Beginning in 2003, Gargi’s Ristorante Italiano, Inc (Gargi’s) leased the building at 1414 N Orange Ave in the City’s Gaston Edwards Park and operated its restaurant business.   Gargi’s sold its business and executed an Assignment of Lease Agreement to On Group International Corporation (On Group) on November 21, 2015.  The City was not a party to the transaction but consented to the assignment as required by the Lease.   

On Group proposed to renovate and improve the Leased Premises at an estimated cost of seven hundred fifty thousand dollars ($750,000) and the City agreed to extend the Lease term through January 31, 2023 after the completion of their construction.  On Group has commenced construction and expects to open for business in December 2016.      

For liability and other purposes, On Group has created a subsidiary to manage and operate its restaurant business (d/b/a Mesa21) and has assigned the Lease to the subsidiary pursuant to the Assignment of Lease Agreement between On Group International Corporation and Mesa21 Lake Ivanhoe LLC, (Assignment).  The City is not a party to the transaction but must consent to the assignment as required by the Lease. The City’s consent is contingent upon the Assignee, Mesa21 also obtaining membership in the Ivanhoe Village Main Street Merchants Association.  In addition, the operating hours are extended from 12:00 A.M. to 2:00 A.M.    

Approval and authorization for the Mayor/Pro Tem and City Clerk to execute the Consent to Assignment, substantially in the form attached, and approval and authorization, without further City Council approval, for the Real Estate Division Manager to execute the additional renewal options referenced herein, so long as such renewals are in conformance with the terms and conditions of the Lease, all subject to the review and approval of the City Attorney's Office.