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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIESDATE: SEPTEMBER 25, 2017 ITEM NO:8 SUBJECT:OPERATIONS UPDATE ON MISSION SQUARE PROPERTY LOCATED AT 3750 UNIVERSITY AVENUE ISSUES: Receive and file an update on operations at MissionSquare, 3750 University Avenue. RECOMMENDATION: That the Board of Public Utilitiesreceive an update on operations at Mission Square, 3750 University Avenue. 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 490parking 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. On January 26, 2016, the City Council approved a Property ManagementAgreement with G&E Real Estate Management Services, Inc. dba Newmark Grubb Knight Frank (NGKF) to provide property managementservices for the Property. RPU staff has been coordinating the property management process for the Property with the Real Property Services Division of the Community & Economic Development Department and NGKF as the building managerfor the Property. DISCUSSION: BUILDING OPERATIONS UPDATE LEASING The current occupancyrate at the Propertyis 83%. Below is a review of each suite and current tenantor leasing interest: 1.Suite M –The City Council has approved a lease agreement for the 1,000 rentable square foot Page 45