08-12-2019 BPU RPT 07 - Laserfiche WebLink

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W A E R I E N E R G Y i L I f F RIVERSIDE PUBLIC UTILITIES WI& Board Memorandum PUN IC U f t I I`TtF$ BOARD OF PUBLIC UTILITIES DATE: AUGUST 12, 2019 ITEM NO: 7 SUBJECT: LEASE AGREEMENT WITH GREENBERG & GREENBERG, A PROFESIONAL LAW CORPORATION — MISSION SQUARE OFFICE BUILDING, 3750 UNIVERSITY AVENUE, SUITE 550 & 560 — TEN-YEAR TERM FOR $1,184,117.88 IN REVENUE ISSUE: Recommend that the City Council approve a Lease Agreement with Greenberg & Greenberg, A Professional Law Corporation of Riverside, California for approximately 3,188 square feet of rentable space in the Mission Square Office Building located at 3750 University Avenue, Suites 550 & 560 for a ten-year for revenue in the amount of $1,184,117.88. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the Lease Agreement (Attachment 1) with Greenberg & Greenberg, A Professional Law Corporation for approximately 3,188 square feet of rentable space in the Mission Square Office Building located at 3750 University Avenue, Suites 550 & 560 for a ten-year for revenue in the amount of $1,184,117.88; 2. Authorize the City Manager, or his designee, to execute the Lease Agreement, including one optional five-year extension along with making minor, non -substantive changes, and to sign all documents and instruments necessary to complete the transaction; and 3. Authorize the City Manager, or his designee to waive the holdover rent from January 1, 2019 through the new Lease execution date, which currently totals an amount of $14,416.20 as of June 30, 2019. 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 125,020 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, currently known as Newmark Knight Frank (NKF), 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 NKF as the broker for the Property.