01-13-2020 BPU RPT 06 - Laserfiche WebLink

Home

W A T E R ENERGY I LIFE RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I I I i I F S BOARD OF PUBLIC UTILITIES DATE: JANUARY 13, 2020 ITEM NO: 6 SUBJECT: LEASE AGREEMENT WITH FEHR & PEERS, A CALIFORNIA CORPORATION FOR MISSION SQUARE OFFICE BUILDING, 3750 UNIVERSITY AVENUE, SUITE 225 FOR A FIVE-YEAR TERM GENERATING AN ETIMATED GROSS REVENUE IN THE AMOUNT OF $231,307 WITH ONE OPTIONAL FIVE YEAR EXTENSION ISSUE: Recommend that the City Council approve a Lease Agreement with Fehr & Peers, a California corporation, for a five-year term, with one five-year option to extend, for approximately 1,938 square feet of rentable office space in the Mission Square Office Building located at 3750 University Avenue, Suite 225, to generate an estimated gross revenue in the amount of $231,307. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the Lease Agreement with Fehr & Peers, a California corporation, for a five-year term, with one five-year option to extend, for approximately 1,938 square feet of rentable office space in the Mission Square Office Building located at 3750 University Avenue, Suite 225 to generate an estimated gross revenue in the amount of $231,307; and 2. Authorize the City Manager, or designee, to execute the five-year Lease Agreement, including the optional five-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.