01-22-2016 BPU RPT 11 - Laserfiche WebLink

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W A T E R I E N E R G Y I L I F E I RIVERSIDE PUBLIC UTILITIES WON Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: JANUARY 22, 2016 ITEM NO: 11 File ID — 16 -0198 — C SUBJECT: APPROVAL OF FIFTH AMENDMENT TO LEASE AGREEMENT BETWEEN SUBWAY REAL ESTATE, LLC AND THE CITY OF RIVERSIDE — MISSION SQUARE OFFICE COMPLEX FOR $264,600 IN REVENUE FOR FIVE YEAR BASE PERIOD ISSUE: The issue for Board of Public Utilities consideration is approval of a Fifth Amendment to Lease Agreement between Subway Real Estate, LLC and the City of Riverside for 1,200 square feet of rentable space in the Mission Square Building located at 3750 University Avenue, Suite 100. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the Fifth Amendment to Lease with Subway Real Estate, LLC (Attachment 1); and 2. Authorize the City Manager, or his designee, to execute the Lease, including making minor, non - substantive changes, and to sign all documents and instruments necessary to complete the transaction. BACKGROUND: The Mission Square building consists of approximately 127,533 square feet of rentable office space in a six -story building plus a basement level and a 489 parking stall garage situated on approximately 2.5 acres of land (Property). On June 23, 2015, City Council approved the purchase of the Property from NNN Mission Square, LLC and the City of Riverside funded by Riverside Public Utilities (RPU) acquired the Property on October 13, 2015. While the City was in escrow to purchase the Property the lease for Subway Real Estate, LLC (Lessee) expired on September 30, 2015, and the Lessee exercised its option to renew the lease. The previous owner of the building approved the lease but was unable to execute it before the sale of the Property. The Lessee originally entered into a lease agreement with Mission Square Partnership on June 22, 1995, and had continually exercised their option to renew their lease of approximately 1,200 square feet of space designated as Suite 100, located on the Property. Staff has reviewed the Fifth Amendment to Lease and is in agreement with the lease terms that are summarized below: • Term: October 1, 2015 — September 30, 2020 • Premises: Approximately 1,200 rentable square feet of space located at 3750 University Avenue, Suite 100.