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WATER I ENERGY I LIF E <br />Ma% RIVERSIDE PUBLIC UTILITIES <br />WI& Board Memorandum <br />PURt.IC UTIl I T I E 5 <br />BOARD OF PUBLIC UTILITIES DATE: JANUARY 25, 2021 <br />SUBJECT: SECOND AMENDMENT TO THE PROPERTY MANAGEMENT AGREEMENT <br />WITH G&E REAL ESTATE MANAGEMENT SERVICES, INC. DOING BUSINESS <br />AS NEWMARK KNIGHT FRANK, TO EXERCISE A FIVE-YEAR OPTION TO <br />RENEW THE PROPERTY MANAGEMENT SERVICES AGREEMENT FOR THE <br />MISSION SQUARE OFFICE BUILDING LOCATED AT 3750 UNIVERSITY <br />AVENUE FOR APPROXIMATELY $433,000 OVER THE FIVE-YEAR TERM <br />ISSUE: <br />Consider a recommendation to the City Council for approval of a Second Amendment to Property <br />Management Agreement with G&E Real Estate Management Services, Inc., doing business as <br />Newmark Knight Frank, to exercise a five-year option to renew the Property Management Services <br />Agreement for the Mission Square Office Building located at 3750 University Avenue for <br />approximately $433,000 over the five-year term. <br />RECOMMENDATIONS: <br />That the Board of Public Utilities recommend that the City Council: <br />1. Approve the Second Amendment to the Property Management Agreement with G&E Real <br />Estate Management Services, Inc., doing business as Newmark Knight Frank to exercise a <br />five-year option to renew the Property Management Services Agreement for the Mission <br />Square Office Building located at 3750 University Avenue for approximately $433,000 over <br />the five-year term; and <br />2. Authorize the City Manager, or his designee, to execute the Second Amendment to the <br />Property Management Agreement, including making minor, non -substantive changes, and <br />to sign all documents and instruments necessary to complete the transaction. <br />BACKGROUND: <br />On October 13, 2015, the City acquired the Mission Square Office Building at 3750 University <br />Avenue (Property), which was funded by Riverside Public Utilities (RPU). As such, RPU is the <br />Landlord of the Property. The Property consists of approximately 127,533 square feet of rentable <br />office and retail space in a six -story building, plus a basement level and a 490 -stall parking garage <br />situated on approximately 2.5 acres of land. <br />On January 26, 2016, the City Council approved an Exclusive Authorization of Lease Agreement <br />with Newmark of Southern California, Inc. dba Newmark Knight Frank (NKF) to provide broker <br />leasing services for the Property. RPU staff has been coordinating the leasing process for the <br />