05/15/2001 RA RPT 04 - Laserfiche WebLink

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, CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: Item No.: May 15,2001 4 Subject: Request Authorization to Enter into a Ground Sublease with the County of Riverside (Lot 39/Sontheast Corner of 9th and Orange Streets) Merged Downtown/Airport Redevelopment Project Area Background On January 19, 1999 the Redevelopment Agency approved a five-year Ground Lease with the Riverside County Board of Law Library Trustees for property located at the southeast corner of 9th and Orange Streets as well as the existing parking lot on Lemon Street. The agreement authorized the Agency to demolish two blighted buildings at 9th and Orange Streets and construct a parking lot to provide much needed downtown parking, as well as to facilitate the development of anticipated future justice center related activities. The Ground Lease also provided that, upon completion of the improvements, the Law Library would be entitled to six parking spaces at no cost. Current Issue In the meantime, the County of Riverside has moved forward with plans to construct an annex building immediately adjacent to the County Administrative Center. In addition, the County will soon begin construction of a parking structure on the surface parking lot located south of the County Administrative Center. Both projects will be constructed concurrently over a two-year period, and will result in the displacement of public and County employee parking. Consequently, the County has requested to sublease, from the Agency, the recently constructed portion of Lot 39, located at 3904-3964 Orange, beginning June 1,2001, and the soon to be refurbished portion located at 3923- 3937 Lemon Street beginning August I, 2001 for terms of] 8 and 16 months respectively (with options to extend through November 2003). The County Ground Sublease addresses the six reserved spaces mentioned above, along with an additional 14 spaces that the Law Library desires to lease back forthe benefit of the businesses located at the Pritchard Building. Both the County and the Law Library will pay the current surface parking rate of $25 per space per month. The Law Library lease back will be addressed later under separate cover. Analysis Downtown parking will be further impacted as a result of the County's imminent construction projects. Allowing the County to utilize Parking Lot 39 will assist in alleviating the County's immediate need of replacement parking. . Fiscal Impact It is estimated that the Agency will receive a minimum of $48,250 and a maximum of $81 ,850 from the County depending upon the term and/or extensions ofthe Ground Sublease. Said funds will help to offset the costs associated with the construction of Parking Lot 39. Alternatives The Agency could elect not to approve the Ground Sublease with the County, and make Parking Lot 39 available for perm it parking. 4-1