08-27-2018 BPU RPT 13 - Laserfiche WebLink

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WATER I ENERGY I LIF E RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBI1G U7TIrTIF$ BOARD OF PUBLIC UTILITIES DATE: AUGUST 27, 2018 ITEM NO: 13 SUBJECT: COMMERCIAL MULTI -TENANT LEASE -TRIPLE NET — MISSION SQUARE WITH SWEET TRIO INCORPORATED DBA THE DONUT BAR — 3750 UNIVERSITY, SUITE 175, FOR A TEN-YEAR TERM WITH TWO FIVE YEAR OPTIONS TO EXTEND — IN THE TEN YEAR AMOUNT OF APPROXIMATELY $705,477.60 AND THE GUARANTY OF LEASE WITH GIL RUBALCABA FOR THE FULL OBLIGATIONS UNDER THE LEASE ISSUE: Recommend that the City Council approve a Commercial Multi -Tenant Lease -Triple Net Agreement to lease Mission Square to Sweet Trio Incorporated dba The Donut Bar of Corona, California, for a ten-year term with two options for five-year extensions, for approximately 2,292 square feet of rentable space located at 3750 University Avenue, Suite 175, in the ten year amount of approximately $705,477.60; and the Guaranty of Lease with Gil Rubalcaba for the full performance of the obligations under the Lease. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve the Commercial Multi -Tenant Lease -Triple Net Agreement to lease Mission Square to Sweet Trio Incorporated dba The Donut Bar, for a ten-year term with two options for five-year extensions and Franchise Addendum, for approximately 2,292 square feet of rentable space located at 3750 University Avenue, Suite 175; 2. Approve the Guaranty of Lease with Gil Rubalcaba for the full performance of the obligations under the Lease; and 3. Authorize the City Manager, or his designee, to execute the Commercial Multi -Tenant Lease -Triple Net Agreement including the two optional five-year extensions and Franchise Addendum, with Sweet Trio Incorporated dba The Donut Bar, and the Guaranty of Lease with Gil Rubalcaba, 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 490 parking stall garage situated on approximately 2.5 acres of land. Page 254