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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIESDATE: JANUARY 22, 2018 ITEM NO: 6 SUBJECT:SIXTH AMENDMENT TO THE LEASE AGREEMENT FOR MISSION SQUARE WITH RAINCROSS HOSPITALITY CORPORATION DBARIVERSIDE CONVENTION & VISITORS BUREAU –3750 UNIVERSITY, TO RELOCATE FROM SUITE175 TO SUITE 570AND A PORTION OF SUITE 560, FOR A FIVE-YEARTERM WITH ONE FIVE YEAR OPTION TO EXTEND -IN THE FIVE YEAR AMOUNT OF $714,387.52 ISSUE: Recommend that the City Council approve a Sixth Amendment tothe Lease Agreement for Mission Square with Raincross Hospitality Corporation dbaRaincross Convention & Visitors Bureau, of Riverside, California, to relocate from Suite 175 to Suite 570 and a portion of Suite 560, for a five-year term with oneoption forafive-year extension, for approximately 4,488square feet of rentable space located at 3750 University Avenue, Suite 570, in the five year amount of $714,387.52 RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1.Approve a Sixth Amendment to the Lease Agreement for Mission Square with Raincross Hospitality Corporation doing business as Raincross Convention & Visitors Bureau,for a five-year term with oneoption forafive-year extension, for approximately 4,488square feet of rentable space located at 3750 University Avenue, Suite 570; and 2.Authorize the City manager, or his designee, to execute the Sixth Amendment to Lease Agreement and the oneoptional five-year extension, with Raincross Hospitality Corporation doing business as Raincross Convention & Visitors Bureau, 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 nowthe 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 490parking stall garagesituated 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. Page 26