Council authorizes first reading of lease for restaurant at historic Alameda Theatre

The Alameda City Council on March 3 approved the first reading of an ordinance authorizing a new lease for a restaurant suite in the historic Alameda Theatre complex.

Annie Cox, management analyst for Base Reuse and Economic Development, presented the staff recommendation to authorize the interim city manager to execute a 36‑month lease (with one 36‑month renewal option) with Playhouse LLC, doing business as Director’s Cut and Project Burger, for the suite at 2319 Central Avenue. The premises are approximately 1,850 square feet. The proposed lease sets monthly rent at $5,865 (about $3.17 per square foot), includes annual 3% rent increases and reflects a one‑month rent credit in consideration of continued tenancy.

Cox told the council the current tenant purchased the business in 2018, invested more than $60,000 in interior improvements and remains in good standing; staff said the lease continues activation of the downtown shopping district and is consistent with the economic‑development plan. The staff memorandum estimated lease revenues of over $200,000 in the first three years that will help support operations of city‑owned properties.

One public commenter asked about energy efficiency and tax‑abatement modeling for commercial tenants; staff acknowledged those questions and said lease terms, including tenant improvements and liquor licensing, were considered in the review. Council members expressed support for retaining an occupied restaurant at the theatre to maintain street‑level vibrancy, and voted to approve the ordinance’s introduction; staff said the item is categorically exempt from further CEQA review under existing‑facilities rules.

What happens next: The item was introduced and will return for a second reading and final adoption consistent with the municipal process.