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Exhibit CC 03-19-13 #16 Blue Pheasant Lease !r�� ( Amended recommended action for item #16 regarding Blue Pheasant Subject: Authorize City Manager to execute lease agreement for property known as The Blue Pheasant Restaurant Recommended Action: Authorize City Manager to negotiate and execute lease agreement for property known as The Blue Pheasant Restaurant with Hungry Jack's Restaurant Corporation and Mike Tsachres in accordance with Council direction GGo/iq /I3 .V-Oil* Brittany Carey From: Karen B. Guerin Sent: Monday, March 18, 2013 4:32 PM To: Brittany Carey Subject: FW: Ordinances and action itemsiarticle 16. Blue Pheasant Attachments: city council bp lease renewal 2013.doc; 01162013 CAD Log Request_Phar Lap near Stevens Creek_(2).pdf From: Diane Berg [mailto:dianesberg@gmail.com] Sent: Monday, March 18, 2013 3:35 PM To: Orrin Mahoney; Gilbert Wong; Barry Chang; Mark Santora; Rod Sinks Cc: David Brandt; Carol Atwood Subject: Ordinances and action items/article 16. Blue Pheasant Hello, I have attached a short summary of our concerns which we discussed, with regard to the Blue Pheasant night club. I have also attached a sheriffs report from our neighborhood from July 16, 2012 - January 26, 2013. We will have a small focused group there for tomorrow evening. Thank you for the time you took in meeting with me and sharing our neighborhood concerns with regard to the BP night club. It is appreciated. I would like to share the following quote from Timm Borden. (by the way the Cupertino Public Works department is one of the best around, as you know) This is in regard to the future rebuilding of city hall. "We're not like some other city halls that are out on a prominent thoroughfare;we're nestled in a neighborhood," "We want to be this civic and community facility, but we also want to be good neighbors." December28, 2012 Be good neighbors to us. Look forward to productive discussion/actions tomorrow night. Diane Berg Cupertino Block Leader I' March 18, 2013 To: Cupertino City Council Members From: Oakdell Ranch HOA Board and defined members Subject: Ordinances and Action Items/ article 16. Blue Pheasant Restaurant Dear Council Members, With the upcoming City Council meeting on Tuesday the 19th, we would like to provide you with an update to some of our issues and concerns with regard to the Blue Pheasant, in particular the night club operation. We, as concerned citizens of Cupertino and the Oakdell Ranch Community (with over 130 homes in our HOA), would like to address the following issue during the Tuesday night Council meeting: • Extending the current lease under its existing terms is not in the best interest of Cupertino and the surrounding neighborhoods. • Night club continues to operate past the contractual terms of the 11:00 o'clock closing time, which is a breach of contract: ➢ Drinking continues until 12:00 am ➢ Guests not leaving the premises until way after 12:00 am ➢ Restaurant business is deemphasized/going downhill • Night club brings a bad image for the City of Cupertino and our neighborhood. People view it as a hook up club. Yelp tells the story. • Sheriff's report indicates numerous infractions at Phar Lap and Stevens Creek areas • Safety/Liability/nuance: ➢ Guests drinking up to midnight. ➢ Parking in the surrounding neighborhoods. ➢ Wondering around in the neighborhood, trying to find their cars, and once they have found them drive in carelessly in the surrounding residential areas. ➢ Insufficient lighting in the Blue Pheasant parking area. ➢ Noise and litter in neighborhoods. ➢ Potential fire codes violation (over maximum limit of people in the building). ➢ Smoking violations. Page 2 Office of the Sheriff, County of Santa Clara California Public Records request dated 01/16/2013 LERT Luerra, J. #L7583 Complied January 30, 2013 0912 hrs Device: 298 Sheriff Records Sheriff's Office responses to Phar Lap Drive near Stevens Creek Blvd. P D DATE TIME DB EVENT NUM. TYPE DTYPE LOCATION 5 T 07/16/12 16:32 Cl S121980318 1195 1195 STEVENS CREEK BL @ PHAR LAP DR 5 T 07/18/12 13:02 Cl S122000208 1195 1195 STEVENS CREEK BL @ PHAR LAP DR 5 T 07/18/12 15:18 Cl S122000276 1195 1195 STEVENS CREEK BL @ PHAR LAP DR 5 T 07/20/12 15:18 Cl S122020226 1195 1195 STEVENS CREEK EL @ PHAR LAP DR 4 IN 07/21/12 13:23 Cl S122030193 1062 1062 10090 PHAR LAP DR @ CLEARCREEK 3 IN 07/23/12 12:25 Cl S122050178 INFO INFO 10321 PHAR LAP DR @ CREEKSIDE 5 T 08/01/12 09:40 Cl S122140102 1195 1195 STEVENS CREEK BL @ PHAR LAP DR 3 N 08/06/12 10:18 Cl S122190098 484 484 MADERA DR (D1) @ PHAR LAP DR 5 T 08/07/12 08:49 Cl S122200089 CITWRT CITWRT PHAR LAP DR @ STEVENS CREEK BL 2 N 08/16/12 10:51 Cl 5122290143 1033A 1033A 10201 PHAR LAP DR @ WOODBURY D 2 N 08/16/12 12: 00 Cl S122290192 1033A 1033A 10201 PHAR LAP DR @ WOODBURY D 5 T 08/18/12 09: 07 Cl S122310095 1195 1195 STEVENS CREEK BL @ PHAR LAP DR 3 IN 08/18/12 09:41 Cl S122310107 23109 23109 PHAR LAP DR @ STEVENS CREEK BL 3 IN 08/20/12 20: 18 Cl S122330376 INFO INFO 10485 PHAR LAP DR @ FLORENCE D 5 T 08/21/12 08:49 Cl S122340082 CITE CITE PHAR LAP DR @ STEVENS CREEK BL 2 N 08/23/12 18:28 Cl S122360348 1033A 1033A 22024 CREEKSIDE CT (D2) @ PHAR 4 IN 08/30/12 03:22 Cl S122430049 INFO INFO 10321 PHAR LAP DR @ CREEKSIDE 2 N 08/30/12 07:51 Cl S122430083 1033A 1033A 22024 CREEKSIDE CT (D2) @ PHAR 3 IN 09/02/12 08: 56 Cl S122460084 INFO INFO 10490 FLORENCE DR @ PHAR LAP D 5 T 09/04/12 08:46 Cl S122480084 CITWRT CITWRT PHAR LAP DR @ STEVENS CREEK BL 2 N 09/04/12 11: 50 Cl S122480152 1033A 1033A 22024 CREEKSIDE CT (D2) @ PHAR 5 T 09/05/12 18: 15 Cl S122490361 1195 1195 STEVENS CREEK EL @ PHAR LAP DR 3 N 09/13/12 18: 13 Cl S122570325 1091C 1091C STEVENS CREEK BL @ PHAR LAP DR 3 IN 09/15/12 09:57 Cl S122590099 22350 22350 PHAR LAP DR @ CLEARCREEK CT (C 5 N 09/17/12 00:30 Cl S122610008 1154 1154 STEVENS CREEK BL @ PHAR LAP DR 5 T 09/18/12 08:47 Cl S122620079 CITE CITE PHAR LAP DR @ STEVENS CREEK BL 4 NR 09/20/12 17:51 Cl S122640321 INFO INFO 22084 CLEARWOOD CT @ PHAR LAP 5 T 09/21/12 22: 18 Cl S122650370 CITE CITE PHAR LAP DR @ STEVENS CREEK BL 3 IN 09/25/12 07:22 Cl S122690065 22350 22350 PHAR LAP DR @ CLEARCREEK CT (C 5 N 09/27/12 07: 35 Cl S122710054 1184 1184 PHAR LAP DR @ CLEARCREEK CT (C 2 N 09/27/12 08: 10 Cl S122710070 1033A 1033A 10241 PHAR LAP DR @ WOODBURY D 4 IN 09/29/12 06: 11 Cl S122730068 INFO INFO 10441 PHAR LAP DR @ FLORENCE D 2 N 10/01/12 19: 25 Cl S122750325 911UNK 911UNK 10420 PHAR LAP DR @ CREEKSIDE 5 T 10/02/12 08:44 Cl S122760072 CITE CITE PHAR LAP DR @ STEVENS CREEK EL 5 T 10/16/12 08 :42 Cl 5122900065 CITE CITE STEVENS CREEK BL @ PHAR LAP DR 5 N 10/18/12 21:48 Cl S122920383 1095 1095 STEVENS CREEK BL @ PHAR LAP DR 3 N 10/23/12 11:39 Cl S122970158 AID AID 10510 MADERA DR (D1) @ PHAR LA 5 N 11/05/12 17: 02 Cl S123100310 FD FD 21901 OAKNOLL CT @ PHAR LAP DR 5 T 11/06/12 08:45 Cl S123110096 CITE CITE PHAR LAP DR @ STEVENS CREEK BL 2 NR 11/06/12 14: 37 Cl S123110286 911ABN 911ABN 21991 OAKNOLL CT @ PHAR LAP DR 3 R 11/11/12 09: 18 Cl S123160098 10851 10851 10161 PHAR LAP DR @ OAKNOLL CT 5 N 11/13/12 15: 23 Cl S123180317 1195 1195 STEVENS CREEK BL @ PHAR LAP DR 5 T 11/14/12 15: 13 Cl S123190259 1195 1195 STEVENS CREEK BL @ PHAR LAP DR 5 T 11/15/12 10: 50 Cl S123200144 1095 1095 STEVENS CREEK BL @ PHAR LAP DR 3 N 11/15/12 17: 18 Cl S123200321 1066 SUSCIR 10601 MADERA DR (D1) @ PHAR LA 2 N 11/19/12 15:51 Cl S123240256 1125 1125 STEVENS CREEK BL @ PHAR LAP DR 3 IN 11/21/12 18 : 31 Cl S123260289 1066 1066 10161 PHAR LAP DR @ OAKNOLL CT 3 NR 11/27/12 16: 20 Cl S123320310 23103 23103 PHAR LAP DR @ STEVENS CREEK BL 5 N 11/28/12 21:40 Cl S123330397 1095 1095 STEVENS CREEK BL @ PHAR LAP DR 5 T 11/29/12 09: 51 Cl S123340143 1195 1195 STEVENS CREEK BL @ PHAR LAP DR 5 T 12/04/12 00:27 Cl S123390006 1195 1195 STEVENS CREEK BL @ PHAR LAP DR 5 T 12/04/12 08 :47 Cl S123390051 CITE CITE PHAR LAP DR @ STEVENS CREEK BL 3 N 12/06/12 12:45 Cl 5123410207 1087 1067 21930 OAKNOLL CT @ PHAR LAP DR 2 N 12/08/12 21:05 Cl S123430291 1033A 1033A 22085 CLEARWOOD CT @ PHAR LAP 3 N 12/12/12 12:52 Cl S123470204 1065 1065 21991 OAKNOLL CT @ PHAR LAP DR 3 R 12/13/12 11:29 Cl 5123480135 1126 1126 10521 MADERA DR (D1) @ PHAR LA 3 N 12/18/12 22:41 Cl S123530438 AID AID 21991 OAKNOLL CT @ PHAR LAP DR 5 T 12/20/12 14:29 Cl S123550249 1195 1195 STEVENS CREEK BL @ PHAR LAP DR 3 N 12/20/12 21:27 Cl S123550421 SUSCIR SUSCIR 22024 CREEKSIDE CT (D2) @ PHAR 2 N 12/21/12 02:17 Cl 5123560023 1033A 1033A 22024 CREEKSIDE CT (D2) @ PHAR 2 N 12/21/12 10:53 Cl S123560137 1033A 1033A 22024 CREEKSIDE CT (D2) @ PHAR 2 N 12/21/12 13:31 Cl S123560199 1033A 1033A 22024 CREEKSIDE CT (D2) @ PHAR 2 N 12/22/12 15:02 Cl S123570184 1033A 1033A 22024 CREEKSIDE CT (D2) @ PHAR 2 NR 12/23/12 18:54 Cl S123580311 1033A 1033A 22024 CREEKSIDE CT (D2) @ PHAR 4 IN 12/23/12 22:50 Cl S123580354 INFO INFO 22116 CLEARCREEK CT @ PHAR LAP 2 N 12/24/12 14:49 Cl S123590185 1033A 1033A 22024 CREEKSIDE CT (D2) @ PHAR 2 NR 12/24/12 15:56 Cl S123590204 1033A 1033A 22024 CREEKSIDE CT (D2) @ PHAR 4 IN 12/28/12 20:35 Cl S123630335 INFO INFO 21991 OAKNOLL CT @ PHAR LAP DR 5 N 12/31/12 11:22 Cl S123660111.6F 6F *1036* 21991 OAKNOLL CT @ PHAR 5 N 12/31/12 20:22 Cl S123660317 6FATC 6FATC 21991 OAKNOLL CT @ PHAR LAP DR 5 N 01/01/13 13:44 Cl S130010160 PATCK PATCK 22034 CLEARWOOD CT @ PHAR LAP 5 N 01/02/13 14:27 Cl S130020179 1195 5150 PHAR LAP DR @ STEVENS CREEK BL 3 R 01/03/13 19:27 Cl S130030366 459 459 10061 PHAR LAP DR @ CLEARWOOD 2 N 01/03/13 21:36 Cl S130030396 911ABN 911ABN 10321 PHAR LAP DR @ CREEKSIDE 5 R 01/08/13 10:03 Cl S130080144 1195 22651P STEVENS CREEK BL @ PHAR LAP DR 2 NR 01/12/13 05:46 Cl S130120057 911ABN 911ABN 10321 PHAR LAP DR @ CREEKSIDE 5 N 01/13/13 01:22 Cl S130130022 1154 1154 STEVENS CREEK BL @ PHAR LAP DR 5 T 01/14/13 22:30 Cl S130140380 1195 1195 PHAR LAP DR @ STEVENS CREEK BL 5 T 01/21/13 11:27 Cl S130210111 1195 1195 STEVENS CREEK BL @ PHAR LAP DR 2 F 01/25/13 20:43 Cl S130250404 1066W 1066W 10521 MADERA DR (D1) @ PHAR LA 5 N 01/25/13 22:38 C7 S130250439 22500 22500 22050 STEVENS CREEK BL @ PHAR 5 T 01/26/13 14:41 Cl S130260165 1195 1195 STEVENS CREEK BL @ PHAR LAP DR *** RECORDS MATCHED: 82 COMMUNITY: S SEARCH CRITERIA: EVTNO LIKE 'S%' AND EVTTIM>=#07/16/2012 00:00:00# AND EVTTIM<=# 01/16/2013 23:59:59# AND LOC LIKE '%PHAR LAP%' EXHIBIT 3 fig it3 0.1C0 Blue Pheasant Recommended actions: Would love to have the restaurant put out to bid, since having the same lessee will continue with the same issues we have today. After meeting with each of you, the possibility of that happening seems to be slim. The City does not want an empty building, or to create any change in the use of the facility. As this would require significant city resources to bring it up to code, and deal with Title 24 expense. We feel a compromise is justified and fair: One: Have the lease revised to have a more appropriate closing time. We propose a 10:00 pm closing time, in line with the surrounding Cities' similar zoning businesses. Two: Include and enforce dollar fine consequences if the lessee fails to follow the closing time — Incorporate in new Lease Agreement. Three: If 3 or more infractions happen, there will be early termination of the Lease - Incorporate in new Lease Agreement. Four: Prioritize Black Berry golf course/Blue Pheasant Master Plan. Reduce the time it will take to create the Plan. With some council members terming out, it is in the best interest of the community to get the Master Plan accomplished before this happens. Five: Written time line on improvements to the Blue Pheasant (as stated in Staff Report) painting, new equipment for the restaurant, redecorate the interior with paint, carpet. New exterior sign. If improvements are made, more people will come to dine and bring in more revenue. We would also like to see improved landscaping around the parking area and the side street facing Stevens Creek. It would make the restaurant much more appealing. Thank you for your consideration on the above 5 recommendations.