For City Council Meeting December 9, 2025
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Christina Taylor, Director of Community Development
Title
Request City Council to: (1) Approve a Lease Agreement between the City and Snacks SB, LLC dba Nine Eight Five Coffee for 262 South Palm Avenue (John Longville Train Depot) (APNs 0130-222-26, 0130-222-27, 0130-271-28, 0130-271-33); (2) Authorize the City Manager, or Designee, to Make Modifications to the Lease Agreement as may be Necessary or Required to Finalize Thereof on Behalf of the City; and (3) Authorize the City Manager to Execute the Lease Agreement on Behalf of the City, Subject to the City Attorney’s Approval as to Form.
(ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council:
1) Approve the attached Lease Agreement with Snacks SB, LLC dba Nine Eight Five Coffee for 262 South Palm Avenue;
2) Authorize the City Manager, or designee, to make modifications to the Lease Agreement as may be necessary or required to finalize thereof on behalf of the City;
3) Authorize the City Manager to execute the Lease Agreement on behalf of the City, subject to the City Attorney’s approval as to form.
BACKGROUND
The John Longville Train Depot (Rialto Station), located at 262 South Palm Avenue (Site), serves as a key Metrolink transit hub along the San Bernardino Line. The 4.4-acre site includes 286 parking spaces and an approximately 3,200 square-foot depot building. Ownership of the Site is shared by the City of Rialto (City) and the San Bernardino County Transportation Authority (SBCTA). The Rialto Station building includes the approximately 850 square foot café space that serves as an amenity to transit riders and the surrounding community. City staff was directed to draft a Request for Proposal (RFP) to identify a qualified food operator for the café space.
On April 17, 2025, the City published the RFP on the City’s PlanetBids portal.
On May 20, 2025, the City received three (3) proposals: Everytable, Nine Eight Five Coffee, and Grizzygrub.
On September 18, 2025, the City’s Economic Development Committee selected Everytable and Nine Eight Five Coffee as finalists and recommended both vendors to present to the City Council for final selection.
On October 14, 2025, the City Council selected Nine Eight Five Coffee and directed staff to negotiate a lease and return with an agreement for City Council consideration.
ANALYSIS/DISCUSSION
Nine Eight Five Coffee will lease the approximately 850 square foot café space and will be able to use an additional approximately 1,800 square feet of interior common area for customer seating and approximately 200 square feet outside of the building for customer seating. Nine Eight Five Coffee’s use of the approximate 1,800 square feet and 200 square feet for customer seating will be subject to the City’s approval of the seating layout.
Key lease terms include:
Premises: 262 South Palm Avenue - Café and Use of Common Areas
Lease Term: Five (5) years with one (1), three-year extension option
Rent abatement: Three (3) months following agreement execution
Rent Commencement: March 2026 or April 2026
Rent Amount: $1,500 per month first year, annual three percent increases
Utilities: Tenant pays a proportionate share based on monthly bills
Security Deposit: $3,500
Possessory Interest Taxes: Tenant responsible for all possessory interest tax obligations
Premises Condition: Tenant accepts the premises in “as-is” condition
Hours of Operation: Monday - Friday 5:00 am to 6:00 pm
Saturday - Sunday 6:00 am to 4:00 pm
ENVIRONMENTAL IMPACT
This action does not constitute a "Project" as defined under the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a "Project" means the whole of an action, which has potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
GENERAL PLAN CONSISTENCY
The proposed action is consistent with Guiding Principle 3 of the City of Rialto General Plan, which promotes Rialto's Economic Environment is Healthy and Diverse. Stating that "Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business."
LEGAL REVIEW
The City Attorney's Office has reviewed the agreement and approved it as to form.
FINANCIAL IMPACTS
The City will receive base rent of $1,500 per month or $18,000 annually in the first year, increasing by three percent (3%) annually for the duration of the lease. The tenant will also pay a proportionate monthly share of utility costs based on a formula established by the City’s Finance Department.
ATTACHMENT
1. Lease Agreement