06-08-2020 BPU RPT 10 - Laserfiche WebLink

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W A T E R ENERGY I LIFE RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B 1 1 C U I i i i r I I BOARD OF PUBLIC UTILITIES DATE: JUNE 8, 2020 ITEM NO: 10 SUBJECT: FIRST AMENDMENT TO COMMERCIAL MULTI -TENANT LEASE — TRIPLE NET MISSION SQUARE WITH THE IG GROUP, LLC DBA SLATERS 50/50 — 3750 UNIVERSITY AVENUE, SUITE 125, FOR APPROXIMATELY 5,982 SQUARE FEET OF RENTABLE SPACE ISSUE: Recommend that the City Council approve the First Amendment to Commercial Multi -Tenant Lease — Triple Net Mission Square with The IG Group, LLC dba Slaters 50/50, for approximately 5,982 square feet of rentable space located at 3750 University Avenue, Suite 125. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the First Amendment to Commercial Multi -Tenant Lease — Triple Net Mission Square with The IG Group, LLC dba Slaters 50/50 for approximately 5,982 square feet of rentable space located at 3750 University Avenue, Suite 125; and 2. Authorize the City Manager, or designee, to execute the First Amendment to Commercial Multi - Tenant Lease — Triple Net Mission Square with The IG Group, LLC dba Slaters 50/50, 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 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 476 -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 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. On June 26, 2018, the City Council approved a Lease agreement with The IG Group, LLC dba Slaters 50/50 (Tenant) for a ten-year term with two (2) five-year extension options with an effective date of July 2, 2018 (Agreement). The Date of Delivery of Possession is August 22, 2018. Pursuant to the Agreement, the Tenant had nine (9) months to perform its due diligence necessary to obtain City permits to be open for business or to cancel the Lease. Rent payments were set to commence on May 22, 2019 and the