Staff Report.Franco Masoma Lease Agreement
PREPARED BY: Arn Andrews
Assistant Town Manager
Reviewed by: Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/28/2022 ITEM NO: 1
DATE: June 22, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Negotiate and Execute a Lease Agreement
with Anwar and Masoma Shoja, for 45 North Santa Cruz Avenue, in
Substantially the Form Presented
RECOMMENDATION:
Authorize the Town Manager to Negotiate and Execute a Lease Agreement with Anwar and
Masoma Shoja, for 45 North Santa Cruz Avenue, in substantially the form presented.
BACKGROUND:
On December 30, 2021, the Town completed the transfer of the Los Gatos Theatre property to
the Town’s ownership. The property acquisition included assuming landlord oversight and the
two respective leases for the existing retail properties at 41 and 45 North Santa Cruz Avenue.
The lease at 45 North Santa Cruz Avenue expired February 28, 2022 and has been month to
month since.
The property consists of approximately four hundred twenty-five ( 425) square feet of space
and is currently utilized for the sale of high-end designer clothing. The current tenant
requested to continue leasing the space and as such staff is bringing forward a new lease
agreement (Attachment 1).
DISCUSSION:
Provided on the following page are the salient elements of the draft Lease Agreement
(Agreement) staff is recommending.
PAGE 2 OF 2 SUBJECT: Draft Lease Agreement 45 North Santa Cruz DATE: June 22, 2022
DISCUSSION (continued):
Agreement Elements Comments
Term Three (3) year initial agreement with one (2) two-year
option.
Base Rent Schedule
(@ $7.0 per sq ft) Year Monthly Base
Rent
Annual Base
Rent
Year 1
(Months 1-12) $2,975.00 $35,700.00
Year 2
(Months 13-24) $3,064.00 $36,768.00
Year 3
(Months 25-36) $3,156.00 $37,872.00
CONCLUSION:
The current tenant has an established business which complements the reactivation of the Los
Gatos Theatre well. Staff recommends maintaining Anwar and Masoma Shoja, as tenants for
45 North Santa Cruz Avenue.
COORDINATION:
This staff report was coordinated with the Town Manager, Town Attorney, Finance Director,
and Economic Vitality Manager
FISCAL IMPACT:
Income derived from this agreement will be deposited to a Special Revenue Fund and would be
utilized for the ongoing capital needs of the Theatre.
ENVIRONMENTAL ASSESSMENT:
In accordance with CEQA Guidelines Section 15301, this lease is categorically exempt from
CEQA because it is a lease of an existing structure and will involve negligible expansion of an
existing structure.
Attachment:
1. Draft Lease Agreement