Commissioners told financials show Beach Club operator likely to absorb modest rent increase

Commissioner McPherson raised concerns that added contract obligations in the proposed extension for the Beach Club operator could increase the operator's costs and affect affordability. He said he wanted to verify the financial impact before approving an extension.

Vice Mayor Mimi May said she had reviewed the financials staff sent and that current figures showed the operator spends about 2% of revenue on rent and the proposed changes would bring that share to about 4.5%. "My research is that, generally, it's usually around 10 to 12%, just on rent," she said, adding that the overall package appeared manageable. McPherson said he had not recently reviewed the financials and agreed to do so before the Tuesday meeting. Staff indicated the item will be discussed further on the consent or regular agenda and asked commissioners to raise concerns after examining the emailed backups.