The Village entered into a lease agreement for space at the Downtown train station with Tobmar International (Gateway Newstand) on January 21, 2014 after a bidding process. The initial term of the lease expires October 31, 2019. The lease allows for one five-year extension. Tobmar is requesting an amendment to reduce the monthly rent. Information provided by the franchisee indicates flat sales over the past three years. Tobmar has indicated that without the rent reduction they do not plan to exercise their five-year option.

In addition to the offering of products to commuters, Gateway provides an amenity to Metra riders, the franchisee opens the station to riders (otherwise staff would need to open and close the station daily), and also provides a presence in the station which enhances security. If the tenant were to close, staff would then need to issue a request for proposals and negotiate a new lease, assuming that there would be interest in the location. After the discussion of these factors and review of the sales information provided Staff recommends a reduction in monthly rent to $600 per month. 

RECOMMENDATION

It is recommended that the attached Resolution Approving a Lease Amendment with Tobmar International be approved.