01-24-2022 BPU RPT 05 - Laserfiche WebLink

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RIVERSIDE PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: JANUARY 24, 2022 SUBJECT: MISSION SQUARE FISCAL YEAR 2020/21 YEAR-END UPDATE ISSUE: Consider receiving an update on the Mission Square Fiscal Year 2020/21 year-end operations. RECOMMENDATION: That the Board of Public Utilities receive and file an update on the Mission Square Fiscal Year 2020/21 year-end. 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 rentable office and retail space in a six-story building, plus a basement level and a 461-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: On June 30, 2021, RPU recorded $2,378,689.91 in revenue and $1,828,605.47 in expenditures with a cash balance of $1,268,227.97. Revenue was within 8% of estimated budget. Expenditures were approximately 24% lower than estimated, which is a direct result of decreased operating costs due to the Statewide stay at home orders. As of June 30, 2021, the current occupancy rate at the Property is 98.9%. STRATEGIC PLAN ALIGNMENT: This item contributes to the Strategic Priority No. 5 High Performing Government and Goal No. 5.4 - achieve and maintain financial health by addressing gaps between revenues and