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<br />! <br /> <br />CITY OF RIVERSIDE <br /> <br />REDEVELOPMENT AGENCY MEMORANDUM <br /> <br />Honorable Mayor & Agency Members <br /> <br />Date: <br />Item No.: <br /> <br />September 4, 200] <br />3 <br /> <br />Subject: Request Authorization to Enter into Lease Agreement with GSM Wireless <br /> <br />Background <br /> <br />The Agency has been negotiating with GSM Wireless regarding their offer to lease Suite N-6, consisting of J,372 <br />square feet at 3740 Mission Inn Avenue within the California Tower Building. The tenant wishes to negotiate <br />their lease to enable them to occupy the space for five years, plus one five-year option period, based upon the <br />business terms identified below: <br /> <br />Bnsiness Terms <br /> <br />The primary term of the triple net lease is for five years with one (]) five-year option. The monthly rent shall be <br />$2.126.60 for Year 1, increasing by three percent (3%) per year for all subsequent years including the option <br />period. <br /> <br />The tenant shall take the premises in an "as-is" condition. However, the Agency will remove a portion of an <br />interior wall and install a door at a cost of approximately $] 6,500. In addition, the Agency will pay the brokerage <br />fee to Inland Pacific Advisors. Inc. as outlined in the extension to their management agreement, which was <br />approved by the Agency on July 24. 200]. Finally. ]nland Pacific Advisors, Inc. shall be responsible to pay the <br />commission to the tenant's broker. Lee & Associates. <br /> <br />Fiscal Impact <br /> <br />The extension of the lease will result in continued rental revenue to the Agency of approximately $135,483. In <br />addition. there are sufficient funds available for the maintenance items identified above, as well as the brokers <br />commissions for Lee & Associates and Inland Pacific Advisors, in California Tower Professional Services <br />Account No. 2830831-421000. which has an approximate account balance of $248,877. <br /> <br />Committee Action <br />The Agency Board. in Closed Session on July 10.2001, directed staff to pursue a lease with GSM Wireless. <br /> <br />Recommendations <br /> <br />That the Redevelopment Agency: <br /> <br />I. <br /> <br />Approve and authorize the Executive Director to execute the standard Lease Agreement, memorializing the <br />lease terms as contained in the above report: and <br /> <br />Authorize the expenditure of$16.500 for tenant improvements from the California Tower Professional <br />Services Number 2830831-421000; and <br /> <br />o <br /> <br />, <br />J. <br /> <br />Authorize the payment of commissions as outlined above. <br /> <br />3-1 <br />