07-26-2011 CC RPT 40 - Laserfiche WebLink

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Assignment and_lssrrmptronollcase_ grcement Jrrh v 'b, '011 Page 2 qf3 The County of Riverside owns property located at 4102 Orange Street which currently houses the Riverside Police Department (RPD) headquarters and 911 Dispatch Center. RPD leases this property from the County; however, that agreement terminates within the next several years and RPD will eventually need to move to a new location. Thus, it is proposed that RPD move its headquarters into the office space at Garage 6 — Orange Square when RPU vacates this space (33,120 square feet). Additionally, the 911 Dispatch Center will be moved to the Magnolia Police Station. The Police Chief has toured the space at Garage 6 — Orange Square and concurs with these proposed moves. The consolidation and shifting of City departments into new office space will provide better adjacencies to City Hall. RPU and RPD headquarters will be located within one block from City Hall and will provide easier access for citizens and staff to conduct City business downtown. The key deal points of the lease assignment agreement include the following: • 70,281 square feet of office space • 16,497 square feet subleased • Lease Agreement will expire on December 31, 2016 • Includes a one (1) five -year option to extend the lease at 95% Fair Market Value • Security deposit by RPU of $151,104 • Parking will include 281 covered parking stalls • Existing modular furniture will remain at no cost to RPU • Base rent schedule: 0 2012 $2.49 PSF /month 0 2013 $2.56 PSF /month 0 2014 $2.62 PSF /month 0 2015 $2.69 PSF /month 0 2016 $2.75 PSF /month The tentative timing of these moves is as follows: • Late spring /early summer 2012 — RPU consolidates and moves into 3750 University Avenue • Summer 2012 — 911 Dispatch Center moves to Magnolia Police Station • Late summer /early fall 2012 — RPD headquarters moves into Garage 6 — Orange Square FISCAL IMPACT: Upon execution of this agreement, Public Utilities will compensate BB &K the amount of $151,104 for the security deposit which will be reimbursed to the City by the landlord when the lease agreement expires or is terminated. Sufficient funds are available in the existing RPU budget to cover this expense. The net cost for RPU's new office space at 3750 University Avenue beginning in 2012 will be $1,643,146 annually; this rent is offset by sub - leases with existing tenants. When the Police Department Headquarters is moved into the space vacated by RPU, the General Fund would assume the cost of debt for 140 parking spaces and 33,120 sq. ft. of office space at this facility at a cost of approximately $770,000 annually or approximately $1.94 per square foot per month. This would be included in the Police Department budgets for future fiscal years. 40 -2