Dave Druker | 10th Street
Recently the King Parking Lot across from the Powerhouse, Jakes, Poseidon and the Life Guard tower was sold and renamed Seagrove Parking Lot. Because part of the lot is on city right of way a lease for this right of way needed to be renegotiated. In the past, Del Mar received 5% of the gross receipts. Because of the cash nature of the business, Del Mar probably did not receive its full 5% as the typical revenue was about $7500.
Under the new lease, Del Mar will be responsible for the enforcement of revenue collection as the parking lot will use park, pay and display. The lease will last for 30 years and Del Mar will receive 14% of the gross revenue from all activities for years 1 through 4 and 15% for all activities thereafter. These revenues will include any sales and rental activities. For the parking, Del Mar will receive during years 1 through 4, $75,000 or 14% of gross receipts whichever is larger and for years 5 through 30 $85,000 adjusted for inflation or 15% of gross revenue. In terms of enforcement revenue, Del Mar will receive $70,000 per year and a 50% split for revenues over $70,000 or $270 per day if a least 100 spaces are not available for enforcement.
Ultimately, this lease could be equivalent to about $145,000 per year. This seems to be a reasonable sum given that Del Mar under the current parking lot configuration is not able to collect revenue on about 10 parking spaces.
In other real estate news, L’Auberge is for sale. There is an unconfirmed rumor that it has been sold for $26 million. If that were the case Del Mar would receive about $34,400 of property tax per year.