09-09-2019 BPU RPT 05 - Laserfiche WebLink

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5 A 7 E R I E N E R G Y I L I F E RIVERSIDE PUBLIC UTILITIES Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: SEPTEMBER 9, 2019 ITEM NO: 5 SUBJECT: LEASE AGREEMENT WITH DAVID D.L. HORTON, ESQ. AND ASSOCIATES, A PROFESSIONAL CORPORATION, IN MISSION SQUARE OFFICE BUILDING, 3750 UNIVERSITY AVENUE, SUITE 560 FOR A THREE-YEAR TERM GENERATING $149,500 IN REVENUE WITH AN OPTION TO EXTEND FOR ONE ADDITIONAL THREE-YEAR EXTENSION ISSUE: Recommend that the City Council approve a Lease Agreement with David D.L. Horton, Esq. and Associates, a professional corporation of Riverside, California, for approximately 1,521 square feet of rentable office space in the Mission Square Office Building located at 3750 University Avenue, Suite 560 for a three-year term generating revenue in the amount of $149,500 with an option to extend for one (1) additional three-year period. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the Lease Agreement with David D.L. Horton, Esq. and Associates, a professional corporation of Riverside, California, for approximately 1,521 square feet of rentable office space in the Mission Square Office Building located at 3750 University Avenue, Suite 560 for a three-year term generating revenue in the amount of $149,500 with an option to extend for one additional three- year period; and 2. Authorize the City Manager, or designee, to execute the three-year Lease Agreement, including the optional three-year extension, if exercised, along with 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 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.