.
The proposed lease with HDOS Acquisition, LLC (Hot Dog on a Stick) will allow for a 60-month term for the space and includes an option to terminate with a 12-month prior written notice. Rent to the City's Harbor Tidelands Fund for the lease is the minimum of $720, or 10% of gross sales, whichever is greater.
BACKGROUND
In 1995, the City purchased the Fisherman's Wharf Leasehold from the Redondo Horseshoe Pier Company containing the buildings from 200 to 250 Wharf on the Redondo Beach Pier. The approximately 13,000 square feet of leasable space is made up of retail, restaurant, and entertainment uses.
The location was previously occupied by Craig's Hot Dog on a Stick, an independent and locally operated business that was not affiliated with the national corporation also named Hot Dog on a Stick. Craig Reidt had successfully operated the business on a day-to-day basis for decades but recently retired and vacated the tenant space.
The City has negotiated a new lease with Hot Dog on a Stick, which is under the umbrella organization of FAT Brands, Inc., a leading global franchising company that strategically acquires, markets, and develops fast-casual, quick-service, cas...
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