09-13-2021 BPU RPT 08 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: SEPTEMBER 13, 2021 SUBJECT: SEVENTH AMENDMENT TO LEASE AGREEMENT WITH WELLS FARGO BANK, NATIONAL ASSOCIATION MISSION SQUARE OFFICE BUILDING, 3750 UNIVERSITY AVENUE, SUITE 150 FIVE YEAR TERM FOR $1,329,473.40 IN REVENUE ISSUE: Consider recommending that the City Council approve a Seventh Amendment to Lease Agreement to extend the lease for an additional five-year term between Wells Fargo Bank, National Association and the City of Riverside for approximately 7,766 square feet of rentable space in the Mission Square Office Building located at 3750 University Avenue, Suite 150. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: 1. Approve the Seventh Amendment to the Lease Agreement with Wells Fargo Bank, National Association to extend the Lease Agreement for an additional five-year term from August 1, 2022 through July 31, 2027; and 2. Authorize the City Manager, or his designee, to execute the Seventh Lease Amendment, 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 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 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) for a five-year term to provide broker leasing services for the Property. On January 5, 2021, the City Council approved a First Amendment to California Exclusive Authorization of Lease Agreement with Newmark of Southern California, Inc., dba Newmark Knight Frank (NKF) which extended the Agreement through December 31, 2025. 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.