During the May 26 Oakley City Council Meeting, the City of Oakley will seek to execute an Agreement with Skipolini’s Pizza. The agreement would include a 13-year lease followed by an option to purchase the building.
According to the Staff Report, the Lease Agreement will be for 3070 Main Street where the building was operated first as Carpaccio’s Restaurant from 2013-2017 followed by 2017 until the present where it was operated by Buon Appetito. Due to the COVID-19 and a difficult time to reach profitability, Buon Appetito has decided not to reopen as a result of the COVID-19 closure. Skipolini’s would now take over the lease.
Skipolini’s estimates it would spend as much as $750k on improvements over the next four months from an outdoor patio area to remodeling the inside of the building to match the look and feel of their other locations.
According to the new Lease Agreement, the City of Oakley will enter into a Lease Assignment Agreement with Buon Appetito in exchange for release of liability for unpaid rent, release of security deposit paid to the City and release of any known claims. In addition, Buon Appetito will enter into a Lease Assignment with Skipolini’s, assigning the terms of the existing Lease and Lease Amendment to Skipolini’s.
Then, the City of Oakley and Skippolini’s would enter a Second Amendment under the following terms:
The term of the existing lease shall be extended by thirteen years and two months, through May 31, 2035. In addition, Skipolini’s will have the option to extend the lease term for three, five-year periods.
In consideration of the proposed capital improvements to the building that Skipolini’s wishes to make, the rent for the first 28 months will be $1.00 per month. After the initial 28 months, rent will be increased to $5,000 per month, at a flat rate for the remaining term of the lease. During the initial 28 months, the City will pay the associated building CAM charges, County Possessory Use Tax and the Ironhouse Sanitary District assessments. At the end of the 28 months, the City will continue to pay the County Possessory Use Tax and the Ironhouse Sanitary District assessments, but Skipolini’s will begin to pay the CAM charges pertaining to the building.
Skipolini’s will be making tenant improvements to the building for a period of time not to exceed 120 days. The City will waive all associated City permit fees. Skipolini’s will also apply for a loan, not to exceed $75,000, from the Downtown Revitalization Loan Program to help fund a portion of these improvements – specifically the painting of the building, new awnings and the outdoor improvements.
Skipolini’s will also have the opportunity to purchase the building in the future. Starting June 1, 2025, and for the remainder of the term of the lease, Skipolini’s will have the ability to purchase the building at the value obtained by the appraisal adjusted for inflation on an annual basis
May 26 at 6:30 pm
Oakley City Council Chambers, 3231 Main Street, Oakley, CA
BE ADVISED that this meeting will be live-streamed on the City’s website at www.oakleyinfo.com, and you may participate via telephone by calling (925) 809-9201 and using Conference ID#: 205494. Due to the order of the County Health Officer, no one will be allowed to attend the meeting in person
Staff Report: Click here