12-14-2020 BPU RPT 14 - Laserfiche WebLink

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W A T E R ENERGY I LIFE RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B I I C U I I I I I I F S BOARD OF PUBLIC UTILITIES DATE: DECEMBER 14, 2020 ITEM NO: 14 SUBJECT: MISSION SQUARE BUILDING OPERATIONAL REPORT FOR FISCAL YEAR 2019/20 ISSUE: Receive an update on the Mission Square Building Operations for Fiscal Year 2019/20. RECOMMENDATION: That the Board of Public Utilities receive and file an update on the Mission Square Building Operations for Fiscal Year 2019/20. 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 Class A rentable office and retail space in a six -story building, plus a basement level and a 490 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. DISCUSSION: At June 30, 2020, RPU recorded $2,258,114.97 in revenue and $2,034,556.70 in expenditures with a cash balance of $1,141,767.09. Revenue was within 1% of estimated budget, despite the COVID-19 pandemic which resulted in a statewide stay at home order from March 19, 2020 through May 8, 2020 when the order was modified, moving the State into Stage 2. Expenditures were approximately 7% higher than estimated. This is a direct result of increased costs related to the parking garage improvements, including restriping, new signage and structural concrete repairs. The current occupancy rate at the Property is 98.9%.