HomeMy WebLinkAbout25F - DOWNTOWN LEASEREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
AUGUST 20, 2007
TITLE:
LEASE RENEWAL FOR DOWNTOWN OFFICE
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CITY MANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
^ As Recommended
^ As Amended
^ Ordinance on 1 ~~ Reading
^ Ordinance on 2nd Reading
^ Implementing Resolution
^ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Direct the City Attorney to prepare and authorize the City Manager and
the Clerk of the Council to execute a lease agreement with Fiesta
Marketplace Partners for office space at 305 East Fourth Street for the
Downtown office and Downtown Business Liaison Unit/Civic Center Patrol.
DISCUSSION
The Downtown office has been located at 305 East Fourth Street, Suite
201, since February 2001. In addition to Suite 201 used by the Downtown
staff, the lease includes Suite 200 for use by 13 Police Department staff
members from Civic Center Patrol and Northeast Division. The original
six-year lease expired on May 31, 2007. The Downtown office has
continued to occupy this space on a month-to-month basis.
The Fiesta Marketplace Partners has agreed to a new two-year lease with
two 1-year extensions, which follows all of the same basic terms and
conditions of the previous lease. The rent is $9,025.83 a month, or
$1.54 per square foot, with a CPI adjustment factor biannually with a
four percent minimum, or six percent maximum. According to the 2007
office market report for Orange County by Voit Commercial, this lease
rate falls within the average lease rate for similar buildings. This is
a full-service gross lease with a stipulation that the City pay a portion
of the utilities that exceed a base-year figure established during the
first year of the original lease.
25F-1
Lease Renewal for Downtown Office
August 20, 2007
Page 2
FISCAL IMPACT
Funds are available in the Parking Meter Fund Rent account (account no.
27-013-6294) and the Merged Economic Development Fund Building Rental
account (account no. 570-932-6294).
APPROVED AS TO FUNDS AND ACCOUNTS:
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Ste hen G Harding
Deputy City Manager for
Development Services
Community Development Agency
6 Francisco Gutierrez ~Hf
~xecutive Director
Finance & Management Services Agency
SGH/TE/NE/mlr
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