The Proud Bird restaurant at Los Angeles International Airport likely will pay less rent in 2014 than it has in recent years under an arrangement with landlord Los Angeles World Airports, documents show.
As readers of this blog know well, the Proud Bird — a L.A. institution since 1967 — was planning to close for good after L.A. World Airports said it would need to considerably increase the restaurant’s rent. The airport operator said that the Proud Bird had been paying below market rent and would need to pay more to remain into the space.
At the time, Los Angeles World Airports told me that the Proud Bird had been paying $18,201 a month for 8.3 acres of commercial property. The restaurant’s CEO told me the airport operator wanted to increase his rent to more than $500,000 per year. He said he could not afford the increase.
Fast forward several months. The restaurant said it was closing for good in December and community members complained. Just before the closing date, the sides announced they reached an agreement on a one-year lease extension. Even L.A. Mayor Eric Garcetti congratulated the sides on reaching an agreement.
Below are the terms of that extension, according to the airport operator. You’ll notice that the Proud Bird likely will pay a lot less monthly rent, though it is renting less space than before. I suppose the restaurant didn’t really need all that acreage and parking. Apparently when the Proud Bird needs extra parking, it can rent spaces.
According to LAWA: “Approval of the Lease will generate approximately $110,0000 in revenue over the 13-month term.”
Term: 13 months
Commencement: January 1, 2014
Expiration: January 31, 2015
Demised Premises: 4 acres including automobile parking, and building
Aircraft Display Area: 1.9 acres of area north and adjacent to the premises for the display of historical aircraft.
Overflow Event Parking Area: Up to 200 additional parking spaces upon 72 hours notice and only if available. (It appears the spots can be rented for $4 per spot per day)
The greater of 5% of monthly revenues during each month
For January 2014 and February 2014, a monthly amount of $5,000 and commencing in March 2014 a monthly amount of $10,0000
Note: This agreement must be approved Monday by the Los Angeles Board of Airport Commissioners. Also, the sides will continue to try to negotiate a long-time agreement, perhaps as long as 15 or 20 years.