01-23-2017 BPU RPT 06 - Laserfiche WebLink

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W A I= R h N h R L Y I. l F F -- RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: JANUARY 23, 2017 ITEM NO: 6 SUBJECT: FIFTH AMENDMENT TO LEASE WITH MISSION SQUARE (RAINCROSS HOSPITALITY CORPORATION DBA RIVERSIDE CONVENTION & VISTORS BUREAU — MISSION SQUARE OFFICE BUILDING, 3750 UNIVERSITY AVENUE, SUITE 175 — THREE YEAR TERM FOR $227,662 IN REVENUE ISSUE: Recommend the City Council approve a Fifth Amendment to Lease for an additional three years with Raincross Hospitality Corporation dba Riverside Convention & Visitors Bureau, of Riverside, California for approximately 2,292 square feet of rentable space in the Mission Square Office Building located at 3750 University Avenue, Suite 175. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve the Fifth Amendment to Lease with Raincross Hospitality Corporation dba Riverside Convention & Visitors Bureau; and 2. Authorize the City Manager, or his designee, to execute the Fifth Amendment to Lease, including making minor, non -substantive changes, and to sign all documents and instruments necessary to complete the transaction. BACKGROUND: On October 13, 2015, the City acquired the Mission Square Office Building at 3750 University Avenue (Property), which was funded by Riverside Public Utilities (RPU). As such, RPU is now the landlord of the Property. The Property consists of approximately 127,533 square feet of rentable office and retail space in a six -story building, plus a basement level and a 489 parking stall garage situated on approximately 2.5 acres of land. On January 26, 2016, the City Council approved an Exclusive Authorization of Lease Agreement with Newmark of Southern California, Inc. dba Newmark Grubb Knight Frank (NGKF) to provide broker leasing services for the Property. RPU staff has been coordinating the leasing process for the Property with the Real Property Services Division of the Community & Economic Development Department and NGKF as the broker for the Property. DISCUSSION: Raincross Hospitality Corporation has been a tenant in the Property since 2001 when it was initially operating as Entrepreneurial Hospitality Corporation, which was subsequently merged into Raincross Hospitality Corporation (RHC). The existing lease with RHC expires on February 28, 2017.