09/25/2001 CC RPT 03 - Laserfiche WebLink

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CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & City Council and Redevelopmerit Agency Date: September 25, 2001 Item No.: 3 Subject: .loint Public Hearing to Request Authorization to Enter into Lease Agreement with (;SM Wireless Background The Agency has been negotiating with C, SM Wireless regarding thcir offer to lease Suite N-6. consisting of 1,372 square t~et at 3740 Mission hm Avenue within the California lower Building. Fhc tenant wishes to ncgutiate their lease to enable them to occup? the space for five years. plus one five-Lear option period, based upon Ihc business terms identified below: Business Terms The primary term of the triple net lease is fi~r five years with one ( I ) ~ve-.~ear option. TIle monthl.~ rent shall be $2,126.60 for Year 1, increasiug b.', three percent (3%) per year for all subsequent years including the option period, The lease is consistent with the California Tower I,easmg Program, xvhicb was approvcd b~ the CiI> Council and thc Redevelopmen{ Agenc? on March 14. 1995 in public hearing throngh Resoh~lion 18667 The leuant shall take the premises in an ~as-is" condition. l lo~cver. the Agenc} will remove a portioa {11' an interior ~all and install a door at a cost of approximately $16.500. In addition. the Agent? x~ill pa> the brokerage fee to Inland Pacific Advisors. luc. as outlined in tile extension to their management agreement, x~bich xxas approved b_v the Agency on Jul5 24, 2001. Finall.~. Inland Pacific Advisors. Inc. shall be responsible to pay the conHBission to the tenant's broker. l.ee & Associates. Fiscal Impact The extension of the lease x~ill result in continued rental revenue to the Ageucy of approximately $135.483. addition. there are sufficient funds available tZ~r the maintenance items identified above. as well as the brokcrs commissions {'or Lee & Associates and Inland Pacific Advisors. in California Tower Professional Services Account No 28308~ 1421000. which bas an approximate accotmt balance of $248.877. Committee Action I'he Agent5 Board. in Closed Session on Jul.', 10. 2001. directed staff to pursue a lease with GSM Wireless. Recom menclarions Fhat the City Couucil: I. Approve that the proposed lease as being consistent with the Calilkmtia ['owcr I,casin.u Progl ilnl I hat the Rcdc~clopment Agenc.~: 1. ~\ppro',e and authorize tbc Execntive Director to execute the standard Lease A. grecmcnt, mcm{~riali/ing lease terms as contained in tile above report: and 2, ,\ulborize the expenditure o1'$16.500 lbr tenant improvements frmn Ihc Caliti~rnia l'owcr Ih'lllL'ssi~nl,iI Serx ices Nmnber 2830831-421000: and \nthorize the pa_~ment of commissions as outlined abme.