HomeMy WebLinkAbout25C - OFFICE LEASE EXTENSION
REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY:
JUNE 7, 2010
TITLE: APPROVED
? As Recommended
DOWNTOWN OFFICE LEASE ? As Amended
? Ordinance on 15f Reading
EXTENSION ? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For
CONTINUED TO
~ FILE NUMBER
CITY MANAGER
RECOMMENDED ACTION
Authorize the City Manager and the Clerk of the Council to execute the attached first amendment
to the lease agreement with Fiesta Marketplace Partners #1, subject to non-substantive changes
approved by the City Manager and City Attorney.
DISCUSSION
The Downtown office has been located at 305 East Fourth Street since February 2001. The
current lease agreement covers 3,910 square feet, which is occupied by Downtown Police staff
and parking meter operations, and expires on July 31, 2010. With the initiation of the Downtown
Community Management District, the new management corporation, Downtown Inc. occupies
separate office space from City staff. The current lease also includes two one-year renewal
options which may be exercised at the option of the City.
A two percent annual increase will be added to the rent upon exercising this one-year lease
option. The new rent is $5,982 monthly, or $1.53 per square foot, and is afull-service gross
lease with a stipulation that the City pay a portion of the utilities that exceed the base year figure
established during the first year of the lease. According to the 2010 office market report for
Orange County by Voit Commercial, this lease rate falls within the average lease rate for similar
buildings.
25C-1
Downtown Office Lease Extension
June 7, 2010
Page 2
FISCAL IMPACT
Funds are available in the Parking Meter Fund Rent account (no. 02718860-62500) and the
Merged Economic Development Fund Building Rental account (no. 57018841-62500).
APPROVED AS TO FUNDS AND ACCOUNTS:
Cynt is J. Nels Francisco Gutierrez
Deputy City Manager for Development Executive Director
Services Finance & Management Services Agency
Community Development Agency
CJN/NTE/kg
Exhibit 1. Amendment
25C-2
EXERCISE OF FIRST OPTION OF
LEASE AGREEMENT BETWEEN
THE CITY OF SANTA ANA AND
FIESTA MARKETPLACE PARTNERS #1
This Exercise of First Option is made and entered by and between Fiesta Marketplace
Partners #1 ("Landlord") and the City of Santa Ana, a charter city and municipal corporation
duly organized and existing under the Constitution and laws of the state of California ("Tenant")
this day of July, 2010.
RECITALS:
A. The parties entered into the Lease Agreement for the rental of space within that certain
building known as 305 E. Fourth Street, Second Floor, in the City of Santa Ana 92701
("Property") commencing on August 1, 2009. Said Agreement had aone-year term with two (2)
one-year options, exercisable at the sole option of the Tenant.
B. The parties hereto desire to exercise the first one-year option and increase the rent as set forth
in said Agreement.
WHEREFORE, in consideration of the mutual and respective covenants and promises hereinafter
contained and made, and subject to all of the terms and conditions of said Agreement, the parties hereto do
hereby agree as follows:
1. The "Term of Lease" section of said Agreement is hereby modified by exercising the first one-year
option to extend the Agreement, effective on August 1, 2010 through July 31, 2011.
2. The "Compensation" section of said Agreement is currently $5,865.00 and shall be adjusted in
accordance with the Annual Adjustment term of said Agreement, with a 2% rental increase, so that the
monthly rental payments shall be $5,982.00, during the term of the first option.
3. In accordance with section 4 (c), Landlord shall provide the modifications (set forth in detail in
said Agreement) to the Property at no cost to the Tenant so long as Tenant exercises at least one 1-year
option. Landlord shall provide Tenant with documentation pertaining to the cost of the Improvements
prior to the time of execution of this Exercise of Option.
4. Except as hereinabove modified, the terms and conditions of said Agreement remain unchanged and
in full force and effect.
Exhibit 1
25C-3
IN WITNESS WHEREOF, the parties hereto have executed this Exercise of First One-Year Option the date
and year first above written.
ATTEST: CITY OF SANTA ANA
Maria D. Huizar David N. Ream
Clerk of the Council City Manager
APPROVED AS TO FORM: "LANDLORD"
Joseph W. Fletcher, City Attorney
Lisa Storck Fiesta Marketplace Partners #1
Assistant City Attorney Irving M. Chase
Title/Tax ID:
Exhibit 1
25C-4